Home / Industry / Banking & Finance / Royal Oak acquires property in Florida

Royal Oak acquires property in Florida

Royal Oak Realty Trust Inc. recently made its 16th acquisition with a $4.65 million deal. It is also the Brighton firm’s first transaction in Florida.
The real estate investment trust closed March 10 on Delta Group Electronics Inc.’s manufacturing facility in Rockledge, Fla. Rockledge is located on the east coast, just south of Cape Canaveral and some 50 miles east of Orlando.

The acquisition increases Royal Oak’s portfolio to over 1.5 million square feet. The Royal Oak portfolio now has 16 buildings located in eight states: Florida, New York, Alabama, Georgia, Illinois, Michigan, Ohio and Wisconsin.

The Delta Group Electronics facility was constructed in 1986 and expanded in 2004 and 2014. The 44,177-square-foot building is situated on 3.77 acres.

The property is in good shape and fits with Royal Oak’s model of acquiring office and industrial properties, said Bruce Bender, Royal Oak’s vice president.

“It’s a nicely maintained property,” he said.

The building is used by Delta Group Electronics for electronics manufacturing and assembly. The company is a privately held electronics manufacturer of custom wiring harness, cable and electronic assemblies for the defense, aerospace, telecommunications and capital equipment industries.

Based in Albuquerque, N.M., Delta Group Electronics also has assembly operations in Arkansas, California and Texas.

The initial lease term is 12 years, with two five-year options to extend the term, Royal Oak leaders said.  The lease is an absolute net lease with the tenant responsible for all costs of operating and maintaining the facility including real property taxes, insurance, maintenance, repair and capital replacement costs.

The acquisition of the Delta Group Electronics’ facility further supports the Royal Oak model and business strategy to provide consistent income and portfolio diversification for its shareholders, said Mark Allen, Royal Oak’s vice president of investor relations.

Bender said Royal Oak would continue to pursue additional acquisitions throughout the year. This is the second acquisition in 2017 for Royal Oak.

In late January, the firm acquired property on Lucius Gordon Drive in Henrietta that is home to Hammer Packaging Corp. in a $7.1 million deal.
Royal Oak ranked 13th on the most recent Rochester Business Journal list of real estate developers based on local nonresidential square footage.
Royal Oak was formed, with its subsidiary, Royal Oak Realty Trust LLC, in 2013 and 2014 under the names Buckingham Net Leased Properties Group Inc. and Buckingham Net Leased Properties Group LLC.

The names were changed to Royal Oak in December 2015. Daniel Goldstein is the firm’s president and CEO.

3/24/2017 (c) 2017 Rochester Business Journal. To obtain permission to reprint this article, call 585-363-7269 or email madams@bridgetowermedia.com.

Leave a Reply

Your email address will not be published.


Check Also

YMCA President and CEO George Romell talks to Schottlands and others at construction site.

New Pittsford Y receives $3.5 million donation (access required)

  The YMCA of Greater Rochester has received a $3.5 million capital donation, the largest single donation in its 164-year ...


Former RARES CEO gets prison time for tax evasion (access required)

The former chief executive officer of the Regional Area Recreation and Employee Services, or RARES, has been sentenced to five ...