Roth Capital buys Durham small-bay industrial property for $3.05 million

Roth Capital has acquired an 18,000-square-foot, fully occupied industrial property in the Raleigh-Durham market, adding to its growing North Carolina small-bay portfolio. The off-market deal underscores the firm’s strategy of targeting value-add assets in strong infill locations across the Carolinas.

Why it matters: - Roth Capital is continuing to build a small-bay industrial portfolio in North Carolina and South Carolina. - The Durham acquisition gives the firm another fully occupied asset in the Raleigh-Durham market, one of its key growth areas. - Roth Capital plans to push rents toward market levels over time, which could create value as leases renew.

What happened: - Roth Capital acquired an approximately 18,000-square-foot, 13-unit small-bay industrial property in the Raleigh-Durham market for $3.05 million. - The property was fully occupied at the time of purchase. - The deal was sourced off market through a repeat transaction partner. - The acquisition expands Roth Capital’s portfolio of small-bay industrial and flex properties across North Carolina and South Carolina.

The details: - The property sits in an infill location with demographic growth around it, according to Jim Kittridge, principal of Roth Capital. - The asset offers what Roth Capital views as a value-creation opportunity as existing rents move toward market. - Roth Capital targets commercial properties between $500,000 and $5 million. - The firm’s acquisition focus includes small-bay and multi-tenant industrial properties, flex buildings, contractor garages, warehouses, light industrial buildings, properties with outdoor storage, vacant or under-managed assets, and value-add retail and multi-tenant commercial properties. - Roth Capital focuses on below-market rents, vacancy, deferred maintenance, inefficient management and physical improvements as sources of long-term value. - The firm buys in both growing metropolitan areas and established secondary markets across North Carolina and South Carolina. - Financing for the acquisition came from Skyla Federal Credit Union. - Deane True and Nicole Sabido assisted with the transaction.

Between the lines: - Repeat relationships appear to be a meaningful source of deal flow for Roth Capital. - The property was brought directly to Roth Capital by a party the firm had previously completed a successful transaction with. - Kittridge said quick feedback, straightforward terms and certainty of execution help bring more opportunities directly to the firm. - The transaction fits Roth Capital’s preference for properties where active ownership can improve performance over time.

What's next: - Roth Capital plans to keep operating the property as a multi-tenant small-bay industrial asset. - The firm expects to raise rents gradually as leases expire and renew. - Roth Capital is still seeking industrial, warehouse, flex and small-bay properties throughout North Carolina and South Carolina. - The firm is open to both on-market and off-market opportunities, including assets with tenants, vacancy, deferred maintenance or other value-add traits. - Property owners, brokers and other commercial real estate professionals can contact Roth Capital directly about potential acquisitions. - Roth Capital says it has completed more than 200 acquisitions and sales since 2019. - The company’s broader property mix includes industrial, flex, retail, multifamily and other commercial assets across the Carolinas. - Media and acquisition inquiries can be directed to Roth Capital in Charlotte, North Carolina, and more information is available on Roth Capital’s LinkedIn page.