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Jericho-based Sanders Equities has acquired a two-building industrial portfolio in Savannah, Ga. for about $33 million. 

The sale includes a 125,400-square-foot building on 8 acres at 250 Jimmy Deloach Parkway and a 180,000-square-foot building on 17 acres at 232 Bourne Blvd. 

Both properties are located in close proximity to the Port of Savannah and the Savannah/Hilton Head International Airport. They are fully occupied by single tenants, with Port City Logistics in the smaller building and Cargoways LLC in the larger building. The lease terms, in which the buyer says the tenants have rents that are 30 percent below the current market, are set to expire in less than four years. 

The sale price equates to a 6 percent cap rate. 

“Savannah can serve surrounding markets and has been attractive to investors but also has a much lower cost basis than we are used to on Long Island,” said Jordan Sanders, president of Sanders Equities. “The current below market rent allowed us to buy at an attractive basis and because we have very patient capital, we can wait to bring the properties to market without being overly concerned with hitting certain return thresholds.” 

Sanders said the Port of Savannah is experiencing significant growth. A $2.5 billion expansion plan is nearing completion to accommodate the port’s projection to double its Twenty-Foot Equivalent Unit throughput to 8 million by 2030. 

“We viewed this as a tremendous opportunity for our business to capture a moment in time where quality assets were available due to a challenging interest rate environment and investors who have high costs of capital were sitting on the sideline,” he said. “We believe these assets will continue to grow in value over the long term. We remain dedicated and focused on Long Island but look at this expansion into the Southeast as smart diversification and strategic growth for our company.”