PREP Funds and Industrial Realty Group Acquire Dayton Industrial Site, Launch Dayton Commerce Center Redevelopment
DAYTON, Ohio — PREP Funds and Industrial Realty Group (IRG) have jointly acquired a 160,000-square-foot industrial complex at 5870 Poe Avenue in Dayton, Ohio, the firms announced June 29. The partners plan to redevelop the property — to be rebranded as Dayton Commerce Center — into a facility targeting advanced manufacturing, modern logistics, and corporate operations.
Financial terms of the acquisition were not disclosed.
Property Details and Planned Upgrades
The 11.5-acre site consists of two buildings. The main structure spans 155,000 square feet and includes 40,000 square feet of modernized office space, six dock doors, four drive-in doors, and heavy crane infrastructure rated up to 15 tons. A secondary standalone building adds 5,000 square feet, with its own 15-ton crane, a drive-in door, and approximately 1,000 square feet of dedicated office space.
Both structures feature 18-foot clear ceiling heights and 3-phase/480-volt power systems. The property carries OSI-2 zoning, which the firms say supports advanced manufacturing, warehousing, freight handling, and research laboratory uses.
Construction upgrades are slated to begin immediately. IRG and PREP Funds said they will offer prospective tenants customized buildout packages, loading configurations, and tailored office layouts. The ownership team is actively marketing the space for lease.
The site sits directly along Interstate 75, approximately two miles from Interstate 70 and seven miles from Dayton International Airport.
Joint Venture Strategy
"This acquisition is a textbook example of what our joint venture with IRG is designed to accomplish: identify underutilized assets and move swiftly to unlock their value," said Chris Salata, Partner at PREP Funds. "We are excited to expand our holdings in the Dayton industrial market, and we believe that through the Dayton Commerce Center acquisition, we will be able to meet tenants' needs with a revitalized solution far faster than ground-up construction could deliver."
Peter Goffstein, Executive Vice President at IRG, highlighted the property's existing infrastructure as a key driver of the acquisition. "The property boasts heavy-duty crane infrastructure and robust power capacity that are incredibly expensive to replicate today," Goffstein said. "As we further expand our holdings in and around Dayton, we aim to cultivate economic opportunity in the Dayton area community, enhance the site, and give incoming tenants a distinct operational edge in the Midwest."
With the addition of Dayton Commerce Center, IRG and PREP Funds say their combined holdings in Southwest Ohio now total 7.2 million square feet.
PREP Funds' Value-Add Platform
Founded in 2020, PREP Funds focuses on acquisition and development strategies across healthcare, industrial, and retail sectors. The firm manages a $100 million value-add opportunities fund that targets industrial and retail redevelopment projects. The Dayton transaction aligns with that fund's stated mandate of transforming existing properties to enhance value and functionality.
The Dayton Commerce Center deal is not the first time PREP Funds and IRG have partnered on an adaptive reuse project. The firms previously announced the redevelopment of the Washington Crown Center mall near Pittsburgh into Franklin Crossroads Park, a mixed-use project converting approximately 450,000 square feet into corporate, industrial, research and development, and retail space.
About the Firms
Industrial Realty Group is a nationwide real estate development and investment firm specializing in the acquisition, development, and management of commercial and industrial real estate. Through its affiliated partnerships and limited liability companies, IRG operates a portfolio of more than 150 properties across 31 states, totaling over 100 million square feet of rentable space. The firm is recognized for its work in the adaptive reuse of commercial and industrial real estate.
PREP Funds is a commercial real estate fund management and advisory firm. In addition to its industrial and retail redevelopment focus, the firm invests across healthcare real estate and other sectors with what it describes as durable fundamental tailwinds.
Leasing inquiries for Dayton Commerce Center may be directed to Kohl Kirkland, Vice President of Acquisitions at PREP Funds, at kkirkland@prepfunds.net or (937) 489-0135.
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