Waterway Family Funds Acquires 180,000-SF Class A Industrial Facility Near Cincinnati Airport

Waterway Family Funds has acquired a 180,000-square-foot Class A industrial facility in Florence, Kentucky, situated within Cincinnati's Airport Submarket, the firm announced in August 2026. The property is 100% leased to a global automotive technology supplier that has operated on the site for more than 30 years, specializing in the development and large-scale production of steering systems for passenger cars and commercial vehicles.

The acquisition is the firm's seventh project and expands Waterway Family Funds' total acquisition track record to more than 510,000 square feet of commercial and residential real estate across six states.

Property Details and Specifications

The facility sits on 11.06 acres and was built in 2017. Its specifications include 32-foot clear heights, ESFR fire protection, LED lighting, abundant loading capacity, and ample power capacity — features consistent with modern institutional-grade industrial assets. The property's location provides direct proximity to the Cincinnati/Northern Kentucky International Airport (CVG), offering efficient access to the region's transportation network and customer base.

JLL arranged $9 million in acquisition financing from Busey Bank for the transaction. The purchase price and cap rate were undisclosed. For context, the Greater Cincinnati industrial market recorded an average sale price of $79.17 per square foot and an average cap rate of 8.38% for industrial investments as of Q2 2026.

Tenant Profile and Investment Thesis

The property's single-tenant profile is anchored by more than three decades of continuous manufacturing operations on the site, tying the asset's income stream directly to the stability of the automotive steering supply chain in Northern Kentucky. The tenant's long operational tenure at the location reflects the region's established role as a hub for steering systems manufacturing near CVG.

"This acquisition fits squarely within Waterway's investment strategy," said Jeremy Pemberton, Chief Investment Officer of Waterway Family Funds. "The combination of a high-quality Class A asset, a long-term tenant and strong market fundamentals provide stable in-place income and an attractive risk-adjusted return."

Waterway Family Funds characterizes its investment approach as emphasizing capital preservation, current income generation, and long-term value creation. The firm and its affiliates have financed more than $20 billion of real estate transactions and acquired more than $16 billion of total real estate value since 2003.

Cincinnati Industrial Market Fundamentals

The acquisition comes as Cincinnati's industrial market continues to tighten. Overall availability in the market fell 100 basis points quarter-over-quarter to 5.6% in Q2 2026, while vacancy declined 60 basis points to 4.0%. Q2 leasing activity reached 7.4 million square feet during the quarter.

Trailing 12-month net absorption reached 7,020,785 square feet, up from 5.18 million square feet in the prior reporting period. Vacancy held at 4.54%, down from 4.86% in Q1 2026 and 5.38% in Q4 2025. NNN asking rents increased to $7.78 per square foot. Sale pricing rose from $77.18 per square foot in Q1 2026 to $79.17 per square foot in Q2 2026, while cap rates compressed slightly to 8.38%.

Cushman & Wakefield's Cincinnati Industrial Market Report for Q2 2026 also cited unemployment below national levels, population growth, record leasing activity, and relatively tight vacancy as factors supporting the market's continued strength.

About Waterway Family Funds

Waterway Family Funds sources and acquires commercial real estate across diverse asset classes and geographic locations. The firm's principals average more than 30 years of experience in commercial real estate. Waterway Family Funds is affiliated with Waterway Capital, a registered broker-dealer and member of FINRA/SEC.