Marketed process from a non-institutional, merchant developer valuing surety of close over last dollar, allowing NorthBridge to secure the transaction despite higher offers.
Property Description
Three functional, shallow-bay, multi-tenant infill assets featuring 26’ clear heights, 3 per 6,000 SF loading ratio, institutional-sized truck courts, dock aprons and highly attractive 120’ bay depth.
Varying vacant suite sizes (18K SF in Building 100, 48K SF in Building 200, and 30K SF in Building 300) allowing NB to cater to any size range sub-50K SF.
Investment Thesis
Class A, multi-tenant, shallow bay product is challenging to buy in location and NB believes it acquired these assets at a discount to where “build-to-core” should have been priced.
Despite being new construction, NB believes the Purchase Price is below replacement cost given the increase in construction costs seen since the seller originally locked in their GMP contract.
Once leased the initial return on cost would provide an attractive spread above Class A cap rates in Jacksonville, FL.
