Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of 3440 Evergreen Avenue in Jacksonville, Florida. The 115,500-square-foot industrial property is fully leased to KME America Marine Tube & Fitting. The asset consists of two buildings which were originally constructed in 1945 but have seen substantial renovations and additions in recent years. Stan Johnson Company’s Jimmy Ullrich and Michael J. Macchia represented the seller, a local private investor. An individual investor based in Los Angeles, California, Mr. Sunday Xu, acquired the asset for approximately $5.3 million reflecting a 7.72 percent cap rate.
“This sale was more than a sale – it was the culmination of a multi-generational family ownership of the property, first as the owner-user, and later as the owner-investor,” said Ullrich, Director in Stan Johnson Company’s New York office. “In an interesting turn of events, the winning bidder was a California investor who is an owner-user turned national real estate investor, so Mr. Xu was able to understand and work through some of the nuances of a 70-year-old family-owned property.”
Situated on nearly 5.0 acres, the property is located in a dynamic industrial submarket of Jacksonville that boasts an extremely low vacancy rate of only 2.6 percent. The site serves as one of eight global manufacturing and distribution facilities for the tenant which fabricates copper alloy pipes for the shipping and offshore industries. The company contracts with the U.S. Navy to provide supplies and parts for nuclear submarines and aircraft carriers. KME operates on a long-term triple net lease.
“Selling KME was a pleasure,” Ullrich added. “The property offered a great combination of lease term, market and property type. Therefore, we experienced a feeding frenzy of buyer activity. We received more than a dozen bids and six of them were at full asking price.”