Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has announced the sale of a single-tenant manufacturing facility fully leased to the Mack Trucks division of parent company, AB Volvo Group, which is one of the world’s leading manufacturers of trucks, buses, construction equipment, and marine and industrial engines. Located at 6450 Technology Drive in Salem, Virginia, the 280,900-square-foot property was marketed on behalf of ownership by Stan Johnson Company’s Rob Gemerchak, SIOR/CCIM. The seller was an individual investor based in Virginia, and a private equity partnership based in Buenos Aires, Argentina acquired the asset for $12.7 million.
“Despite the relatively short-term nature of the lease, Mack Trucks and Volvo’s significant capex commitment and long-term plans for the site created a compelling story which attracted strong interest from the national and international investment communities,” said Gemerchak, Director in Stan Johnson Company’s Toledo, Ohio office. “We also recognized, and promoted to investors, the excellent fit between the property’s capabilities and the tenant’s needs. The building’s robust and flexible infrastructure, combined with pad-ready-adjacent acreage on the site, will accommodate future changes in manufacturing processes as well as expansion.”
The mission-critical facility launched production in 2020 and serves as Mack Trucks’ only medium-duty assembly plant in the country. The facility, originally built in 1997 on 134 acres, is strategically located along Interstate 81 just west of Roanoke, Virginia, and it offers convenient access to Interstates 64 and 77 as well. The property is less than 50 miles from Volvo’s largest truck manufacturing facility in the world, located in Dublin, Virginia.