Jacksonville Industrial Portfolio Commands $49M
The three-building, 363,000-square-foot portfolio is located within the metro’s high-growth Northside submarket.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Link Logistics has sold a three-building, 363,694-square-foot industrial asset in Jacksonville, Fla., to Lincoln Property Co. for $48.9 million, according to records filed with Duval County.
The property last changed hands in August 2017, filings show, when Thackeray Partners — now part of Greystar — sold the buildings for $24.1 million to Colony Industrial. A little more than two years later, Blackstone — the parent company of Link Logistics — acquired Colony Industrial and its 60 million square feet of industrial assets for a reported $5.9 billion.
The three buildings on the industrial campus include:
A 99,853-square-foot structure at 13845 Alvarez Road
A 158,041-square-foot building at 13903 Alvarez Road
A 105,800-square-foot warehouse at 13949 Alvarez Road
What are the benefits of investing in an industrial portfolio in Jacksonville?
Investing in an industrial portfolio in Jacksonville can offer a number of benefits. The city is home to a major seaport, intermodal terminal, and freight railroad line, which can provide tenants with easy access to transportation corridors. Additionally, Jacksonville is home to a number of public infrastructure improvements that can improve access to and from the property. This can help drive value for investors. Finally, Jacksonville is a major metropolitan area, which can provide tenants with a cheaper option for renting small warehouses compared to renting one large space in a mega warehouse outside the city.
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What types of financing options are available for industrial portfolios in Jacksonville?
There are many types of financing options available for industrial portfolios in Jacksonville. Depending on the size of the portfolio, you may be able to get a loan for amounts ranging from $1,000,000 and up. To learn more about the loan options available to you, contact one of our advisors to get a quote at no charge.
For more information about industrial property loans, you can visit our Industrial Property Loans page. You can also speak with a commercial mortgage banker by contacting [email protected].
What are the risks associated with investing in an industrial portfolio in Jacksonville?
Investing in an industrial portfolio in Jacksonville carries the same risks as any other real estate investment. These include market risk, tenant risk, and financing risk. Market risk is the risk that the value of the property will decrease due to changes in the local market. Tenant risk is the risk that the tenant will not pay rent or will vacate the property. Financing risk is the risk that the loan terms will not be favorable or that the loan will not be approved.
In addition, investors should consider the specific risks associated with the Jacksonville market. According to a January 2022 report from CommercialEdge, industrial rents in Jacksonville have increased by 5.1% year-over-year, driven by surging demand for storage and distribution space. This could represent a significant barrier to entry for would-be investors. Additionally, the report notes that average sales prices on a per-square-foot basis have jumped nearly 30% from 2020 to 2021, which could also be a barrier to entry.
It is important to note that the gains have been largest in modern, Class A properties. While Class B and C assets have also increased in value, not all facilities are created equal. Therefore, investors should carefully consider the location, condition, and tenant mix of any industrial portfolio they are considering investing in.
What are the current market trends for industrial portfolios in Jacksonville?
The industrial market in Jacksonville is currently experiencing a surge in demand. According to a recent report from JLL, the market's vacancy rate fell to 4.2% in the first quarter of 2021, and rents were up 4.3% year-over-year. The report also noted that the market is seeing strong demand for modern distribution space, with nearly 8 million square feet of available properties under construction. Additionally, the report highlighted the city's proximity to major ports and its wide, accessible area as factors that are driving the market's growth.
For more information, you can read the full report from JLL here.
What are the tax implications of investing in an industrial portfolio in Jacksonville?
Investing in an industrial portfolio in Jacksonville could have a variety of tax implications. It is important to work with a qualified tax professional who understands the field and can help you understand the potential tax implications of your investment.
When considering an industrial investment, it is important to consider the location of the property. Factors such as proximity to highways, public infrastructure improvements, and access to transportation can all affect the value of the property. Additionally, investing in multiple small warehouses in a major metropolitan area could be a cheaper option for tenants compared to renting one large space in a mega warehouse outside of the city.
For more information on the potential tax implications of investing in an industrial portfolio in Jacksonville, it is best to consult with a qualified tax professional.
What are the best strategies for financing an industrial portfolio in Jacksonville?
The best strategies for financing an industrial portfolio in Jacksonville depend on the size of the portfolio and the type of financing you are looking for. For portfolios starting at $750,000, you may be able to access a wide range of loan products, including standard permanent financing, CMBS loans, bridge loans, mezzanine financing, and life company financing. For more information about what loan may be right for your situation, head to our portal and our advisors will connect you with a wide variety of lenders to get a quote at no charge.
All three structures were built in 2008, the county assessor shows. Tenants include Hearthside Food Solutions, correctional institution goods provider Union Supply Co., and golf cart part supplier Red Hawk.
Jacksonville’s Booming Northside
Industrial real estate in Florida’s largest city is performing extremely well. The market’s vacancy stood at 3.5% in the first quarter, the lowest point since 2018, according to a report from Avison Young. With compressing vacancy, rents have risen considerably, up 26% over the year to $5.54 per square foot through March.
Nowhere are these trends more apparent than on Jacksonville’s Northside submarket, home to LPC’s latest acquisition. Rents are a full $2 per square foot above the market average, and developers have kicked into high gear to take advantage of strong returns in the high-demand submarket. At the end of the first quarter, more than 4 million square feet was underway — which is more than two-thirds of the 5.9 million square feet under construction across the market. Absorption was strong within this part of the metro, with tenants snapping up space as soon as it hit the market.