Why Are Investors Buying Commercial Real Estate in Northeast Florida?

By: Tyler Saldutti on November 02, 2016 | comment(s)

Our customers come from all over the United States, South America, Canada, The United Kingdom, Germany, Australia, China, and Israel. But they all have two things in common. They like owning commercial real estate. And they can invest in property almost anywhere in the world.


So why are they buying office, industrial, retail and multifamily investment property in Jacksonville and the surrounding areas?


1. Stability. The political stability and general safety of the region. They know that a Jacksonville property is safe and their investment is safe.


2. Value. More bang for your buck. They are getting much more property per dollar invested here compared to other developed markets.


3. Proven Market. Jacksonville is an established real estate market with a long track record of growth. There is an established market for all property types; office, industrial, retail and multifamily.


4. Value Add Opportunity. There is room for innovation and improvement. You can find a C property in an A location and turn it into a B asset. “Build it and they will come”. For example: TPC in Ponte Vedra, The St Johns Town Center, and 220 Riverside.


5. No State Income Tax. A savings of up to 13%.


6. Diverse Economy. We are not just tourism. There is a diversified economic ecosystem; including, world class healthcare (Mayo Clinic and Baptist Health), higher education (UNF, Jacksonville University, and UF Shands), the United States Navy, banking, insurance, and manufacturing.


7. Growth. People and businesses are moving to Florida. Other cities are congested and Jacksonville's infrastructure is ready to welcome much more growth. As cities to the south and north of us fill up, growth continues to be pushed into Jacksonville. And Jacksonville is ready for it. The rail system, road system, internet infrastructure, port system and water/sewer/power supply is in place.


To learn more how we can make your goals happened here in Jacksonville please contact one of our experts

5 Reasons Why A Tenant Needs Professional Representation

By: Tyler Saldutti on October 20, 2016 | comment(s)

Hiring a Tenant Representation Broker makes a world of difference when leasing an office. You need someone to guide you through the detailed process from A-Z and help you assemble a team of experts who will fulfill specific needs. Hiring a professional should be the easiest choice you face throughout the whole process.

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Prime Realty’s Eric Bumgarner and Joseph M. Turri Close on 53,000 SF Warehouse

By: Tyler Saldutti on September 30, 2016 | comment(s)

A company that recycles used electronics will be creating 30 jobs over the next two years in Northwest Jacksonville after buying a 53,000-square-foot warehouse in Northwest Jacksonville at 3722 Bright Ave.
The company, E-Tech Management USA Inc, collects precious metals from used electronics and then ships them around the world, said Prime Realty broker Eric Bumgarner, who brokered the transaction between E-Tech Management and seller Antonio Estevez.

Bumgarner said the property was in complete disarray in 2014 when Estevez bought it for $150,000.
“The roof was shot, electric was ripped out, office was shot, plumbing had to be replaced and it was spray painted all over the place,” he said. “It was in about the worse condition possible.”
However, the property was still functional and Estevez used it for the past two years to run a business that refurbished printers to sell to overseas clients.
Bumgarner said that in January 2015 when he first took the assignment, Jacksonville’s industrial market was a little soft and “nothing like it is now.”
“I’d say the industrial market really started heating within the last 12 months, and once that happened we started getting a lot more interest in the property,” he said.
Benny Yeung, the owner of E-Tech Management USA, reached out to Bumgarner about another property, but the Prime Realty broker realized that Yeung’s business would work well in the Northwest warehouse. Eventually, buyer and seller agreed to a purchase price of $730,000.

Bumgarner said that Yeung, who wasn’t immediately available for comment, still got a good deal on the property as the sales price of $14 per square foot is still below what similar buildings offering the same functionality.
This building offers dock high access, outside storage, a rail spur and a 20-foot clear height. Bumgarner said buildings with similar functionality routinely are sold in the $25 per square foot range.
Also, Jacksonville wasn’t the only place that Yeung looked before deciding on 3722 Bright Ave. to buy. Yeung also looked in Savannah, but couldn’t find any property at a comparable price. Bumgarner said that some similar sized warehouses in that port city are being marketed at much higher prices.
Also, Jacksonville provided other strategic advantages, he said.
• Available workforce
• Jax Port
• Cost of living
• Quality of life
• Cost of real estate
• Strategically located to reach a large portion of the US population by truck in a short amount of time

After about a month of him examining the Savannah market he made his mind up on Jacksonville, Bumgarner said.

Derek Gilliam
Reporter - Jacksonville Business Journal

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