The Jacksonville distribution center through which Coach Inc. ships everything its sells in North America has been bought by a Boston investor in a record-setting deal.
Cushman & Wakefield brokered the sale of the property near Jacksonville International Airport to Intercontinental Real Estate Corp., which paid $90.5 million — making it the largest non-portfolio industrial sale in the area since 2013
The 851,696-square-foot property went for $106 per square foot.
There was “significant interest” in the property, Cushman & Wakefield Executive Director Mike Davis told the Business Journal, with 10 offers getting narrowed down to three finalists.
“Selecting the buyer was a difficult decision,” he said.
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Coach (NYSE: COH) has used Jacksonville as its major North American distribution hub since the ‘90s, with its activity here bolstered by the 2005 arrival of Mitsui O.S.K. Lines Ltd., the parent company of terminal operator TraPac.
The New York City-based handbag and accessories maker has 13 years left on its lease, although Davis wouldn’t discuss details of the term.
The property went on the market about four or five months ago, with it taking about 60 days to settle on a buyer and another 60 to close.
“There’s just an incredible amount of capital worldwide that’s chasing cash flow yield,” Davis said. “This property certainly provides that — it’s a long term net lease with a marquee company.”
The center on 1 Coach Way was built in 1994, according to county records. Located on a 47.02-acre site, the property includes about 50,000 square feet of two story office space and a taxable value of $18.8 million.
The property is located inside the Jacksonville International Tradeport, also home to tenants and building owners such as Mercedes-Benz, Ecolab, and Corys Thunder.
Written by: Timothy Gibbons Editor in Chief- Jacksonville Business Journal