Northmarq brokers owner/user sale of pre-existing freight facility to another freight user

MT. VERNON, Ill. (Sept. 3 2024) — Northmarq’s Charlotte Commercial Investment Sales team of Managing Director Amar Goli and Vice President Wyatt Groseclose successfully brokered the sale of a single-tenant industrial property leased to a global leader in the freight/truck terminal industry in Mount Vernon, Illinois. The truck terminal property features 12,555 sq. ft. and 24 docks.

Northmarq represented the seller, a private investor based in Oakland, California. The buyer was a Dayton, Ohio-based owner.

“We are seeing a lot of shifts in the freight/truck terminal space with larger users wanting to get more market share, and some tenants downsizing or doing merger and acquisition (M&A) deals,” said Goli. “We are happy to be in the middle of those situations and provide value on the real estate and facilities side. We can work with surplus properties that companies may be vacating and bring owner/users to the table, and we can also work with owner/user tenants to find existing terminals. Of course, an investment freight or terminal facility that is already leased is something that we focus on. We work with most of the active investors for those types of properties.”

Originally a build-to-suit in 1999, the industrial freight property was customized to fit the global tenant’s needs for its target markets. The facility boasts an excellent location just off Interstate Highways 57 and 64 and proximity to primary and tertiary Midwest markets. This was a main reason why so many competitors and owner/users found the site to be highly desirable and willing to pay above the asking price. Not only does it save owners/users time and money to acquire an existing facility, but they are also able to gain the market share in that region.

“Due to the high replacement costs for freight and terminal facilities such as this one, in addition to our relationships with local and national tenants, we are able to transact both leased and vacant/surplus properties well above list price, and also well below replacement cost for the tenant,” Goli added.

“As nationally recognized leaders in the industrial space, and specifically in the 3PL logistics and distribution sectors, we have thorough data and comparables for these facilities, as well as strong relationships with the tenants and developers, which gives us a competitive advantage in the space,” Goli continued. “We just took out another freight facility leased to a global logistics leader, where instead of selling it vacant, we were able to secure an early lease extension for 10 years with the tenant. We have had multiple offers at or above asking price within the first two weeks of the property being on market and will pick a well-qualified investor in the near future.”