BIRMINGHAM, AL-After 15 years of ownership, a New Jersey partnership has sold its last area property, the 312,398-sf Airport Highway Park, to a New England buyer. The 100%-leased industrial complex has traded for $10 million.
According to David Karson, director at Sonnenblick Goldman in New York City, Grand Birmingham Associates LP wanted out of the property at 500-614 35th St. North, as well as out of the market, for geographical reasons. "He's sold out of areas that are farther than a couple hours' drive from his house," says Karson, whose company advised on the transaction.
While 10 bona fide offers came across the table during the marketing process, Mill Management in Greenwich, CT, a private investment company, ended up with the complex because of its ability to close. "The property was a cash cow for Grand Birmingham and Mill will continue operating the property in that fashion," Karson tells GlobeSt.com. "This complex offers a low-cost option for users in the Southeast region and has great access for any companies involved with distribution product."
Karson points out that the new owner has another advantage, which is that, due to rising land prices in Birmingham, little or no new supply is anticipated to come on line. With the market at 90% occupancy, a strong upside potential exists, Karson adds.
The six-building Airport Highway Park is situated on 34 acres. It was developed by US Steel Corp. between 1970 and 1981. Major tenants include the US Postal Service, Athens Paper and Loomis, Fargo & Co. Jack Key with Graham and Co. in Birmingham also assisted the seller while the buyer was self-represented.
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