X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MCCRORY, AR-As part of an ongoing effort to increase efficiency and cut costs in its supply chain, American Greetings Corp. is looking to unload a 770,000-sf distribution facility in McCrory. The world’s largest publicly held greeting cards operation has consolidated the McCory plant’s operations into its 2.6 million-sf facility in Osceola, AR, and its 1.4 million-sf facility in Danville, KY.

Wanting to dispose of the surplus property quickly, the Cleveland-based company is offering up the distribution facility at below market rates, says the broker with the disposition assignment, J. Holmes Davis of Dallas-based Binswanger/CBB.

Sitting on 160 acres on Route 2, the building has insulated metal panel walls, reinforced concrete floors, 24 dock-high doors and ceiling heights to 32′ clear. Some 12,000 sf of the building is built out as air-conditioned office space with a reception area, six private offices, a conference room, a cafeteria and a computer room. The asking price is $8 million, or about $12 per sf, says Davis.

“Someone would typically be asking $15 to $20 per sf for such a facility; we’re under market,” he says. “They don’t want to sit on it and they know demand for that much space is not strong.”

Davis says there is much more demand for buildings sized between 150,000 sf and 200,000 sf, so his hope is they can find an owner-user that doesn’t need all the space but still bites because the price is right and the excess space can be leased to someone else or held for expansion. If an owner-user can’t be found, Davis says the second option will be to secure a tenant for half the space and then flip it to investors.

“We don’t want to subdivide the space and American Greetings doesn’t want to be a landlord,” says Davis.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.