Florida Rock Buys 6,321 Acres for $13M

JACKSONVILLE, FL-Two major locally based companies have struck a land-sale deal, providing future growth benefits for both. Patriot Transportation Holding Inc., a cross-country freight hauler, has sold 6,321 virgin acres in Suwannee and Columbia counties in north Florida to Florida Rock Industries Inc. for $13 million, or $2,057 per acre. Patriot reports the deal was all-cash.The four-cents-per-sf price is one of the lowest prices for undeveloped land in the sparsely-populated area in recent years, local industrial brokers familiar with timber price transactions tell GlobeSt.com. Florida Rock is a prime Southeast provider of aggregate used in the construction of office, industrial and retail buildings. Florida Rock is expected to mine the land for the aggregate, brokers tell GlobeSt.com.In a prepared statement, Patriot says it will post a gain of about $5.5 million on the deal. The $5.5 million is net of income taxes, or $1.85 per diluted common share. The company expects to defer about 87% of the gain for federal income tax purposes under Section 1031 of the Internal Revenue Code. Patriot will qualify for the 1031 category by investing a large portion of the $13-million sale proceeds into two existing warehouse and office buildings totaling 303,000 sf and an adjacent 8.8-acre building lot in New Castle County, DE, the company says.