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FERNANDINA BEACH, FL-Yulee Junction, a newly built, 28,714-sf, 80%-leased strip shopping center in the North Florida resort corridor, has generated a premium price of $4.95 million, or $172.39 per sf, for Jacksonville owner LandAmerica Exchange Co. A private Jacksonville investors purchased the property which is about 150 miles northeast of Downtown Orlando.
Orlando-based Pocklington, Pocklington & Forster Retail Investment Group, which focuses on retail properties sized up to 85,000 sf, represented buyer and seller. Pocklington Group brought the buyer to the seller. "We set the bar high and were able to generate a premium price for the seller, while delivering a brand new asset in an emerging market, with strong future value for the buyer," says group principal Mike Pocklington.
The average asking gross rent range is $18 to $20 per sf plus pass-throughs. The deal took 60 days to complete, from contract signing to closing. Martin P. Forster, director, investment services at Advantis Real Estate Services Co. which partners with the Pocklington Group, doesn't think the $172 per-sf-price is on the high side for such a small asset.
"It depends entirely on the rental income," Forster tells GlobeSt.com. "If the rent is high, then price per sf also is high. Otherwise, you would have potentially enormous yields, and the market is competitive enough not to allow that to happen."
Forster says he isn't sure if the $172-per-sf price is one of the highest paid for a North Florida retail property. "This isn't one of the strongest criteria we watch," he tells GlobeSt.com. "Yield is, because these are investment properties, not user properties." Forster adds, "This [per-sf-price] level and higher has been common in our other market areas, though."
The Pocklington Group is on schedule to equal or pass last year's production volume, Forster says. The group this year has closed six properties valued at about $24 million or an average $4 million per deal. Over the last 12 months, the group has closed 12 deals valued at $48 million with the same average of $4 million per deal.
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