Commercial Real Estate Awards: Vacant building leased to Standard Register, then sold
A previously vacant building constructed in 2009 in River Ridge Commerce Center recently was leased, then subsequently sold.
The lease and sale of the building at 700 Patrol Road in Jeffersonville is a finalist in Business First’s 2014 Commercial Real Estate Awards program in the Best Industrial Lease or Sale category.
Initially, about 335,000 square feet of the approximately 450,000-square-foot building was leased to Standard Register, said Doug Butcher, first vice president of industrial properties at CBRE/Louisville.
Standard Register opened its national digital printing and distribution center there, along with some operations from other Standard Register facilities.
The company plans to create as many as 360 jobs by 2016.
The lease was negotiated over a roughly two-month period, Butcher said. It was signed in March 2013.
The business began operating in the space in the fall 2013.
360: Number of jobs Standard Register expects to create by 2016.
$10 million: Approximate amount of money Standard Register invested to lease and renovate the facility.
$38.44: Approximate cost per square foot for the sale of the building.
Building sold to Houston investor
Following the lease, the building was sold to Pinchal & Co. LLC, a real estate investor based in Houston, Butcher said.
It took about two months to sell the building and close on the deal, he said. The deal closed in May 2013.
A challenge of the whole project was trying to lease and sell a building that had been vacant. But CBRE was able to find businesses that were willing to take a risk, Butcher said.
There’s still about 115,000 square feet that have not been leased.
Ultimately, the project’s success lies in bringing a national company to the local area, according to Butcher.
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The Basics Address: 700 Patrol Road, Jeffersonville, Ind. 47150 Price of sale: $17.3 million Value of lease: Would not disclose Square feet: total building, 450,535; amount leased, 335,535 Primary buyer broker: Kevin A. Grove, CBRE/Louisville Primary tenant broker: Mark Wardlaw, NAI Fortis Group Primary seller broker: Doug Butcher, CBRE/Louisville