Graham Capital intends to continue investing in the Northeast Florida industrial market after spending $24.85 million Aug. 18 for warehouse properties in West Jacksonville totaling 375,279 square feet of space.
“We would love to own more,” said Matthew Graham, a principal of the Birmingham, Alabama-based organization.
Graham spoke Aug. 27, a day after the deeds for the initial sale were recorded Aug. 26 with the Duval County Clerk of Courts.
Graham Capital is a real estate private equity firm that says it focuses on creating attractive risk-adjusted returns for its investors through the acquisition and development of highly functional industrial assets across the Southeastern U.S.
“Our focus is on high-growth Southeastern markets,” he said, particularly industrial properties.
Graham said the fund that bought the Jacksonville properties was launched at the beginning of the year.
“We are actively seeking more deals in the Jacksonville market,” he said.
Graham said Graham Capital is looking for area properties similar to what it bought, describing 100,000- to 130,000-square-foot distribution centers in infill markets.
Graham Capital Fund I controls JAX Westside Partners LLC, which bought the Jacksonville assets. Graham registered the fictitious name for the limited liability company with the state Aug. 9.
Through JAX Westside Partners LLC, Graham Capital paid $12.85 million for three buildings totaling 156,165 square feet at 7051 Stuart Ave. and 6982 Highway Ave. They were built between 1969 and 2016.
JAX Westside Partners paid $12 million for two properties at 1550 Ellis Road that total a little more than 219,114 square feet, with the largest built in 1974.
That purchase included 7 vacant acres along Ellis Road North. “The additional land allows us the ability to expand the existing facility to accommodate the growth of current tenants or a larger tenant in the future,” Graham said.
Graham bought the properties from Jacksonville-based limited liability companies led by Sam Easton.
Graham said the structures, considered Class B, are 100% leased. Easton will continue to be the facility manager.
Mark Scott, senior vice president of Foundry Commercial in Jacksonville, represented Graham Capital in the purchase.
“We think the properties are in pretty good shape currently,” Graham said. He said there is no need for immediate capital investment.
Graham said Graham Capital holds assets for about five years.
Infill properties are those close to city population and business centers and not as far removed as more suburban sites.
“We are not afraid of older, vintage” properties, he said.
Graham said the fund, formed at the beginning of 2021, has 850,000 square feet of industrial space under construction across three active developments in Huntsville and Birmingham, Alabama, and in Roanoke, Virginia.
In addition, the fund bought a warehouse in July in Charlotte, North Carolina. Graham Capital announced July 21 today that it acquired a $9.85 million, Class B industrial warehouse totaling 164,230 square feet in Charlotte’s Gastonia submarket.
That acquisition was the fourth investment deal for Graham Capital Fund I, which had closed on $75 million of industrial real estate by that date in 2021.
Graham said Graham & Co., a separate company with a strong relationship with Graham Capital, has a long history of operations and ownership in Jacksonville.
“We have always been big fans of Jacksonville, Florida, he said, citing population and industrial growth.
He said Graham & Co. is the developer for each of Graham Capital’s active developments, while the debt and equity to complete the construction sourced through Graham Capital.
