Miami-based Mayfair Investment Partners LLC paid $13.25 million on July 6 for the vacant 340,000-square-foot Roux Laboratories Inc. warehouse in Northwest Jacksonville.
Through Melson MZL LLC, Mayfair bought the 22-acre property at 2210 Melson Ave. from Roux Laboratories Inc., part of New York City-based Revlon Inc.
The warehouse was built in 1963 at West 12th Street and Melson Avenue, east of Edgewood Avenue North.
Palladius Income Fund SPE LLC of Austin, Texas, financed the deal with a $14.8 million mortgage.
The deed and mortgage were recorded July 10 with the Duval County Clerk of Courts.
Mayfair Managing Partner Jonathan More said July 10 that his group would invest “north of 50% of what we bought the building for” into upgrades.
That more than $6.6 million investment would include a new roof and asphalt, motion-activated LED lighting and more. He said the site has ample outdoor storage space.
“There is going to be a substantial investment in the property to make it at the forefront of B-plus properties,” he said, referring to older existing warehouses.
“To be able to bring the building to 2023 standards … is big money,” he said.
Mayfair prefers to lease to two to three tenants but would rent to a single user.
More said the location is near the interstate system, which makes it accessible to logistics companies.
He said the market is strong for third-party logistics and regional distribution and the building also is workable for light manufacturing.
Kristine Flook and Janet Crucet of Urbanize Properties in Miami represented Mayfair in the transaction.
Tyler Newman with Cushman & Wakefield in Jacksonville represented Revlon.
More said Flook and Crucet have worked closely with Mayfair.
“They are very good at being able to understand what buyers are looking for and what sellers are looking for, pinpoint that and hunt down opportunities to set it up,” he said.
More said Mayfair owns other industrial sites in Jacksonville along with multifamily properties and is negotiating for more.
Mayfairip.com says that Mayfair, founded in 2013, is a real estate owner-operator that seeks “value-add investments and long-term asset appreciation of all asset classes.”
It says that Florida and other Southeastern states are the firm’s main focus areas,“with a proclivity towards emerging and gentrifying markets with excellent transportation access. Migration growth and business-friendly climates play a central role in firm investments and market selections.”
More has 18 years of experience in real estate finance, investments and asset management. He has been involved with 135 investment/financing/leasing transactions in his career totaling $3.2 billion in transaction volume, the site says.
Mayfair targets deals from $5 million to $50 million and properties in the range of 100,000 to 1 million square feet.
The site described the 340,000-square-foot industrial property in Jacksonville.
“The off-market opportunity is located on Jacksonville’s West Side industrial submarket just a 6-minute drive from multiple interstates and a short drive to JAXport,” it says.
Mayfair bought it “from a global products brand who owned the property for decades as a distribution center.”
It says the property has “attractive ceiling heights, efficient column spacing and abundant outdoor storage space.”
More said the warehouse had not been vacant for long. Revlon moved the functions to another property.
“They didn’t need it anymore and freed up a bunch of cash.”
The website talks about Jacksonville’s market environment.
“The Jacksonville market itself continues to thrive from migration growth, supreme intermodal transportation access and a business friendly environment. Industrial rents continue to grow and the future outlook remains positive,” it says.
“Mayfair is keen on investing further capital in Jacksonville and the Southeast generally.”
Mayfair’s website says it is active in Alabama, Florida, Georgia, New York, North Carolina, South Carolina, Tennessee and Texas.
More said it is difficult to do deals now because of higher interest rates, sourcing insurance and finding sellers who are willing “to say goodbye to their property.”
“We aren’t on the sidelines, but we are working twice as hard to get a single deal done,” he said.
“We are owners, but we are always buying. We love the market,” he said of Jacksonville.
“This is our 11th or 12th deal in Jacksonville,” he said.
He said it only has sold one Jacksonville asset but would sell a property based on the return.
“We are looking to put more money out. We are looking to deploy significant capital.”
More said Mayfair has industrial projects in mind, including leased, vacant and sale-leaseback opportunities.
“We look at anything,” he said.
“We will tell you if we like it or we don’t.”