In another sign of a strengthening industrial real estate market, the former Dura Automotive Systems facility in South Jacksonville was sold for $4.65 million for expansion of the MarJam construction supplies company.
JESAJ Jacksonville LLC, a MarJam Supply Co.-related company, bought the property in a sale that closed July 3 and was recorded July 19.
The 256,720-square-foot warehouse, built in 1982, sits on 19.5 acres at 9446 Florida Mining Blvd. E. in the South Jacksonville Industrial Park.
MarJam Chief Counsel Jim Holiber said Monday the company, named for brothers and founders Mark and James Buller, opened in Jacksonville about three years ago.
"We've been leasing space and things have gone well, so we decided to make a more permanent investment in Jacksonville," he said.
"We think we are going to be growing there and adding jobs," he said. He expects MarJam will move to the building by the end of the month.
The building formerly housed Dura Automotive Systems, which had about 330 employees.
In July 2007, Dura Automotive Systems said it was closing the plant as it restructured operations, including divesting businesses and moving work to lower-cost facilities.
The plant made parking brakes, door frames and other products for Ford Motor Co., General Motors Corp. and other automakers.
In the latest deal, Bobby Gatling of Newmark Grubb Phoenix Realty Group represented the buyer. Associate Bryan Bartlett represented the seller, So. Jax Business Center LLC.
Bartlett also had represented the seller, Dura Operating Corp., in 2009 when So. Jax bought the property for $1 million.
"They got it for a pretty good deal," Gatling said.
He said the market was at "rock bottom" when the former group purchased the property in 2009.
"The new owners are going to refurbish the vacancy in the building, so that it is ready for the next tenant," he said.
Holiber said MarJam will occupy 80,000 square feet of space. Taking into account existing tenants there with leases, Gatling said about 100,000 square feet will be vacant and available for lease.
The new owners retained Newmark Grubb Phoenix Realty to handle leasing, Gatling said.
Holiber said the building offered high ceilings for storage and the site provided easy access to main roads.
"The building suited our needs," he said.
The location is near Philips Highway with access to Interstates 95 and 295.
Holiber said MarJam sells primarily to contractors doing commercial, government, school, hospital and institutional work.
"We purposefully moved in to try it out," he said of the Jacksonville market.
"That is why we were leasing for a while. We just worked hard at it and we have a terrific team that is doing well and now we are ready to make a more permanent investment," he said.
Holiber said the company has eight offices and about 100 employees in the state. "We are very committed to grow (in) Florida and to add jobs and add revenue," he said.
Gatling said the deal reflected an improving market.
"Their business model is they own the buildings they are in," Gatling said. He said MarJam leased the Davis Creek Road property because it didn't have other options. That timeframe was the peak of the construction boom.
"Properties weren't hanging around long. They were forced into leasing rather than owning," he said.
Gatling said MarJam has been looking for 60,000 to 80,000 square feet of space to buy. The Dura property can accommodate the business and be available for lease to other businesses.
"It's another sign of the industrial market starting to recover," Gatling said.
Gatling said the majority of deals being completed this year by Newmark Grubb Phoenix Realty Group's Industrial Group have been sales to owner-users that are purchasing a building for their business to occupy.
"In most instances today, it's cheaper for groups to own a facility than lease a facility," he said. "You can own a building for cheaper than you can lease," he said, because of favorable long-term fixed interest rates and "as low as a 10 percent down payment for SBA loans."
He said MarJam, based on Long Island near New York City, formed a limited liability company to buy the Florida Mining Boulevard property.
Mark Buller, president of MarJam Supply Co., is listed as the manager of JESAJ Jacksonville LLC, which was filed with the state April 11.
According to its marjam.com website, MarJam Supply Co. was founded in 1979 with the purchase of a warehouse in Greenpoint, Brooklyn.
Its mission was to be a highly specialized and customer service-driven distributor of lumber, plywood and other building materials to the trade.
MarJam has grown to operate 33 "super centers" in 12 states that serve the East Coast, the site says.
MarJam sells acoustical ceiling systems, doors and frames, windows, roofing, siding, flooring, insulation, tools, hardware, equipment, wall systems, lumber, plywood, adhesives, masonry and specialty items to builders, contractors, architects, engineers, the government and the public, says the site.
"Today the company has grown to a dedicated staff of nearly 800 professionals that we affectionately call 'MarJamers,'" says the site.
The site says it also continues "to pioneer some of the most sophisticated Information technology available."
"MarJam is able to coordinate, source and deliver every type of job 24 hours a day, 7 days a week," it claims.
"Our proprietary inventory system allows us to source your orders from any one of our 33 'super centers' and our manufacturers' sites as if we were delivering to you from our local warehouse," it says.
AT&T renovating at Deerwood Park
AT&T plans to remodel space it occupies in Deerwood Park in South Jacksonville at 10375 Centurion Parkway N.
The City is reviewing a building-permit application for AT&T to remodel space on the third floor at a project cost of $83,500.
Duffey Southeast Inc. is shown as the contractor.
"I have confirmed that the remodeling at these facilities is to accommodate work and collaborative shared spaces for a group of AT&T managers from various work units that will be working out of that location," said Rosie Montalvo with AT&T News Relations in an email.
Plans filed with the permit application show the third floor comprises 24,604 square feet of space. It accommodates training, mobility, open office space, work areas and more.
AT&T has operated AT&T Advertising Solutions and Bellsouth Advertising & Publishing in the space.
@MathisKb
(904) 356-2466