VOL. 129 | NO. 139 | Friday, July 18, 2014
Green Mountain Consulting Finds Home Along Poplar
Logistics vendor Green Mountain Consulting wasn’t necessarily looking to buy an office building when it began its search for more office space for expansion.
“We’re not getting into the commercial real estate business because we wanted to be in it; we got into it because we have a company to operate and needed the space,” said Jim Jacobs, one of Green Mountain’s co-founders.
But a confluence of events – a surge in the company’s business fueled by an increase in parcel shipping due to the explosion of e-commerce, and the availability of a property along the Poplar Avenue office corridor that wasn’t even on the market – converged to lead Green Mountain to purchase the building at 5860 Ridgeway Loop Blvd.
An affiliate of Green Mountain, Trafalgar Village Investments LLC, acquired the 55,250-square-foot building from Sunshine Corp.’s Poplar-Memphis Inc. for $4 million.
Jacobs said that after the team at Newmark Grubb Memphis made Green Mountain aware that the property could be available and walked company officials through the financials, it fit in with Green Mountain’s expansion plans and that buying made better financial sense than renting.
“The new building is being driven by our increasing headcount,” said Jacobs. “The purchase of the building was also a good business decision. The decision between purchasing and leasing, the debt service on the building we purchased was less than half of what we would have paid to lease.”
There was another bonus. The building came with several key tenants, including Marx-Bensdorf Realtors, SunTrust Bank, American General Life Insurance, and Collins Thomas & Associates PC, among others.
“We’re acquiring a building with tenants in it, and that made it even more attractive,” said Jacobs.
Green Mountain expects to grow its existing employee base of 45 by 23 over the next two years and will occupy about 26,000 square feet in the building, pushing occupancy to near capacity.
Greg deWitt, Jim Rainer and James Rainer of Newmark Grubb Memphis represented Green Mountain, while Joe Steffner, also of Newmark Grubb Memphis, represented Sunshine, whose investors include Duncan-Williams Inc. principals.
Jacobs heaped praise on Newmark Grubb Memphis, which will manage the property going forward, for everything from presenting them with a tremendous office value for a property that was never listed for sale to explaining how buying made better sense than renting.
“It wouldn’t have happened without them,” said Jacobs.
In other news, Memphis Electrical Joint Apprenticeship and Training Trust Fund has purchased a flex office building.
The trust fund acquired 6211 Shelby Oaks Drive from BancorpSouth Bank for $750,000.
The single-story multitenant building, containing about 20,311 square feet, is located in the heart of the Shelby Oaks Industrial Park.
Johnny Lamberson, Terry Radford and Bobby Daush of CB Richard Ellis Memphis represented BancorpSouth.