Trip to Oxford - 7-May-2010

Went to Oxford (Lafayette county) on Friday and saw 3 properties.

First was DeLa Vine II, right off of highway 6 as you come into Oxford from the West.  Two story with commercial space on bottom and condos on top.  14,960 sq ft.  Asking price is $2.2 million.  David Hollinger 662-934-9148.

Next was a big warehouse at 927 Whirlpool drive which was vacant.  It is near Ole Miss and whoever was in this before has moved out.  Some sort of manufacturing company.  Agent is Jones Lang LaSalle company.  422,000 sq ft on 58 acres.  Price was not available.

Last was warehouse at 13 Industrial drive off highway 7 south of Oxford.  68,000 sq ft on 5.5 acres.  List price is $1.5 million or $22.06 per foot.  Colliers Wilkinson Snowden.  Preston Thomas 375-4800.  Talked to Preston by phone.  Last tenant, Toro, was paying rent of $3.5 NNN (triple net). Preston Thomas said that was too high.  He said that some one has the building under contract to turn it into a sports workout gym.  That person has gotten approval from Oxford authorities to do the conversion.  I don't know what taxes, insurance and property maintenance are on the property, but surely they are at least $1.5 per foot per year, so that makes total rent around $5 per foot which is what we used to get at NBC for small spaces.  So I agree rent of $3.5 NNN is too high and that owner could only probably get ????? maybe $2 per foot??  At $2 per foot NNN, it shows a much less attractive return than at $3.5 per foot NNN.

Preston also has a retail center for sale in Oxford.  It is 100,000 sq ft and is at hwy 7 and University.  Asking price is $5.5 to 6 million.

He also mentioned that the "EC" building (Exact Commerce) on South street in Collierville near Shamrock is still for sale. It is 40,200 sq ft total with 5,270 sq ft being office.  Price used to be $2.2 million and now it is $1.75 million and owner wants to sell and might go lower.  There is a brand new tenant in building who signed a 3 year lease.  The new lease provides $3 per foot NNN to owner, which is approx $10,000 per month free and clear.