IN DEPTH: COMMERCIAL REAL ESTATE
September 8, 2003
Solectron campus in Suwanee finally sells
Partners in a local real estate firm may just consider this "The Price is Right." Solution Property Group LLC is buying the two-building campus formerly used by electronics manufacturer Solectron Corp. (NYSE: SLR) in Suwanee, said Mal Hill, a partner with Solution Property Group. The company is purchasing the two data center/distribution warehouses and 50 acres of land for a total of $6.5 million -- or $19.58 per square foot, not counting the acreage. The buildings, a total of 332,000 square feet, are in Gwinnett County's Northbrook industrial complex.
Hill said the deal for the empty buildings dropped dramatically from its original asking price of $18 million, or $54 per square foot for the buildings. Solectron itself built the two buildings for $21 million originally, Hill said.
Former Gwinnett County Commission Chairman Wayne Mason is an equity partner in the deal, along with Hill and Solution Property Group partner Eben Hardie. Solectron vacated the buildings in 2001.
Solectron has been undergoing a restructuring program that included abandoning and selling off buildings it no longer used, according to its May 30 quarterly report.
" For owned facilities and equipment, the impairment loss recognized was based on the fair value less costs to sell, with fair value estimated based on existing market prices for similar assets," the company stated in its SEC report.
Bill Johnston and Greg Dickerson with King Industrial Realty Inc. are brokering the deal for the owner.