The sale of a two-building industrial portfolio in Mobile, Alabama marked the first Class A transaction in the market and signaled a milestone for institutional investment in the state.
The 373,015-square-foot portfolio drew exceptional interest, with 93 confidentiality agreements and eight first-round bids, ultimately achieving a $3 million, or 6.5%, increase from initial to final offers.
Brokers faced the challenge of introducing institutional capital to a relatively untested Alabama market. A strategic marketing tactic for Mobile Portside Buildings D & N focused on highlighting key assets such as the Port of Mobile and major tenants, including Simpson Manufacturing and Veyer, an ODP Corp. subsidiary.
Despite early skepticism, brokers successfully attracted a diverse pool of investors, including public real estate investment trusts, net lease funds and private equity firms.
The competitive process validated institutional confidence in the Alabama industrial market and established new benchmarks for secondary market investment, leading to the deal being selected by a panel of local industry professionals for a 2026 CoStar Impact Award as the sale/acquisition of the year in Mobile.
About the deal: One Liberty Properties purchased the two-property portfolio for $49 million, or about $131.87 per square foot.
What the judges said: “This deal justifies/elevates Mobile's stature in the world of investment real estate on the national stage. It set the bar for what will surely be many to come. I am sure that this sale helped those looking at building similar product in Mobile and Baldwin counties move forward with their plans, knowing what an exit strategy might look like,” said Nathan Handmacher, president at Zarzour Management Co., a commercial real estate investment, development, and management firm.
The sale “highlights the growth of Mobile and is bringing in more institutional investment to Mobile due to our growth,” added Justin Toomey, CEO at SVN Toomey Property Advisors.
They made it happen: Jim Freeman, director of industrial capital markets; Britton Burdette, director of industrial capital markets; Paige Marlow, vice president of capital markets; and Dennis Mitchell, senior managing director, all at JLL.