Boyd Commercial/CORFAC International Completes Trio of Transactions for Client Jetco Delivery Inc.
Houston, TX (September 15, 2014) – Boyd Commercial LLC/CORFAC International, a leading full-service commercial real estate provider serving the Houston metropolitan market, today announced that two of its professionals completed a trio of transactions for a single client that included an uncommon “reverse 1031 exchange” during the acquisition of a headquarters property.
The Boyd Commercial/CORFAC International team of Bo Pettit and David Boyd, SIOR, CCIM have completed three-related transactions on behalf of Jetco Delivery Inc. including the acquisition of a new property, sale of an existing property and lease of a third property. The trucking and logistics company had been on an extended search for the right facility to expand and consolidate their business when it became evident that nothing was available that suited their needs. Jetco then committed to purchasing land and constructing their new headquarters facility in order to meet the company’s demand for growth.
Because of the timing of the sales, Jetco was unable to complete a traditional 1031 exchange. Under Section 1031 of the United States Internal Revenue Code, the exchange of certain types of property may defer the recognition of capital gains or losses due upon a sale, and hence defer any capital gains taxes that would otherwise be due.
Therefore, the Boyd Team helped facilitate an uncommon “Reverse 1031 Tax Exchange” enabling Jetco to purchase their new property through an exchange company prior to selling their existing headquarters. Once the existing headquarters facility was sold, Jetco was able to roll the capital gains into the new property. The final piece was the lease to a third party of a satellite yard and maintenance shop, which had become excess property.
Here’s a summary of the transactions:
Purchased: 3010 Aldine Bender Drive in Houston. The property is 20 acres with an older 10,000-square-foot office/warehouse facility and five-acre storage yard. The remaining acreage was Greenfields. Jetco is refurbishing the existing building and plans to build a new office building and vehicle maintenance facility. They will also improve the remaining acreage for trucking and storage operations. The property is strategically located for their operations in the North Houston submarket near Bush Intercontinental Airport. The seller was Old Dominion Freight Line.
Sold: Their former headquarters at 5521 Harvey Wilson Drive in Houston’s Eastside submarket near the Port of Houston. The property is approximately 6.32 acres with a 23,000-square-foot office, warehouse and vehicle service facility. The entire site is fenced and paved. The buyer was Holloway-Houston Inc. Jetco has leased this property back for a short period of time while its new headquarters are being built.
Leased: 6939 Old Clinton Drive, also located on Houston’s Eastside. Jetco owns this property and had utilized its 3.32-acre with a 7,500-square-foot office and warehouse facility to accommodate its growth in recent years. Gulf Stream Marine leased the property.
Pettit and Boyd managed all three transactions for Jetco Delivery. Terms of the transactions were not disclosed.
About Boyd Commercial/CORFAC International
Since 1977, Boyd Commercial, LLC/CORFAC International has provided value-driven real estate services to Houston’s industrial, investment and business communities. The company is a locally owned, entrepreneurial firm with the flexibility to move quickly; and globally connected through high-performing industry affiliations to offer services across the country and worldwide. As trusted business advisors, the professionals at Boyd Commercial deliver practical, workable solutions that produce the best possible outcome for clients and their and real estate interests. The firm’s clients include Fortune 500 companies, local and regional user companies, as well as investors ranging from major public Real Estate Investment Trusts to individual investors. Boyd Commercial also includes local, regional and national developers among its clientele.
About Jetco Delivery Inc.
Established in 1976 with one truck, Jetco has become one of the Gulf Coast’s top diversified carriers, serving small businesses to Fortune 500 companies. The trucking and logistics provider operates a fleet of more than 100 trucks and 250+ trailers, and because of its diverse fleet, are able to meet all LTL and semi-tractor transportation needs including: shipping containers by rail and sea, flatbeds and dry vans. In the past few years, Jetco has built two new companies: Jetco Heavy Haul, which transports out-of-gauge cargo for the Gulf Coast’s diverse business community, and Jetco Logistics, a freight brokerage business created in response to customers’ requests for third-party management of their freight nationally and beyond the scope of Jetco’s regional asset-based fleet.