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Former Globe Iron industrial property in Norfolk, Va., will be sold at auction Wednesday, Oct. 3
A massive tract of commercial industrial property in Norfolk, Va., will be sold at auction Wednesday, Oct. 3, at 12:30 p.m. (EDT). The trustee foreclosure auction will be held in the main building of the property, at 1401 Maltby Avenue in Norfolk.
The tract is huge, comprising three buildings, each with its own address (1401-1405 Maltby Ave., 1416 Cary Ave. and 1525 Saint Julian Ave.), all situated on 17-plus acres. The three buildings have a total gross building area of just under 350,000 square feet, consisting of an office building (8,400 square feet), a fabrication/
“This property not only enjoys spectacular proximity to rail, interstates and one of the largest water ports in the world, it is in Norfolk’s highest advantage enterprise zone, eligible for city and state incentives and federal grant money,” said William J. Summs, chief executive officer of Atlantic Asset Management Group, the Virginia Beach-based firm conducting the sale.
Proximity is expected to be one of the property’s strongest selling points come auction day, Summs said. “It is literally five minutes, without interference, to I-264, which rings Norfolk and is the hub going to Interstates 64 and 464. It’s also within 20 minutes by car to seven cities: Virginia Beach, Portsmouth, Newport News, Suffolk, Hampton, Norfolk and Williamsburg.”
And, Summs said, with a direct rail spur to the port of Norfolk, “freight could literally go straight from the building and out into the world.” He also pointed out that there is a new Amtrak line under construction along the property that is expected to be completed in December.
Accessibility by water is also seen as a big plus for the tract. Hampton Roads (the name for both a body of water and the Norfolk-Virginia Beach metropolitan area, in southeastern Virginia) is home to one of the largest port facilities in the world. That the property could be so near to a major port and shipyard repair center makes it a strategic location for many industries. The rail lines provide direct access to the three major Port Terminals: NIT (7 miles), PMT (6 miles) and APM (8 miles).
The property has a current appraised value of $6.2 million, although it was nearly twice that five years ago, when the business and real estate were operational. Although the majority of Globe’s fixtures, furnishings and equipment have been previously liquidated, nine industrial overhead cranes remain on site. These will be included in the property offering.
“The overhead cranes are another huge plus for a buyer, because the ceiling spans in these buildings are phenomenal – about 40-60 feet,” Summs remarked. He said each of the 30-50 ton cranes is worth around $250,000. “That’s about $1 million worth of equipment that a new owner won’t have to worry about.”
Summs said the facility would be perfect for shipyard use, for an industrial manufacturer or as a distribution center. “Another million square feet of space could be added, if need be,” he said, “up to 1.8 million square feet total. We anticipate keen interest from buyer-investors, who could lease the property or relocate part or all of their operations there. The labor pool is great.”
Globe Iron tapped into that labor pool from its founding in 1923 until the recession hit with brute force and ultimately forced the firm’s closing. The company was run by the Mednick family, which enjoyed a reputation in Norfolk and the surrounding area for being philanthropic, with deep roots in the community.
In its heyday, Globe Iron provided structural steel for an array of major projects, both locally and around the world. In the mid-Atlantic region, those projects included Nauticus in Norfolk, the Ford Assembly Plant, the National Museum of the American Indian in Washington, D.C., the expansion of Virginia Tech’s Lane Stadium in Blacksburg and nearly all high-rise buildings in Hampton Roads. Now, after nearly 90 years, it is closed for good.
Previews for the auction will be held on Wednesday, Sept. 12, and Wednesday, Sept. 26, from 10 a.m. to 1 p.m. both days; on Tuesday, Oct. 2, also from 10-1; and on auction day, Oct. 3, when the preview and registration will begin at 10 a.m. The auction will begin promptly at 12:30 p.m (EDT). Qualified phone bids will be taken on auction day and registered real estate brokers qualify for commissions.
Atlantic Asset Management Group is a full-service auction firm specializing in the sale of commercial and residential real estate, commercial and retail businesses, machinery, heavy equipment, surplus vehicles, commercial and pleasure marine craft, and furnishings, fixtures and equipment. Bonded and licensed since 1979, the group specializes in assets of substantial value.
Atlantic Asset Management Group is always interested in quality consignments, business liquidations, estate sales and properties for future sales. To discuss solutions for your assets, business or property, you may call them directly at (757) 461-6867; or, you can e-mail them at email@example.com. To learn more about Atlantic Asset Management Group and the upcoming Oct. 3 auction of the Globe Iron tract, please log on to www.atlanticremarketing.com.