Thursday, October 22, 2015

Missouri developer backs out of $15 million land deal near Louisville International Airport (KSDF), Kentucky

LOUISVILLE, Ky. (WDRB) – A Missouri company has dropped plans to buy land near Louisville International Airport viewed as a potential site for one of the city’s largest industrial buildings.  

NorthPoint Development in suburban Kansas City, Mo., was to spend $14.8 million on 110 acres in a business park near Outer Loop, under a letter of intent with the Louisville Renaissance Zone Corp., an agency with the same membership as the Louisville Regional Airport Authority.

Airport leaders approved the sale in February. But the deal fell apart earlier this month after NorthPoint wasn’t able to resolve “facilities and soil issues” on the site, said Skip Miller, the airport authority’s executive director.

“They had a number of issues that came up during their due diligence period that they had not thought about before they went into the decision to buy the properties,” Miller said.

A NorthPoint official didn’t immediately return a phone message left Wednesday afternoon.

Miller, who also serves as president of the Louisville Renaissance Zone Corp., said the company abandoned its plans to buy the land Oct. 9. He wasn’t aware if NorthPoint intends to pursue other property in the Louisville area.

Miller said earlier this year that the site can handle a 1-million-square-foot building and described the property as comparable in size to Amazon's distribution center at the River Ridge Commerce Center in Jeffersonville, Ind.

The deal, based on a price of $135,000 per acre, would have been among the most lucrative for the airport, bringing in $12.7 million after transaction and other costs, Miller told authority and corporation members in February.

The land includes three parcels near Interstate 65 and the Gene Snyder Freeway not far from Ford and UPS.

Miller said no potential buyers have emerged since NorthPoint’s exit, but the airport has already begun its marketing efforts.

“We call our friends that are real estate brokers and say, ‘We’ve got 100 acres out here of prime development land close to the airport. Do you have any folks that might be interested in it?’”

- Source: http://www.bizjournals.com

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