Goodyear Tire & Rubber Company

1615 Wells Rd | Orange Park, Florida

Case Study

Goodyear Tire & Rubber (NASDAQ: GT) is a Fortune 500 company and S&P 500 component. Goodyear Tire and Rubber has occupied this 5,800 sf “build-to-suit” facility for 15 years with nearly five (5) years remaining on the first lease option period at time of acquisition. The acquisition cost ($147.00/sf) was 26% below estimated freestanding building replacement cost ($200.00/sf). The contract rent of $12.67/sf is well below market rent of $20.00/sf. The property was appraised at $1,050,000.00 in 2012. The site is located in close proximity to the south gate to Naval Air Station Jacksonville, near I-295, and nearby retailers Sweet Tomatoes, Burger King, Steak and Shake, Chili’s, Sonic, Arby’s, and Marriott Courtyard. The owner sold in order to invest in another opportunity and pay off the maturing mortgage. After observing flat sales for a two year period (2013 and 2014), a decision was made to sell the property and reposition the capital to a new and a more financially secure property. The property was sold for $1,016,000.00 in January 2016 and the proceeds invested in the 1031 exchange acquisition of a DaVita Dialysis Center in Marshalltown, IA.

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