WATERTOWN — The Lundy Group of Companies has divested one of its companies, Northern Developers, LLC, in a sale to local businessmen Jake Johnson and Robert Ferris.
The sale involves a holding company, Northern Developers, LLC, and consists of the Penske Building and adjacent lot in the Jefferson County Industrial Park and Family Dollar stores in West Carthage and Lake Placid.
The sale, which was finalized on Dec. 31, was announced in a news release by Michael E. Lundy, president of The Lundy Group of Companies.
Terms of the deal were not disclosed, but the assets of the company are valued in excess of $6 million, he said.
Mr. Lundy said it’s a good deal that’s beneficial for both parties. Mr. Lundy approached the two businessmen with the deal.
“Mr. Johnson and Mr. Ferris are successful local real estate investors who are growing their portfolio,” he said. “The two Family Dollar stores and the Penske facility are established and successful buildings with long-term leases, and the property in the Jefferson County Corporate Park is ready for future development.”
The sale of the three properties also allows Mr. Lundy’s company to explore future development opportunities, he said.
The new owners said they were attracted to the properties because of the long-term arrangements with the tenants.
“The buildings are in great shape,” Mr. Johnson said.
His partner, Mr. Ferris, mentioned that he had worked with Mr. Lundy on other projects and they “have a great relationship.”
“This was a wonderful opportunity that Jake and I felt was beneficial to all parties,” he said.
There are plans for an 8,000-square-foot building next to the Penske building.
The Penske property was in the news this summer when Mr. Lundy and some members of the Jefferson County Industrial Development Agency squabbled over his plans to build a distribution center and a building for his construction company.
The JCIDA board members also expressed concerns about some parking issues at the Penske building and his plans to subdivide the parcel. Mr. Lundy then said he planned to sell off his three properties in the corporate park.
Mr. Johnson recently said the issue over parking has since been resolved. Mr. Lundy eventually received approval to subdivide the Penske property.
Northern Developers, LLC was established in the late 1990s after Mr. Lundy saw a need through his LUNCO Construction Company. The holding company provided Mr. Lundy an avenue other than to hire an architect, contractor and obtain bank financing, he said.
“Northern Developers allowed us to offer a single-source opportunity to design, build, own and manage the building as a lease. The end result was the customer got their new facility, and we developed long-term tenants and relationships,” he said.
Those Northern Developers projects included Sherwin Williams in Lowville, the Franklin Place Professional Building and Franklin Place Plaza in West Carthage, and Freedom Plaza near Evans Mills.
Over the years, some of those individual properties have been sold, he said. This current sale results in the entire entity and remaining assets to be owned by Mr. Johnson and Mr. Ferris.