Intel Wednesday confirmed that it has auctioned off its assembly plant in Puerto Rico for an undisclosed price.
The 428,000 square-foot manufacturing and distribution complex on 60 acres included six connected buildings. The plant assembled network interface cards
The buyer, Lightstone Real Estate Partners, LLC, issued a statement saying it plans to re-position the property for manufacturing/distribution use, and reconfigure the six separate buildings, allowing for a lease or leases to mid size or larger companies.
“This is the first time Intel has used an auction strategy to sell surplus properties,” said Intel real estate manager Wallace Jacobs. “We were seeking to control time in the sales process as opposed to dictate the value. The auction produced results in a matter of weeks as compared to months or years.”
According to an Intel spokesperson, the facility was earmarked for closure back in January 2001. The company said the Puerto Rico operations have already been transferred to a plant in Asia. Intel’s only other manufacturing facility in Latin America is in Costa Rica.
Frank Diliberto, senior vice president of Oak Brook, Illinois based Inland Real Estate Auctions, Inc., which conducted the auction, says the auction process has become more prevalent among corporate clients.
“The market is competitive and in many cases the auction is used to define value,” Diliberto said. “Many corporations with surplus real estate need to add the control of time to their marketing plan. The process can take eight to 12 weeks and can be executed on a regional, national and international scale.”
Diliberto said the new configuration may provide for a further separation of the property providing private entrances, parking and other individualizing elements. Included in the more than 60 acres is an approximately 17-acre development site, which can be completed at a later time.
Intel said there would be no financial impact triggered by the sale to its current balance sheet.
