Colliers Kevin Moul, Bob Gilley, Brad Idleman and Andy Zighelboim represented the seller, Mohr Capital, in negotiations with buyer Four Springs Capital Trust. “This transaction is a true win-win for Mohr Capital and Four Springs Trust. Early in their ownership of the building, Mohr Capital took advantage of a strong renewal probability from their seemingly entrenched tenant, Crothall Laundry Services” said Moul. “Mohr Capital was able to negotiate a long-term extension with the tenant and leverage it against strong buyer demand for stabilized assets. On the other side of the transaction, Four Springs Capital Trust acquired a fully-leased cash-flowing industrial asset to add to their growing portfolio of single-tenant, net leased properties.”
Crothall Industrial’s stable investor cash flow with minimum management, due to the structure of its existing lease, was guaranteed by its prior parent company Compass Group USA, through 2028.
“This sale illustrates what a common trend that we’re seeing: high favor for single-tenant, credit leased assets in secondary markets where there are lower barriers to entry and high potential for growth,” added Moul.
The 4.61 acre property was built in 1991 and features 10 loading docks, 28 to 30-foot clear heights and an overall facility production capacity of 26 million pounds.
Media Contact:
Solana Tanabe
Allison+Partners for Colliers Northern California
solana.tanabe@allisonpr.com
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