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.
Allison+Partners for Colliers Northern California
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 62 countries, our 17,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of 20% for shareholders. With annual revenues of $4.1 billion and more than $50 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.