Long-Term Industrial Sale Leaseback and Expansion Opportunity

146 President Street, St. Louis, MO
Deal Type:
Sale Leaseback
Price:
$3,071,429
Cap Rate:
7.00%
Current Rent:
$215,000
Lease Type:
Triple Net
Renewal Options:
4, 5 Year Options
Building Sq. Ft.:
53,354 SF
Rent Increases:
2.00% Annually
Site Size:
5 Acres

Investment Highlights

  • Long-term (15 year) absolute triple net lease with 2.00% annual escalations
  • Gross Mechanical (the tenant) is an industrial contractor specializing in private sector industrial construction in the refining, petrochemical, pharmaceutical, power, manufacturing, food and beverage, automotive and water treatment sectors
  • The company is a third generation, family-owned business with a long-term operating history of more than 50 years
  • The third generation of the Gross family has strategically expanded the business, increasing value to the existing customer base and reaching new opportunities beyond its current geography
  • Gross Mechanical relocated to the subject property in 2015 to expand fabrication capabilities and efficiencies
  • More than $1.3 million of CapEx has been invested into the facility, including exterior and interior renovations and electrical upgrades
  • In 2017 the company purchased an adjacent 2.5 acre parcel and intends on constructing a new industrial facility to handle increased demand and output; this is a potential expansion opportunity for a landlord/investor
  • Strong Tenant Financial profile with growing revenue and EBITDA trends and sufficient rent coverage
  • The subject facility is located in a strong industrial market with industrial rents rising 6.2% year-over-year, a low vacancy rate of 3.0% and average market rents of $6.19 psf as of 2Q22

Listing Agents

Jeff Lizzo

Senior Vice President
630 222 8409
Jeff@stream-cp.com
Daniel Macks STREAM Capital Partners

Daniel Macks

Vice President
847 420 2116
Dmacks@stream-cp.com

In Association with ParaSell, Inc. | A Licensed Missouri Broker #2019035835

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