Fully occupied Credit Tenant NNN industrial property offers buyers stable investment
BAY ST. LOUIS, MS (May 17, 2018)
Mission Capital Advisors, a leading national real estate capital markets solutions firm, today announced that its Asset Sales Group is marketing the leasehold interest in the GE Building, a fully occupied, 120,194-square-foot industrial facility located in Bay St. Louis, Mississippi. The Mission Capital team of Will Sledge, Kyle Kaminski and Tom Karras are marketing the property on behalf of the seller, a CMBS special servicer, via the RealINSIGHT Marketplace. The bidding window for the property opens on June 5 and closes on June 7.
The property was initially constructed as a packaging and distribution hub for the General Electric Company’s plastics plant, which signed a 16-year triple-net lease for the entire facility in 2006. In 2007, General Electric sold its plastics division to Saudi Basic Industries Corporation (SABIC), at which point SABIC assumed the lease. In addition to the four-plus years currently remaining on the initial lease, the credit tenant also has two five-year extension options, with potential rent escalations.
The offering being marketed by Mission Capital is for the leasehold interest in the property, which expires in 2055. All rent for the term of the ground lease has already been paid in full.
“This net-leased asset offers buyers extremely stable cash flow, and we’re expecting to receive interest from a wide range of local and national net-lease investors,” said Sledge. “While SABIC’s lease is set to expire in four years, they are very likely to sign a renewal because of this facility’s very close proximity to their production plant. With a credit tenant in place, this offering will be very appealing to investors seeking stable assets in strong industrial markets.”