Sellars Absorbent Materials
2017Year Acquired |
138,330 SFIndustrial Space |
SoldStatus |
In early 2017, General Capital acquired a recently vacated 138,330 SF Sam’s Club located on Milwaukee’s northwest side from Walmart at a purchase price of $3.0mm ($21.69), a material discount to construction cost. The building had high bay loading docks, ample parking, good tenant signage, high daily traffic counts, and was located at a favorable stoplight intersection. The property was also located in solid industrial sub-market with a low vacancy rate.
Prior to closing, General Capital accomplished the following:
Worked closely with the local alder person to rezone the asset from retail to industrial (a higher and better use).
Pre-leased the building to Sellars, a well-established local manufacturer. The company is privately owned and has been in business for multiple decades, continuously innovating and serving a wide range of industries.
Negotiated favorable long-term fixed rate financing that allowed for prepayment.
KEY THEMES
- Adaptive reuse transformed a former retail property into a high-performing industrial manufacturing facility
- Pre-leasing to an established manufacturing tenant reduced lease-up risk and stabilized the asset from inception
- Long-term NNN lease structure with annual rent escalations provided durable and predictable cash flow
- Strategically located Milwaukee industrial asset with strong regional access and operational flexibility
- Facility designed to support advanced absorbent materials manufacturing and continued production growth
RESULTS
- Investment achieved a 28.2% IRR and 3.4x equity multiple over a 5.5-year hold period
- Property sold in July 2022 following successful stabilization and long-term occupancy
- Delivered a fully air-conditioned 138,330 SF industrial facility across nearly 24 acres
- Long-term lease structure included annual rent growth and stable occupancy through 2027
- Modern industrial infrastructure supports scalable manufacturing and distribution operations
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