Property Offers New 10-Year Lease with Five-Year Renewal Options
Matthews Real Estate Investment Services™, a commercial real estate investment services and technology firm, closed the $5,085,000 sale of a Johnson Controls property located at 3750 Progress Road, Norfolk, VA. Senior Vice President and Senior Director Alexander Harrold represented the seller.
The seller, a private investor who is a repeat client of Matthews™, achieved their goal of forgoing the property at an aggressive price, capitalizing on its newly executed long-term lease. The buyer, a private exchange buyer based out of the Northeast, acquired the facility as an upleg through a 1031 Exchange.
“Our seller capitalized on the facility’s new 10-year lease that offers five-year renewal options upon expiration. Additionally, the buyer is now able to implement rent increases, offering two percent increases during the initial term and three percent annually in extension terms,” said Harrold.
The Johnson Controls facility boasts 36,471 square feet on just over a two-acre fenced-in lot nearby numerous industrial facilities, including Allsafe Self Storage and ABC Supply Co. It is currently being leased to a strong international tenant who boasts a BBB investment-grade credit.
“I was able to leverage Matthews’ proprietary database and marketing strategies to create a high level of exposure for the property and a competitive buying pool, which ultimately landed a qualified buyer in a short timeline,” said Harrold.
Matthews Real Estate Investments Services™, a commercial real estate investment services and technology firm, holds recognition as an industry leader in investment sales, leasing, and debt and structured finance. Based out of Nashville, TN, and strategically positioned with over 400 agents and support staff in 15+ offices across the United States, Matthews™ continues to focus on expansion into new markets. For more information, please visit www.matthews.com.
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