Property Location: 1500 Experiment Farm Road, Troy, Ohio
1500 Experiment Farm was initially part of a four-building portfolio being sold as a sale-leaseback by an airline-related company during the peak of COVID-19. With three buildings located in the Chicago metropolitan area, 1500 Experiment Farm in rural Troy, Ohio, received less interest due to its outlier position. However, it was the newest building in the group and it offered an additional 2-acre parcel of land right next door making it very attractive.
Initially, our pricing expectations did not align with the seller’s, but through time and creative negotiation, we were able to bridge the gap. We structured an 11-year absolute net lease that included a one-year base rent-free period for the seller. This arrangement helped improve their cash flow after the challenges posed by the pandemic while allowing us to secure a favorable basis in the property. Ultimately, we gained the benefit of a full 10-year lease following the free rent period.
This collaborative approach resulted in a mutually beneficial outcome, enabling us to successfully close the transaction.
