Property Location: 1500 Experiment Farm Road, Troy, Ohio
1500 Experiment Farm was originally part of a four-building portfolio being sold as a sale leaseback by a airline industry related company during the peak of Covid-19. With three of the four buildings being in the Chicago metropolitan area, 1500 Experiment Farm was a bit of an outlier given its location in rural Troy, Ohio and consequently didn’t receive the same level of interest. However, it was the newest building in the group being built in 2008, and it offered an additional 2-acre parcel of land immediately adjacent. While initially our pricing expectations and the Seller’s pricing expectations didn’t align, through time and creativity we found a way to bridge the gap. To do so, we structured an 11-year absolute net lease giving the seller one full year base rent free which would aid in them improving their cashflow position after suffering the damaging effects of Covid-19, while also allowing us to ensure the right basis in the property and having the benefit of a full 10 year lease upon expiration of the free rent period. Ultimately, our solution resulted in a mutually beneficial outcome and we were successful in closing the transaction.
