Newport Beach, Calif. (December 22, 2021) – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the $58.2 million sale of a 1,283,360-square-foot industrial distribution property fully occupied by Sherwin Williams. The property is situated on 71.55 acres of land at 711 W. Wabash Avenue in Effingham, IL.
SRS NNLG’s Senior Vice President John Redfield, Vice President Britt Raymond, and Kyle Fant represented the seller, a private partnership. The buyer, ExchangeRight, was represented by JRW Realty.
“This asset was marketed to our extensive database and we secured more than 25 offers. We selected a well-qualified buyer and met the seller’s goal of closing this transaction before year-end,” said Redfield. “With a corporate-guaranteed absolute net lease structure this strategically located, below replacement cost, industrial asset will be a great addition to the buyer’s industrial portion of its net lease portfolio.”
Raymond added, “We generated offers from REITs, funds, private capital and foreign investors and were able to leverage the high amount of demand to push pricing for the seller. Buyers were confident in the long-term viability of the asset because Sherwin Williams has been at this location since 1985. They have expanded at this site four times and are planning on investing an additional $5.6 million over the next five years.”
Redfield noted that the property had credit tenant lease (CTL) zero cash flow financing and was sold free and clear of debt at closing. “We are continuing to see certain mature CTL-financed product price well to sell free and clear. We also accomplished this sale structure on a sizable Home Depot distribution center which transacted earlier this year.”
This is the only facility that Sherwin Williams uses to distribute coatings for the automotive industry nationwide, making it a mission-critical site that employs more than 300 workers. The property is near the intersection of two cross country interstates which include the 57 and the 70. Its centralized location provides the ability to reach a majority of the nation within a one day or less drive.
Over the past several years, SRS’s NNLG, which originally focused solely on the retail sector, has added several billion dollars of industrial single-tenant net leased (STNL) industrial sales and counting to its service line, and forecasts exponential growth in the sector over the coming years. With leases similar in structure to STNL retail assets, the growing demand for ecommerce, and a tight retail property market for investors, industrial STNL assets are a logical progression for retail-focused investors.
Year-to-date, SRS’ Investment Properties Group and National Net Lease Group (NNLG) has completed more than 700 transactions valued in excess of $2.5 billion and has in excess of $2 billion in property on the market.
About SRS Real Estate Partners
SRS Real Estate Partners is the largest real estate company in North America exclusively dedicated to retail services. Headquartered in Dallas with more than 26 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, development services, and investment services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders. Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2020, the group completed more than 550 sales across more than 35 states and has over 50 NNLG professionals nationally. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsre.com/national-net-lease-group.