We’re thrilled to celebrate David Divine, Director of Investment Sales, and David Stroud, Senior Vice President, for their outstanding work in representing the seller in the Sale-Leaseback of 5644 Hornaday Road, a 309,940 SF industrial investment property in Greensboro, North Carolina.
The property is situated on 31 acres in the heart the Greensboro Airport Submarket at the intersection of I-40, I-840/I-73, and Hwy 421, all primary distribution corridors for the region. The Triad has transformed into a powerhouse of economic development and the manufacturing and logistics sectors are thriving as a result.
The property sold for $24.6 million in January, equating to $79.37 per square foot. The seller, now tenant, SV International Corporation, is a large distributor and manufacturer of furniture case goods, components and millwork. The ability to lease back the building to SVI allows for a seamless transition for their operations and allows them to free up capital to support business operations and growth. The creative approach to structuring this deal offers a dual advantage, making it a win-win for the investors seeking stable and predictable income while also ensuring stability and continuity for SVI.
The buyer is a Virginia-based real estate developer and investor with a diverse portfolio spanning Virginia, West Virginia, the Carolinas, and Georgia. Their holdings include commercial and residential properties, 21,000+ acres of timberland, a door manufacturing division, and a division of full-service building supply stores. As part of a 1031 exchange, the buyer secured the property below replacement cost with a long-term absolute triple net lease, providing stable and predictable cash flow.
“Aside from the income stream, the property has a lot of upside for the right investor. It was originally a manufacturing facility served by heavy power and infrastructure. The building is located along two major power distribution circuits and has multiple large transformers on site, which brings reliability benefits and more options down the road if the building were ever to be used for manufacturing again. The building has an adjacent expansion pad that can accommodate up to 75,000 SF, plus an additional 7.5 acres for outdoor storage, adding flexibility for tenant operations.” says David Stroud, SIOR.
The Hornaday deal showcases APG Advisors’ expertise in managing complex deals. Congratulations again to David Divine and David Stroud.
Click here to view more of APG’s available industrial and investment properties.