Single-Tenant Net Leased Industrial Offering | 8.5% CAP

Colliers is pleased to present the opportunity to acquire an 86,790 SF mission-critical manufacturing facility located at 311 B. Avenue in Grundy Center, Iowa. The facility is fully occupied by BioBlend Renewable Resources, LLC, following their recent acquisition of EnvironmentalLubricants Manufacturing (ELM)—a leading manufacturer of biodegradable, bio-based lubricants and greases.

Founded by Dr. Lou Honary, ELM has been at the forefront of biodegradable product innovation for over 20 years, pioneering bio-based grease processing using patented microwave technology. “The acquisition of ELM is a tremendous opportunity for BioBlend to significantly scale the business through our expanded capabilities in grease manufacturing,” said Jeff Hart, CEO of BioBlend. “We are excited to welcome the ELM team and Dr. Lou to the BioBlend family.”

Situated on 5.38 acres, the facility boasts modern infrastructure with several recent expansions. It features numerous dock and grade-level loading doors, a wet sprinkler system, 3-phase 480V power (2,000 amps), and clear heights ranging from 16’ to 20’. Additionally, the tenant has demonstrated strong commitment to the site by extending their lease term and planning $200,000 in facility improvements over the next year.

This property offers a landlord-favorable NNN lease structure, expiring April 1, 2030, with (2) five-year renewal options. The tenant currently pays a below-market lease rate of $2.07/SF, providing an investor with long-term stability and upside potential. Strategically located near major interstates, Grundy Center presents a rare opportunity to acquire a stabilized industrial asset with substantial growth potential.

Highlights:

• 86,790 SF mission-critical manufacturing facility
• Tenant: BioBlend Renewable Resources, LLC, following acquisition of Environmental Lubricants Manufacturing (ELM)
• Long-term NNN lease structure expiring April 1, 2030, with (2) fiveyear renewal options
• Below-market lease rate of $2.07/SF, offering long-term upside
• Recent capital improvements include replacement of rubber membrane roof system and $160k+ in electrical upgrades (2023). An additional $200k in Tenant Improvement dollars will be invested into the building in 2025.
• Strong tenant commitment to the facility and industry-leading innovation in bio-based lubricants ($3MM in specialized equipment onsite).