Spencer Cold Storage Net-Lease Investment

Industrial Property For LeaseResults Commercial is pleased to offer this net lease investment with a solid cap rate with a leading US Food Manufacturer as the primary tenant at Spencer (WI) Cold Storage. This investment asset has a new longer term lease with two options to renew (executed & approved NDA required for lease review). Spencer Cold Storage sits on 8.88 Acres with total building square footage of 111,600 and is immediately across the alley from a leading US Food Manufacturer's factory with over 300 employees. They been a tenant in the property for 30 years and is wholly committed to Spencer Cold Storage. The buildings include cold storage, dry storage, offices, and a maintenance shop. There are 8 loading dock doors on the buildings throughout the property. The cold and dry storage buildings are inspected by the Wisconsin Department of Agriculture, WDA, and Food and Drug Administration, FDA, twice per year. The facilities are also inspected annually by the primary tenant. An outside BRC Audit and inspection was completed on September 27, 2022 with no infractions found. This is a double net lease investment with the Landlord responsible for roofs, outside walls/siding and maintenance of refrigeration equipment. PLEASE NOTE: 80% of all roofs have been replaced. (See each building spec page for Roof & Siding Replacement Details in this OM). Nearly all of the buildings have been fully resided/re-skinned with new tin including most interior walls. All cooler equipment is in perfect operating condition (See each building spec page for Refrigeration Equipment Details in this OM). All refrigeration systems are updated, inspected and serviced regularly. The average cost for service and maintenance over the past three years is $9,000 per year. All refrigeration systems are Freon and ground mounted for easy access. Improvements include: A new sprinkler system throughout the property and new surveillance system. Buildings C, D, N, F, & H had their concrete floors resurfaced with a high gloss sealer applied. In 2022, new asphalt was completed for the entrance and yard, plus new electric service entrance for the cooler buildings with expansion capacity as needed in the future. This is a two tenant net- lease investment. A leading US Food Manufacturer is the primary tenant and occupies all of the cold storage space. The current owner is signing a lease-back agreement upon the sale of the asset as the tenant/operator of the dry storage. The owner has an Operating Agreement with the primary tenant for the operations & management of the dry storage. The current owner is willing to work with the new owner for the maintenance of the cooler equipment since they know everything about all units and the maintenance required. In 2022, the owner built a new 16,800 SF cold storage building for this leading US Food Manufacturer Tenant (Labeled Building L). This tenant has the first right to lease any existing and new space on this site. PLEASE NOTE: VALUE ADD: This 8.88 Acres site has the potential to add up to 40,000 – 60,000 SF of additional cold & dry storage space on up to three additional new buildings. Primary Tenant has right of first refusal to lease any new additional cold or dry storage if developed. If for any reason the primary tenant is not interested in leasing the space, market demand in Central Wisconsin for cold storage is very high due to dairy & cheese manufacturing and distribution in the trade area. This leading US Food Manufacturer Tenant installed a state of the art barcode scanning and racking system in the cold storage areas. All tours will be arranged through the listing brokers at Results Commercial. An NDA is required for the release of all financial and lease information. Please contact Mark Hulsey, Managing Broker at [email protected] for all requests. Please DO NOT DISTURB the tenants and business at Spencer Cold Storage.