Overview
Marcus & Millichap is pleased to offer the opportunity to acquire a single-tenant industrial sale-leaseback Asset located at 4956 East Ingram Street, Mesa, AZ (“Asset”).
The Asset is currently occupied by Water & Energy Systems Technology, Inc. (“W.E.S.T.”), a specialty water treatment chemical and systems provider founded in 1992.. In conjunction with Sylmar Group’s acquisition of W.E.S.T., Sylmar Group (“Tenant”) — a water treatment platform in operation for over 70 years — will execute a new 10-year NNN lease commencing at close of escrow and ensuring continuity of operations under new ownership.
Investment Highlights
Sale-Leaseback with A Committed, Credit-Oriented Tenant
- Direct sale-leaseback with Sylmar Group, a water treatment platform in operation for over 70 years
- Underlying operating business (W.E.S.T.) has occupied the Asset since its construction in 1997, ensuring continuity of operations under new ownership
Favorable Leaseback Terms with Limited Landlord Responsibility
- Sylmar will occupy the Asset under a new 10-year NNN lease commencing upon COE, with Tenant responsible for taxes, insurance, and maintenance
- Landlord responsibilities include roof, structure, major building systems, and parking lot
- 2.5% annual rent escalations throughout the original 10-year term
- Two (2), five-year renewal options at Fair Market Value
Highly Desirable Building and Site Characteristics
- 1.0-acre site with a 12% floor area ratio (FAR), providing substantial outdoor yard area to support Tenant’s warehousing operations
- Functional ±6,520 square foot building constructed in 1997 with a mix of concrete block and pre-engineered steel exterior walls
- ±2,520 SF of climate-controlled office space (±1,200 SF second story) and ±4,000 SF of evaporative-cooled warehouse and production space
- The warehouse portion of the building features 21’ clear height and two grade-level drive-in doors
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