Overview
Institutional Property Advisors (IPA), a division of Marcus and Millichap, is pleased to offer the opportunity to acquire a high quality +/- 235,697 SF single tenant warehousing and industrial outdoor storage facility (“Asset” or “Property”) leased to BlueLinx Corporation (“Tenant” or “BlueLinx”) in Bridgeton, MO (St. Louis MSA).
This offering presents the rare opportunity to acquire an extremely high quality and stabilized industrial Asset with completely passive ownership for +/- 12.3 years. Additionally, future ownership will benefit from outstanding security in the value of the underlying real estate, considering the below market rent and the Asset trading well under replacement cost.
Investment Highlights
HIGHLY ATTRACTIVE LEASE TERMS
- Absolute NNN lease structure with no landlord responsibilities
- Long term of +/- 12.3 years of firm term remaining and no tenant termination rights
- Below market rental rate of $3.74/ SF NNN, while asking rents are $7.76/ SF NNN in the submarket and increase substantially in other areas of the St. Louis MSA
STRONG CORPORATE FINANCIALS
- BlueLinx is a leading U.S. wholesale distributor of residential and commercial building products servicing all 50 states
- The Tenant, BlueLinx Corporation, is a wholly owned subisdary and the main operating entity of BlueLinx Holding inc, which carries credit ratings of B+ from S&P and Ba3 from Moody’s
- BlueLinx Holdings, Inc. is publicly traded on NYSE (BXC) with a market cap of ~ $594 million
DESIRABLE BUILDING AND SITE FUNDAMENTALS
- Infill St. Louis MSA location with ease of access to I-70 and I-270
- +/ 24.89 acre site with a 22% FAR, offering extensive paved areas for outdoor storage and truck parking
- +/- 235,967 SF under roof with building heights ranging from 22' - 30'
- The Asset is rail serviced by a rail spur line with the tracks installed at grade lavel
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