By Jon Peterson
Fresno-based Caro Nut Company has placed on the market for sale the 233,840 square foot industrial property in Fresno located at 2624 East Edgar Avenue. The asset will be sold in a sale/leaseback structured transaction that will keep the remaining lease running for another 15 years. The asking price on the property is $36 million, or roughly $154 per square foot, according to the offering document on the property.
The seller has picked the Sacramento area office of Newmark to be the listing agent on the sale. Those working on the transaction are Jordan Alleva, a director in the firm’s Roseville office, and Carter Lear, director of capital markets for the Sacramento office.
An asset like this will likely attract a range of capital sources with interest in the property. These could include large institutional investors, real estate investment trusts and high net-worth individuals who are looking for industrial assets to buy in the Central Valley region of California.
The property up for sale is considered a manufacturing/distribution type of industrial asset. Caro Nut Company is known as a provider of sustainable nut products to retailers and manufacturers on a global basis.
The property was first developed in 1989, and it was renovated in 2018. The property has an absolute triple-net lease. Caro Nut Company is the owner and the only tenant in the building. The company has been in the property for several years.
The single-story building is on a parcel that totals 18.77 acres. Along with the building, the property also features a parking operation that has a total of 224 spaces.
Should the projected sales price be reached, the cap rate on the sale would be in the range of 4.3 percent. This yield is based on the property’s current net operating income of $1.6 million.
The new owner of the property could have an opportunity to create additional value for the asset through a possible expansion. The building presently only covers 28 percent of the acreage, leaving additional upside in the case the new ownership would like to expand the facility. The tenant has expressed a possible need to grow its operations in the next three to five years to keep up with its growing demand.