Industrial Investment With 7+7 Year Lease To A-Grade Tenant

Client MandateJ. is an investor who engaged us to source his 2nd commercial Investment property, ideally within an industrial estate where he already owned an asset. His main goal was to achieve a 6% net yield and have a low-maintenance investment with a quality tenant to avoid any headaches or risks of vacancy.
‍ResultSourced off-market, this large 1783m2 Industrial property in a small estate of 6 has an A+ tenant in occupation since 2021 on a 7year lease to 2028 + 7year option to 2035, with strong CPI or 3.25% with annual increases providing a low-maintenance, stable and secure income to our client. We negotiated a $150,000 price reduction, and conducted extensive DD establishing a well below market rent with future upside.