FD Stonewater announced today that the company recently completed the disposition of a single-tenant property located on the grounds of the Grand Junction Regional Airport in Grand Junction, CO. The company acquired the property in a joint venture along with P&L Properties and Lynxs Group in April 2015 as part of the firm’s single-tenant strategy. The facility was fully leased at the time of acquisition on a long-term net basis.
The 30.6-acre site included a 229,744 square foot airport hangar facility housing an industry-leading aviation maintenance, repair, and overhaul (MRO) service provider. The seven-building facility is an FAA-authorized, Class 4 repair station, able to service all makes and models of large metal aircraft. Key investment attributes included the asset’s attractive, long-term lease and the tenant’s market-leading reputation.
FD Stonewater and their JV partners were initially attracted to the opportunity due to the long-term cash yields combined the tenant’s strong business prospects, along with the facility’s strategic location and mission critical functions.
During the hold period, the company renegotiated the tenant’s lease expiration date and renewal options to align with a restructured ground lease, which resulted in significant value to potential buyers. Multiple bids were received during the competitive process. The JV partners settled on a public REIT buyer who closed on an extremely aggressive timeline.
Andrew Schwartzman, a Principal at FD Stonewater, noted, “This was an extremely successful transaction for all parties involved. We’d like to thank our JV partners at P&L Properties and Lynxs Group who were instrumental throughout the deal. We knew going into this acquisition that it was a unique endeavor, but we were optimistic about the potential and confident that we had aligned ourselves with strong partners to implement and execute a robust business plan for the asset.”
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