Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has announced the sale of a 186,443-square-foot industrial building located at 18450 15 Mile Road in Fraser, Michigan. The manufacturing facility is leased to AAM Metal Forming (NYSE: AXL), a leading global tier 1 automotive supplier that designs and produces driveline and drivetrain components and modules, chassis systems and other formed products for the automotive industry. ACW Fraser American LLC, a Tucson, Arizona-based institutional investor, was exclusively represented by Asher Wenig of Stan Johnson Company. Fraser Fifteen LLC, an institutional investor based in Clifton, New Jersey, acquired the asset for $7.6 million. The cap rate was not disclosed.
“I was proud to represent my client in the sale of this attractive asset,” said Wenig, Senior Director and Partner in Stan Johnson Company’s New York office. “They were able to take advantage of a hot industrial net lease market.”
Located in a northern suburb of Detroit, Michigan, the mission-critical facility is situated on 14.35 acres and was recently renovated in 2020. At the time of sale, there were approximately 15 years remaining on the primary lease term. The lease features an absolute triple net expense structure and provides 2.0 percent annual rent increases during the primary and option terms.
“The offering was well-received by the market, allowing us to generate several offers by many qualified buyers,” Wenig added. “Combined with this being a mission-critical facility, well below market rents and there being available buildable FAR, this will be an outstanding investment for the buyer for many years to come.”