By Adelina Osan, Associate Editor
A 160,000-square-foot industrial building located in Monroe, owned by Monmouth Real Estate Investment Corp., was recently sold for $9 million. The property’s buyer is Charlotte Pipe and Foundry Co., the tenant of the industrial building.
“We are pleased to announce the sale of our Monroe, North Carolina facility to our Tenant, Charlotte Pipe and Foundry. Our net sales proceeds of $8.8 million less our current carrying book value of $3.8 million will result in a realized gain of $5.0 million representing a 57 percent gain over our original cost basis and a 132 percent gain over our current depreciated GAAP basis,” said Michael P. Landy, president & CEO of Monmouth.
Monmouth acquired the property in 2001 and it has a historic cost basis of $5.6 million and a current net book value of $3.8 million. The company plans to redeploy the capital generated from this disposition into our large acquisition pipeline, which currently stands at 2.7 million square feet of new built-to-suit properties currently under construction.
Monmouth’s 13.8 million square foot portfolio of single-tenant net-leased industrial properties has a current occupancy rate of 97.6 percent.
Image credits: Google Earth