Brewton Iron Works – Absolute NNN Industrial (10.06% Cap)

Description:

Brittco Commercial Properties, LLC is offering 132 Mildred Street, Brewton, Alabama, the long-time home of Brewton Iron Works, at an asking price of $3,200,000. The property is 100% leased to Brewton Iron Works, LLC (a Michigan LLC) under an absolute NNN lease, with an unconditional guaranty of payment and performance from its parent, Fidelis Holdings, LLC.

The 15-year primary term began September 15, 2023 and runs through September 15, 2038, leaving roughly 12 years of term. Rent increases 2% every year, including during four 5-year renewal options. Current base rent for lease year 4 (beginning September 2026) is $321,894. That is a 10.06% cap rate on the asking price, or about $36.47 per square foot of NRA.

The tenant pays all real estate taxes, insurance, utilities, and maintenance, including roof, structure, and foundation. The landlord has no operating responsibilities.

The property is a multi-building, steel-construction industrial campus with 87,747 SF of net rentable area on 4.89 acres (per the 2023 appraisal). It was originally built in 1925, renovated in 1997, and zoned industrial. It operates as an active iron foundry and manufacturer of sprockets and industrial castings, and the Brewton Iron Works business has been on this site for more than a century. Brewton is the county seat of Escambia County, near U.S. Highways 29 and 31 in south Alabama, just north of the Florida Panhandle.

Environmental: A Phase II Environmental Site Assessment identified conditions requiring remediation. Remediation costs will be borne by the Seller. Please contact the owner for additional information.

Principals only. 1031 exchange buyers welcome.

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