Middletown, CT - Kloeckner Metals

Description:

SRS National Net Lease is pleased to present the opportunity to acquire the fee simple interest in a NNN-leased industrial facility located in Middletown, Connecticut. The property is 100% leased to Kloeckner Metals Corporation, a corporate entity of Kloeckner Metals, a top service center operator with 60+ locations across North America, 120+ locations globally, and $3.54 billion in assets reported in 2024. The lease has over 4 years of primary term remaining, with two (2) additional 5-year renewal options. The subject property is currently leased at $4.59 PSF, well below market rents for comparable industrial product in the area, which range from
$6.00–$8.00 PSF. A CPI-based rental increase scheduled for 2030 offers investors a built-in inflation hedge and meaningful income growth, demonstrated by a 25% increase from the most recent CPI adjustment in September 2025. Kloeckner has operated at this location since 2005 and renewed the lease three times, highlighting a long-standing commitment to the site; the facility has functioned as a field processing and distribution center since 1959. Recent improvements include a full renovation of the office space completed by the tenant. Headwinds and rising construction costs have limited new industrial development in Central Connecticut, which has kept vacancy low and helped maintain rent stability.

The property is strategically located between New York City and Boston, an ideal distribution point for the tenant. It sits along Newfield Street (15,100 VPD), a key local arterial, and is just minutes from I-91 (113,900 VPD) and State Highway 9 (63,200 VPD), two major regional corridors supporting freight and logistics. The site features a freight rail spur that enters the building, providing the tenant with direct import/export capabilities and active rail service across the region and U.S. The surrounding 5-mile trade area is supported by more than 85,200 residents and 54,000 employees, with an average household income of $119,017.

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Listing ID: a28TP000001ux85YAA