BJ Feller, Senior Vice President and Managing Director, and Josh Dicker in Northmarq’s Chicago investment sales office, arranged the $8.65 million sale of a single-tenant industry property fully leased to the Morrell Group, including Stegner Controls as a division of the Morrell Group, a motion controls manufacturer that services dozens of industries including the automotive industry. The 77,100 sq. ft. facility is located at 3333 Bald Mountain Rd in Auburn Hills. Feller and Dicker represented the seller, a Michigan-based developer. The buyer was a private investor based in California.
“Although the commercial real estate capital markets are facing headwinds in today’s higher interest rate environment, this transaction is a reminder that great assets still generate tremendous interest and engagement from investors,” said Feller. “Having received five offers in our first few weeks of offering the asset, we ultimately came to terms with an investor seeking to build their Midwest portfolio and prepared to demonstrate their commitment with non-refundable earnest money upon contract execution.”
Built in 1998, the property was renovated in 2021 and includes 57,825 sq. ft. of warehouse space and 19,275 sq. ft. of office space. Located in a strong submarket 30 miles north of downtown Detroit, the property benefits from direct access to I-75, a major interstate highway connecting Michigan to Florida. In addition to easy interstate access, the property sits at the outer edge of a large industrial park home to General Motor’s Orion Assembly Plant, a 4.3 million sq. ft. facility.
The industrial building is mission-critical to Stegner Controls, Morrell Group’s fastest growing division. Morrell Group is a leading distributor of advanced motion control solutions for industrial and mobile applications.
The single-tenant net lease industrial market was not immune to the first quarter 2023 slowdown, according to Northmarq’s Q1 2023 MarketSnapshot. However, the reduced investment activity does not automatically translate to a decrease in investor interest. The sale of Morrell Group’s mission-critical facility represents the persistent popularity of single-tenant industrial assets given their essential role in today’s economy.