One Liberty Properties, Inc. has agreed to purchase an industrial building for $28.3 million in Iowa.
The 236,324-square-foot building on about 23.5 acres is located in Council Bluffs, which borders Nebraska. The Class A property, whose construction was completed in 2023 consists of concrete tilt walls, 32-inch clear height, LED lighting, 27 dock loading doors, and ESFR sprinklers.
The warehouse is less than three miles away from downtown Omaha, Nebraska. Also, it’s close to the I-80/I-29 four-way interchange.
Currently, two tenants are occupying the property. They are both contributing a combined annual rent of roughly $1.9 million, which is subject to yearly increases ranging from 3 percent to 3.25 percent, according to One Liberty. The median leasing term remaining comes out to 6.1 years.
The purchase in Council Bluffs marks One Liberty’s second one it’s added in the area and the fourth industrial property that it has acquired this year.
“Omaha is considered a strong distribution hub due to its central location with good proximity to infrastructure and interstates,” One Liberty said in a statement.
A report by CBRE recognized Omaha, Nebraska as a top-five market for conversion projects in the industrial space. This is thanks to the number of “dead malls” in the Midwest, according to CBRE.
“We are pleased that we will be able to increase the scope and quality of our industrial portfolio by acquiring this recently constructed industrial property in a desirable logistics location,” said Patrick J. Callan, Jr., president and CEO of One Liberty.
“Our disciplined approach has enabled us to add industrial assets in a manner that will contribute to the stability and growth of our cash flow in the coming years.”
According to the real estate trust, it operates 109 properties in 31 states.
One Liberty is planning to fund the latest Council Bluffs purchase, expected to close this fall and subject to review, with its cash balance and a loan.
The company anticipates acquiring a $17 million mortgage that carries an interest rate of 5.89 percent. Interest will only apply until 2029, with the loan maturing in 2034.