A Med City manufacturer sold its northwest facility for $21.5 million last week and signed a deal to lease it back for 200 months, or more than 16 years.
Crenlo Engineered Cabs, which is owned by California-based private equity firm Angeles Equity Partners, sold its cab-making plant at 2501 Valleyhigh Dr. NW on June 29 to an Arizona-based net-lease real estate investment trust, STORE Capital Corp. STORE paid the entire $21.5 million at the closing of the sale.
STORE, which stands for Single Tenant Operational Real Estate, is invested in a real estate portfolio with more than 2,600 properties across the US.
The 52-year-old Crenlo facility includes a more than 300,000-square-foot complex on a 23-acre plot.
Olmsted County estimated the total market value of the building at $429,500 and the land at $3.4 million for a total of $3.83 million for 2021-2022.
That’s the plant that Crenlo, which has operated in Rochester for 70 years, recently announced plans to expand for the addition of a new paint line.
The City of Rochester, the State of Minnesota, Rochester Economic Development Inc. and Rochester Public Utilities put together a $1.25 million incentive package in April to convince Crenlo to remain in Rochester and retain at least 336 jobs for five years. The package includes a pair of forgivable loans -- $300,000 from Rochester’s Economic Development Fund and $450,000 from the state's Minnesota Investment Fund.
That package was put together after Crenlo threatened to leave Rochester and told employees that there was an offer to buy Plant #2, the Valleyhigh facility.
As part of its strategy to remain in Rochester, Crenlo said it plans to close its 1600 Fourth Ave. NW facility. It’s unclear if that 56-year-old site also is for sale.