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NORTHBROOK, IL-Net-lease and 1031 exchange specialists The Boulder Group is advising VP Investments, LLC on a possible $64-million sale of three properties leased by Cargill on long-term, net-lease deals. The properties are in Newnan, GA; Hazelton, PA and outside of Montreal.

Cargill uses the buildings for distribution and cold storage.

The 233,000-sf Hazelton property on nearly 40 acres is being offered at $34.5 million, which represents an 8.1% capitalization rate, according to. The Boulder Group. Cargill has a lease through 2021 calling for escalations after 10 years as well as three potential five-year options on the building constructed last year. The building is mortgaged for nearly $30 million, with the 20-year loan carrying a 7.86% interest rate.

The 110,000-sf Newnan property is for sale at $11 million. Cargill’s lease there runs through September 2018, with similar rent escalations and five-year options. Built in 1998 on 12.5 acres, the Georgia property is being offered at a 6.7% capitalization rate. Income is expected to cover payments on the 20-year, $9.65-million mortgage on the property.

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