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NILES, MI-Hess Industries Inc. has hired Sonnenblick Goldman to sell three of its industrial properties in the city, totaling more than 170,000 sf. The company hopes to sell the buildings for $8 million to $10 million, at an 8.5% cap rate and then lease them back, says Dave Karson, a director with Sonnenblick.

“The company’s been there for decades, and plans on signing another 20 year lease, triple-net, for the properties as part of the sale,” Karson tells GlobeSt.com. “The sale would include a series of five-year lease extension options. The new owner would have a hand in crafting the lease.”

He says the metal forming and welding equipment manufacturer was recently acquired by a New York City-based private equity fund. “The fund made a determination that money they gain from the sale of real estate should be redeployed, that a sale would generate a strong return,” Karson says.

The portfolio includes 191 Fir Road, 2950 Redfield Road and 1760 Foundation Drive, consisting of one-story industrial buildings. The properties have been owner-occupied since their construction. The area served is the southwestern MIchigan/northeastern Indiana market.

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