Northrop Grumman
Beavercreek, OH
Stabilized Asset Secondary Market
160,501 SF
FD Stonewater acquired this asset in 2014. The existing facility is 100% leased to and occupied by Northrop Grumman (Northrop Grumman acquired Orbital ATK in 2018), a leading developer and manufacturer of products that support the aerospace and defense industries. The deal had complex underwriting challenges and limiting limited financing options. The FD Stonewater development and asset management teams negotiated the expansion plans along with the long-term lease renewal. The FD Stonewater development team completed the 35,000 SF expansion and interior improvements in 2018. In the midst of the pandemic, FDS took the asset to market and received multiple preemptive offers from qualified buyers. The deal significantly outperformed underwriting for a variety of factors, but the transformation from sub-investment grade credit tenancy on a very short-term lease in a tertiary market into a larger facility with long-term investment grade tenancy created significantly outsized returns.

Category: Development/Construction Management, Investment/Asset Management
Acquisition Date: February 2014
Occupancy: Single-tenant Opportunistic
No. of Buildings: 1
Square Feet: 123,200 SF; 158,059 SF upon expansion completion
Tenant Sampling: Orbital / ATK (acquired by Northrop Grumman)