Royal Oak Realty Trust Inc. recently acquired its 14th building in a $9.3 million deal that adds a seventh state to its portfolio.
The private real estate investment trust acquired Miniature Precision Components Inc.’s headquarters and primary manufacturing facilities in Walworth, Wis., which is located in southern Wisconsin near Lake Geneva and roughly 70 miles north of Chicago.
With the deal, Royal Oak now owns 14 properties totaling some 1.5 million square feet in seven states, officials said. That translates to roughly $81 million of assets.
“It’s a very exciting opportunity,” Royal Oak President and CEO Daniel Goldstein said of the latest acquisition.
The deal also was appealing to Royal Oak because of the nature of Miniature Precision Components business, as well as its track record of success, said Bruce Bender, Royal Oak vice president.
Miniature Precision Components was founded in 1972 and is a tier one supplier of thermoplastic components and assemblies to the automotive industry, including cooling systems, sealing systems, emission and vacuum control systems and air induction systems.
The family-owned, private company has nearly 1,500 employees at nine locations.
Royal Oak acquired the real property and four buildings on Dec. 22. The buildings total 228,494 square feet and are located on nearly 18 acres. Miniature Precision Components signed a 12-year lease for the property.
The buildings are used for Miniature Precision Components’ headquarters, as well as research and development, manufacturing and an employee health clinic. The buildings were constructed in 1973, 1984, and 2002 and have undergone renovations.
Royal Oak has no immediate plans to make additional investments in the property or buildings, company officials said.
Royal Oak was formed, with its subsidiary, Royal Oak Realty Trust LLC, in 2013 and 2014 under the names Buckingham Net Leased Properties Group Inc. and Buckingham Net Leased Properties Group LLC.
The names were changed to Royal Oak in December 2015.
The company focuses on office and industrial properties net leased to tenants under long-term absolute triple-net lease contracts. Absolute triple net leases are a type of net lease in which the tenant agrees to pay a monthly lump sum base rent as well as the property taxes, the property insurance and the maintenance.
Royal Oak focuses on the Northeast, Midwest and Southeast regions. Its most recent acquisition prior to the Wisconsin property was in September when Royal Oak acquired an 87,000-square-foot building on eight acres in Atlanta in a $9.3 million deal.
It also owns properties in Alabama, as well as Illinois, Michigan, New York and Ohio.
The business is looking at other properties for potential acquisitions, particularly in the Southeast and Northeast during the first half of 2017, Goldstein said, noting Royal Oak wants to continue to grow in 2017.
“We finished the year strong and want to continue to ride that momentum,” he said.
1/6/2017 (c) 2017 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email [email protected]