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Chlormet closes acquisition of 9.7 acres in Washington

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ma61   Sunday, 06/21/15 10:13:06 AM
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Chlormet closes acquisition of 9.7 acres in Washington

2015-06-09 09:38 ET - News Release

Mr. Yari Nieken reports


Chlormet Technologies Inc. has completed the purchase of property located near Ferndale, Whatcom county, Washington state (see news releases dated Nov. 4, 2014, and May 28, 2015), and is now the registered owner by way of its subsidiary PacCan Industries LLC.

The property is 9.7 acres in size and has multiple buildings located on it. The largest building is approximately 13,000 square feet (of total floor space) and is divided into eight bays. Three separate tenants currently occupy six bays. Two tenants, who rent four bays between them, have been given notice to vacate by June 30, 2015. The company intends to meet with the third tenant with the goal of trying to sign a long-term lease.

The property is large enough for the construction of multiple additional large-scale buildings, and the company has engaged a developer to provide schematics and zoning guidance. During the escrow phase, the company had the property rezoned to reflect the recommendations of the developer.

The purchase price of the property was $1.2-million (U.S.), and the company has secured a third party mortgage on the property in the amount of $1.08-million (U.S.). The mortgage is non-recourse and has a 24-month term with 5-per-cent interest-only payments due monthly.

The company intends to generate revenue from the property via long-term rentals and/or leases for the building (or portions thereof). To further clarify, Chlormet will rely upon landlord exemption provisions under Washington State regulations RCW 69.50 and WAC 314-55 that allow for the lease of facilities, security equipment, fixtures, tenant improvements, utility services and maintenance/security services to state-licensed producers and processors.

The rents will be reasonable and fixed, and the company will not be involved in or participate in the business of its tenants.

"The company is thrilled to have closed a transaction that will in short order diversify its income. I was very pleased with the efforts put forth by both management and our consultants during the due diligence and rezoning processes," stated chief executive officer Yari Nieken.

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