Iowa City, IA – Lee & Associates, one of the largest national commercial real estate firms, has completed the $11,800,000 investment sale of an approximately 144,180-square-foot manufacturing facility located at 1375 Highway 1 West in Iowa City, IA. The building sits on 12.77 acres and is leased to Oral-B Laboratories, part of the Procter & Gamble company.
In 2017, Procter & Gamble (“P&G”) put approximately $16M of improvements into the building, which included office buildout, R&D and lab buildout, improved power capabilities and the addition of a crane. Today P&G estimates that there is roughly $65M in equipment being utilized in this facility. Additionally, the building has ISO 13485 medical device designation, a certification that demonstrates the high-quality standards of its manufacturing processes and affirming the tenant’s commitment to the site.
All of Oral-B electric toothbrushes and flossers globally are manufactured at this property, making this site a mission-critical location for Oral-B’s core operations. The facility runs 24 hours a day, 7 days a week, with three shifts of 150 people per shift, just to keep up with demand. As the largest employer in Iowa City, Procter & Gamble/Oral-B has other facilities in the region dedicated to the manufacture and distribution of its products.
Oral-B recently executed a 4-year lease extension early in June 2020, leaving 5+ years remaining on the lease term at time of sale. The triple-net lease features 1.75% annual rent increases and required minimal landlord responsibilities.
Ryan Barr and Ryan Bennett of Barr & Bennett Net Leased Investment Group, a team within Lee & Associates-North San Diego County, represented both the Seller and the Buyer in the transaction.
