Star Equity subsidiary sells three properties for $3.4M in sale-leaseback deals with 20-year leases

Star Equity Holdings, Inc.

Alliance Drilling Tools sold TX, UT, and WY properties to Custom Capital for $1.1M, $0.6M, and $1.7M respectively.
Each property leased back via triple net lease: 20-year initial term, four 5-year renewal options, 2.5% annual rent increases.
Company guarantees leases; net proceeds reduced by transaction costs.
Closings expected in Q1 2026, subject to customary conditions; no operational disruption anticipated.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Star Equity Holdings, Inc. entered into ADT Texas Purchase and Sale Agreement with Custom Capital Strategies, Inc. valued at $1,100,000 (effective 2025-12-16).

Action: entry
Agreement: asset purchase
Counterparty: Custom Capital Strategies, Inc.
Value: $1,100,000
Effective: 2025-12-16

Exact text from the filing

On December 16, 2025, Alliance Drilling Tools LLC (“ADT”), a wholly-owned subsidiary of Star Equity Holdings, Inc., (the “Company”), entered into three different Purchase and Sale Agreements with Custom Capital Strategies, Inc. ( “Custom Capital” or the “Buyer”), an unaffiliated third party, pursuant to which the parties agreed to consummate three different sale and leaseback transactions.

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Star Equity Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001210708-25-000154

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