Light Industrial | Brewery and Real Estate Sale

Brewery & Real Estate Sold for $1.95M | Kyle Fried Represents Ironfire Brewing Co. in Dual-Asset Sale

In Q4 2024, Kyle Fried of Seaway Commercial Real Estate Advisors closed the $1.95 million sale of 42095 Zevo Dr, Temecula, a 4,565 SF light industrial flex condo that also included the full operating business of the award-winning Ironfire Brewing Company. The transaction, acquired by Prolific Brewing Company LLC, involved a dual-track execution: selling the real estate and assigning all business assets in a single, coordinated deal.

Deal Summary

• Address: 42095 Zevo Dr, Temecula, CA 92590

• Buyer: Prolific Brewing Company LLC

• Seller: Ironfire Brewing Company LLC

• Broker Representation: Kyle Fried, Seller Rep

• Total Deal Value: $1,950,000

• Real Estate Size: 4,565 SF

• Real Estate Price/SF: $289

• Zoning: Light Industrial

• Roll-Up Door: 1 (12’x14’)

• Year Built: 2007

• Close Date: Q4 2024

• Occupancy at Sale: Owner-Occupied

Sophisticated Valuation Approach

This deal required dual-valuation across both real estate and business components.
Kyle led a full 3-year SDE (Seller Discretionary Earnings) analysis, including:

• Add-backs for owner compensation, personal expenses, and one-time costs

• Inventory, autos, and brewery-specific FF&E

• Allocation of goodwill as part of a business asset sale structure

Separate allocations were used for real estate, equipment, inventory, and intangible assets to support lending, appraisal, and CDTFA compliance.

All valuation support—including historical financials, FF&E breakdown, and pro forma projections—was prepared and presented by Seaway CRE Advisors, enabling the buyer to act confidently without a separate third-party analysis.

Financing Strategy & Execution

Prolific Brewing secured an SBA 504 loan, allowing them to finance both the real estate and qualified business assets with favorable long-term terms.

• First trust deed lender was identified by the buyer

• The team avoided SBA 7a due to cash flow risk and weaker DSCR projections

• Additional TIs and working capital were structured into the loan package

Kyle advised the buyer during underwriting discussions, assisting with appraisal strategy and guiding financial alignment to meet lender thresholds.

Structuring and Negotiation Highlights

The deal required the drafting and negotiation of separate but parallel purchase agreements for the real estate and business, alongside:

• Phase I coordination

• CDTFA bulk sale compliance

• Non-compete agreements and employee transitions

• Allocation of closing responsibilities for sales tax and licensing

This was not a simple transaction—it involved deal-making across legal, financial, and operational domains.

Strategic Market Fit

With shifts in the craft brewing market, today’s buyers seek more than just production space—they need experience-driven, mixed-use breweries. Prolific Brewing plans to reposition Ironfire into a family-forward taproom with expanded beverage offerings. The Zevo Drive location, zoned LI, sits at the crossroads of Temecula’s residential base and commercial corridor, giving it strong logistical and consumer access.

Brokerage Value Delivered

• Expert-led valuation and SDE support

• SBA financing consultation and lender collaboration

• Dual-agreement structuring and negotiation

• Asset allocation strategy for taxes, lending, and compliance

• Strategic positioning to target startup and established brewers

FAQs

1. How was the business valuation determined?
We used a 3-year lookback on Seller Discretionary Earnings (SDE), with detailed add-backs and a separate allocation for FF&E, inventory, vehicles, and goodwill.

2. Why did the buyer avoid SBA 7a financing?
Due to higher monthly debt service and DSCR concerns, the 7a structure was rejected in favor of a more balanced SBA 504 loan supported by strong real estate collateral.

3. Were the real estate and business sold under one contract?
No—two separate agreements were structured and negotiated simultaneously: one for the real estate and one for the business. This approach ensured clarity, tax compliance, and proper asset allocation.