NextNRG To Acquire ~33-Acre Property In South Bend, Indiana For $22M, Comprising $500K In Cash, $10M In Pref Shares And $11.5M Of Debt
NextNRG, Inc. (NASDAQ:NXXT) ("NextNRG" or the "Company"), a pioneer in AI-driven energy innovation transforming how energy is produced, managed, and delivered, today announced that it has executed a non-binding term sheet with Envision South Bend LLC to acquire an approximately 33-acre property in South Bend, Indiana. The Company has also executed a binding 10-year lease agreement with a pharmaceutical company for the property's existing approximately 50,000-square-foot building. The lease will become effective upon the Company's acquisition of the property.
NextNRG plans to develop the property as the Lone Wolf Energy Center, combining a commercial tenant in the existing building with a separate development area for data center infrastructure, on-site power generation, battery storage and microgrid capabilities.
Energy and Data Center Development
NextNRG plans to develop approximately 27 acres of the property for data center infrastructure and supporting energy systems, with the potential to support up to 70 megawatts of data center capacity, and potentially up to 100 megawatts. A transmission line running along the property boundary also presents a pathway for future grid interconnection.
The Company plans to pursue right-sized AI infrastructure and distributed computing applications, offering an alternative to traditional hyperscale data center campuses. The ability to develop on-site generation could provide a pathway to power availability for prospective customers while longer-term grid interconnection opportunities are pursued.
The remaining acreage also provides an opportunity to integrate battery energy storage and microgrid infrastructure, coordinating power generation, storage and energy management to support the needs of data center operators and other prospective commercial and industrial customers.
NextNRG's role in the development will focus on the energy infrastructure, including power generation, battery storage, microgrid systems, and energy management. The Company expects to work with a separate specialized partner responsible for the AI computing infrastructure and related operations. This approach allows NextNRG to apply its energy technology and capabilities to support the facility without taking on the role of data center compute operator.
Transaction Details
Under the terms of the non-binding term sheet, the proposed $22 million acquisition consists of $500,000 in cash, $10 million in a newly designated class of Preferred Stock and $11.5 million in debt.
Anchor Tenant
The existing approximately 50,000-square-foot building will be leased to a pharmaceutical company for manufacturing, laboratory, warehousing and office operations. The binding lease agreement provides for an initial 10-year term, with two additional 10-year renewal options at the tenant's election.
Annual rent will equal the greater of minimum rent of $250,000, escalating 3% annually, or 10% of the tenant's Net Premises Revenue, subject to a $2.5 million annual cap. Under the net lease structure, the tenant will also pay its proportionate share of property taxes, building insurance and common operating costs.
The lease provides NextNRG with an established commercial use for the existing building while retaining the remaining approximately 27 acres for independent development and commercialization opportunities. NextNRG will also retain the right to use the building's rooftop for solar installations.
Proposed Transaction Conditions
The proposed acquisition remains subject to the negotiation and execution of definitive transaction documents, required corporate and other approvals, seller lender approval, and the applicable Nasdaq listing condition. The lease is binding upon execution but becomes effective only upon NextNRG or its designated acquisition subsidiary acquiring the property.
There can be no assurance that the proposed acquisition will be completed on the terms contemplated or at all.