Star Equity Holdings, Inc. filed a Form 8-K on November 10, 2026, disclosing that its wholly owned subsidiary entered into a Purchase and Sale Agreement on November 9, 2026, to sell real property in Colfax, Wisconsin for $5.2 million, with a simultaneous leaseback arrangement.

Key Highlights

  • Sale price: 106 Bremer Avenue, LLC agreed to sell the Colfax, WI property to DWG Capital Partners, LLC for a purchase price of $5.2 million, subject to transaction commissions and expenses.
  • Leaseback term: Timber Technologies Solutions Inc. will lease back the Colfax Premises for a 20-year initial term, with two renewal periods of 10 years each.
  • Lease structure: The lease is structured as an absolute net lease, making Timber Technologies generally responsible for insurance premiums, maintenance, utilities, taxes, and other expenses.
  • Company guarantee: Star Equity Holdings will guarantee the obligations of Timber Technologies under the Lease Agreement.
  • Expected closing: The company anticipates closing in the fourth calendar quarter of 2026, subject to customary closing conditions, though closing may occur after that period.
  • Buyer termination right: DWG may terminate the Colfax Purchase Agreement for any reason or no reason before expiration of the due diligence period.

Star Equity Holdings Discloses Colfax Property Sale and 20-Year Leaseback

According to the filing, 106 Bremer Avenue, LLC, a wholly owned subsidiary of Star Equity Holdings, Inc. (NASDAQ:STRR), entered into a Purchase and Sale Agreement on November 9, 2026, with DWG Capital Partners, LLC, described in the filing as "an unaffiliated third party." The agreement calls for the sale of real property located at 106 Bremer Avenue, Colfax, WI for a purchase price of $5.2 million. The filing notes that net proceeds will be reduced by transaction commissions and expenses.

Simultaneous with the closing of the sale, Timber Technologies Solutions Inc., another wholly owned subsidiary of the company and the current occupant of the Colfax Premises, will enter into a commercial single-tenant triple net lease with DWG, or its permitted assignee, as landlord. The filing states the lease term commences upon execution and ends on the 20th annual anniversary, unless earlier terminated or extended. The company disclosed it will guarantee Timber Technologies' obligations under the Lease Agreement, which the filing categorizes under the creation of a direct financial obligation or an off-balance sheet arrangement.

The filing states that closing is scheduled to occur within 30 days after expiration of the due diligence period, with each party retaining the right to extend closing once for up to 30 days, and DWG holding an additional right to extend once for up to 15 days. Closing conditions cited in the filing include satisfactory title and insurance commitment, satisfactory survey review, environmental condition review, the buyer's ability to obtain appropriate financing, release of all monetary liens on the Colfax Premises, and satisfaction of other due diligence items. Following closing, the filing states that "Timber Technologies will continue to operate its business from the Colfax Premises."

What Was Disclosed

Star Equity Holdings disclosed a $5.2 million agreement to sell its Colfax, WI property through a subsidiary, paired with a 20-year absolute net leaseback to Timber Technologies Solutions Inc., with the company guaranteeing the lease obligations. Closing is expected in Q4 2026, subject to conditions.