Property Summary. Introduction. Tenants. Executive Summary. Investment Summary

Transcription

1 Executive Summary

2 Investment Summary Introduction As the Owner s Exclusive Sales Representative, Wiggin Properties is pleased to offer for sale The Mid America Business Park in Oklahoma City, Oklahoma. The Park can be purchased as a portfolio ($26,300,000) or in separate pieces. Property Summary Mid America Business Park consists of three office/warehouse buildings built between 1999 and 2003 and a three story office building constructed in It has 466,880 total rentable square feet residing on 45 acres, of which 24 acres are ready for development. The Park provides multi-tenant office and industrial spaces, primarily to government defense contractor tenants doing business at Tinker Air Force Base. The facilities offer a wide variety of spaces including administrative offices, flex space, incubation space, lock down space, training space, general warehouse and distribution. The park is also designated as a Foreign Trade Zone. The limited supply of first-class office and warehouse space in close proximity to Tinker Air Force Base gives Mid America Business Park a distinct competitive advantage with defense contractors. Tenants Mid America Business Park is a premium investment that has an abundance of credit tenants, including New Breed Logistics, Lockheed Martin, Pratt & Whitney, Veterans Administration and the Chickasaw Nation. While many of the leases are relatively short term, the tenants have been in occupancy for an average of 8 years. Though defense contractors aren t inclined to sign leases for terms that extend beyond their government contract, they usually renew their lease as contracts are renewed, and, if not renewed, their replacement contractor is eager to consume the space being vacated. The historically steady occupancy and tenure over the years ensures continued demand for the space and success of the property. Furthermore, if tenants cannot commit to a long-term lease, they accept that it may be necessary for them to incur a greater portion of the cost of improvements.

3 Location Mid America Business Park is located on Interstate 240, adjacent to Tinker Air Force Base. It is just 4 miles east of I-35 and 6 miles west of I-40, making it easily accessible to the entire Oklahoma City metropolitan area. The Park is the only first-class business location remotely close to Tinker Air Force Base, which is Oklahoma s largest employer and a catalyst for keeping the Park steadily occupied with defense contractor tenants. It is also located less than 1 mile east of the newly constructed Oklahoma Heart Hospital, approximately 10 miles east of the FAA Center and Will Rogers Airport, 10 miles from downtown Oklahoma City and 12 miles from the University of Oklahoma in Norman.

4 Investment Opportunity Highlights Functional Space + Strategic Location + Strong Market = Great Real Estate Investment Fundamentals There is tremendous media coverage on the renaissance occurring in Oklahoma City. As one of the country s five fastest growing major cities, Oklahoma City is experiencing one of the most vibrant local economies and strongest real estate markets nationwide. MABP can be purchased on current income and well below its replacement cost. Yet, due to improving market conditions, there is good upside potential from improved occupancy, increased rents and development opportunities. MABP has an established history of stable occupancy of credit tenants, including Lockheed Martin, Pratt & Whitney, The Chickasaw Nation Industries and New Breed Logistics. MABP is well constructed and maintained. This quality real estate has no deferred maintenance or major capital expenditures foreseen. Tinker Air Force Base is considered by many to be one of the country s most vital Air Force maintenance facilities and relatively safe from any major cutbacks in defense spending. In past BRAC outcomes, Tinker has experienced net gains of assignments and employment. Due to its strategic location next to Tinker Air Force Base, MABP enjoys a real competitive market advantage over its limited competition. There are very few comparable properties located in as close proximity to Tinker as MABP. The variety of office and industrial spaces at MABP meets the financial and functional space requirements of many businesses. The current ownership, a retail developer, who admittedly is not averse in office or industrial property management, is ready to sell.

5 Interest offered: 100% fee simple interest in Mid America Business Park, a 466,880 square foot business park. Seller will consider selling the three industrial buildings ($13,000,000) as a separate package, the office building ($10,600,000) separately and the land ($2,700,000) separately. Land Area: Fully developed: acres MOL Improved vacant for sale: 24 acres MOL May be purchased separately for $2,700,000 Building: I, II and III V Total Office: 35,457 SF 84,373 SF 119,830 SF Warehouse: 347,050 SF 347,050 SF Tenants: Occupancy: 78% 89% 80% Year Built: Assumable Financing: III: $4,259,685 Current NOI: $1,023,427 $957,322 $1,980,749 Pro-Forma NOI: $1,535,480 $1,053,995 $2,589,475 (at 95% occupancy) Purchase Price: $13,000,000 $10,600,000 (if purchasing separate from portfolio) Terms of Sale: Property is being offered all cash, subject to two existing mortgages. The Park can be purchased as a portfolio ($26,300,000) or in separate pieces. Property Tours: Prospective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with Wiggin Properties, the exclusive listing broker. Please do not contact the on-site management or staff without prior approval.

6 Parcel B N Parcel A