Offering Memorandum. Exclusively Offered By: Jeff Houge: Dana Dose:

Transcription

1 Offering Memorandum Exclusively Offered By: Jeff Houge: Spiral Boulevard Hastings, Minnesota Dana Dose: Scott Kragness: South Metro Location Investment Grade Tenant Quality Construction Land for Expansion Recently Executed Lease Offered at 8.30% Cap.

2 Confidential Disclaimer This Confidential Memorandum has been prepared by Wakota Commercial Advisors ( WCA ) and is being furnished to you solely for the purpose of your review of the commercial property located at 1100 Spiral Boulevard, Hastings Minnesota (the Property ). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Wakota Commercial Advisors ( Broker ). By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you receive in connection with this transaction, whether oral, written or in any other form (collectively, the Materials ), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) If you do not wish to pursue this matter, you will return this Confidential Memorandum to WCA together with all other materials relating to the Property which you may have received from WCA; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of WCA. This Confidential Memorandum has been prepare by WCA based upon information pertaining to the Property and any information obtained from WCA to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision and is sold on an as-is, where-is basis with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by WCA to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon WCA or any of the information set out in the Materials. WCA has not independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any kind whatsoever are made or intended and none should be inferred. WCA expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of the documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice. This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release WCA and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. WCA reserves the right to request the return of Materials at any time. Ownership of the Property reserves the right to negotiate with one or more investors at any time. Page 2 ICS Hastings, MN

3 Table of Contents Section 1: About The Investment Investment Summary & Highlights 5 Pricing Overview 6 Section 2: About the Tenant Tenant Information 8 Section 3: About the Property Lease Abstract 10 Salient Facts 11 Solar Array 12 Property Photos 13 Section 4: About the Location Location Overview 16 Area Maps 17 Page 3 ICS Hastings, MN

4 Page 4 ICS Hastings, MN Section 1: About the Investment

5 Purchase Price: $3,380,000 Cap Rate: 8.30% Wakota Commercial Advisors is pleased to offer FOR SALE, the opportunity to acquire this exquisite, single tenant, net leased industrial property in Hastings, Minnesota. Tenant Industrial Container Services ( ICS ) is the largest provider of reusable container solutions in the United States. ICS strives to be the premier supplier of high quality, environmentally responsible products at the best possible value. The property consists of a 68,024 square foot bulk warehouse facility, constructed in ICS offers unparalleled expertise with over 100 years experience in the industrial The subject property is located in container industry. the city of Hastings, MN, a southeastern suburb of St. Paul, MN. ICS operates 49 facilities in 19 States and 6 Canadian Provinces. The Hastings Industrial Park, made up of 230 acres of industrially zoned land, is home to over 50 successful companies with ICS employees over 1,500 people. expansion area for future growth. The ICS is privately-owned. Hastings Industrial Park is located on the southeast side of Hastings, within the city limits. The main entrance to the industrial 2015 revenues: In excess of $300MM. park is Spiral Boulevard on State Highway Commitment ICS recently signed a 316, 300 yards south of its junction with Seven (7) year lease. U.S. Highway 61. This 68,024 square foot facility sits on 5.56 acres of land. The building can be expanded to accommodate larger, future users. Page 5 ICS Hastings, MN Lease Economics This seven (7) year highly passive lease structure provides prospective landlords with market rents and cash flows for years to come as Landlords responsibilities are limited to structural components.

6 Pricing Overview Offer Price: $3,380,000 Offering Cap Rate: 8.30% Net Operating Income: $279, Tenant: Industrial Container Services Website: Rent Escalations: 3% every two (2) years. Subject Property Solar Array: Tenant pays $462.50/month for solar array system serving the leased premises, ending July 1, Page 6 ICS Hastings, MN

7 Page 7 ICS Hastings, MN Section 2: About the Tenant

8 The Tenant: Industrial Container Services Industrial Container Services - Industrial Container Services ( ICS ) is the largest provider of reusable container solutions in the United States. ICS strives to be the premier supplier of high quality, environmentally responsible products at the best possible value. ICS offers unparalleled expertise with over 100 years experience in the industrial container industry. ICS offers service solutions and is supported by the largest industrial packing reconditioning operation in North America. Services include: Container Supply Container Storage & Inventory Reconditioning of used containers Transportation Recycling Industrial Container Service locations: Seattle WA Roseville CA Los Angeles CA San Bernardino CA Salt Lake City UT Denver CO Houston TX St. Louis MO Venice IL Cannon Falls MN Hastings MN Grand Rapids MI North Canton OH Columbus OH Cincinnati OH Louisville KY Atlanta GA Charleston SC Taylors SC Charlotte NC Miami FL Tampa FL Orlando FL Richmond VA Baltimore MD Smithfield RI Maitland FL Regional Office Montebello CA Regional Office Page 8 ICS Hastings, MN

9 Page 9 ICS Hastings, MN Section 3: About the Property

10 The Property: Lease Abstract 1100 Spiral Boulevard, Hastings MN Tenant: Guarantor: Trade Name: Twin City Container n/k/a Industrial Container Services Industrial Container Services, Inc. Industrial Container Services Occupancy: 100% Use: Industrial container warehousing and distribution. Lease Execution: December 31, 2015 Rent Commencement: December 31, 2015 Extensions: Four (4), five (5) year extensions Lease Expiration: December 31, 2022 Expense Structure: Real Estate Taxes: Utilities: Paid by Tenant Paid by Tenant Paid by Tenant Landlord Maintenance: Tenant Maintenance: 100% No maintenance. LL responsible for a prorated amount of structural replacement (Footings, foundations, exterior walls, load bearing members, roof). Estoppel Period: Other: 10 days Tenant pays $462.50/month for Solar Array system servicing the building. System generates approx. $500 a month savings in electricity costs. Page 10 ICS Hastings, MN

11 The Property: Salient Facts 1100 Spiral Boulevard, Hastings, MN COUNTY: Dakota PID #: LEGAL DESCRIPTION: East 440 of Lot 1, Block 3 Hastings Industrial Park No. 3 YEAR BUILT: 2005 NO. BUILDINGS: One (1) LAND AREA: 5.56 acres GROSS BLD AREA: OFFICE AREA: WAREHOUSE AREA: 68,024 square feet 8,024 square feet 60,000 square feet DRIVE-IN DOORS: One (1) DOCK DOORS: Six (6) PARKING LOT: EXPANSION AREA: CONSTRUCTION: Asphalt Yes Tilt up concrete and steel Page 11 ICS Hastings, MN

12 The Property: Solar Array BEFORE SOLAR INSTALLATION Page 12 ICS Hastings, MN AFTER SOLAR INSTALLATION

13 Page 13 ICS Hastings, MN The Property: Property Photos

14 The Property: Property Photos Page 14 ICS Hastings, MN

15 Page 15 ICS Hastings, MN Section 4: About the Location

16 The Location: Hastings, MN Hastings, MN Data & Demographics (As of July 1, 2015) POPULATION HOUSING Total Population 22,286 Population in Households 21,545 Population in Familes 17,286 Population in Group Qrtrs 741 Population Density 1 2,176 Diversity Index 2 18 HOUSEHOLDS Total Households 8,919 Average Household Size 2.42 Family Households 5,863 Average Family Size 3 GROWTH RATES (Compound Annual Growth Rates) Total Housing Units 9,353 (100%) Owner Occupied HU 6,577 (70.3%) Renter Occupied HU 2,341 (25.0%) Vacant Housing Units 434 ( 4.6%) Median Home Value $219,031 Average Home Value $247,875 INCOME Median Household Income $64,501 Average Household Income $77,382 Per Capita Income $31,412 Population 0.1% 0.35% Households 0.4% 0.5% Families 0.2% 0.4% Median Household Income 3.46% Per Capita Income 2.71% Page 16 ICS Hastings, MN

17 The Location: Maps Subject Subject Page 17 ICS Hastings, MN