INVESTMENT SUMMARY 5639 BROOKSHIRE BLVD CHARLOTTE, NORTH CAROLINA
Executive Summary Cushman & Wakefield, on behalf of its client, is pleased to offer for sale 5639 Brookshire Boulevard, a fully renovated, in-town industrial building located only five miles from CBD Charlotte. The 100% leased distribution center is being offered as a partial sale-leaseback with Romanoff Heating & Electric signing a ten (10) year lease term, resulting in a weighted average remaining lease term of 5.6 years. The ideally situated building features 120,250 square feet of warehouse space and is positioned on 6.04 acres of I-2 zoned land with abundant outdoor storage. Renovated in 2016, the current owner invested nearly $2.0 million in base building capital to modernize systems, replace the roof, multi-tenant the building, and update the exterior. 5639 Brookshire Boulevard presents investors with the opportunity to acquire a highly regarded urban, distribution facility at a value below replacement cost, while achieving an impressive going-in yield and cash-on-cash returns. Rising land and construction costs have halted construction of in-town industrial product, creating a tightening leasing environment with excellent fundamentals for landlords. 5639 BROOKSHIRE BOULEVARD SNAPSHOT 3TENANTS 5.6 YEARS OF REMAINING W.A.L.T. 120,250 RENTABLE SQUARE FEET 100% LEASED UNMATCHED INTERSTATE ACCESS 77 85 485 2
RARE IN-TOWN, LAST-MILE DISTRIBUTION CENTER WITH VISIBILITY ALONG BROOKSHIRE BOULEVARD CBD 77 85 CSX INTERMODAL FACILITY CHARLOTTE WATER TREATMENT PLAN 5639 BROOKSHIRE BLVD DISTANCE TO I-85 3 Mins. DISTANCE TO I-77 5 Mins. DISTANCE TO I-485 6 Mins. DISTANCE TO UPTOWN (CBD) 10 Mins. DISTANCE TO AIRPORT 10 Mins. 3 5639 BROOKSHIRE BLVD N
Significant Capital Re-Invested The current owners have invested approximately $2,000,000 in base building capital to create a best-in-class distribution facility. In the last three (3) years, the current owner has replaced the roof, all HVAC units, electrical, and the sprinkler system. Additionally, two new dock doors were added and extensive interior renovations and exterior site work was completed. These renovations and capital improvements will result in minimal capital exposure for the future owners. 4
Established Cash Flow with Term and Diversified Industry 5639 Brookshire Boulevard is 100% leased to a diverse tenant mix without exposure to one industry. With 5.6 years of remaining weighted average lease term, the stable offering is a fantastic cash-flowing investment with minimal capital required from a future owner. The Romanoff Group lease offers a ten year term on an established and growing company that was founded in 1981. The staggered rollover results in minimal risk with Citadel Trading expiring 2020, VPX expiring 2023, and Romanoff Group expiring 2028. 5
Landlord s Market DIMINISHING SUPPLY AND VIRTUALLY NO NEW CONSTRUCTION 5639 Brookshire Boulevard is one of only a few distribution centers located within five (5) miles of the CBD Upon repositioning, the building was fully leased within approximately one (1) year due to the landlord s improvements and tightening market fundamentals In-town industrial and flex space surrounding the CBD is being demolished or redeveloped to accommodate apartments, creative offices, and breweries leaving few in-town options remaining No new deliveries or planned construction for cost-conscious last-mile distribution product Lack of new supply and tightening vacancy rates have pushed industrial market rental rates by 34% since 2013 Affordable, well-maintained, and convenient warehouse space in Charlotte has a captive audience OVERALL CHARLOTTE INDUSTRIAL VACANCY & ASKING RATE $5.00 12% $4.50 10% $4.00 8% $3.50 6% $3.00 4% $2.50 2013 2014 2015 2016 2017 YTD 2018 Average Asking Rate $ (NNN) Direct Vacancy % 2% 6
For more information regarding this property, please contact one of the following individuals: INVESTMENT ADVISORS NOLAN ASHTON Transaction Leader + 1 704 335 4447 nolan.ashton@cushwake.com ROB COCHRAN Managing Director +1 704 335 4444 rob.cochran@cushwake.com JARED LONDRY Director +1 704 887 3032 jared.londry@cushwake.com FINANCIAL ANALYST JAMES KYGER + 1 704 335 4445 james.kyger@cushwake.com INDUSTRIAL MARKET EXPERTISE PATRICK MCGRATH + 1 704 887 3038 patrick.mcgrath@cushwake.com 7 7