OFFERING MEMORANDUM 1235 SOUTH PIONEER ROAD SALT LAKE CITY, UTAH 84104 Midwestern Fabricators Sale-Leaseback
EXCLUSIVELY MARKETED BY: TABLE OF CONTENTS 111 S. Main St., Suite 2200 Salt Lake City, Utah 84111 801.947.8300 cbcadvisors.com Rawley Nielsen President of Investment Sales 801.441.5922 rawley.n@cbcadvisors.com Darren Nielsen Investment Sales 801.448.2662 darren.n@cbcadvisors.com EXECUTIVE SUMMARY 3 FINANCIAL SUMMARY 6 PROPERTY DETAILS 9 PROPERTY PHOTOS 14 All materials and information received or derived from Utah its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither Utah its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. Utah will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. TENANT PROFILES 17 DEMOGRAPHICS 19 EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Utah makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Utah does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Utah in compliance with all applicable fair housing and equal opportunity laws.
1235 SOUTH PIONEER ROAD SALT LAKE CITY, UTAH 84104 1 EXECUTIVE SUMMARY
EXECUTIVE SUMMARY OFFERING SUMMARY Sale Price: $3,252,000 Cap Rate (Yr 1): 6.5% NOI: $211,380 Lease: 15-Yr Absolute NNN (No LL Responsibility) Lot Size: 3.16 Acres Year Built: 1974 & 1994 expansion Building Size: 35,230 Zoning: M-1 Light Industrial Price / SF: $92.31 PROPERTY OVERVIEW CBC Advisors is pleased to exclusively offer an Absolute NNN 15-year sale-leaseback of the Midwestern Fabricators headquarters. The owners of Midwestern Fabricators have been in this building for over 30 years. Midwestern Fabricators produces Fiberglass Reinforced Plastics, including troughs, weirs and baffles, ductwork, pressure piping, cover systems, and other specialty products. The company primarily services the waste water, water treatment, and odor control industries. This recession-resistant offering has annual increases, requires no landlord responsibility, and provides a buyer with a dependable long-term income stream from an experienced tenant with ownership that has called this building home for over 30 years. PROPERTY HIGHLIGHTS New 15-Year lease beginning at close of escrow Lease includes annual increases Absolute NNN Lease No Landlord Responsibility Company ownership has 30+ years in the building Reputable Tenant with Recession-Resistant Business Easily Accessible Location: Off I-215, just 5-10 minutes from Downtown SLC and SLC International Airport 1235 SOUTH PIONEER ROAD, SALT LAKE CITY, UT 4
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1235 SOUTH PIONEER ROAD SALT LAKE CITY, UTAH 84104 2 FINANCIAL SUMMARY
FINANCIAL SUMMARY 1235 SOUTH PIONEER ROAD, SALT LAKE CITY, UT 7
FINANCIAL SUMMARY 1235 SOUTH PIONEER ROAD, SALT LAKE CITY, UT 8
1235 SOUTH PIONEER ROAD SALT LAKE CITY, UTAH 84104 3 PROPERTY DETAILS
PROPERTY DESCRIPTION LOCATION DESCRIPTION Midwestern Fabricators is located in the industrial core of the Salt Lake Valley. Due to its location off California Ave and I-215, only a 5-10 minute drive from either the Salt Lake International Airport or Downtown Salt Lake City, it is the ideal location for Midwestern Fabricators and will continue to be a premium industrial location for years into the future. SITE DESCRIPTION 35,230 square foot concrete building sitting on 3.16 acres with a large fenced yard. AGE DESCRIPTION Originally built in 1976, with an expansion in 1994. Effective years built for these portions are 2002 and 2006 respectively. ZONING M-1 Light Industrial CONSTRUCTION Concrete 1235 SOUTH PIONEER ROAD, SALT LAKE CITY, UT 10
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PROPERTY DETAILS PROPERTY NAME: PROPERTY ADDRESS: PROPERTY TYPE: Midwestern Fabricators 1235 South Pioneer Road Salt Lake City, UT 84104 Industrial APN: 15-09-400-064, 15-09-400-055 LOT SIZE: TOTAL BUILDING SIZE: OFFICE SIZE: ZONING: 3.16 Acres 35,230 SF Approx. 4,000 SF M-1 Light Industrial PARKING SPACES: 47 CROSS STREETS: YEAR BUILT: California Ave & 2700 W 1976 & 1994 expansion EFFECTIVE YEAR BUILT: 2002 & 2006 CONSTRUCTION TYPE: Concrete GRADE-LEVEL DOORS: 3 YARD: CRANES: Fenced (2) 10 Ton Cranes, (2) 7.5 Ton Cranes, (1) 5 Ton Crane CLEAR HEIGHT: 18' & 28' COLUMNS: POWER: No Interior Columns 3 Phase / 480 Volt 1235 SOUTH PIONEER ROAD, SALT LAKE CITY, UT 12
SITE PLAN 1235 SOUTH PIONEER ROAD, SALT LAKE CITY, UT 13
1235 SOUTH PIONEER ROAD SALT LAKE CITY, UTAH 84104 4 PROPERTY PHOTOS
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1235 SOUTH PIONEER ROAD SALT LAKE CITY, UTAH 84104 5 TENANT PROFILE
TENANT PROFILES Midwestern Fabricators Midwestern Fabricators is a Salt Lake City-based company that supplies and produces Fiberglass Reinforced Plastics products for clients across the country. The Company's products include: TENANT HIGHLIGHTS Company ownership has over 30 years in this building Recession-resistant business Proven track record and experienced ownership - Troughs (radius and flat bottom) - Weirs and baffles - Ductwork - Volume control dampers - Pressure piping - Cover systems (Segmented dome, composite flat, and arch style) - Tanks - Pressure/Vacuum Vessels - Other specialty products Midwestern Fabricators' products are utilized in various industries, such as waste water, water treatment, and odor control industries. The company holds NSF 61 certification for certain applications and provides engineering services from design to installation for all product applications. 1235 SOUTH PIONEER ROAD, SALT LAKE CITY, UT 18
1235 SOUTH PIONEER ROAD SALT LAKE CITY, UTAH 84104 6 DEMOGRAPHICS
DEMOGRAPHICS MAP 1 Mile 5 Miles 10 Miles Total Population 972 191,194 827,447 Population Density 309 2,434 2,634 Median Age 29.9 29.4 30.8 Median Age (Male) 32.7 29.4 30.3 Median Age (Female) 26.6 29.5 31.3 Total Households 278 62,371 289,862 # of Persons Per HH 3.5 3.1 2.9 Average HH Income $64,625 $50,052 $62,789 Average House Value $169,070 $237,021 *Information provided from 2010 Census 1235 SOUTH PIONEER ROAD, SALT LAKE CITY, UT 20
MIDWESTERN FABRICATORS Rawley Nielsen President of Investment Sales 801.441.5922 rawley.n@cbcadvisors.com Darren Nielsen Investment Sales 801.448.2662 darren.n@cbcadvisors.com DOWNTOWN SLC 111 S. MAIN ST. SUITE 2200 SALT LAKE CITY, UT 84111 801.947.8300 www.cbcadvisors.com