offering memorandum Business & Industrial Park 222 Brown Industrial Parkway Canton, Georgia 30114
CONFIDENTIAL INFORMATION INFORMATION NOT WARRANTED This Offering Memorandum and any subsequent evaluation material you may be provided (collectively known as the Offering Memorandum ) is intended solely for your limited use in considering whether to pursue negotiations to acquire Canton-Cherokee Business & Industrial Park (the Property ) located in Canton, Georgia. The Property is being marketed for sale by Ackerman & Co. ( Broker ). The Offering Memorandum contains brief, selected information pertaining to the business and affairs of the Property and has been prepared by Broker. It does not, however, purport to be all-inclusive or to contain all of the information that a prospective purchaser may desire. Broker makes no representation or warranty, express or implied, as to the accuracy or completeness of the Offering Memorandum or any of its contents, and no legal liability is assumed to be implied with respect thereto. By acknowledgment of your receipt of the Offering Memorandum you agree that the Offering Memorandum and its contents are confidential, that you will hold and treat it in the strictest of confidence, that you will not directly or indirectly disclose, or permit anyone else to disclose, the Offering Memorandum or its contents to any other person, firm, or entity (including, without limitation, any principal for whom you have been engaged), without prior written authorization of Owner or Broker and that you will not use or permit to be used the Offering Memorandum or its contents to be copied or used in any fashion or manner detrimental to the interest of Owner. Photocopy or other duplication is strictly prohibited. THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT STATE OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF PREPARATION OF THE OFFERING MEMORANDUM. The information provided in the Offering Memorandum has been gathered from sources that are deemed reliable, but the Broker does not warrant or represent that the information is true or correct. Prospective offerors are advised to verify information independently. The Offering Memorandum is not to be construed as an offer or as any part of a contract to sell the property. Furthermore, the inclusion or exclusion in the Offering Memorandum of information relating to asbestos or any other hazardous, toxic or dangerous chemical item, waste or substance (hereinafter collectively referred to as Waste ) relating to the Property shall in no way be construed as creating any warranties or representations, expressed or implied by the Broker as to the existence or nonexistence or nature of Waste in, under or on the Property, it may create significant legal and/or economic obligations upon the Owner, lessee and/or other holders of interest in the Property or a part thereof and you are hereby advised to obtain professional assistance such as from a consultant, engineer and/or attorney prior to taking an interest in the Property or a part thereof.
canton-cherokee business and industrial park Table Of Contents 01 executive SUMMARY Investment Summary Location and Demographics Property Aerials Property Overview 02 TENANT Overview Rent Roll 03 market Overview Competitive Property Map Detailed Demographics Industrial Market Report 04 financial Overview In-Place Income Reconciliation Lease Expirations Contacts JASON POWELL, CCIM Vice President, Investment Sales Ackerman & Co. 770.913.3952 jpowell@ackermanco.net ANDREW MURPHY Senior Vice President, Investment Sales Ackerman & Co. 770.913.3950 amurphy@ackermanco.net
01 EXECUTIVE SUMMARY Investment Summary Location and Demographics Property Aerials Property Overview Canton-Cherokee Business and Industrial Park
01 Executive Summary canton-cherokee business and industrial park 5 INVESTMENT SUMMARY Ackerman s Investment Sales Team is pleased to exclusively present for sale a 53,470 square foot industrial building located in Canton, Georgia. The building sits on 4.29 acres and was built in 2002. The asset is 100% leased and is occupied by three quality tenants. The building s address is 222 Brown Industrial Parkway, Canton, Georgia. Investment Highlights Superior Market and Site Location: 222 Brown Industrial is located directly off I-575 in Canton, Georgia in the northwest portion of the Atlanta MSA. Positioned less than a mile from the interstate, 222 Brown Industrial is located just minutes away from the I-75 corridor connecting Atlanta, Georgia to Chattanooga, Tennessee. Since 2000, the city of Canton has seen explosive growth. According to the census, the population for Canton increased from 7,709 in 2000 to 22,724 in 2010 (a 195% increase). With an easy commute to the largest city in the Southeast and a low cost of living, Canton, Georgia reaps many economic benefits from its proximity to Atlanta. Quality Physical Construction and Function Compatibility: 222 Brown Industrial was built in 2002 and has been maintained as a Class B Flex building in the Woodstock/Canton Industrial Submarket. As such, this offering allows a new investor to minimize capital expenditures and capital reserves. Thus, ultimately increasing your bottom line. The property features concrete block construction, 20 foot high ceilings, finished office space, sprinklers, levelators, and a truck court featuring both dock high and drivein doors. Stabilized Tenant Base in a mature Atlanta Submarket: 222 Brown Industrial is located in the Woodstock/Canton Industrial submarket. According to Costar Group, this submarket currently features over 9,019,000 square feet of inventory and ended the first quarter of 2012 with an 11.7% market vacancy rate. By the end of the first quarter 2012, the market had posted 148,893 square feet of positive YTD net absorption. The average quoted rental rate for space in the Woodstock/Canton Industrial submarket was $5.50/per square foot at the end of the first quarter 2012. 222 Brown Industrial features a rent roll of stable tenants paying competitive rates inline with the submarket. Flexible Leverage Structure: 222 Brown Industrial is being offered free and clear of existing debt. With that being said, an investor would have the ability to assume the existing mortgage if preferred. Investment summary Square Footage: 53,470 Acreage: 4.29 Occupancy: 100% Offering Price: $2,578,000 Cap Rate: 10.25% Debt Structure: In-Place NOI: $264,286 Free and Clear or Assumable
01 Executive Summary canton-cherokee business and industrial park 6 LOCATION AND DEMOGRAPHICS The subject Canton-Cherokee Business and Industrial Park, located in Canton, Georgia, was built in 2002 and is in excellent physical condition. The building fronts Brown Industrial Parkway, and has two points of ingress / egress on the site. The site offers ample parking and good visibility off Brown Industrial Parkway. In 2011, total population within 5 miles was 53,224 and average household income within the 5 miles was $66,651. DEMOGRAPHIC SUMMARY 108 K nox Bridge Hwy Bells Ferry R d wer Burris Rd Lo 20 140 5 Holly Springs Canton Hickory Fla 575 Canton Hwy t Hwy Hickory R d 140 C umming Hwy E Cherokee D business and industrial park 222 brown industrial parkway Canton, Georgia 30144 r Union Hill Rd 372 20 372 1 MILE 3 MILES 5 MILES Population Estimate 2011 5,490 26,085 53,224 Total Households 1,835 8,937 18,500 Average Household Income $64,318 $58,757 $66,651 Traffic counts 54,050 vehicles per day on interstate 575 6,610 vehicles per day on cumming hwy/ main st Source: 2011 MPSI Systems Inc. d.b.a. DataMetrix
01 Executive Summary canton-cherokee business and industrial park 7 PROPERTY AERIAL 54,050 vehicles per day. 575 business and industrial park 222 brown industrial parkway Canton, Georgia 30144 hasty elementary school Brown Industrial Pkwy 6,610 vehicles per day. Cumming Hwy E Main St
01 Executive Summary canton-cherokee business and industrial park 8 PROPERTY AERIAL Waleska Rd H northside cherokee hospital carmike cinema Ball Ground Hwy Riverstone Pkwy 575 Brown Industrial Pkwy business and industrial park 222 brown industrial parkway Canton, Georgia 30144 hasty elementary school E Main St 54,050 vehicles per day. Cumming Hwy 6,610 vehicles per day.
01 Executive Summary canton-cherokee business and industrial park 9 PROPERTY OVERVIEW Address: County: 222 Brown Industrial Parkway Canton, Georgia 30114 Cherokee Building Size: 53,470 Square Feet Land Area: 4.29 acres Parcel Number: 014N23-00000-001-00M-0000 Year Built: 2002 Construction: Brick, Steel Frame Zoning: LI (Cherokee County) Tenants: 3 Loading Docks: 6 Drive-In Doors: 3 Ceiling Height: 20 0 Sprinklers: Yes Levelators: Yes
01 Executive Summary canton-cherokee business and industrial park 10 AREA MAP 41 Cumming Flowery Branch Cartersville 113 BARTOW 20 Canton business and industrial park 222 brown industrial FORSYTH parkway Canton, Georgia 30144 19 Big Creek Buford HALL Acworth Woodstock 92 Alpharetta NORTH FULTON Suwanee Sugar Hill Kennesaw Roswell 400 120 Duluth Dallas PAULDING Hiram Douglasville Powder Springs Lithia Springs 41 COBB Marietta Fair Oaks Smyrna Mableton Austell 280 Vinings 120 Peachtree Battle Atlanta Downtown 9 Dunwoody Sandy Springs Doraville Druid Hills 141 Chamblee North Decatur Decatur Norcross 29 Tucker 78 Stone Mountain DEKALB GWINNETT Lilburn 124 Snellville Redan Dacula Lawrenceville Loganville WALTON DOUGLAS FULTON 29 23 Lithonia 92 14 East Point College Park Forest Park Panthersville Conyers ROCKDALE
02 TENANT Overview Rent Roll Canton-Cherokee Business and Industrial Park
02 Tenant Overview canton-cherokee business and industrial park 12 RENT ROLL Tenant Name Type & Suite Number Lease Dates & Term Floor SF Bldg Share Rate & Amount per Year per Month Changes on Changes to CPI & Current Porters Wage Miscellaneous Months to Abate Pcnt to Abate Description of Operating Expense Reimbursements Imprvmnts Rate Amount Commssns Rate Amount Assumption about subsequent terms for this tenant PECO II Global Service Industrial, Suite: 101 Jul-2009 to Jun-2014 60 Months 12,350 23.10% $7.42 $91,637 $7,636 Jul-2013 $7.64 See method: PECO Reimbursement Market Zenit Gymnastics, Inc Industrial, Suite: 102 Nov-2010 to Oct-2020 120 Months 12,320 23.04% $4.95 $60,984 $5,082 Nov-2012 Nov-2013 Nov-2014 Nov-2015 Nov-2016 Nov-2017 Nov-2018 Nov-2019 $5.05 $5.15 $5.25 $5.35 $5.46 $5.57 $5.68 $5.80 See method: Zenit Gymnastics Reimbursement Market Universal Alloy Corpo Industrial, Suite: 103 Jan-2009 to Dec-2014 72 Months 28,800 53.86% $5.45 $156,907 $13,076 Jan-2013 Jan-2014 $5.55 $5.67 See method: Universal Alloy Reimbursements Market Total Occupied SF 53,470 100.0% Total Available SF 0 0% Total Property SF 53,470 100.0%
03 MARKET Overview Competitive Property Survey Detailed Demographics Industrial Market Report Canton-Cherokee Business and Industrial Park
03 Market Overview canton-cherokee business and industrial park 14 COMPETITIVE PROPERTY MAP (3-MILE radius) Lake Arrowhead 108 wer Burris Rd Lo 2 34 575 Canton Hwy 372 20 140 business and industrial park 222 brown industrial parkway Canton, Georgia 30144 K nox Bridge Hwy Canton 3 C umming Hwy E Cherokee D r 20 Lake Allatoona Bells Ferry R d 3-mile radius 5 5 9 8 1 7 Holly Springs 6 Hickory Fla t Hwy Hickory R d 140 Union Hill Rd 372
03 Market Overview canton-cherokee business and industrial park 15 Competitive Property set 1 2 3 320 Adam Jenkins Memorial Dr Canton, GA 2200 Airport Industrial Dr Ball Ground, GA 495 Brown Industrial Pkwy Canton, GA 222 Brown Industrial Pkwy Canton, GA Property Type Property Size Space Available Class B Flex 10,000 SF 5,000 SF Rent/SF/Yr $5.50 Property Type Property Size Space Available Class B Industrial/ Warehouse 46,800 SF 15,600 SF Rent/SF/Yr $5.50 Property Type Property Size Space Available Class B Industrial/ Warehouse 51,200 SF 19,200 SF Rent/SF/Yr $5.50 property type Class B Flex 4 5 6 property size 53,470 SF 125 Brunes Way Ball Ground, GA 192 Gateway Dr Canton, GA 2258 Holly Springs Pkwy Holly Springs, GA average rental rate (2012) $5.78/SF Property Type Property Size Class B Industrial/ Warehouse 14,400 SF Property Type Property Size Class C Industrial/ Service 10,000 SF Total Project SF Property Size Class C Industrial/ Manufacturing 12,000 SF average asking rental rate (Competitive Set) $5.72/SF 7 Space Available 14,400 SF Rent/SF/Yr $5.50 8 Space Available 3,300 SF Rent/SF/Yr $6.00 9 Space Available 3,000 SF Rent/SF/Yr $7.50 average asking rental rate (CoStar Submarket Report) $5.50/SF 119 P Rickman Industrial Dr Canton, GA 145 P Rickman Industrial Dr Holly Springs, GA 155 P. Rickman Dr Canton, GA Property Type Class B Industrial/ Warehouse Property Type Class C Industrial/ Service Total Project SF Class C Industrial/ Warehouse Property Size 15,000 SF Property Size 10,000 SF Property Size 14,800 SF Space Available 15,000 SF Space Available 10.000 SF Space Available 7,400 SF Rent/SF/Yr $5.45 Rent/SF/Yr $5.00 Rent/SF/Yr $5.50
03 Market Overview canton-cherokee business and industrial park 16 DETAILED DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2011 Population 5,490 26,085 53,224 2016 Projected Population 6,545 31,041 62,686 2000 Census Population 2,756 13,014 24,353 1990 Census Population 2,132 9,502 18,068 Growth 2000-2011 99.20% 100.44% 118.55% Growth 2011-2016 19.22% 19.00% 17.78% 2011 Median Age 34.83 34.12 34.89 Total Employees 4,171 19,542 39,787 2011 Households 1,835 8,937 18,500 2016 Projected Households 2,182 10,620 21,852 2000 Census Households 939 4,525 8,505 1990 Census Households 769 3,473 6,447 Growth 2000-2011 95.42% 97.50% 117.52% Growth 2011-2016 18.91% 18.83% 18.12% 2011 Average Household Size 2.93 2.84 2.84 2011 Median Household Income $50,999 $47,199 $55,495 2011 Average Household Income $64,318 $58,757 $66,651 2011 Per Capita Income $21,802 $20,529 $23,375 2011 Housing Units 1,835 8,937 18,500 2011 Owner Occupied Units 64.47% 58.07% 69.15% 2011 Renter Occupied Units 35.53% 41.94% 30.85%
03 Market Overview canton-cherokee business and industrial park 17 Industrial market report q1 2012 market Existing Inventory # BLDGS TOTAL RBA vacancy Direct SF Total SF VAC % YTD net absorption YTD deliveries under constr quoted rates Woodstod/Canton Ind 524 9,019,242 1,030,276 1,056,126 11.7 148,893 0 0 5.49 Airport/North Clayton Ind. 1,401 87,769,292 9,690,199 10,477,376 11.9 221,060 0 0 3.1 Butts County Ind 15 845,701 253,100 253,100 29.9 22,650 0 0 1.73 Central Atlanta Ind 632 17,563,903 1,394,555 1,394,555 7.9 30,391 0 0 4.03 Central Perimeter Ind 39 902,792 272,440 277,871 30.8 6,332 0 0 7.85 Chamblee Ind 405 11,094,847 1,011,947 1,011,947 9.1 11,449 0 0 5.84 Chattahoochee Ind 704 22,316,254 2,139,290 2,144,482 9.6 131,472 0 0 4.64 Dawson County Ind 27 676,555 184,970 184,970 27.3 158,000 0 0 3.17 Doraville Ind 601 33,388,866 4,194,910 4,205,156 12.6 128,291 0 0 4.53 Duluth/Suwanee/ Buford Ind 773 47,404,539 4,448,119 4,654,579 9.8 7,842 0 0 4.49 Fayette/Cowetta County Ind 507 21,165,908 1,638,921 1,840,057 8.7 271,541 0 0 3.34 Fulton District Ind 628 50,294,492 7,903,251 8,139,787 16.2 30,990 0 0 2.72 GA-316/Lawrenceville Ind 487 19,041,197 2,376,165 2,465,707 12.9 109,590 0 0 4.14 Haralson County Ind 42 1,582,443 398,569 398,569 25.2 11,600 0 0 2.07 Heard County Ind 3 38,925 15,500 15,500 39.8 0 0 0 12 I-20 W/Douglasville Ind 806 42,061,680 5,772,464 5,823,538 13.8 528 0 0 3.37 I-985/Gainesville Ind 620 18,039,425 2,608,772 2,623,110 14.5 349,319 27,500 0 3.42 Jasper County Ind 3 75,158 0 0 0 0 0 0 0 Kennesaw/Acworth Ind 700 32,128,729 4,852,881 4,934,331 15.4 95,309 0 0 4.06 Lamar County Ind 12 1,016,214 43,200 43,200 4.3 1,500 0 0 2.49 Meriwether County Ind 12 512,854 0 0 0 0 0 0 18 Monroe County Ind 7 139,508 0 0 0 0 0 0 8 N Fulton/Forsyth Cnty Ind 1,117 29,397,765 3,580,653 3,670,424 12.5 74,154 0 0 6.57 Norcross Ind 766 32,532,547 5,184,574 5,422,402 16.7 47,853 215,000 0 5.08 North Walton County Ind 36 1,481,885 182,644 182,644 12.3 10,500 0 0 3.32 Pickens County Ind 80 1,105,577 222,231 222,231 20.1 41,948 0 0 5.25 Pike County Ind 8 300,687 0 0 0 0 0 0 0 Rockdale/Newton Cnty Ind 748 25,661,826 3,671,995 3,671,995 14.3 92,818 0 0 3.23 S Barrow Ind 215 6,321,550 315,492 347,292 5.5 18,408 0 0 4.1 S Clayton/Henry Cnty Ind 752 46,130,382 6,000,749 7,126,704 15.4 204,450 0 900,640 3.02 SE Cobb Cnty/Marietta Ind 942 27,898,446 2,837,752 2,978,381 10.7 172,545 0 0 6.03 Snapfinger Ind 405 15,873,458 1,411,753 1,411,753 8.9 17,584 0 0 3.42 South Walton County Ind 103 7,670,708 763,117 763,117 9.9 33,500 0 0 2.97 Stone Mountain Ind 1,021 29,342,971 3,935,442 3,949,842 13.5 21,121 0 0 3.51 W Carroll County Ind 76 2,790,015 89,940 89,940 3.2 7,175 0 0 2.53 Totals 15,217 643,586,341 78,425,871 81,780,686 12.7 1,386,547 242,500 900,640 3.84
04 financial overview In-Place Income Reconciliation Existing Lease Expirations Canton-Cherokee Business and Industrial Park
04 Financial Overview canton-cherokee business and industrial park 19 in-place income reconciliation (Year beginning 6/2012) Tenant Square Feet Lease Commencement Lease Termination 2013 Base Rent PSF 2013 Base Rent 2013 Oper. Exp Recoveries 2013 Gross Rent PECO II Global Services 12,350 7/09 6/14 $7.42 $91,637 $7,914 $99,551 Zenit Gymnastics 12,320 11/10 10/20 4.95 60,984 3,695 64,679 Universal Alloy Corporation 28,800 1/09 12/14 5.45 156,960 23,216 180,176 Vacant 0 53,470 $309,581 $34,825 $344,406 Total Square Footage 53,470 Effective Gross Income $344,406 Expenses Property Taxes (35,302) Insurance (6,787) Maintenance Costs (9,733) Utilities (14,387) Management Fee (13,911) Total Expenses ($80,120) Net Operating Income $264,286
04 Financial Overview canton-cherokee business and industrial park 20 existing lease expirations Fiscal Year Number of Suites Rentable Square Feet Expiring Annual [1] Cumulative [1] 2012 0 0 0.00% 0.00% 2013 0 0 0.00% 0.00% 2014 0 0 0.00% 0.00% 2015 2 41,150 76.96% 76.96% 2016 0 0 0.00% 76.96% 2017 0 0 0.00% 76.96% 2018 0 0 0.00% 76.96% 2019 0 0 0.00% 76.96% 2020 0 0 0.00% 76.96% 2021 1 12,320 23.04% 100.00% Beyond 0 0 0.00% 100.00% Subtotal 3 53,470 100.00% 100.00% Vacant 0 0 0.00% 100.00% TOTAL 3 53,470 100.00% 100.00% rentable square feet 50,000 40,000 30,000 20,000 10,000 0 12 13 14 15 16 17 18 19 20 21 Beyond [1] Based on 53,470 Square Feet.
For more information, please contact: JASON POWELL, CCIM Vice President, Investment Sales 770.913.3952 jpowell@ackermanco.net ANDREW MURPHY Senior Vice President, Investment Sales 770.913.3950 amurphy@ackermanco.net 2012 Ackerman & Co. All rights reserved.