nn single-tenant investment opportunity · 2020-03-19 · 2018 for the tenant mas-hvac, a top 25...
TRANSCRIPT
NN SINGLE-TENANT INVESTMENT OPPORTUNITY
Q-PAC Systems, Inc.
4010 Deerpark Blvd, Elkton, FL 32033
CONTENTS
1 Executive Summary.........3
2 Sale Analysis.........4
3 Property Summary.........5
4 Economic Analysis.........8
5 Our Team........9
EXECUTIVE SUMMARY
The opportunity to acquire a high quality single tenant industrial building that was built in
2018 for the tenant MAS-HVAC, a top 25 fastest growing company in Northeast Florida, is
now leased to an even faster growing sister company Q-PAC Systems, Inc., which provides
light assembly manufacturing of fan systems for large commercial buildings. Q-PAC was
a division of MAS-HVAC until 2019, when the growth of Q-PAC began outpacing MAS-
HVAC and became an independent company, with common ownership of MAS-HVAC.
Revenues for Q-PAC now outpace MAS-HVAC who has relocated to Minneapolis, MN.
SALE ANALYSIS
INVESTMENT CONSIDERATIONS
Price $4,395,000
Cap Rate 6.70%
Lease Commencement 3/1/2020
Lease Expiration 2/28/2026
Lease Term Remaining 6 years
Total Rent (NOI) $295,350
Rent Escalations 3% annual
Renewal Options
Four 5-year renewal options
Land Size SF 236,095
Acres 5.49
Building Size SF 34,400
DEMOGRAPHIC SNAPSHOT
Radius 1 mile 3 miles 5 miles
Population 1,309 8,079 31,928
Avg HHI $63,539 $70,739 $68,373
5-Year Growth 16.42% 16.86% 16.33%
TRAFFIC COUNTS
Primary Rd 19,324
Secondary Rd 60,027
PROPERTY SUMMARY
Parcel RE# 363870020
Building Size 34,400 SF
Office Area 3,600 SF
Land Area 5.49 AC
Year Built 2017
ZoningPUD - Light Manufacturing/Warehousing
ADDRESS4010 Deerpark BoulevardElkton (St. Augustine), FL
BUILDING SUMMARY
Construction Metal Panels with Stucco finish over a steel structural frame
Roof PEMB standing seam metal roof
Power 277/480 volts, 3 phase, 4 wire
Col. Spacing 60’ x 24’
Loading
Four grade level doors (14’ w x 16’ h)Loading dock with two truck po-sitions served by a single dock door (10’ w x 14’ h)
Clear Height 27’10” clear at eaves
Sprinkler Sys Wet system, .20 GPM over 1,500 SF
Auto Parking 54 standard; 3 handicap
HVAC
90 ton air cooled chiller with energy recovery system
(Full building under HVAC, including warehouse)
LOCATION
St. Augustine
St. Augustine South
CONCEPTBuild-to-suit industrial manufacturing
4010 Deerpark Blvd., Elkton, FL 32033
TENANTQ-PAC Systems, Inc.
CLOSE TO I-95
4 MILES FROM ST. AUGUSTINE
St. A
ugustine -
4 m
iles
LOCATION
Within the expanding St. Augustine Industrial Park, home to over a dozen corporate warehouses and with immediate proximity to I-95 just 21 miles south of Jacksonville and 4 miles west of St Augustine
Maker of fan systems for large commercial buildings
INVESTMENT CONSIDERATIONS
NATIONAL SINGLE TENANT CAP RATE MARKET
POPULATION DENSITY
AVG HH INCOME
ECONOMIC ANALYSIS
COMMENTSSt. Augustine Industrial Park is home to major tenants including ConAgra, Kehe Distributors, Waste Pro and 84
Lumber. Institutional owners in the park include GCP (First Coast Distribution Center), Investcorp (ConAgra) and The
Simpson Organization (Kehe). Proximity to I-95 and available labor make this an attractive industrial park for inves-
tors and occupiers alike. The low vacancy in this sub-market (1.6% - Q4 2019) as well as locally and nationally,
coupled with rising rents are drawing investors to this type of investment. The quality and age of the building and
improvements make this asset a compelling investment. Nationally, cap rates for single tenant industrial assets have
been trading at a blended average cap rate of 7.1%.
SITE DESCRIPTIONThe 1.7 MSF St. Augustine Industrial Park has attracted several large industrial occupiers due to its proximity to the
interstate highway system with the interchange to I-95 only ½ mile from the park’s entrance. This master-planned,
quality park is four miles from the City of St. Augustine with outstanding access to a skilled, educated and afford-
able workforce.
TENANT OVERVIEWQ-PAC manufactures fan systems for large commercial building applications. The company was a subsidiary of
MAS-HVAC and rolled out into a separate entity in 2019. Q-PAC’s revenues exceed MAS-HVAC’s and is now the
sole tenant in the building with MAS-HVAC relocating its operations to Minneapolis, MN. Both companies share
common ownership
Both companies were founded by Clarke Story, P.E., who conceptualized a new manufacturing process that
specializes in energy recovery and fan systems solutions for large commercial buildings. Through steady growth,
innovation and top-notch customer service, MAS-HVAC was selected on of the top 25 fastest growing companies
in Northeast Florida in 2016 and 2017.
AREA DESCRIPTIONThe Jacksonville MSA continues to grow and expand, along with the economy, through a diverse set of industries,
including seaport, distribution, technology, healthcare and office jobs. Being one of the major seaports along the
east coast, distribution has always been a strength of Jacksonville, along with the Naval Air Station being situated
along the St John’s River which runs through Jacksonville and into the Atlantic Ocean. Jacksonville has the distinc-
tion of being the largest city in the state of Florida, by land size and is considered one of the major cities in the
state of Florida.
PJ Behr serves as the Vice President of Brokerage Services in the Orlando office. In the last 17 years PJ has focused on net leased investment properties, at times working alongside the Asset Management and Development teams to reposition retail properties for their highest and best use including leasing to tenants such as Walgreens, AutoZone, CVS Pharmacy, Starbucks and Cracker Barrel. He has also worked on Investment Committees for a publicly traded REIT, helping acquisition teams evaluate real estate, tenant credit, lease negotiations, and portfolio management.
Throughout his career, PJ has been involved in more than 1,250 sales transactions across 47 states with volume in excess of $1.8B. He is experienced in his field with a 10-year institutional background with a non-traded REIT that eventually went public and was later acquired by GE Capital, and has managed a 1031 investment sales team that averaged more than $250 million in sales transactions per year for 10 years. Properties acquired and disposed of during this time were leased to notable restaurant clients and other national retailers.
Recent notable assignments include large institutional sale-leasebacks for industrial and retail clients, as well as buyer representation for an 8-unit master lease portfolio, large class-A office sale (off-market), a Publix grocery anchored center, and government leased properties.
VICE PRESIDENT,
BROKERAGE SERVICES
MEET PJ BEHR
MULTIPLE FAMILY OFFICES(MIAMI, ORL, NY, DALLAS)
PJ BEHR
COMPANIES REPRESENTED
With 30 years of commercial real estate brokerage experience, Mark leads the Industrial Brokerage practice in Foundry Commercial’s Jacksonville office. Mark’s responsibilities include expanding Foundry’s Industrial platform through enhanced delivery of services to both owners and occupiers as well as pursuing opportunities for Foundry’s Development and Investment platform.
Formerly with CBRE, Cushman & Wakefield and Graham & Company, Mark has completed over 20 MSF of transactions with an aggregate value in excess of $600 million.
Mark is a member of the Society of Industrial and Office Realtors (SIOR), certified by the St. Onge Institute and a member of the Council of Supply Chain Management Professionals (CSCMP).
SENIOR VICE PRESIDENT,
BROKERAGE SERVICES
MEET MARK SCOTT
MARK SCOTT
COMPANIES REPRESENTED
CHARLOTTERALEIGH
ORLANDOMIAMI
JACKSONVILLETAMPA
BOCA RATONATLANTA
NASHVILLEDALLAS
full- service
BROKERAGE, LEASING, PROPERTY MANAGEMENT,
PROJECT MANAGEMENT
11MARKETS SERVED
asset types
SPECIALIZING IN
OFFICE INDUSTRIAL
RETAILHEALTHCARE
NOT-FOR-PROFIT80BROKERS
357ASSOCIATES
$6BIN BROKERAGE
TRANSACTIONS
$1.4BINVESTMENT ACTIVITY
56MSFLEASING & MANAGEMENT
A FOUNDRY is a place where resources are forged together to serve a need. A place that combines hard work, experience & passion to form something valuable — something stronger, something that will last. A form that will make the world a better place.
AT FOUNDRY COMMERCIAL,REAL ESTATE IS PERSONAL.TRUSTED ADVISOR • MEANINGFUL CULTURE • FUN • CARING
WHO IS FOUNDRY
FOUNDRY COMMERCIAL is an
11-year-old company whose DNA is
made up of some of the most respected
entrepreneurial real estate firms in the
Southeast U.S. With offices from Raleigh
to Miami to Dallas, Foundry is deeply
entrenched in the fastest growing region
of the country. Our company is committed
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CONTACTPJ [email protected]
MARK SCOTT904.699.3518mark.scott@foundrycommercial.