offering memorandum granite and marble processor · namibia, india, brazil, canada, argentina,...

OFFERING MEMORANDUM

GRANITE AND MARBLE PROCESSOR

Tampa FL

Denise Moore-Contreras

Sumanth Katta

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Star Bay Realty Corp and Blu-bay International Realty and should not be made available to any other person

or entity without the written consent of Sumanth Katta or Denise Moore-Contreras. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.

The information contained herein is not a substitute for a thorough due diligence investigation. Sumanth Katta or Denise Moore-Contreras have not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject

property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical

condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources

we believe to be reliable; however, Sumanth Katta or Denise Moore-Contreras have not verified, and will not verify, any of the information contained herein, nor has Sumanth Katta or Denise Moore-Contreras conducted any investigation regarding these matters and

makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the

information and bears all risk for any inaccuracies.

EXCLUSIVELY LISTED BY

01 EXECUTIVE SUMMARY

The Offering

Investment Summary

Highlights

Aerial Overview

02 PROPERTY OVERVIEW

Property Summary

Bird’s Eye View

Site Plan

Floor Plan

04 FINANCIAL SUMMARY

Cash Flow Assumptions

10-Year Cash Flow Analysis

Detailed In-Place Cash Flow Analysis

TABLE OF CONTENTS

REAL ESTATE CONTACT

Denise Moore-Contreras

813.356.8739

[email protected]

INVESTMENT CONTACT

Sumanth Katta

813.419.3863

[email protected]

03 MARKETOVERVIEW

Market Overview

Statistics

THE OFFERING

Star Bay Realty Crop and

Blu-Bay International Realty,

as exclusive advisors to Seller,

are pleased to present the

opportunity to acquire a Granite

and Marble cutting and

processing facility along with its

real estate, Machinery,

Inventory and Business located

at in Tampa, Florida. This

lender- owned opportunity

consists of a 4,000 SF office &

32,000 SF manufacturing

building situated on a large 6.23

acre land parcel.

Recently constructed in 2015 with

state of the art metal frame

construction with metal wall and

EXECUTIVE SUMMARY

roof panels. The foundation for

Manufacturing building is 1 feet

deep with interlaced lattice

beams to support high tonnage

needed for the block processing

for Granite and Marble. The

ceiling height is 40 ft for the

manufacturing building and 12 ft for

the offices.

The s tate of the art grani te

and marble process ing

machinery is impor ted f rom

I ta ly. I t is located in industrial

submarket of east Tampa just 7

miles from Tampa Port Authority,

It is strategically positioned to

connect with the rest of the world for

Granite and Marble export and

import of raw materials.

PROPERTY OVERVIEW

Address Tampa FL 33610

Property Type

Industrial Class 2

Year Built 2015

Total Office SF 4,000 SF

Total MFG SF ±32,000 SF

Land Size ±6.23 AC (±271,361 SF)

Floors One (1)

Construction Metal Wall and Roof Panels on Metal Frame Construction

Parking 50

Zoning

M - Manufaturing

01

OFFERING MEMORANDUM 3

Marble and Granite Manufacturer

Real Estate worth $6 million (Option to Buy real

Estate Only)

Machinery Worth $3 Million

Inventory Worth $1 Million

Relations with Quarries and distributions all over

the world. Stone currently imported from Spain,

Italy, South Africa, Zimbabwe, Angola, Ukraine,

Namibia, India, Brazil, Canada, Argentina,

Australia, Sri Lanka and more.

Processes the stone and distributed Granite and

Marble all over the USA and has the potential to

export all over the world

In-house water filtration and treatment system

INVESTMENT HIGHLIGHTS

$5,900,000

Real Estate Only

$163.00

PRICE PER SQUARE FEET

$10,400,000

Business including Real

Estate

21%

IRR

INVESTMENT SUMMARY


AERIAL OVERVIEW


PROPERTY OVERVIEW

PROPERTY SUMMARY

Address Tampa FL 33610

Property Type

Industrial Class 2

Year Built 2015

Total Office SF 4,000 SF

Total MFG SF ±32,000 SF

Land Size ±6.23 AC (±271,361 SF)

Floors One (1)

Construction Metal Wall and Roof Panels on Metal Frame Construction

Parking 50

Zoning

M - Manufaturing

02


BIRD’S EYE VIEW


SITE PLAN


FLOOR PLAN


MARKET OVERVIEW

03


STATISTICS - July 2019 | Stone Imports to the U.S.*

TOP EXPORTERS GRANITE GRANITE

U.S. Dollar Tons

BRAZIL 37,390,744 66,608

CHINA 13,401,107 24,624

INDIA 16,406,312 25,475

ITALY 4,335,710 2,195

SPAIN 3,662,220 8,966

OTHERS 2,708,803 4,488

TOTAL JULY 2019 77,914,349 132,357

TOP EXPORTERS MARBLE* MARBLE*

U.S. Dollar Tons

CHINA 16,901,453 12,166

INDIA 3,257,762 3,946

ITALY 10,574,586 4,011

MEXICO 2,737,879 4,826

TURKEY 12,361,463 19,475

OTHERS 9491178 15550

TOTAL JULY 2019 55,324,321 59,974

*https://www.stoneworld.com/Stone-Import-Export-Stats/2019-July OFFERING MEMORANDUM 11

STATISTICS - July 2019 | Stone Exports from the U.S.*

TOP 5 IMPORTERS GRANITE GRANITE

U.S. Dollar Tons

CANADA 1,136,803 1,687

CHINA 462,673 916

BAHAMAS 150,537 87

MEXICO 132,286 247

BELGIUM 47,517 105

OTHERS 160,770 326

TOTAL JULY 2019 2,090,586 3,368

TOP 5 IMPORTERS MARBLE* MARBLE*

U.S. Dollar Tons

CANADA 1,892,151 19,623

BAHAMAS 286,998 104

MEXICO 147,567 186

OTHER 88,145 32

GREECE 61,573 373

OTHERS 397,585 1,003

TOTAL JULY 2019 2,874,019 21,321

*https://www.stoneworld.com/Stone-Import-Export-Stats/2019-July OFFERING MEMORANDUM 12

STATISTICS - US Granite & Marble Imports 2009 -2019


Imports

Granite Marble

Year $USD (in Millions) Tons $USD (in Millions) Tons

2009 723.63 M 1.10 M 568.43 M 1.29 M

2010 905.30 M 1.54 M 543.00 M 1.02 M

2011 966.33 M 1.28 M 564.03 M 0.83 M

2012 1034.69 M 1.37 M 602.76 M 0.93 M

2013 1233.94 M 1.51 M 700.74 M 0.96 M

2014 1260.01 M 1.92 M 748.74 M 1.15 M

2015 1256.07 M 1.72 M 765.31 M 1.23 M

2016 1043.57 M 1.50 M 759.44 M 0.89 M

2017 956.01 M 1.45 M 741.93 M 0.85 M

2018 839.11 M 1.37 M 802.37 M 0.85 M

2019 (Q1,Q2) 388.21 M 0.71 M 326.21 M 0.41 M

0.00 M

200.00 M

400.00 M

600.00 M

800.00 M

1000.00 M

1200.00 M

1400.00 M

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Granite $USD

Marble $USD

*https://www.stoneworld.com/Stone-Import-Export-Stats

STATISTICS - US Granite & Marble Exports 2009 -2019


Exports

Granite Marble

Year $USD (in Millions) Tons $USD (in Millions) Tons

2009 51.93 M 0.12 M 19.44 M 0.14 M

2010 60.79 M 0.12 M 27.85 M 0.18 M

2011 65.60 M 0.12 M 35.11 M 0.25 M

2012 67.26 M 0.11 M 38.45 M 0.25 M

2013 67.83 M 0.12 M 33.83 M 0.25 M

2014 60.08 M 0.11 M 48.26 M 0.30 M

2015 55.11 M 0.10 M 52.74 M 0.28 M

2016 43.56 M 0.08 M 49.12 M 0.25 M

2017 39.28 M 0.08 M 51.12 M 0.25 M

2018 35.16 M 0.07 M 53.92 M 0.28 M

2019 (Q1,Q2) 16.34 M 0.03 M 21.13 M 0.12 M

0.00 M

10.00 M

20.00 M

30.00 M

40.00 M

50.00 M

60.00 M

70.00 M

80.00 M

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Granite $USD

Marble $USD

*https://www.stoneworld.com/Stone-Import-Export-Stats

FINANCIAL SUMMARY

04


10-YEAR CASH FLOW ANALYSIS


Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Average Blocks 108 80 132 215 240 240 240 240 240 240 240 240

INCOME

Potential Income (PI) 2,754,000.00$ 2,000,000$ 3,300,000$ 5,375,000$ 6,000,000$ 6,000,000$ 6,000,000$ 6,000,000$ 6,000,000$ 6,000,000$ 6,000,000$ 6,000,000$

Cost of Good Sold 1,620,000.00$ 1,200,000$ 1,980,000$ 3,225,000$ 3,600,000$ 3,600,000$ 3,600,000$ 3,600,000$ 3,600,000$ 3,600,000$ 3,600,000$ 3,600,000$

Other Income 204,000$ 204,000$ 204,000$ 204,000$ 204,000$ 204,000$ 204,000$ 204,000$ 204,000$ 204,000$ 204,000$

Gross Operating Income (GOI) 1,134,000.00$ 1,004,000$ 1,524,000$ 2,354,000$ 2,604,000$ 2,604,000$ 2,604,000$ 2,604,000$ 2,604,000$ 2,604,000$ 2,604,000$ 2,604,000$

EXPENSES

Payroll 398,200.00$ 250,000$ 260,000$ 270,400$ 281,216$ 292,465$ 304,163$ 316,330$ 328,983$ 342,142$ 355,828$ 370,061$

Commisions 10,400.00$ 30,000$ 49,500$ 80,625$ 90,000$ 90,000$ 90,000$ 90,000$ 90,000$ 90,000$ 90,000$ 90,000$

Insurance 31,800.00$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$

Legal/Professional 15,840.00$ 6,700$ 6,700$ 6,700$ 6,700$ 6,700$ 6,700$ 6,700$ 6,700$ 6,700$ 6,700$ 6,700$

Equipment Lease 6,000.00$ 17,276$ 17,449$ 17,623$ 17,799$ 17,977$ 18,157$ 18,339$ 18,522$ 18,707$ 18,895$ 19,083$

Fees (Bank, License) 13,200.00$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$

Utilities 1,044.00$ 50,000$ 83,325$ 137,076$ 154,545$ 156,091$ 157,652$ 159,228$ 160,820$ 162,429$ 164,053$ 165,693$

Maintenance/Repairs 24,000.00$ 10,948$ 11,057$ 11,168$ 11,280$ 11,393$ 11,506$ 11,622$ 11,738$ 11,855$ 11,974$ 12,093$

Property Tax 32,400.00$ 60,000$ 61,200$ 62,424$ 63,672$ 64,946$ 66,245$ 67,570$ 68,921$ 70,300$ 71,706$ 73,140$

Travel -$ 3,500$ 3,675$ 3,859$ 4,052$ 4,254$ 4,467$ 4,690$ 4,925$ 5,171$ 5,430$ 5,701$

Supplies & Cleaning 63,000.00$ 3,200$ 3,520$ 3,872$ 4,259$ 4,685$ 5,154$ 5,669$ 6,236$ 6,859$ 7,545$ 8,300$

Operating Expenses (OE) 134,684.00$ 220,424$ 274,906$ 361,475$ 390,049$ 393,361$ 396,727$ 400,148$ 403,626$ 407,162$ 410,756$ 414,411$

Net Operating Income (NOI) 999,316.00$ 783,576$ 1,249,094$ 1,992,525$ 2,213,951$ 2,210,639$ 2,207,273$ 2,203,852$ 2,200,374$ 2,196,838$ 2,193,244$ 2,189,589$

CAPITAL COSTS

CapEx/Capital Cash (1,000,000)$ (100,000)$ (100,000)$

ACQUISITION COST/RESALEAcquisition Cost (10,400,000)$

Property Resale 27,369,863$

Cash Flow Before Debt (CFBD) (10,400,000)$ (216,424)$ 1,249,094$ 1,992,525$ 2,213,951$ 2,110,639$ 2,207,273$ 2,203,852$ 2,200,374$ 2,196,838$ 29,463,107$

Net Present Value $11,376,166

All Cash IRR 21%

Residual Cap Rate

8.0%

INCOME STATEMENT CURRENT YTD


EXCLUSIVELY REPRESENTED BY

INVESTMENT CONTACT

Sumanth Katta PA

813.436.9941

[email protected]

REAL ESTATE CONTACT

Denise Moore-

Contreras

813.356.8739

[email protected]

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