punchcraft - loopnet...1-800-hansons 4,000 trianon industries corporation 3,141 sterling hts...
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PUNCHCRAFT 30500 Ryan Rd • Warren, MI 48092
Offering Memorandum
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe 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 Marcus & Millichap and
should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap has 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name
is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or
commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
PUNCHCRAFT
Warren, MI
ACT ID ZAA0380053
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PUNCHCRAFT
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INVESTMENT
OVERVIEW
OFFERING SUMMARYPrice $1,150,000Net Operating Income $115,908Capitalization Rate – Current 10.08%Price / SF $53.98Rent / SF $5.44Lease Type Absolute NetGross Leasable Area 21,303 SFYear Built / Renovated 1968Lot Size 2 acre(s)
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EXECUTIVE SUMMARYOFFERING SUMMARY
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FINANCINGDown Payment All CashNet Cash Flow 10.08% / $115,908Cash on Cash Return 10.08%Total Return 10.08% / $115,908
PUNCHCRAFT
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PUNCHCRAFT
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OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES *
General Motors 16,670
Mahle Behr Mfg MGT Inc 12,600
US Army Grrsn-Dtroit Arsenal 5,400
Magneti Mrlli Cfap Suspensions 5,005
Johnson Perry & Associates 4,971
1-800-Hansons 4,000
Trianon Industries Corporation 3,141
Sterling Hts Assembly Plant 2,603
Gdls 2,300
St John Hospital and Med Ctr 2,051
Warren Stamping Plant 2,000
Iconma LLC 1,556
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2018 Estimate Pop 12,701 100,347 326,011
2010 Census Pop 11,857 97,330 317,263
2018 Estimate HH 5,010 41,511 135,014
2010 Census HH 4,631 40,151 130,941
Median HH Income $59,351 $49,849 $54,301
Per Capita Income $27,774 $26,449 $28,770
Average HH Income $70,175 $63,776 $69,251
PUNCHCRAFT
OFFERING SUMMARY
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to present for sale this one-story building containing 21,303 square feet of gross building area, including 3,560 squarefeet of office space. The building has a concrete foundation with a concrete block and steel frame. The exteriors walls are concrete block and the roofis comprised of steel trusses with a flat steel deck and built-up composition roof covering. The subject, situated on two acres (87,054 square feet)was built in 1968.
Punchcraft has occupied this absolute net leased property since 2002. The lease stipulates that base rental income will be escalated annually to theCPI index. Punchcraft designs and manufacturers tools and components for the automotive and aerospace industry. In 2014, their parent company,Metaldyne, was acquired by American Axel & Manufacturing and went public on the NYSE (NYSE: AXL). American Axel reported record 2018 sales ofover $7 billion.
The subject is located in the city of Warren, Macomb County, Michigan. Macomb County is located in the southeastern portion of Michigan’s lowerpeninsula. The site is within the Detroit Metropolitan Statistical Area. Warren is the largest city in Macomb County. The Detroit region has anexcellent circumferential freeway system formed by Interstate 275, Interstate 696 and Interstate 94. In total, the area has five interstate freeways:Interstate 75, Interstate 94, Interstate 275, Interstate 696 and Interstate 96. These highways, in conjunction with the areas other major roadways,provide easy travel within the regional and excellent connections to other major markets in Michigan and nearby states. Three major airports servethe Metropolitan Detroit region. The primary industries that provide employment within Macomb County are the manufacturing (durable and non-durable goods) industry and the service industry. The major employers located in Macomb County are General Motors Corporation, Daimler ChryslerCorporation, Ford Motor Company, St. John Health Systems, General Dynamics, Land Systems, TRW Automotive, SBD Ameritech Michigan, and EDSCorporation, among others.
PROPERTY OVERVIEW
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▪ Absolute Net Lease; No Landlord Responsibilities
▪ Annual CPI Increases
▪ 10.08% Cap Rate
▪ Parent Company Reported 2018 Sales of Over $7 Billion
▪ Long Term Tenant as Has Resided at Property Since 2002
▪ Located in Warren - Largest City in Macomb County
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TENANT PROFILES
PUNCHCRAFT
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Punchcraft Machining & Tooling, LLC designs,
manufactures, and supplies prototypes, machining
fixtures, and production tooling for automotive and
aerospace industries. It offers tooling and assemblies for
hot and cold forming machines; metal stamping tooling;
and pallets, tombstones, inspection masters, and
assemblies. The company also provides support services,
such as force and leak testing. Punchcraft Machining &
Tooling, LLC was founded in 1958 and is based in Warren,
Michigan. Punchcraft Machining & Tooling, LLC operates
as a subsidiary of Metaldyne Powertrain Components,
Inc.
Metaldyne is a leading global designer and supplier of metal
formed components and assemblies for powertrain applications
including engine connecting rods, transmission valve bodies,
forged and finished differential gears and pinions, differential
assemblies, balance shaft modules, crankshaft dampers and
crankshaft pulleys. With a core competency in metalworking,
including cold forging, warm forging, powder metal and
aluminum die casting, backed by flexible, high-volume
production capabilities, Metaldyne provides design-to-launch
solutions that reduce cost, weight, cycle time, and complexity,
while improving vehicle performance.
In August 2014, Metaldyne merged with HHI and Grede to create
Metaldyne Performance Group. MPG subsequently went public
in December 2014 and was sold to American Axle &
Manufacturing in April 2017.
American Axel & Manufacturing
Metaldyne Performance Group
Punchcraft Machining & Tooling, LLC
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TENANT PROFILES
PUNCHCRAFT
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American Axle & Manufacturing, Inc. designs, engineers, manufactures, and supplies driveline and drivetrain systems and related components for light trucks, SUVs, passenger cars, crossover vehicles, and commercial vehicles. The company offers vehicle architectures, driveline systems, drivetrain systems, powertrain components, chassis system components, suspension modules, and metal formed products, in addition to similar products.
The company was incorporated in 1993 and is headquartered in Detriot, MI. AAM has over 25,000 associates operating at nearly 90 facilities in 17 countries to support our customers on global and regional platforms with a focus on quality, operational excellence and technology leadership. It offers its products through distributors.
In 2018, American Axle & Manufacturing reported record sales of $7.27 billion.
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30500 Ryan Rd, Warren, MI 48092LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEPUNCHCRAFT
PRICING AND VALUATION MATRIX
PROPERTY NAMEPUNCHCRAFT
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REGIONAL AND LOCAL MAP
PROPERTY PHOTO
PUNCHCRAFT
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PUNCHCRAFT
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FINANCIAL
ANALYSIS
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INVESTMENT SUMMARYOFFERING SUMMARY
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PUNCHCRAFT
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FINANCIAL SUMMARY
THE OFFERINGProperty Punchcraft Machining & Tooling Property Address 30500 Ryan Rd
Warren, Michigan 48092Price $1,150,000Capitalization Rate 10.08%Price/SF $53.98
PROPERTY DESCRIPTIONYear Built / Renovated 1968Gross Leasable Area 21,303 SFZoning M-2Type of Ownership Fee SimpleLot Size 2.00 Acres
LEASE SUMMARYProperty Subtype Single Tenant IndustrialTenant Punchcraft Machining & Tooling Rent Increases Annual CPI IncreasesParent Company MetaldyneLease Type Absolute NetLease Commencement February 1, 2002Lease Expiration January 23, 2022Lease Term 20Term Remaining on Lease (Years) 2.4Landlord Responsibility No Landlord ResponsibilityTenant Responsibility EverythingRight of First Refusal/Offer No
ANNUALIZED OPERATING INFORMATIONINCOMENet Operating Income $115,908
RENT SCHEDULEYEAR ANNUAL RENT MONTHLY RENT RENT/SF CAP RATE
Current $115,908 $9,659 $5.44 10.08%
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LEASE SUMMARY
OFFERING SUMMARY
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PUNCHCRAFT
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FINANCIAL SUMMARY
Tenant: Punchcraft
Parent Company: Metaldyne
Credit Rating: No
Rent Commencement: February 1, 2002
Initial Lease Term 20 Years
Options: None
Lease Type: Absolute Net
$5.44/SF$0.45/SF/Month$115,908 Annual Rent
Base Rent:
Rent Increases: Annual CPI Increases
Operating InformationNOI as of 2019 $115,908Rent/SF $5.44
Gross Leasable Area 21,303 SF
LEASE SUMMARY
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THREE SINGLE- TENANT INDUSTRIAL PORTFOLIO OVERVIEW
OFFERING SUMMARY
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PUNCHCRAFT
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PORTFOLIO METRICS OVERVIEW
Asset Type City State SQFTYear Built/Renovated
Lease Commence
Lease Expiration
Lease Type Price
Listing CAP
Annual NNN Rent
Keo Cutters (25040 East
St.)Warren MI 26,640 1957, 1963,
1989, 19902/1/2002 1/23/2022 Absolute
Net$1,400,000 11.70% $163,848
Punchcraft(30500 Ryan
Rd.)Warren MI 21,303 1968 2/1/2002 1/23/2022 Absolute
Net$1,150,000 10.08% $115,908
Draw-Tite(105-2 L.M.
Gaines Blvd.)Starke FL 30,000 1993 2/1/2002 1/23/2022 Absolute
Net$1,350,000 9.86% $133,055
Key Metrics:• Total Portfolio Price: $3,900,000• Total Annual Rent: $412,811• Total Square Feet: 77,943 SF • Annual CPI Increases
**Note: Properties can be purchased individually or as a two or three property portfolio**
PUNCHCRAFT
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MARKET
COMPARABLES
PUNCHCRAFT
SALES COMPARABLES MAP
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PUNCHCRAFT (SUBJECT)
264 Executive Dr
25831 Commerce Dr
30545 Stephenson Hwy
5971 Product Dr
24650 Sherwood
SALES COMPARABLES
1
2
3
4
5
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PROPERTY NAMEPUNCHCRAFT
SALES COMPARABLES
Average Price Per Square Foot
SALES COMPARABLES SALES COMPS AVG
Avg. $52.30
$0.00
$5.60
$11.20
$16.80
$22.40
$28.00
$33.60
$39.20
$44.80
$50.40
$56.00
PunchcraftManufacturing
264Executive
Dr
25831Commerce Dr
30545Stephenson
Hwy
5971Product Dr
24650Sherwood
PROPERTY NAME
MARKETING TEAM
PUNCHCRAFT
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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Asking Price $1,150,000Price/SF $53.98CAP Rate 10.08%Year Built 1968Occupancy 100%
PUNCHCRAFT Machining & Tooling30500 Ryan Rd, Warren, MI, 48092
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Close of Escrow 12/17/2018Sales Price $925,000Rentable SF 17,124Price/SF $54.02Year Built 1974Occupancy 100%
NOTESTenant is Superior Electric. Lease was signed August 1993.
264 EXECUTIVE DR264 Executive Dr, Troy, MI, 48083
SALES COMPARABLES
NOTESTenant is Control Crew, Inc. Lease was signed in July 2018.
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Close of Escrow 3/2/2018Sales Price $1,215,000Rentable SF 23,880Price/SF $50.88Year Built 1974Occupancy 100%
25831 COMMERCE DR25831 Commerce Dr, Madison Heights, MI, 48071
PROPERTY NAME
MARKETING TEAM
PUNCHCRAFT
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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Close of Escrow 12/4/2018Sales Price $925,000Rentable SF 16,840Price/SF $54.93Year Built 1984Occupancy 100%
NOTESTenant is Madison Electric Co. Lease was signed in June 2008.
30545 STEPHENSON HWY30545 Stephenson Hwy, Madison Heights, MI, 48071
SALES COMPARABLES
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Close of Escrow 9/7/2018Sales Price $1,075,000Rentable SF 20,440Price/SF $52.59Year Built 1966Occupancy 100%
5971 PRODUCT DR5971 Product Dr, Sterling Heights, MI, 48312
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Close of Escrow 2/13/2017Sales Price $725,000Rentable SF 14,776Price/SF $49.07Year Built 1988Occupancy 100%
NOTESTenant is Safe & Secure Home Health Care. Signed lease in October 2018.
24650 SHERWOOD AVE24650 Sherwood, Center Line, MI, 48015
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PUNCHCRAFT
LEASE COMPARABLES MAP
PUNCHCRAFT (SUBJECT)
13390 Cloverdale St
23840 Dequindre Rd
1101 Allen Dr
4
7
8
9
11
20
12
14
15
16
17
13
18
10
1
2
3
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PROPERTY NAMEPUNCHCRAFT
LEASE COMPARABLES
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Average Rent Per Square Foot
Avg. $5.48
$0
$1
$2
$3
$4
$5
$6
PunchcraftManufacturing
13390Cloverdale
St
23840Dequindre
Rd
1101Allen Dr
PROPERTY NAME
MARKETING TEAM
PUNCHCRAFT
LEASE COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
21
Asking Rent/SF $5.44Year Built 1968Occupancy 100%Lease Type NNNLot Size 2 acre(s)
PUNCHCRAFT MANUFACTURING30500 Ryan Rd, Warren, MI, 48092
Rentable SF 55,065Asking Rent/SF $5.20Year Built 1957Occupancy 100%Lease Type NNNLot Size 3.5
NOTESTenant is Wurth Baer. Lease term is from November 2017 to October 2022.
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13390 CLOVERDALE ST13390 Cloverdale St, Oak Park, MI, 48237
2
Rentable SF 4,260Asking Rent/SF $5.50Year Built 1966Occupancy 100%Lease Type NNNLot Size .37
NOTESTenant is Viking Arborist, LLC. Lease term is from February 2019 to January 2021.
23840 DEQUINDRE RD23840 Dequindre Rd, Warren, MI, 48091
PROPERTY NAME
MARKETING TEAM
PUNCHCRAFT
LEASE COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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Rentable SF 24,582Asking Rent/SF $5.78Year Built 1976Occupancy 100%Lease Type NNNLot Size 1.37
NOTESTenant is Re-Source Partners. Lease term is from May 2017 to November 2022.
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1101 ALLEN DR1101 Allen Dr, Troy, MI, 48083
www.MarcusMillichap.com
P R E S E N T E D B Y
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Steve ChabenBroker of Record
Marcus & MillichapTwo Towne Square
Suite 450Southfield, MI 48076Tel: (248) 415-2600License: 0292650