single tenant industrial ground lease...single tenant industrial ground lease a unique investment...
TRANSCRIPT
Offering Memorandum
Single Tenant Industrial Ground Lease
New 15 Year Lease on 10+ Acres Industry Leader Satellite Shelters
Cincinnati, OH MSA
155 Enterprise Dr. | Hamilton, OH 45015
SINGLE TENANT INDUSTRIAL GROUND LEASE
A Unique Investment Opportunity
SATELLITE SHELTERS
Hamilton, OH 45015
EXCLUSIVELY LISTED BY
Dan DanielakFirst Vice President, Investments
Los Angeles, CA
CONTACT INFO:Direct: 310.909.2312Mobile: 248.909.2030
License: CA 01988967; MI 6502332979
O F F I C E S N AT I O N W I D E A N D T H RO U G H O U T C A N A DA
WWW.MARCUSMILLICHAP.COM
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FINANCIAL OVERVIEW
ADDRESS 155 Enterprise Drive | Hamilton, OH 45015
CINCINNATI MSA
Price $3,550,000
Cap Rate 6.62%
15-Year Blended Cap Rate 7.46%
15-Year Total Rent $3,974,151
Gross Leasable Area *see below
Lot Size 10.67 Acres
Lease Type Ground Lease
Type of Ownership Fee Simple
Tenant Satellite Shelters, Inc.
Lease Term 15 Years
Rent Commenced 1/1/20
Lease Expiration 12/31/34
Rent Increases 6% Every Three Years
Options Two, 7-Year
Right of First Refusal No
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.
RENT SCHEDULE
LEASE YEAR ANNUAL RENT MONTHLY RENT
Initial Term:
1-3 $235,000.00 $19,583,33
4-6 $249,100.00 $20,758.33
7-9 $264,046.00 $22,003.83
10-12 $279,888.76 $23,324.06
13-15 $296,682.08 $24,723.51
First Extension Term:
16-18 $314,483.00 $26,206.92
19-21 $333,351.98 $27,779.33
22 $353,353.09 $29,446.09
Second Extension Term:
23-24 $353,353.09 $29,446.09
25-27 $374,554.27 $31,212.86
28-29 $397,027.52 $33,085.58
*Note: There will be no permanent building structures built on this property for Satellite Shelters. Tenant using Prefabricated Modular Office Buildings.
INVESTMENT OVERVIEW
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.
DEMOGRAPHICS
POPULATION 3-MILES 5-MILES
2023 Projection 58,802 177,167
2018 Estimate 54,307 169,620
2010 Census 52,950 165,054
2000 Census 44,369 147,328
INCOME
Average $77,820 $82,981
Median $63,013 $65,336
Per Capita $30,984 $31,156
HOUSEHOLDS
2023 Projection 23,473 66,656
2018 Estimate 21,501 63,307
2010 Census 17,722 55,647
• 15-year Ground Lease – Single-Tenant Industrial
• Strong, Low-vacancy Hamilton, OH Industrial Submarket (Cincinnati MSA)
• In business nearly 50 years, Tenant is Satellite Shelters, Inc, an Industry Leader in the prefabricated modular building, construction job site, mobile office business
• In addition to $1 million Land Valuation, Seller invested $1.7 million to Improve & Prepare Site including New Landscaping, Asphalt Paving and Fencing on Site
• Absolute NNN Ground Lease; no Landlord Responsibilities
• Rent Commenced January 1, 2020
• Rental Increases of 6% Every Three Years Throughout Term
• Lease has Two 7-Year Renewal Options
• Property is located adjacent to Prologis’ new 160,000 SF Warehouse property
AREA OVERVIEW
About Hamilton
Located on the Great Miami River in the heart of the Cincinnati-Dayton metroplex, Hamilton is an historically-significant city with approximately 63,000 residents. Home to Miami University Hamilton and the County Seat of Butler County, Hamilton is the area center for government, finance and industry. Known for its unparalleled art, cultural and recreational activities, Hamilton is continually expanding its quality of life offerings.
Character of Hamilton
The City of Hamilton, the County Seat of Butler County, is an important regional center of business, industry, culture, and government. Located in Southwest Ohio, the City of Hamilton is centrally located between the Cincinnati and Dayton metropolitan areas.
With big city amenities and small town charm, Hamilton continues to retain the character of the city’s past while sharpening its focus on a bright, happy future.
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SITE PLAN
REGIONAL MAP
TENANT OVERVIEW
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.
Ownership: Private
Tenant: Corporate
Industry: Modular Buildings
Founded: 1972
Number of Locations: 20 Locations
Headquartered: Minneapolis, MN
Website: www.SatelliteCo.com
DESCRIPTION OF BUSINESS
Satellite Shelters, Inc. is an Industry Leader in prefabricated modular buildings, mobile offices, blast-resistant modules, construction jobsites office trailers, and storage solutions. Satellite Shelters provides temporary and permanent space solutions for commercial applications.
Satellite Shelters serves the following industries:
• Administrative & commercial offices
• Education
• Energy & power plants
• Financial & banking
• Government
• Institutional
• Medical
• Healthcare and dental
• Petrochemicals & refineries
• Religious
Satellite Shelters offers nationwide service and operates in twenty (20) branch offices nationally and is headquartered in Minneapolis, MN. The company was founded in 1972 and has been in business nearly 50 years.
NET LEASED DISCLAIMER
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not
verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or
representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before
completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap
expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this
property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your
satisfaction with the suitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal
and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a
guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a
tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may
fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market,
economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all
matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant
should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the
property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost,
expense, or liability arising out of your investigation and/or purchase of this net leased property.
Michael GlassBroker of Record230 West St., Suite 100Columbus, OH 43215
EXCLUSIVELY LISTED BY
DAN DANIELAKFirst Vice President Investments
Los Angeles, CADirect: 310.909.2312Mobile: 248.909.2030
License: CA 01988967; MI 6502332979