OFFERING MEMORANDUM ContMid Group Industrial Portfolio Sale Leaseback OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 1

Transcription

1 OFFERING MEMORANDUM ContMid Group Industrial Portfolio Sale Leaseback OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 1

2 TABLE OF CONTENTS TRANSACTION OVERVIEW PAGE 4 COMPANY OVERVIEW PAGE 5 COMPANY PRODUCTS PAGE 6 PROPERTY OVERVIEWS, PHOTOS & MAPS PAGES 7-15 OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 2

3 ContMid Group Portfolio Multiple Locations This Offering Memorandum ( Memorandum ) is intended solely for the use of prospective investors in determining whether or not to pursue the possible acquisition of certain properties (the Properties ) located at various locations throughout Indiana and Ohio, from ContMid Group of Companies or its affiliates (collectively, the Organization ). This Memorandum is of a proprietary and confidential nature. Prospective investors and/or their advisors are expressly forbidden from sharing this information with any individuals or organizations that are not directly connected with the analysis of this investment opportunity. STREAM Capital Partners, LLC ( SCP ) has been retained as the exclusive advisor for this investment opportunity. Any and all inquiries are to be directed to SCP. By accepting this Memorandum, the recipient agrees that it will cause its directors, officers, employees and representatives to use the Memorandum and all of the information contained therein only to evaluate this specific investment opportunity and for no other purpose and shall return this Memorandum together with any copies to SCP upon request. This Memorandum contains confidential material which is non-public information. Receipt of this Memorandum constitutes your acknowledgment that you will maintain the information contained herein in strict confidence. All information contained herein has been provided by the Organization, its affiliates or other sources that SCP deems reliable; however, SCP has not independently verified any of the information, including the financial estimates and projections and selected real estate information, contained herein. This Memorandum includes information about the Organization, including selected financial information, estimates and projections that reflect various assumptions concerning anticipated results, which may or may not prove to be correct and selected real estate information which may or may not prove to be correct. Such projections and estimates may or may not be indicative of future performance, which may be significantly more or less favorable than that as reflected herein. In furnishing this Memorandum, none of the Organization, its affiliates or SCP undertakes any obligation to provide additional information or to correct or update any of the information set forth in the Memorandum. None of the Organization, its affiliates or SCP makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained herein in this Memorandum, or made available in connection with any further investigation of the Organization, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. The recipient should rely solely on the representations and warranties made to it by the Organization or its affiliates in any executed definitive agreement. Under no circumstances should the Organization, its affiliates or any of their management, directors, shareholders, lenders, employees, customers or vendors be contacted directly. OFFERING MEMORANDUM CONTMID GROUP SALE PORTFOLIO LEASEBACK SALE PORTFOLIO LEASEBACK 3 OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 3

4 Transaction Overview Portfolio Rent: $1,757,243 Cap Rate: 7.00% Portfolio Price: $25,103,471 Initial Term: 15 Years Portfolio SF: 466,980 Lease Type: Absolute NNN Lease no LL responsibilities Rent Increases: 1.50% annual rent increases Renewal Options: Four (4), five (5) year options Property Address Building Site Size Site Size Year 1 Rent Year 1 Rent Cap Rate Value SF AC SF ($/SF) ($) (%) ($) 4001 Redbow Drive, Valparaiso, IN 109, ,800 $4.35 $475, % $6,790, Lake Road, Medina, OH 117,700 $3.50 $411, % $5,885, ,345, Lake Road, Medina, OH 154,500 $3.50 $540, % $7,725, County Road 593, Tiffin, OH 85, $3.85 $329, % $4,702,500 TOTALS 466, ,563,665 $3.76 $1,757, % $25,103,471 OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 4

5 Company Overview ContMid Group ( ("ContMid" or "the Company ) is a market leader in the design, manufacturing and distribution of metal fasteners to automotive OEMs, Tier I automotive suppliers and industrial manufacturers. The Company produces internally- and externally-threaded nuts and bolts, door strikers and related products for automotive vehicle systems, including restraint systems, airbags, door hardware, and ride control systems. ContMid is a combination of four interrelated businesses: Continental / Midland, LLC Jacobson Manufacturing, LLC MSD Stamping Jacobson Manufacturing Tiffin By combining the strength of the four companies, ContMid offers its customers a comprehensive product line that includes both standard and custom designed bolts/studs, pins, bushings, nuts, shafts, rivets (tubular & non-tubular) stampings/door strikers, wheel nuts, and other specialty cold formed/machined or stamped steel parts and assemblies. Monomoy Capital Partners ( acquired ContMid in July Through April 2015, ContMid achieved $10.7 million in EBITDA compared to $9.0 million EBITDA through the same period in ConMid achieved YE 2014 revenue of $230.4 million and YE 2014 EBITDA of $25.6 million. This compares to YE 2013 revenue of $219.5 million and YE 2013 EBITDA of $25.7 million. 100% of sale leaseback proceeds will be used to pay down debt OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 5

6 Company Products JACOBSON MANUFACTURING (MEDINA, OH) MSD STAMPING JACOBSON TIFFIN (TIFFIN, OH) CONTINENTAL / MIDLAND (VALPARAISO, IN) OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 6

7 Property Overview Subject Property 4001 Redbow Drive, Valparaiso, IN Building(s) square feet: Total: 109,280 SF Building 1: 105,680 SF Building 2: 3,600 SF Building function: Manufacturing & distribution Percent office: 5.00% office Year of construction: Building 1: 1994 Building 2: 2000 Construction type: Steel frame Clear height(s): Loading: Eight dock-high doors; four drive-in doors HVAC: Manufacturing area (gas-fired heaters); office (mounted unit) Electric: 480-volt, three-phase system Sprinkler: Wet system throughout Site size: acres (2.99:1 land-to-building ratio) Location: Close to Hwy 30 and Hwy 49 with access to major interstates I- 80, I-94 and I-65 OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 7

8 Property Photos Subject Property 4001 Redbow Drive, Valparaiso, IN OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 8

9 Property Map Subject Property 4001 Redbow Drive, Valparaiso, IN Subject Property Chicago 57 miles Indianapolis 139 miles OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 9

10 Property Overview Subject Property 941 Lake Road, Medina, OH Building(s) square feet: Total: 272,092 SF (buildings connected by causeway) Building 1: 153,940 SF Building 2: 118,152 SF Building function: Manufacturing & distribution Number of stories: Single story Percent office: 3.70% office Year of construction / expansion: Building 1: 1969 / 1993 Building 2: 1978 Construction type: Metal panel, concrete block and brick Clear height(s): Loading: 12 dock-high doors; six drive-in doors HVAC: Manufacturing area (gas-fired heaters); office (forced air) Site size: acres (4.95:1 land-to-building ratio) Location: Industrial park setting, close to Hwy 41 with easy access to major interstate I-71, connecting to Cleveland and Columbus OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 10

11 Property Photos Subject Property 941 Lake Road, Medina, OH OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 11

12 Property Map Subject Property 941 Lake Road, Medina, OH Cleveland 35 miles Toledo 108 miles Columbus 108 miles Pittsburg, PA 132 miles Subject Property OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 12

13 Property Overview Subject Property 1988 County Road 593, Tiffin, OH Building(s) square feet: 85,500 SF Building function: Manufacturing & distribution Number of stories: Single story Percent office: 9.40% office Year of construction / expansion: 1987 / 2003 & 2013 (40,000 SF expansion in 2013) Construction type: Metal panel and concrete block Clear height(s): Loading: Seven dock-high doors; three drive-in doors HVAC: Manufacturing area (gas-fired heaters); office (forced air) Site size: acres (3.48:1 land-to-building ratio) Location: Industrial park setting, adjacent to Seneca County airport; centrally located between Cleveland, Columbus and Toledo OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 13

14 Property Photos Subject Property 1988 County Road 593, Tiffin, OH OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 14

15 Property Map Subject Property 1988 County Road 593, Tiffin, OH Toledo 50 miles Cleveland 96 miles Ft. Wayne miles Columbus 86 miles Subject Property OFFERING MEMORANDUM CONTMID GROUP PORTFOLIO SALE LEASEBACK 15