Price: $5,250,000 ($23.38 PSF) NOI: $475,109 CAP: 9.05%

Transcription

1 Bridgestone Distribution Center I-55 Frontage Rd Jackson, MS Price: $5,250,000 ($23.38 PSF) NOI: $475,109 CAP: 9.05% Phone: Fax: Industrial distribution building leased to three strong credit tenants Building is 64% occupied and offers upside via future lease up of vacant space 81,302 SF of vacant space improved with 7 dock doors and room for 6 more Concrete tilt up construction and sprinkled building originally constructed for tire distribution Low rent to replacement cost with 32 foot clear height ceilings Situated on approximately 23 acres and strategically located near I-55, I-220 and I-20 Jackson, MS is a regional distribution hub of the Southern United States Location offers strategic access to the Gulf Coast and the entire Southeast region Rail line services the building but is no longer connected This information has been obtained from sources deemed reliable, however EXP Realty Advisors does not guarantee, warranty or represent itsaccuracy.

2 Bridgestone Distribution Center +2 Investment Overview PROPERTYOVERVIEW: EXP Realty Advisors exclusively presents for sale a 224,566 sf concrete tilt-up construction distribution and warehouse property located in Jackson, MS on 23 acres. The property is leased to three strong credits, two of which are listed on the NYSE. They are Bridgestone Tire, which occupies 42,688 sf (19.01% of the building); XPO Logistics, which occupies 39,262 sf (17.48% of the building) and Silvercote Lamination, which occupies 61,314 sf (27.30% of the building), and the remaining 81,302 sf (36.21% of the building) is vacant but improved with 7 dock doors with room for 6 more. The property is being offered at $23.38 psf including the vacancy or $36.65 psf based on the leased space. On average the existing tenants are paying $3.65 psf. The building has been extensively renovated and a new roof was installed in In dock doors were upgraded, as well as utilities and a new office portion of the building which is approximately 5,970 square feet was installed. Also added were 14 new truck door docks, new office and bathrooms, as well as a four acre trailer park and a new looped truck entrance andexit. LOCATIONOVERVIEW: Jackson is the capital of Mississippi, as well as its most populous city. It is known for being a regional distribution hub for the Southern United States. Jackson is located at the intersection of Interstates 55 and 20 and is known for its base of energy companies and as the heart of the government and legal community. It is strategically located in the center of the southeast United States and within 500 miles of all or part of 15 states and 76 metropolitan areas which comprise approximately 39 percent of the nation's population and 35 percent of the total personal income. Premier access to raw materials, labor, and transportation is a competitive advantage to area business. Tenant Expiration Date Lease Structure Annual Rent Remaining Lease Term Space Occupied XPO Logistics 11/30/2020 NNN* $137, ,262 Silvercote Lamination 5/1/2020 NNN* $215, ,314 **Bridgestone Tire 3/28/2028 NNN* $170, ,688 TOTAL $523, ,264 *OPEX & Mgt reimbursed **The rent increases by 10% on month 66 of the base term and by approximately 1% annually in each of the two 5 year option periods INVESTMENT SUMMARY Price: $5,250,000 Cap Rate: 9.05% NOI: $475,109 Price PSF: $23.38 Bld. Sq Ft: Land Size: Truck Doors: ,566 sf 23 acres Clear Heights: 32feet Vacancy: Rail Spur: 81,302 sf No longer in use Bridgestone NYSE: BRDCY 2016 Net Revenue: $3.36 T XPO Logistics, Inc. NYSE:XPO 2016 Revenue: $14.B Silvercote Lamination Parent Company Revenue in USD: $6.95 B This information has been obtained from sources deemed reliable, however EXP Realty Advisors does not guarantee, warranty or represent itsaccuracy.

3 Bridgestone Distribution Center +2 Investment Overview

4 Bridgestone Distribution Center Investment Overview TENANT SNAPSHOT: Revenue in JPY: 3.36 T Incorporated: 1931 HQ: Tokyo, Japan TENANT OVERVIEW: Bridgestone NYSE: BRDCY 2016 Net Revenue: $3.36 T Bridgestone Corporation is engaged in developing, manufacturing and marketing tires and diversified products. The Company operates through two segments: Tires and Diversified Products. The Company's Tires segment offers tires for passenger cars, trucks, buses, motorcycles, construction and mining vehicles, aircraft, and motor cycles, as well as tubes, wheels and related accessories. The Tires segment also includes the retreading business, and automotive maintenance services. The Company's Diversified Products segment offers various categories of products, including chemical products, industrial products, automotive components, construction materials, electronic equipment, sporting goods, and bicycles. Many of these products are made from rubber or rubber-derived materials. The Company has over 170 manufacturing plants in approximately 30 countries around the world. It sells products in over 150 countries across the world. In 2016, Bridgestone reported $3,337 B yen in net sales, with 266 B yen in profit attributable to owners of the parent company. Bridgestone has $3,720 B yen in total current assets. Fortune magazine ranked Bridgestone 283 among its Fortune 500 companies. Forbes magazine ranked Bridgestone #279 in its Global 500 companies, #281 in sales and #245 in profit. This information has been obtained from sources deemed reliable, however EXP Realty Advisors does not guarantee, warranty or represent itsaccuracy.

5 I-55 Bridgestone Business Distribution Center Jackson, Center MS +2 Investment Overview TENANT SNAPSHOT: Revenue in USD: Net Income in USD: $14.62 B $ M TENANT OVERVIEW: XPO Logistics, Inc. NYSE:XPO 2016 Revenue: $14.B Incorporated: 2000 HQ: Greenwich, CT XPO Logistics, Inc. (NYSE: XPO) is a top ten global logistics provider of cutting-edge supply chain solutions to the most successful companies in the world. The company operates as a highly integrated network of people, technology, and physical assets in 34 countries, with over 87,000 employees and 1,425 locations. XPO uses its network to help more than 50,000 customers manage their goods more efficiently throughout their supply chains. The company has two reporting segments: transportation and logistics, and within these segments, its business is well diversified by geographies, verticals and types of service. XPO's corporate headquarters is in Greenwich, Conn., USA, and its European headquarters is in Lyon, France. In 2016, XPO reported revenue of $14.6 billion, net income attributable to common shareholders of $63 million, adjusted EBITDA of $1.25 billion, cash flow from operations of $625 million, and free cash flow of $211 million. Last year SPO became a Fortune 500 company for the first time and were named the fastest-growing company on the list. Forbes ranked it #17 among innovative growth companies and #263 among America s best employers. As of December 31, 2016, the Company had more than 10,000 independent owner operators under contract to provide drayage, expedite, last mile and LTL services to its customers. This information has been obtained from sources deemed reliable, however EXP Realty Advisors does not guarantee, warranty or represent itsaccuracy.

6 I-55 Bridgestone Business Distribution Center Jackson, Center MS +2 Investment Overview PARENT COMPANY KNAUF SNAPSHOT: Revenue in USD: $6.95 B (Estimated) Incorporated: 1932 HQ: Iphofen, Germany TENANT OVERVIEW: Silvercote Lamination Inc. Parent Company Revenue in USD: $6.95 B Silvercote Lamination, LLC, is a subsidiary of Knauf Insulation, which manufactures fiberglass insulation. Knauf Insulation is a leading global manufacturer of thermal and acoustical glass mineral wool insulation for residential, commercial, industrial, OEM, and metal building applications. For over 80 years Silvercote has partnered with customers to provide innovative custom insulation solutions and systems. As part of the Knauf Insulation family of companies, Silvercote has access to the latest technology in producing insulation products. Knauf is a multinational, family-owned company based in Germany. Knauf has more than 150 production sites worldwide and manufacturing operations in Europe, Russia, UK. The company is the fastest growing insulation manufacturer in the world with a wide range of insulation products to meet the growing demand for energy efficiency and acoustic performance in new and existing homes, commercial buildings, and industrial applications. Products include glass mineral wool, rock mineral wool, expanded polystyrene and extruded polystyrene. This information has been obtained from sources deemed reliable, however EXP Realty Advisors does not guarantee, warranty or represent itsaccuracy.

7 Site Plan 42,688 S.F. Vacancy 81,302 S.F. Improved with 7 dock 61,314 S.F. doors and room for 6 more 39,262 S.F.

8 Bridgestone Nissan I-55 Business Distribution Distribution Center Center Jackson, Center (I-55 Business MS +2 Center) Photos JacobsonSpace Interior Photos

9 Rent Roll Rent Rolls Tenant Base Rent Per Month Base Rent Per Year Square Footage % of Building ManagementFee% ManagementFee XPO $11,427 $137,122 39, % 3.50% $4, SF% for recoveries 16.60% Silvercote $17,971 $215,652 61, % 3.00% $6, Bridgestone *The rent increases by 10% on month 66 of the base term and by approximately 1% annually in each of the two 5 year option periods $171,588 42, % 3.00% $5, Vacancy $0 $0 81, % Total $43,364 $524, , % $16, TotalSF Occupied 143,264 This information has been obtained from sources deemed reliable, however EXP Realty Advisors does not guarantee, warranty or represent itsaccuracy.

10 NOI Calculations Base Rent Per Year Silvercote Lamination 215,652 XPO Logistics 137,122 Bridgestone 171,588 Total Base Rent 524,362 Expense Reimbursements from Tenants Including Management Fee Silvercote Lamination 60, XPO Logistics 43, Bridgestone 32, Total Expense Recoveries for Tenants Including Management Fee 136,835 Effective Gross Income 661,197 Annual Operating Expenses Insurance 40, Real Estate Taxes 92, Landscaping 10, General Maintenance 14, Electrical Maintenance ParkingLot 1, Roof and Structure Fire Alarm Monitiring and Service AT&T Service for Phone Lines 5, Fire Supression and Extinguishing 1, Management Fee 16, Total Operating Expenses 186, Net OperatingIncome 475, This information has been obtained from sources deemed reliable, however EXP Realty Advisors does not guarantee, warranty or represent itsaccuracy.

11 Property Photo

12 Property Photo

13 Property Photo

14 Property Photo (taken prior to lot renovation)

15 Bridgestone Nissan I-55 Business Distribution Distribution Center Center Jackson, Center (I-55 Business MS +2 Center) pertyphoto Property Photo

16 Interior Photos

17 Bridgestone Distribution Center +2 One of three office components (each tenant has an office component)

18 Survey

19 Location Map This information has been obtained from sources deemed reliable, however EXP Realty Advisors does not guarantee, warranty or represent its accuracy.

20 Jackson, MS Industrial Market Overview Jackson s Vacancy Decreases to 4.5% Net Absorption Positive 10,870 SF in the Quarter The Jackson Industrial market ended the second quarter 2017 with a vacancy rate of 4.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 10,870 square feet in the second quarter. Vacant sublease space increased in the quarter, ending the quarter at 7,695 square feet. Rental rates ended the second quarter at $4.97, an increase over the previous quarter. There was 503,743 square feet still under construction at the end of the quarter. Vacancy The Industrial vacancy rate in the Jackson market area decreased to 4.5% at the end of the second quarter The vacancy rate was 4.6% at the end of the first quarter 2017, 4.5% at the end of the fourth quarter 2016, and 5.7% at the end of the third quarter Rental Rates The average quoted asking rental rate for available Industrial space was $4.97 per square foot per year at the end of the second quarter 2017 in the Jackson market area. This represented a 12.4% increase in quoted rental rates from the end of the first quarter 2017, when rents were reported at $4.42 per square foot. The average quoted rate within the Flex sector was $9.93 per square foot at the end of the second quarter 2017, while Warehouse rates stood at $4.65. At the end of the first quarter 2017, Flex rates were $9.87 per square foot, and Warehouse rates were $4.09. Inventory Total Industrial inventory in the Jackson market area amounted to 23,271,499 square feet in 704 buildings as of the end of the second quarter The Flex sector consisted of 2,206,563 square feet in 124 projects. The Warehouse sector consisted of 21,064,936 square feet in 580 buildings. Within the Industrial market there were 26 owner-occupied buildings accounting for 3,485,168 square feet of Industrial space. Vacancy Rates by Building Type U.S. Vacancy Comparison This information has been obtained from sources deemed reliable, however EXP Realty Advisors does not guarantee, warranty or represent its accuracy.

21 Jackson, MS Industrial Market Overview

22 Jackson, MS Industrial Submarket Market Statistics Overview

23 Jackson, MS Submarket Market Statistics

24 Bridgestone Distribution Center +2 Jackson Submarket Overview

25 Bridgestone Distribution Center +2 Demographics