SKF USA Inc. Industrial Building

Transcription

1 SKF USA Inc. Industrial Building Moody, Alabama (Birmingham) EXECUTIVE SUMMARY SKF AB, the world s largest maker of bearings - Bloomberg In association with: Douglas Longyear Cassidy Turley Doug.Longyear@cassidyturley.com Lic # Andrew Bogardus Cassidy Turley Andy.Bogardus@cassidyturley.com Lic # Christopher Sheldon Cassidy Turley Chris.Sheldon@cassidyturley.com Lic # Sonny Culp, SIOR Graham & Co SonnyC@grahamcompany.com AL Lic #

2 Investment Highlights The Offering A new 31,200 sq. ft. industrial building leased to SKF USA Inc. $5,120,000 Price 6.55% Cap Rate CLICK HERE FOR LIVE SFK BUILDING PHOTO Lease / Tenant New 15 year lease with 2% annual rent increases Tenant is responsible for taxes, insurance and maintenance (including roof and parking areas), except for structure, floor and exterior walls SKF Group, the tenant s parent, is the largest manufacturer of ball bearings and related products in the world SKF AB, the largest shareholder of SKF Group, has an S&P bond rating of A- The U.S. is the largest source of net sales in the world for SKF Group SKF USA will pay $190,000 for two interior cranes SKF to install $1.4 million of equipment in the building Real Estate The property is located at the southwest corner of Interstate 20 and Highway 78 New concrete tilt-up construction The building can be expanded by 33% Over 900 SKF USA customers are located within 300 miles of the site Area Strengths Mercedes, Honda and Hyundai have car manufacturing plants near Birmingham Birmingham has a large steel production sector Birmingham has one of the two largest rail hubs in the Southeast Birmingham is a headquarters location for banks and insurance companies The University of Alabama at Birmingham is the largest employer in Birmingham and the state. Birmingham-Hoover MSA s unemployment rate is only 6.0% St. Clair County is the 3rd fastest growing county in Alabama Moody Commerce Park, Building Two SKF USA, Inc. 2

3 SKF The tenant is SKF USA Inc., a subsidiary of Sweden-based SKF Group. SKF Group does not guaranty the lease. SKF Group (Parent Company) Bloomberg reports that SKF Group is the largest bearing manufacturer in the world and employs approximately 44,000 people. The following countries generate the most net sales for SKF Group: U.S. 20%, Germany 13%, and China 11%. The SKF Group is a leading global supplier of products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems. Services include technical support, maintenance services, condition monitoring, asset efficiency optimization, engineering consultancy and training. SKF Group was founded in 1907 and rapidly grew to become a global company. As early as the 1920s, the company was well-established in all five continents. SKF is present in nearly all industries, including cars and light trucks, aerospace, wind energy, railway, metal, machine tool, medical and food and beverage. SKF Group has around 140 manufacturing sites in 28 countries and is represented in over 130 countries through its own sales companies and over 15,000 distributor locations. SKF Group is a publicly traded company with a headquarters in Sweden. The company s stock is traded on the Stockholm Stock Exchange. Its symbol is SKF-A.ST. For the fiscal year ended December 31, 2012, SKF Group reported record revenue of $9.68 billion with net income of $731 million. SKF Group had total stockholder s equity of $3.37 billion. (All dollar figures are based upon an assumed currency exchange rate of 6.66 Swedish Krona for 1 U.S. Dollar). Per Bloomberg, SKF AB, which owns approximately 95% of the equity in SKF Group, has an S&P bond rating of A-. SKF USA Inc. (The Tenant) SKF USA Inc. is the U.S. subsidiary of Sweden-based SKF Group. 28 of the parent company s 140 global manufacturing sites are located in the U.S., including facilities for the production of seals, lubrication systems, linear motion products, actuation systems, and rolling bearings. 20% of the SKF Group s total net sales (by customer location) are derived from the U.S. SKF USA is a major provider of products and technology to original equipment manufacturers and industrial operations in virtually every major industry, including transportation, paper, mining, oil and gas, food and beverage, machine tool, metals, aerospace and energy, among others. SKF USA is also an industry leader in the area of condition monitoring, supplying advanced hardware and integrated software solutions for plant asset management optimization. Contact Cassidy Turley for tenant financial information. SKF USA Solution Factory in Moody SKF USA has more than 130 distributor accounts with more than 900 customers within 300 miles of the new Moody facility. SFK has characterized the Moody facility as a SFK Solution Factory, the third such facility in the United States and one of only 20 such facilities around the world. These facilities aim to deliver customized solutions to meet tough industry challenges, and provide customers with project management, asset management consulting, energy management, machine improvement programs and lubrication management. The Moody Solution Factory will be able to manufacture bearings, handle precision assembly, driveline services, custom-machined seals, root-cause failure analysis, seminars and training.

4 vulcan industries EXIT 147 multitenant bldg one multitenant bldg two bldg FOUR planned 70,000 sf travel center UNDER CONSTRUCTION love s travel center MCDONALD S / SUBWAY TIRE CENTER under construction KELLY CREEK ROAD

5 PARK AVE Location / Moody Commerce Park LAKESIDE DR The subject property is located at 2575 U.S. Highway 78 in the Moody Commerce Park which is situated at the southwest corner of Interstate 20 and Kelly Creek Road in Moody, Alabama. The property is located approximately 8 miles east of Birmingham. Location Moody Commerce Park has three existing multi-tenant warehouse buildings containing approximately 527,800 sq. ft. Some the tenants in the park include Michelin and Sumitomo Electric Wiring Systems. GILLEY DR KELLY CREEK RD KELLY CREEK W Love s is building a Love s Travel Center at the east end of Moody Commerce Park. This facility will have a McDonald s, Subway and tire center. The Travel Center will be completed in the first quarter of Valero is building a travel center at the northeast corner of Interstate 20 and Kelly Creek Road. The Moody City Council has approved $573,223 of improvements to Kelly Creek Road for the Love s Travel Center. EXIT 147 KELLY CREEK RD VALERO TRAVEL STOP (U/C) KATHERYN ST 20 PARK AVE JE AN RD LOVE S TRAVEL STOP (U/C) SAM JOHNSTON DR MOODY COMMERCE PARK 78 WIDWOOD TRAIL CALICO LN WRANGLER DR BROKEN PINE TWILIGHT LN TRAILS END LN ROYAL OAKS DR PRAIRIE LN 4 CHEYENNE ST

6 Disclaimer The information contained in this marketing brochure ( Materials ) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving the Materials from Cassidy Turley Northern California ( Agent ). The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property/properties ( Property ) for potential purchase. The Materials have been prepared to provide unverified summary financial, property, and market information to a prospective purchaser to enable it to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Property. Photographs: The aerials in this offering memorandum show the actual property that is being offered for sale. Since the subject property is under construction, we are using photographs of other SKF facilities to provide an indication of how the subject property will appear upon completion. These photographs are not intended to show an exact replica of the subject property. The information contained in the Materials has been obtained by Agent from sources believed to be reliable; however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent makes no representation or warranty regarding the Property, including but not limited to income, expenses, or financial performance (past, present, or future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating substances (PCB s, asbestos, mold, etc.); compliance with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant (tenants intentions regarding continued occupancy, payment of rent, etc). A prospective purchaser must independently investigate and verify all of the information set forth in the Materials. A prospective purchaser is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating and evaluating the Property. By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.