AVALON PROPERTY FOR SALE. Jerry Erdmann

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1 Jerry Erdmann Jackson, Wisconsin Investment Absolute Net Lease PROPERTY FOR SALE

2 Confidentiality & Disclaimer The 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 The Property Advisor and should not be made available to any other person or entity without the written consent of The Property Advisor. 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. The Property Advisor 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, The Property Advisor has not verified, and will not verify, any of the information contained herein, nor has The Property Advisor 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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR AGENT FOR MORE DETAILS. Page 2 of 10

3 Tenant Profile Headquartered (with manufacturing) in Cleveland, Ohio and additional production facilities are located in Jackson, Wisconsin (Avalon) and Markesan, Wisconsin (PMI). Precision Metalsmiths is a leading manufacturer of high-precision, small thin-walled investment castings, ranging from fractions of an ounce to over 20 lbs. The company s proprietary casting technologies and almost 70 years of specialized engineering expertise have made Precision Metalsmiths a preferred provider to the aerospace industry as well as for general industrial applications requiring complex small parts with thin walls and very tight tolerances. Avalon Precision Metalsmiths has grown out of the merger of Avalon Castings of Cleveland, Ohio and Craft Cast Company of Jackson, Wisconsin to become one of the industry s leading providers of precision-cast parts up to 100 lbs. Avalon services blue-chip OEM customers in the general industrial, pump and valve, oil & gas, food and dairy, military and capital equipment industries with industry-leading turnaround times and cost-effective, value-added services including a dedicated in-house machine shop and tooling operation. The combined company operates four advanced manufacturing facilities in Ohio and Wisconsin, all featuring state-ofthe-art automation and robotics to produce precision castings from over 200 different ferrous and non-ferrous alloys. Combined company certifications include ISO 9001:2008, PED, NADCAP, and ITAR. Together, the combined company will represent one of the largest enterprises in the commercial/industrial/aerospace segment of the investment casting industry. Craft Cast was founded in Slinger, WI in 1984 and then moved to its current location in Jackson in Avalon Precision Metalsmiths acquired Craft Cast along with the merger of Avalon Precision Castings in Cleveland, Ohio and Precision Metalsmiths Inc., also headquartered in Cleveland. Together these two proud investment casting companies have four locations: Euclid, OH, Cleveland, OH, Jackson, WI and Markesan, WI. Avalon, founded in 1983 and Precision Metalsmiths, founded in 1945, have enjoyed both technical and commercial success. They have now grown to become one of the finest metal casting companies in the industry. With four fully redundant facilities, they utilize state-of-the-art robotics and automation in all their processes, which helps them produce intricate, high precision, near-net, metal parts from a range of ferrous and non-ferrous metals. They offer many competitive advantages, including: rapid turnarounds on quotes, samples, and production work; integrated, flexible, and responsive investment casting capabilities; machining and value-added services; competitive pricing; design assistance; and complete material integrity. They are ISO 9001:2008, PED, NADCAP certified for nondestructive testing, ITAR certified, and recently AS9100 certified. They are members of the Investment Casting Institute They are a full-service, turnkey investment casting company. With four fully-equipped facilities they have redundant manufacturing capabilities that enable us to produce top quality products for their customers in industry-leading turnaround times. Unlike many of their competitors, they also offer off-shore casting capabilities to give customers a lower-cost alternative with fast lead times. They regularly go beyond the simple supply of parts and are often fully engaged in the total management of their customer s casting supply chain utilizing continuous flow, modular builds, KanBan and multiple production points. For single prototype parts and low or high-volume production runs, for parts ranging from a few ounces to one hundred pounds, for parts as large as 36, for simple and complex designs they are an investment casting company that can do it all. They offer unrivaled quality, precision, and lead times, as well as Just-In-Time production, Kanban programs, and more. Page 3 of 10

4 Offering Summary Single Tenant Industrial / Metal Casting Company Absolute Net Leased High Quality Tenant State of the Art Operations Price: $3, 735, 000 Square Feet: Lot Size: Lease Type: Term: 50,676 Total 7,086 (office); 43,590 (manufacturing) 14 Acres. Combined two parcels; Includes land for expansion or more development. Absolute Net (Includes review of tenant financial statements) 10+ Years Remaining (18 year lease signed August 2007; expires August 2025) Escalation: 2% Increase each September 1 Options: Financial Proforma 2 5 year options Price: $3, 735, 000 Down Payment (25%): $933,750 Loan Amount: $2, 801,250 Interest Rate: 4.25% Amortization: 20 Year Terms Monthly Payment: $17,347 ($208,164 Annualized) Net Rent: $336, CAP Rate: 9% Debt Service: $208,164 Debt Service Coverage Ratio: 1.62 Net Cash Flow After Debt Service: $128,688 Page 4 of 10

5 Rent Schedule Year Start Date Annual Month End Date Current $336, , August 31, September 1, 2015 $343, , August 31, September 1, 2016 $350, , August 31, September 1, 2017 $357, , August 31, September 1, 2018 $364, , August 31, September 1, 2019 $371, , August 31, September 1, 2020 $379, , August 31, September 1, 2021 $386, , August 31, September 1, 2022 $394, , August 31, September 1, 2023 $402, , August 31, September 1, 2024 $410, , August 31, 2025 Page 5 of 10

6 Net Leased Investment Page 6 of 10

7 Net Leased Investment Page 7 of 10

8 Area Map Page 8 of 10

9 Site Plan Page 9 of 10

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