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SC2 Supply Chain Services and Solutions(Sale Leaseback)600 W Camp StreetEast Peoria, IL 61611 (Peoria MSA)
NET LEASE INVESTMENT OFFERING
TABLE OF CONTENTS
TABLE OF CONTENTS
II. Location Overview Photographs Aerial Site Plan Map
III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview
I. Executive Profile Executive Summary Investment Highlights Property Overview Property Description Market Overview
NET LEASE INVESTMENT OFFERING
DISCLAIMERSTATEMENT:
DISCLAIMER STATEMENT
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.
This Offering Memorandum 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 Boulder Group has not made any investigation, and makes no warranty or representation.
The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group 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.
NET LEASE INVESTMENT OFFERING
EXECUTIVESUMMARY:
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant SC2 Supply Chain Services and Solutions (SC2) sale leaseback opportunity located in the East Peoria, IL. The property is strategically positioned in the immediate vicinity to numerous large Caterpillar manufacturing plants. The SC2 property is utilized for contract services for Caterpillar. The SC2 lease will have an initial primary term of seven years remaining upon close of escrow. This triple net lease will feature 2% annual rental escalations. The SC2 property features a below market rent of $3 PSF.
The SC2 property is located on 18.5 acres and totals 302,438 square feet. The property is ideally located along the Illinois River and Interstate 74 (62,100 VPD). Camp Street offers immediate access to Interstate 74. Retailers in the immediate area include Bass Pro Shops, Walmart Supercenter, Lowe’s, Target and Costco.
At this location, SC2 is providing warehousing and inventory management for Caterpillar. SC2 stores and manages inventory and then ships to the assembly lines where needed. Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
The Peoria market has remained strong for industrial properties. The market contains nearly 30 million SF of inventory while only having 3% vacancy. While the logistics market here primarily serves the local economy, Peoria is the largest city on the Illinois River, a principal tributary of the Mississippi River, and goods are transported as far as the Gulf of Mexico. Despite jumping a bit in 2017, vacancies remain healthy here due to the lack of construction across the metro. Rent growth has been strong, posting cumulative growth over 2% from 2013-2018.
SC2 currently offers air filtration products & service, steel fabrication, kitting, assembly, industrial blasting & painting, inventory management, warehousing, and in-house maintenance across 15 locations in Illinois & Texas. Currently, SC2 is the largest down-state Illinois contract packager for Caterpillar and Mitsubishi.
NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS:
INVESTMENT HIGHLIGHTS
• Low rent PSF of $3.00
• New lease with 2% annual rental escalations
• Triple net lease
• Strategic location adjacent to numerous large Caterpillar plants
• Ideally located along the Illinois River and Interstate 74 (62,100 VPD)
• Retailers in the immediate area include Bass Pro Shops, Walmart Supercenter, Lowe’s, Target and Costco
• Tenant has successfully been in business for over 30 years
• Tenant is the largest down-state Illinois contract packager for a Caterpillar
• Strategic Midwest location with over 56 million people living within a 350 mile radius of the property
• Located in the Peoria MSA which is home to significant Caterpillar facilities and the third largest
metropolitan area in the state of Illinois
NET LEASE INVESTMENT OFFERING
PROPERTY OVERVIEW:
PROPERTY OVERVIEW
NET LEASE INVESTMENT OFFERING
Price: $10,674,176
Cap Rate: 8.50%
Net Operating Income: $907,305
Lease Commencement Date: Sale Leaseback – Close of Escrow
Lease Term: 7 Years
Rental Escalations: 2% Annual
Renewal Options: Three 5-Year
Tenant/Guarantor: SC2 Inc.
Year Built: 1967
Lease Type: NNN*
Building Sizes: 302,435 SF
Land Size: 18.53 Acres
*During the last two years of the lease, the tenant will reimburse the landlord the cost for any capital expenditure as amortized over its useful life
PROPERTY DESCRIPTION:
PROPERTY DESCRIPTION
NET LEASE INVESTMENT OFFERING
Current Zoning: Manufacturing/Limited District (M-1)
Clear Height: 20 Feet
Dock High Doors: 37
Ground Level Doors: 2
Yard Storage: 110 Trailer spaces
Type of Construction: Steel and masonry
Foundation: Reinforced concrete slab
Framing: Structural steel with masonry and concrete encasement
Exterior Walls: Brick and concrete block
Roof: Metal
Heating: Forced Air
Lighting: High Efficiency, motion detecting LED lighting
Fire Protection: Fire sprinkler system
MARKET REPORT:
MARKET REPORT
NET LEASE INVESTMENT OFFERING
The Peoria industrial market contains nearly 30 million SF of inventory. While the logistics market here primarily serves the local economy, Peoria is the largest city on the Illinois River, a principal tributary of the Mississippi River, and goods are transported as far as the Gulf of Mexico. Despite jumping a bit in 2017, vacancies remain healthy here due to the lack of construction across the metro. Rent growth has been strong, posting cumulative growth over 2% from 2013-2018.
Industrial Market Statistics (Q3 2018)
Peoria MSA
Existing Inventory: 29,500,000 SF
Net Absorption (YTD): 319,000
Vacancy: 3.0%
Rental Rate (Gross): $4.54
Under Construction: 0
NET LEASE INVESTMENT OFFERING
PHOTOGRAPHS
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PHOTOGRAPHS
NET LEASE INVESTMENT OFFERING
PHOTOGRAPHS
NET LEASE INVESTMENT OFFERING
AERIAL
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SITE PLAN
MAP
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MAP
DEMOGRAPHICREPORT:
DEMOGRAPHIC REPORT
Population 1-Mile 3-Mile 5-Mile
Total Population 1,048 56,819 119,065
Total Households 492 21,649 48,689
Income 1-Mile 3-Mile 5-Mile
Average Household Income $49,476 $49,103 $57,883
NET LEASE INVESTMENT OFFERING
MARKET OVERVIEW
MARKETOVERVIEW:
Peoria, IllinoisPeoria is the county seat of Peoria County, Illinois, and the largest city on the Illinois River. Established in 1691 by the French explorer Henri de Tonti, Peoria is the oldest European settlement in Illinois, and is named after the Peoria tribe. As of the 2010 census, the city was the seventh-most populated in Illinois (and the third largest outside the Chicago metropolitan area), with a population of 115,007. The Peoria Metropolitan Statistical Area had a population of 373,590 in 2011.
Caterpillar employs over 125,000 people world-wide, of which 15,000+ are located in Peoria. Other significant employers in the area include the Methodist Medical Center, OSF Saint Francis Medical Center, and the Peoria School District. Peoria is also home to Bradley University (6,000 students) and Illinois Central College (12,000 students). The Embassy Suites and Riverfront Conference Center, caters to the Caterpillar offices, Bradley University, and Peoria Civic Center. The Embassy Suites and Riverfront Conference Center is ideal for East Peoria meetings and events and boasts a 50,000 square foot conference center.
NET LEASE INVESTMENT OFFERING
SC2 Supply Chain Services and SolutionsSC2 Supply Chain Services and Solutions began in Tremont, Illinois in 1983 as Superior Blasting & Painting Inc. The business grew over the following 5 years becoming a supplier to a local fortune 500 company. In 1988, the employees purchased the company through an ESOP (Employee Stock Ownership Plan). Since then, the company rebranded and renamed itself to better align its identity with its diverse offering of services and solutions to a variety of customers in the agriculture, mining & automotive industries.
SC2, a 100% employee-owned company, represents a promise to deliver high quality, on time, cost-effective supply-chain Solutions—offering customized services from a team that is committed to excellence. They offer customized supply chain solutions which provide unmatched value in the industry. SC2 combines experience and industry leading systems (Warehouse Management System (WMS), Quality Management System (QMS) and Safety Management System (SMS)) with partners like the world’s largest construction equipment manufacturer to maximize total customer satisfaction.
SC2 currently offers air filtration products & service, steel fabrication, kitting, assembly, industrial blasting & painting, inventory management, warehousing, and in-house maintenance across locations in Illinois & Texas. Currently, SC2 is the largest down-state Illinois contract packager for a Fortune 500 company and an Automotive Manufacturer.
Website: www.sc2services.com
Headquarters: Peoria, IL
TENANT OVERVIEW
TENANT OVERVIEW:
3520 Lake Avenue, Suite 203Wilmette, IL 60091
www.bouldergroup.com
Randy BlanksteinPresident
Tom CamperBroker
5001 N. University StreetPeoria, IL 61614
www.hosephcamper.com
John FeeneySenior Vice President
