515 WEST NORTH Confidential SHORE DRIVE OFFERING ...€¦ · Founders 3 Real Estate Services is pleased to present the opportunity to acquire the two-story office building at 515

515 WEST NORTH SHORE DRIVE

Hartland, WI

Confidential

OFFERINGMEMORANDUM

414.271.1111 | www.founders3.comInformation shown herein was provided by Seller/Lessor and/or third parties and has not been verified by the broker unless otherwise indicated.

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5 1 5 W E S T N O R T H S H O R E D R I V E | O F F E R I N G M E M O R A N D U M

The material contained in this Offering Memorandum is confidential and for the purpose of the Real Estate described herein. It is subject to the terms and provisions of the Confidentiality Agreement signed by the recipient of this material and is not be used for any purpose or made available to any other person without the express written consent of Founders 3 Estate Services (“Broker”).

This Offering Memorandum was prepared by Broker solely for the use of prospective purchasers. Neither the Seller nor any of their respective officers, employees or agents, make any representation or warranty, expressed or implied, as to the completeness or the accuracy of the material contained in the Offering Memorandum or any of its contents and no legal commitments or obligations shall arise by reason of the package or any of its contents. Seller reserves the right to eliminate any portion or all of the Real Estate for any offer for sale at any time prior to the completion of a binding contract of sale executed by both Seller and a prospective purchaser.

Prospective purchasers of the Real Estate are advised (i) that changes may have occurred in the condition of the Real Estate since the time of the Offering Memorandum or the financial statements therein were prepared and that (ii) all financial projections are provided for general reference purposes only in that they are based on assumptions relating to the general economy, competition, and other factors beyond the control of Broker and the Seller and therefore, are subject to material variation. Prospective purchasers of the Real Estate are advised and encouraged to conduct their own comprehensive review and analysis of the Real estate.

The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Real Estate. The Seller and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Real Estate and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Real Estate unless and until a written agreement satisfactory to the Seller hereunder have been satisfied or waived.

This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you hold and treat the Offering Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of Broker, and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the Interest of the Seller or Broker.

The terms and conditions stated in the section will relate to all of the sections of the package as if stated independently therein. If, after reviewing this package, you have no further interest in purchasing the Property at this time, kindly return this brochure to Broker at your earliest convenience.

Contact

Andy [email protected]

Elizabeth [email protected]

Ryan [email protected]


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T A B L E O F C O N T E N T S

EXECUTIVE SUMMARYInvestment Highlights 5Offering Summary 6

TENANT INFORMATIONCharleston|Orwig, Inc 8Income/Expense Analysis 9

PROPERTY PROFILEProperty Specifications 11Floor Plan 12Aerial 14

LOCATION & MARKET OVERVIEWMilwaukee Office Market 16Hartland Area Overview 17Surrounding Area Overview 18Neighboring Corporate Users 19Area Maps 20Milwaukee Region 21

EXECUTIVE SUMMARY515 WEST NORTH SHORE DRIVE

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INVESTMENT HIGHLIGHTS

Founders 3 Real Estate Services is pleased to present the opportunity to acquire the two-story office building at 515 West North Shore Drive. The property consists of 26,990 rentable square feet and is situated on a 3.79 acre site. The building was built in 2000 and has been meticulously maintained.

100% Leased, Long-Term Tenant CommitmentThe building is 100% leased, consistent with historic occupancy levels. Charleston|Orwig, Inc, has leased the entire building for a 10 year term demonstrating strong commitment to the building and location.

Access & VisibilityThe property is located just east of Highway 83 along W North Shore Drive with an average of 8,100 VPD and monument signage along W North Shore Drive. It is conveniently located between I-94 and Highway 16 providing quick and easy access. The property is also situated between Milwaukee (30 minute drive) and Madison (1 hour drive).

Dynamic LocationThe building is located in Milwaukee’s Lake Country and is a part of the Geason Commerce Center, a thriving business park. The business park is home to a diversified base of companies. The property is also located approximately 10 miles from the Waukesha Country Airport, less than a mile from Pewaukee lake, and less than two miles from Lake Nagawicka offering beautiful Lake Country scenery. Amenities including shops, restaurants and loding are minutes away in downtown Hartland and at Highway 83 and I-94.

Strong Office Market FundamentalsThe 1.5 million square foot Northeast/Delafield submarket is thriving with an overall vacancy rate of 4.2%. Rent growth is projected to be stable in 2019 with a growth rate of about 1%.

Professionally Maintained / Recent RenovationsThe property is professionally owned, maintained and managed with recent capital improvements totaling over half a million dollars since 2015. Improvements include a new sprinkler system (2019), renovation of the patio awning (2017), resurfacing of the parking lot (2016), and a complete interior redesign upon Charleston|Orwig’s tenancy.

Flexible FloorplateAlthough the building is currently home to a single- tenant, the functional layout and flexible floor plates allow for easy conversion to a multi-tenant property in the future if desired.

100%OCCUPIED

26,990 SQUARE FEET


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OFFERING SUMMARY

OFFERINGNet Operating Income $420,000

Occupancy 100%

Lease Term 10 Years

PROPERTY SPECIFICATIONSRentable Area 26,990 SF (1st & 2nd Floor Office Space)

Basement Full basement with 10 foot ceilings

Land Area 3.79 Acres

Property Address 515 West North Shore Drive, Hartland, WI 53029

Tenants Charleston|Orwig, Inc

Year Built 2000

Parcel Number HAV 0759001001

1 hour toMadison 30 minutes to

Milwaukee

TENANT INFORMATION515 WEST NORTH SHORE DRIVE

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TENANT PROFILE

Lease Summary

CHARLESTON|ORWIG

Square Footage 26,990 SF

Lease Term 10 Years

Annual Base Rent $576,000

Rent Increases 2% annually

Lease Structure Gross

Renewal Options Two 5-year renewal options

Charleston|Orwig is a marketing agency that specializes in brand strategy and development, creation of campaigns and communication, marketing automation, CSR and sustainability planning and crisis and risk services to brands throughout the food system.

• Agchat Foundation• Agrinos• American Society of Animal Sciences• Animal Agriculture Alliance• Arm & Hammer• Bayer CropScience• Bill & Melinda Gates Foundation• Black Gold Farms• Cattle Fax• CoBank• CropLife Foundation• D/S• Data Mars• Dairy Queen• Diestel Turkey Ranch• Hoards Dairyman• Illinois Soybean Association• IVCC

• The Maschhoffs• McCormick Food Solution• Midwestern Bio AG• NCBA• National Corn Growers Association• Perdue• PureCircle• Salford• Soil Health Partnership• SCR• Standard Process• Texas Roadhouse• USA Life Sciences• U.S. Grains Council• U.S. Wheat Associates• Vytelle• Yamaha• Zoetis

NOTABLE CLIENTS:

100%EMPLOYEE OWNED

26 YEARSOF EXPERIENCE

45+TEAM MEMBERS


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INCOME/EXPENSE ANALYSISIncome

BASE RENTAL INCOME ANNUALLY

Charleston|Orwig $576,000

Total In-Place Base Rent $576,000

Expenses (based on 2019 estimates)

COMMON AREA OPERATING EXPENSES ANNUALLY

Lawn Sprinkler System $ 650

HVAC $13,852

Design Build Fire Protection $ 3,600

Geason Commerce Center (Association Dues) $ 205

Landscaping/Snow Removal $12,470

Alarm System $ 1,070

Building Insurance $ 5,200

Ideal Plumbing $ 2,000

Roof Maintenance $ 2,000

Paper/Garbage Products $ 3,120

National Elevator Inspection Services $ 100

Generator Maintenance $ 2,500

Elevator Maintenance $ 2,452

Legal Services $ 76

Cleaning Service $22,800

Fire Extinguisher Maintenance $ 392

Operating Permit $ 50

Spectrum Business $ 2,065

Toepfer Security Corporation $ 2,790

TC Lyons Electric $ 1,456

Real Estate Taxes $33,500

Utilities $43,156

TOTAL COMMON EXPENSES $155,503

NET OPERATING INCOME $420,497

PROPERTY PROFILE515 WEST NORTH SHORE DRIVE

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PROPERTY SPECIFICATIONS

Building Two-Story, Office

Occupancy 100%

Net Rentable Area 26,990 Square Feet - 1st & 2nd Floor Office Space

Basement Full basement with 10 foot ceilings

Lot Size 3.79 acres

Parking 110 spaces (4.08/1,000 SF)

Year Built 2000

Construction Masonry

Signage Monument

Utilities Municipal - We Energies & Village of Hartland

Ceiling Height 1st Floor: 8 Feet 2nd Floor: 8 Feet Basement: 10 Feet

HVAC Roof Mounted and Ground Zone Units

Roof Flat Membrane and Asphalt Shingles

Fire Suppression Fully sprinklered

Power WE Energies supported by Generac Emergency Standby Power Unit

Tax Key HAV 0759001001 (Waukesha County)

Zoning B-5; Community Business District

26,990SQUARE FEET

110 PARKING SPACES


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1ST FLOOR PLAN


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2ND FLOOR PLAN


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AERIAL

LOCATION & MARKET515 WEST NORTH SHORE DRIVE

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Submarket Vacancy: 4.2%

Submarket Supply: Stable with 0 SF Under Construction

12 Month Sales Volume: $24.1 Million

Milwaukee Office Market Overview The Milwaukee Office Market is fundamentally strong with consistent growth over the past couple of years. The supply pipeline is moderate, with several new proposals cropping up in the Downtown marketplace, but the majority of space underway is build-to-suit. Vacany is at this cycle’s low point, and just a hair above the all-time low. The combination of limited supply and tight vacancy is supporting solid, if not outsized, rent growth. Sales volumes continues to be strong, with most properties trading between local and regional investors. In fact, 2017 set a cyclical high for total annual transaction volume with over $500 million transacted. While volume was a bit lower in 2018, pricing continues to rise.

LOCATION & MARKET OVERVIEW

Northeast/Delafield Office Submarket Overview The 1.5 million square foot Northeast/Delafield submarket is thriving with an overall vacancy rate of 4.2%. Rent growth is stable and is expected to stay level in 2019 with a projected growth rate of about 1%.

MARKET KEY INDICATORS

VACANCY 12-MONTH 12 MONTH UNDER

RBA RATE ABSORPTION SF SALES VOLUME CONSTRUCTION

75,122,602 8.5% (167,000) SF $354 Million 352,000 SF

SUBMARKET KEY INDICATORS

VACANCY 12-MONTH 12 MONTH UNDER

RBA RATE ABSORPTION SF SALES VOLUME CONSTRUCTION

1,553,017 SF 4.2% 7,600 SF $24.1 Million 0 SF


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HARTLAND AREA OVERVIEW

A Great Place for Business Along the tree lined streets of Hartland, you will find quaint and unique architecture set along the banks of the Bark River. Ample parking and a variety of shops and businesses make downtown Hartland a destination of choice. Hartland has a successful mix of industrial, manufacturing, commercial, and service businesses located within the village limits. Hartland offers a strong business climate with easy accessibility, top-notch business parks, superior municipal services, low tax rates, and a quality workforce that keeps us on the cutting edge of business development.

A Great Place to Live With a current population of 9,124 Hartland offers top rated schools, beautiful homes, fine churches, tree lined streets, and spacious parks. The Bark River runs through the downtown, adding charm and an eco-friendly environment. It is a full-service village, offering the best in home town amenities with metropolitan conveniences. Hartland provides full-time police, fire protection, and emergency medical services. Hartland has enjoyed steady growth for the past 20 years and it continues to grow at expected population projections.

A Great Place for Recreation Lake County area offers an abundance of year-round family fun. Hartland has something for everyone for outdoor activities with 85 acres of parks. The park system includes playground areas, baseball diamonds, picnic areas, natural ponds, football and soccer fields, walking trails, tennis courts, basketball courts, volley ball pits, picnic shelters, play equipment and the Nixon Park splash pad. Known for the Ice Age Trail, Hartland beckons pedestrians to walk or bike through the entire community. There are 12 lakes within 5 miles of Hartland along with many golf courses and parks.

A Great LocationThe Village of Hartland is located 20 miles west of Milwaukee in Waukesha County. Hartland is the center of southeastern Wisconsin’s Lake Country. Just 5.2 square miles in size, it offers close proximity to Interstate 94 and State Highways 83 and 16. You will find it a perfect location in which to live or work, with all the amenities of a major metro area living in the heart of LakeCountry.

A Great DowntownTo promote business development in downtown Hartland, the Village of Hartland approved the formation of the Hartland Business Improvement District in 2007. The BID provides services to over 150 businesses in the downtown area. The BID offers two successful matching grant programs to assist businesses with façade improvement grants and sign and awning grants. These programs create an added incentive for property and business owners to make visible changes that impact building facades. The programs goals are to enrich the overall appearance of the downtown.


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SURROUNDING AREA OVERVIEW


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NEIGHBORING CORPORATE USERS


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MAP


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A Natural Magnet for BusinessMilwaukee ranks fifth among cities nationwide in the number of corporate headquarters per capita. Affordable land and leasing costs, abundant fresh water, an educated workforce, low business costs and easy access to financing, technical assistance and efficient transportation have helped local businesses succeed and grow. MarketWatch ranks Milwaukee 20th out of 101 U.S. metro areas on its list of “best cities for business,” outpacing cities such as Chicago, Atlanta, San Antonio, Los Angeles and Seattle. The Milwaukee Region is continuing its renaissance with a rapid building boom and new developments across the region. Business expansions, commercial and residential developments, an expanding infrastructure , and industry cluster accelerators are setting the stage for continued, sustainable growth in southeastern Wisconsin.

Building activity is on the rise as businesses expand and new construction creates economic opportunities:• Milwaukee Tool is expanding in Waukesha County, adding 600 jobs as it builds out its Brookfield headquarters with a new $33 million, four-story office building and an expanded

Rapid Innovation Center. The project is expected to be completed in late 2019. • Direct Supply Inc., a national leader in equipment, ecommerce and services for senior living communities is planning a major long-term expansion of its Milwaukee corporate

campus that will add 800 jobs.• In Kenosha County, Uline Shipping Supplies has expanded its footprint significantly over the past few years, employing several hundred additional people. The company has grown

from 2,841 employees in 2011 to more than 5,000 employees today.

Several transformative projects have recently been completed,spurring millions in economic development:• The $525 million Milwaukee Bucks professional basketball arena is open in the Fall of 2018, in time for the 2018-19 NBA season and expected to spur an additional $500 million in

entertainment, residential and office development. Additionally the development of the new arena was a major cog in the Democratic Party’s choosing Milwaukee as their host season for the 2020 Democratic National Convention.

• A new $450 million, 32-story lakefront office tower for Northwestern Mutual Insurance Company opened in late 2017 changing Milwaukee’s skyline forever.• The $1.7 billion Zoo Interchange project in Milwaukee was recently completed; reconstructing the busiest freeway interchange in the state of Wisconsin.• The first leg of a streetcar system that will connect Milwaukee’s office, entertainment and transportation hubs opened in the fall of 2018 with additional phases of track planned for

the suburban areas over the next 5 years. The second leg of the streetcar is estimated to be open in time for the 2020 DNC.

MILWAUKEE REGION


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Improved Business ClimateOne of the primary drivers of the new investment in southeastern Wisconsin is the improved business climate, which is attracting the attention of businesses and site locators nationwide. Several legislative changes, including tax reductions, right-to-work policies and a more flexible regulatory structure have made Wisconsin an increasingly attractive place to locate a business. The region’s reputation as an advanced manufacturing center; its proximity to the largest concentration of fresh water in the world; its access to air, rail and water transportation; and a skilled labor force known for its work ethic have made the region a competitive place to do business.

Air ServiceThe primary airport serving the Milwaukee Region is General Mitchell International Airport, which is located less than 15 minutes south of Milwaukee’s downtown. Mitchell’s ten commercial airlines serve seven million passengers a year, offering nonstop service to 39 destinations coast-to-coast, with 160 international destinations available from Milwaukee with easy, one-stop connections. Mitchell was also ranked in the top 10 small airports – those with fewer than 10 million passengers annually – in the J.D. Power and Associates customer satisfaction study. Major carriers include Southwest Airlines, United, American and Delta.

In all, the region includes eight general aviation airports that provide service to corporate and personal aircraft. Chicago’s O’Hare International Airport, the fourth busiest in the world, is also just a 75-minute drive to the south.

Port FacilitiesThe Port of Milwaukee handles more than three million tons of cargo per year, serving both domestic and international locations through the Great Lakes, the St. Lawrence Seaway and the Gulf of Mexico, via the inland waterway system. Its 16 berths can accommodate vessels up to 1,000 feet long.

RailroadsThe Milwaukee Region is served by both freight and passenger service. Freight service is provided through the Canadian Pacific Railway, Canadian National Railway, Union Pacific Railroad and the Wisconsin & Southern Railroad Company. Passenger service is provided through Amtrak, the federal passenger line that offers seven daily round-trip trains to Chicago as well as service to the Twin Cities and beyond; and Metra, a commuter line that connects the Milwaukee Region with Chicago and its suburbs.

Financing and Technical AssistanceThe Milwaukee Region offers a variety of financing options in addition to traditional business loans. State, county and local governments all offer aggressive packages for start-ups, expansions and relocations, while local angel investors and venture capital firms stand ready to help entrepreneurs realize their dreams. Training and technical assistance is also readily accessible. Low Business CostsHard-working residents and Midwestern frugality help to ensure productivity and profitability. Land and leasing costs are lower than the national average, and the region’s cost of doing business is the fourth lowest among the top 25 metropolitan areas. Not surprisingly, our low costs and skilled workforce have made the Milwaukee Region one of the hottest industrial markets in the nation.


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Corporate HeadquartersMilwaukee’s central location and high quality of life lend itself to corporate headquarter operations. Ten Fortune 500 companies are headquartered in Wisconsin, while more than 40 Fortune 500 companies have major Milwaukee operations such as General Electric, Northwestern Mutual and MillerCoors. Companies headquartered in Milwaukee are national leaders in industries such as air travel services, banking, data processing, insurance, law, manufacturing, money management, retail department stores and securities. Northwestern Mutual has placed major stake in Milwaukee’s economic market and has recently completed its brand new 34-story headquarters, an all-glass high-rise along Milwaukee’s waterfront and skyline. Additionally, FoxConn’s recent 10 billion dollar investment in Southeast Wisconsin has proven that Wisconsin now has a prominent place in the industrial sector and that it’s potential for growth isn’t slowing down.

Company Employees HQ LocationA.O. Smith 16,800 MilwaukeeActuant Corp. 7,400 Butler Brady Corporation 8,600 MilwaukeeBriggs and Stratton 8,000 WauwatosaEverett Smith 6,000 MilwaukeeFiserv 25,000 Brookfield GE Healthcare 46,000 WaukeshaHarley-Davidson 9,800 Milwaukee Jockey International 5,100 Kenosha Johnson Controls 136,000 Glendale Joy Global 9,200 Milwaukee Kohl's 26,000 Menomonee FallsManpower Group 33,000 Milwaukee Modine 7,900 RacineNorthwestern Mutual 8,000 MilwaukeeQuad/Graphics 10,000 SussexRockwell Automation 20,000 MilwaukeeRoundy's 20,000 Milwaukee S.C. Johnson 12,000 Racine Snap-on Inc. 11,600 Kenosha

Top 20 WI Corporate HeadquartersTransportationTwenty-five percent of the nation’s population is within 600 miles of the Milwaukee Region, which offers easy access to all major forms of transportation – highway, air, water and rail. Two interstates – I-94 and I-43 – intersect the region, and a third interstate – I-90 – passes nearby. The commute time in the metro area averages 21.3 minutes, which is one of the shortest in major U.S. urban areas.

EmploymentBased on data provided by the Department of Work Force Development, Wisconsin added 23,000 private sector jobs from January 2018 to January 2019. Over the past three months alone, private sector employment is up 6,000 in Wisconsin, a significant change according to BLS.

In early 2018, the state’s unemployment rate hit 2.9 percent; the lowest level since July 1999 -- since then it has consistently stayed at that low rate throughout the year and into 2019.

Documents

515 WEST NORTH Confidential SHORE DRIVE OFFERING ...€¦ · Founders 3 Real Estate Services is pleased to present the opportunity to acquire the two-story office building at 515