Offering Memorandum - LoopNet...Pitney Bowes and Beacon Roofing INVESTMENT HIGHLIGHTS. This information has been secured from sources we believe to be reliable, but we make no representations

WRIGHT METAL PRODUCTS

Offering Memorandum

A 18,887 Square Foot Two Tenant Industrial Office/Warehouse in Omaha, Nebraska

NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMERThe 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 Marcus & Millichap and should not be made available to any other person or entity without the written consent of

Marcus & Millichap. 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. Marcus & Millichap 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 foot-

age 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, Marcus & Millichap has not verified, and will

not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus

& Millichap Real Estate Investment Services, Inc.

© 2017 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this

marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or

sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, prod-

uct, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee

information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

COMPARABLE PROPERTIESSECTION 3 Lease Comparables • Sales Comparables

FINANCIAL ANALYSISSECTION 2 Pricing Details • Operating Data • Rent Roll

TABLE OF CONTENTS

WRIGHT METAL PRODUCTSO M A H A , N E B R A S K A

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PROPERTY DESCRIPTION SECTION 1 Offering Highlights • Regional Map • Local Map • Investment Overview • Investment Highlights

13MARKET OVERVIEWSECTION 4 27

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions,

assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property.

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PROPERTYDESCRIPTION


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Year Built 1967

Square Footage 18,877 SF

Lot Size 2.30 AC

Construction Masonry

Assessor APN 1410-0102-21 (Douglas County)

Zoning GI

PROPERTY DETAILS

OFFERING HIGHLIGHTS

9828 J Street Omaha, Nebraska 68127

OFFERING PRICE

$1,775,000


CAP RATE

7.43%PRICE PER SQUARE FOOT

$94.03

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SUBJECT PROPERTY

Regional Map

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4Local Map

SUBJECT PROPERTY

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AERIAL MAP

Subject Property

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OMAHA, NE

INVESTMENT OVERVIEWMarcus and Millichap is pleased to present the Wright Metal Products building located in Omaha, Nebraska.

The facility was built in 1967 and has a total rentable area of 18,877 square feet. The asset has four dock high

level doors and one drive in level door for loading. The property is situated on 2.03 acres which includes 40,000

square feet of fenced and paved parking area. Wright Metal Products and Crates occupies 15,145 square feet

and has four years left on the current lease with two, three (3) year options with rent escalators. The facility

is located just one mile from the transcontinental Interstate 80 which spans from downtown San Francisco

to Teaneck, New Jersey. There is also direct access to the Union Pacific railway, the second largest railroad

operator in the United States. This investment opportunity is being presented with a 7.43 percent capitalization

rate going in on current financials.

Omaha is home to four Fortune 500 companies: Berkshire Hathaway, Kiewit Corporation, Union Pacific Railroad

Corporation and Mutual of Omaha. The largest privately held bank in the United States, First National Bank of

Omaha, is also headquartered in Omaha. The population in the city is 446,970

with a median household income of $62,247 which is $4,630 higher than the

US median household income. The population in Omaha has grown by 13

percent since 2010. This city is also home to five Fortune 1000 headquarters:

TD Ameritrade, Valmont Industries, Werner Enterprises and West Corporation. In

addition, three of the nation’s top ten largest architecture/engineering firms are

located here: DLR Group, HDR Incorporated and Leo A Daly.

The Omaha Industrial market is particularly strong with only a 2.7 percent vacancy rate while the United States average is 4.8 percent. Inventory is remaining almost

unchanged as only one property was delivered in 2018 with less than 50,000

square feet of rentable building area. In the Northeast Omaha submarket there is

only 83,519 square feet of 10,789,510 total square feet vacant which accounts

for only 0.8 percent vacancy of all rentable building area.

► Direct Rail Access to Union Pacific Railway

► 100% Occupied

► Both Tenants at Well Below Market Rents

► 7.43% Capitalization Rate on Current Financials

► Located One Mile From Transcontinental US Interstate 80

► Omaha has a 2.7% Industrial Property Vacancy Rate

► Surrounded by Several Large Corporations such as Kellogg’s Pitney Bowes and Beacon Roofing

INVESTMENT HIGHLIGHTS



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FINANCIALANALYSIS


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PRICING DETAILS

*Loan information is subject to change. Contact your Marcus and

Millichap Capital Corporation representative.

OPERATING DATA

INCOME 2018 PROJECTED

Scheduled Base Income $131,856

Expense Reimbursements $37,971

Effective Gross Revenue $169,827

Total Operating Expenses $37,971

Net Operating Income $131,856

Debt Service ($89,348)

Net Cash Flow After Debt Service $42,508

OPERATING EXPENSES 2018 PROJECTED

Real Estate Taxes $22,284

Insurance $6,637

Maintenance $2,418

Utilities $758

Accounting $600

Management Fee (4%) $5,274

Total Expenses $37,971

Expenses/SF $2.01

PRICE $1,775,000

Down Payment 30% / $532,500

Price Per SqFt $94.03

Rentable Built Area (RBA) 18,877

Occupancy 100%

RETURNS

CAP Rate 7.43%

Cash-on-Cash 7.98%

Debt Coverage Ratio 1.48

FINANCING

Loan Amount 70% / $1,242,500

Debt Service $7,865.13 / mo.

Loan Type New Loan

Interest Type 5.25%

Amortization 25 Years

Term 7-10 Years

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RENT ROLL AND TENANT SUMMARY

TENANTSQUARE

FEETLEASE COMM.

LEASE EXP.

ANNUAL RENT/SF

TOTAL RENT/MONTH

LEASE TYPE

RENEWAL OPTIONS

Wright Metal Products Crates, LLC15,145

80.23%9/1/2017 8/31/2022 $6.73 $8,500 NNN

1st 3-year option: $9,350/month 2nd 3-year option: $10,285/month

Environmental Energy, Inc.3,732

19.77% 3/1/2016 2/28/2021 $8.00 $2,488 NNN

Total Square Feet: 18,877 Total Monthly Rent $10,988

Total Occupied Square Feet: 18,877 Total Annual Rent $131,856

Total Occupancy: 100% Average Rent / SF $6.99

Ab o u t Wr i g h t Me tA l Pr o d u c t s cr At e s, llc

Wright Metal Products Crates (WMPC) is a privately held company that is the leader in Steel Packaging Solutions for finished goods

products in the Lawn & Garden and Power Sports Industries, specifically material handling carts. The company has additional

expertise and capabilities in contract manufacturing for machining and precision fabrication. Consistent with their metal fabrication

and internal powder coating capabilities, they also offer a complete line of Material Handling Carts. WMPC has also strengthened

its strategic resources to develop a World Class Culture high in flexibility and dedicated to superior customer service. The company

is dedicated to delivering superior products backed by a commitment to total quality and exhaustive testing. Wright Metal Products

Crates is a trusted solutions partner and supplier for many World Class Companies including: John Deere, Yamaha, BMW, Honda,

Textron, Toro, Ariens, Excel, Michelin, Kawasaki, WABCO, Hayssen, and many others.

Ab o u t en v i r o n M e n tA l e n e r g y, in c.

Environmental Energy, Incorporated is a fully permitted environmental service company, providing various environmental services. The company has three types of trucks available for

a variety of waste needs: The custom manufactured oil recovery trucks are always clean and equipped to collect used oil, oil filters and anti-freeze, all at one time; the custom vacuum

truck is equipped to collect all non-hazardous wastes; and the custom box truck is able to handle all containerized wastes, including hazardous wastes and providing parts washer service.

Environmental Energy, Inc. is a privately held company with multiple location across the central United States.



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COMPARABLEPROPERTIES


LEASE COMPARABLES– SUMMARY

MCCARTHY BUILDING


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SOPHIA’S BUILDING2

10560 I STREET

3 8951 S 126TH STREET4

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MCCARTHY BUILDING 14302-14306 C Cir. Omaha, NE

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LEASE COMPARABLES

AVERAGE RENT/SF $6.99

Occupancy 100%

Available SF 0 SF

Lease Type NNN

ADDITIONAL INFO

Year Built 1967

Gross Leasable Area 18,877 SF

WRIGHT METAL PRODUCTSOmaha, NE


Occupancy 100%

Available SF 0 SF

Lease Type NNN

Date of Survey 7/18/18

ADDITIONAL INFO

Year Built 1986


McCarthy’s HVAC Services

KEY TENANTS

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LEASE COMPARABLES

8951 S 126TH STREETOmaha, NE

3SOPHIA’S BUILDING14808 Shepard St. Omaha, NE

2


Occupancy 100%

Available SF 0 SF

Lease Type NNN


ADDITIONAL INFO

Year Built 2006


Oxen Technology

KEY TENANTS


Occupancy 100%

Available SF 0 SF

Lease Type NNN


ADDITIONAL INFO

Year Built 1980


KEY TENANTS

Sortino’s Record Management Roadrunner Temperature Controlled

Trucking

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10560 I STREETOmaha, NE

4


Occupancy 100%

Available SF 0 SF

Lease Type NNN


ADDITIONAL INFO

Year Built 1972


KEY TENANTS

Happy Cabs

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SALES COMPARABLES– SUMMARY

14302-14306 C CIRCLE


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28951 S 126TH STREET

7417 N 101ST STREET 3

410088 S 136TH STREET

53626 MARTHA STREET

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SALES COMPARABLES

MCCARTHY BUILDING 14302-14306 C Cir. Omaha, NE

1WRIGHT METAL PRODUCTSOmaha, NE

SALES PRICE $1,775,000

Year Built 1967

Cap Rate 7.43%

Price Per SF $94.03.


Sale Date 3/21/2018

Year Built 1986

Cap Rate 7.50%

Price Per SF $85.94

NOTESHalf of the building is occupied by McCarthy, at a rate of $7.00/SF. They

signed 5 year lease at closing. The rest of the building is occupied by a

local vending company month to month for $6.00/SF

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SALES COMPARABLES

22 10560 I STREET

Omaha, NE


Sale Date 9/29/2017

Year Built 1972

Cap Rate 7.01%

Price Per SF $80.18

NOTESThe lease rate for Happy Cab is $7.00/SF. Rush Truck Center occupies

22,700 SF at a lease rate of $8.19/SF NNN.

23 7417 N 101ST STREET

Omaha, NE


Sale Date 1/10/2018

Year Built 2007

Cap Rate 7.52%

Price Per SF $97.88

NOTES

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SALES COMPARABLES

24 10088 S 136TH STREET

Omaha, NE


Sale Date 12/29/2017

Year Built

Cap Rate 7.00%

Price Per SF $160.56

NOTES

25 3626 MARTHA STREET

Omaha, NE


Sale Date 4/11/2018

Year Built 1954

Cap Rate 8.35%

Price Per SF $45.54

NOTES

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MARKETOVERVIEW


DEMOGRAPHIC SUMMARY5-Mile Radius

Population

Employment

Housing

Race and Ethnicity

Income

Households

In 2017, the population in your selected geography is 8,109. The population has changed by -1.36% since 2000. It is estimated that the population in your area will be 7,983.00 five years from now, which represents a change of -1.55% from the current year. The current population is 50.59% male and 49.41% female. The median age of the population in your area is 35.44, compare this to the US average which is 37.83. The population density in your area is 2,576.68 people per square mile.

In 2017, there are 10,132 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 70.95% of employees are employed in white-collar occupations in this geography, and 31.31% are employed in blue-collar occupations. In 2017, unemployment in this area is 2.37%. In 2000, the average time traveled to work was 19.00 minutes.

The median housing value in your area was $148,303 in 2017, compare this to the US average of $193,953. In 2000, there were 1,842 owner occupied housing units in your area and there were 1,805 renter occupied housing units in your area. The median rent at the time was $530.

The current year racial makeup of your selected area is as follows: 82.03% White, 3.75% Black, 0.06% Native American and 4.86% Asian/Pacific Islander. Compare these to US averages which are: 70.42% White, 12.85% Black, 0.19% Native American and 5.53% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 11.56% of the current year population in your selected area. Compare this to the US average of 17.88%.

In 2017, the median household income for your selected geography is $49,798, compare this to the US average which is currently $56,286. The median household income for your area has changed by 4.21% since 2000. It is estimated that the median household income in your area will be $55,903 five years from now, which represents a change of 12.26% from the current year. The current year per capita income in your area is $31,893, compare this to the US average, which is $30,982. The current year average household income in your area is $69,284, compare this to the US average which is $81,217.

There are currently 3,732 households in your selected geography. The number of households has changed by 2.36% since 2000. It is estimated that the number of households in your area will be 3,719 five years from now, which represents a change of -0.35% from the current year. The average household size in your area is 2.16 persons

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POPULATIONC 1 Miles 3 Miles 5 Miles 2022 Projection

Total Population 7,983 84,424 228,735

2017 Estimate


2010 Census


2000 Census


Daytime Population

2017 Estimate 11,154 117,876 328,758

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection

Total Households 3,719 37,304 97,942

2017 Estimate


Average (Mean) Household Size 2.16 2.27 2.32

2010 Census


2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate

$200,000 or More 3.05% 4.95% 4.28%

$150,000 - $199,000 3.83% 4.45% 4.76%

$100,000 - $149,000 10.46% 13.27% 14.31%

$75,000 - $99,999 13.24% 12.61% 13.94%

$50,000 - $74,999 19.22% 18.66% 19.01%

$35,000 - $49,999 17.60% 16.75% 14.99%

$25,000 - $34,999 13.54% 11.43% 10.75%

$15,000 - $24,999 12.70% 10.00% 9.40%

Under $15,000 6.36% 7.89% 8.57%

Average Household Income $69,284 $80,055 $79,316

Median Household Income $49,798 $54,878 $57,592

Per Capita Income $31,893 $35,013 $33,596

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2017 Estimate Total Population 8,109 82,279 225,555

Under 20 21.20% 23.78% 24.93%

20 to 34 Years 28.21% 23.48% 23.50%

35 to 39 Years 6.03% 6.09% 6.22%

40 to 49 Years 11.35% 11.11% 11.58%

50 to 64 Years 18.69% 19.24% 19.04%

Age 65+ 14.53% 16.29% 14.72%

Median Age 35.44 37.14 36.17

Population 25+ by Education Level

2017 Estimate Population Age 25+ 5,721 56,817 153,162

Elementary (0-8) 1.90% 1.52% 1.56%

Some High School (9-11) 3.72% 3.57% 3.95%

High School Graduate (12) 27.75% 23.78% 23.06%

Some College (13-15) 23.07% 25.51% 24.63%

Associate Degree Only 8.08% 7.68% 7.83%

Bachelors Degree Only 22.31% 24.47% 25.11%

Graduate Degree 12.05% 12.90% 13.25%

Time Travel to Work

Average Travel Time in Minutes 19 19 19

DEMOGRAPHIC SUMMARY

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Dan GoaleyOMNE Partners13340 Cal i fornia Street, Suite 100Omaha, NE 68154Tel: 402-505-7736License: 20061147

Documents

Offering Memorandum - LoopNet...Pitney Bowes and Beacon Roofing INVESTMENT HIGHLIGHTS. This information has been secured from sources we believe to be reliable, but we make no representations