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Offering Memorandum
Rare Outside Storage | 0.09 FAR | National Tenant | 7.00% Cap
Master Halco1843 Commerce Blvd, Midway (Tallahassee MSA), FL
Subject Property
Confidentiality and Restricted Use AgreementThis Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for
your consideration of the opportunity to acquire the commercial property described herein (the “Property”).
This COM may be used only as stated herein and shall not be used for any other purpose, or in any other
manner, without prior written authorization and consent of SJC.
This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This
COM contains descriptive materials, financial information and other data compiled by SJC for the convenience
of parties who may be interested in the Property. Such information is not all inclusive and is not represented
to include all information that may be material to an evaluation of the acquisition opportunity presented.
SJC has not independently verified any of the information contained herein and makes no representations
or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions
of documentation and/or financial information contained herein are qualified in their entirety by reference to
the actual documents and/or financial statements, which upon request may be made available. An interested
party must conduct its own independent investigation and verification of any information the party deems
material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the
right to negotiate with any number of interested parties at any time. The Property is offered and sold by its
owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any
customary warranties of title.
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information
you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any
other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and
claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request
by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the
Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals,
you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees,
representatives, agents and principals, from and with respect to any and all claims and liabilities arising from
or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you
will not provide this COM or any of the Information to any other party unless you first obtain such party’s
acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being
applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy
for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to,
injunctive relief and specific performance, in connection with such a violation and shall not be required to post
a bond when obtaining such relief.
Offered Exclusively by
Stan Johnson Company180 Madison Ave, Suite 1500 New York, NY 10016 P: +1 646.778.5560 stanjohnsonco.com
James Ullrich Associate [email protected] FL License # BK3073947
In collaboration with:
J.R. Long Broker [email protected]
Structure Commercial Real Estate249 Pinewood DriveTallahassee, FL 32303 P: +1 850.656.6555 stanjohnsonco.com
Section One
Executive Summary
Investment HighlightsStrong National Credit Tenant
• Founded in 1961
• 60+ Locations
• $600M +/- Revenue (Hoovers)
Lease Structure
• NN, Minimal landlord responsibilities
• 2.75 Years remaining
• 2% Bumps, per annum.
Real Estate
• Tallahassee, FL MSA
� State Capital
� University Town: FSU, FAMU, and TCC
• Rare outside storage, fenced and milled
• 0.09 FAR
• 1 Mile from Interstate 10 interchange
• Potential for below market rents (lease signed in 2010)
Investment SummaryThe property offers rare outside storage and a 0.09 FAR. Master Halco is
operating under a ten-year lease with 2.75+/- years remaining. Founded in
1961, Master Halco is North America's leading manufacturer and wholesale
distributor of fencing, including agricultural, vinyl, wood, ornamental, and
chain-link fences.
Offering Price: $1,265,000
Cap Rate: 7.00%
Subject Property
Property Summary
Address: 1843 Commerce Blvd, Midway, FL
Building Size: 11,250 SF
Land Area: 3 AC / 0.09 FAR
NOI: $88,520.59
Master Halco • Midway, FL 4
Section Two
Tenant Credit Overview
Tenant Overview
Representative Photo
Master Halco is headquartered in Dallas, Texas. The company, a subsidiary of ITOCHU International (BBB+, S&P), lays claim to being North America's leading maker and wholesale distributor of fencing for residential, commercial, and industrial applications. A sampling of its offerings include vinyl, wood, iron and aluminum ornamental, and chain link fences, as well as perimeter security gates and access control devices. The company sells products under such brand names as Anchor Fence, Classic Premier, Color Link, Hound Surround, Legend, Master Bond, Master Color, and PostMaster, among others.
Master Halco operates manufacturing plants, distribution centers, and branch sales offices in more than 60 cities around the US and Canada. Specifically it has manufacturing facilities in Texas, Illinois, California, and Pennsylvania.
It markets its products to professional fencing contractors, building materials retailers that sell to homeowners, and architects in North America. Its line of electronic gate entry and access control equipment is aimed at security contractors serving government facilities, airports, and embassies.
Parent Overview ITOCHU International Inc. is the North American flagship company of the ITOCHU Group. ITOCHU provides trading services for more than 20,000 items and manages a portfolio of more than 20 subsidiaries and affiliates.
Established in New York in 1952 and headquartered in midtown Manhattan, ITOCHU has various offices from coast to coast in the United States, as well as operations in Canada and Mexico, and is staffed by approximately 160 employees. Its subsidiaries employ thousands more.
ITOCHU operates in a wide variety of businesses, with particular strength in the machinery, energy, aerospace and electronics, food, forest products, chemicals and textiles sectors. ITOCHU and its subsidiaries have assets of nearly $1.7 billion and annual revenues of over $3.6 billion in the last year.
ITOCHU’s parent company, ITOCHU Corporation, is headquartered in Tokyo, and was established more than 150 years ago as a trading company, importing and exporting items around the world.
Today, the ITOCHU Group still offers trading services but it also owns or has significant investments in 400 companies. In addition to several offices in Japan, its parent company has ten regional subsidiaries that partner with businesses everywhere. With 153 offices and 326 subsidiaries and affiliated companies, and over 105,800 employees in 74 countries as of March 2016, ITOCHU Corporation boasts one of the most extensive business networks anywhere. Ranked among the Fortune Global 500, ITOCHU Corporation had over $45 billion in annual revenue last year
Tenant Quick Facts
Founded 1961
Number of Locations 60+
Revenue (Hoovers) $600M
Teanant BusinessNorth American leader in fencing manufacturing and wholesale distribution
Parent Company ITOCHU International (BBB+)
Master Halco • Midway, FL 6
Section Three
Lease Structure Overview
Lease Abstract
Basic Information
Tenant Master Halco, Inc
Property Address 1843 Commerce Blvd., Midway, FL 32343
Rentable SF 11,250 SF
Land AC / SF 3 AC - 130,680 SF (0.09 FAR)
Term Commencement June 1st, 2010
Term Expiration June 30th, 2020
Term Remaining ~2.75 years
Rent Per Annum $88,521
Per AC per month $2,459
Per Building SF per year $7.86
Rental Increases 2% annually
Renewal Options (2) 5-year options
Notice 6 months prior
Option Rent Rent adjusts to Fair Market Value, with 2% annual escalations
Expenses (lease type) NN
Landlord ResponsibilityRoof, Structure, exterior walls, any flood control and drainage issues, stormwater pond maintenance, and spillways.
Tenant Responsibility
Real Estate Taxes, insurance, utilities, common area maintenance, building exterior, outside grounds, milled yard area, parking lot, and maintain building systems (HVAC, elecrical, plumbing, etc.)
Notes to Expenses Please review lease for building system replacement responsibility.
N
Master Halco • Midway, FL 8
Section Four
Real Estate Overview
Property Overview
Basic Information
Address 1843 Commerce Blvd., Midway, FL 32343
Property Type Industrial
UseIndustrial / Distribution / Warehouse / Outdoor Storage
Occupancy 100%
Year Built 2010
Building SF 11,250 SF
Office 2,000 SF (17%)
Warehouse 9,250 SF (83%)
Lot Size 130,680 SF (3 AC)
FAR .09 FAR
Construction Type Freespan (Butler Building System)
Structure Steel frame
Exterior Walls Corrugated metal
Roof Standing seam metal
Clear Height 21 eve and 24 at centerline arch
Sprinklers None
Lighting T-5 office & High Bay in warehouse
Loading Five overhead doors at grade level
Yard 130,680 SF of fenced, milled yard
Parking 20 Spaces (10:1,000 SF office and 1.8:1,000 total)
Master Halco • Midway, FL 10
Midway is a city in Gadsden County, Florida. The
population was 3,004 at the 2010 census. It is
conveniently located near the intersection of two
major highways—Interstate 10 and US 90. Midway
has all the comforts of rural Florida, yet it is only
fifteen miles away from major shopping malls, two
universities and a community college.
Midway is also an ideal place to locate a business.
They have two large commercial areas of over
1,000 acres either contained in the Gadsden Station
DRI or located near the Intersection of I-10 and
US 90. Properties in the city at those sites will
enjoy Midway's newest zoning classification—the
Interchange Commercial Zoning—which will allow
citizens to get their building constructed and in
operation in a very short time.
Midway is located about ten miles from Tallahassee,
the capital of Florida. It is home to Florida State
University, ranked the nation's thirty-eighth best
public university by U.S. News & World Report. It is
also home to the Florida A&M University, one of the
country's largest historically black universities by
total enrollment. Tallahassee Community College is
a large community college which serves mainly as
a feeder school to both Florida State and Florida
A&M. Tallahassee qualifies as a significant college
town with a student population exceeding 70,000.
Tallahassee is currently ranked as the 18th best
college town in the nation by Best College Reviews.
In 2015, Tallahassee was awarded the All-American
City Award by the National Civic League for the
second time.
Tallahassee, FL
Location Overview
Master Halco • Midway, FL 11
3 mile
5 miles
10 miles
Demographics 1845 Commerce Blvd | Midway, FL 0 - 3 mi. 0 - 5 mi. 0 - 10 mi.
Population
2017 Population 5,139 35,202 171,596
2022 Population 5,343 36,569 176,830
2010-2017 Annual Rate 1.03% 0.78% 0.54%
2017-2022 Annual Rate 0.78% 0.76% 0.60%
Households
2017 Total Households 1,962 13,925 68,008
2022 Total Households 2,027 14,400 69,928
2010-2017 Annual Rate 0.84% 0.60% 0.40%
2017-2022 Annual Rate 0.65% 0.67% 0.56%
Income
2017 Average Household Income $65,926 $58,062 $58,526
2017 Per Capita Income $25,502 $23,059 $23,910
Avg. HH Income within 5 miles
Population within 10 miles
$58,062
171,596+ N
Master Halco • Midway, FL 12
N
The Property is located approximately 1.2 miles from Interstate 10.
Master Halco • Midway, FL 13
N
INTERSTATE 10 (+/- 30,000 VPD)
HIGHWAY 90 (+/- 20,412 VPD)
HALE CONTRACTING
INC
MIDWAY TIRE
XANADOO LLC
BODY BUILDING
EXCLUSIVE ENTERPRISES
SHIVER DEISEL INJECTIONS
LAWSONS BODY SHOP
JOHNNY S AUTO
ACE SALVAGE
JUNCTION CITY MINING
MIDWAY RAILROAD
Master Halco • Midway, FL 14
Subject Property Photos
going beyond
The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.
Stan Johnson Company180 Madison Ave, Suite 1500 New York, NY 10016 P: +1 646.778.5560 stanjohnsonco.com
James Ullrich Associate [email protected] FL License # BK3073947
In collaboration with:
J.R. Long Broker [email protected]
Structure Commercial Real Estate249 Pinewood DriveTallahassee, FL 32303 P: +1 850.656.6555 stanjohnsonco.com