PUNCHCRAFT - LoopNet...1-800-Hansons 4,000 Trianon Industries Corporation 3,141 Sterling Hts Assembly Plant 2,603 Gdls 2,300 St John Hospital and Med Ctr 2,051 Warren Stamping Plant

PUNCHCRAFT 30500 Ryan Rd • Warren, MI 48092

Offering Memorandum

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and 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 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, 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. © 2018 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, product, 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.

PUNCHCRAFT

Warren, MI

ACT ID ZAA0380053

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PUNCHCRAFT

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INVESTMENT

OVERVIEW

OFFERING SUMMARYPrice $1,150,000Net Operating Income $115,908Capitalization Rate – Current 10.08%Price / SF $53.98Rent / SF $5.44Lease Type Absolute NetGross Leasable Area 21,303 SFYear Built / Renovated 1968Lot Size 2 acre(s)

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EXECUTIVE SUMMARYOFFERING SUMMARY

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FINANCINGDown Payment All CashNet Cash Flow 10.08% / $115,908Cash on Cash Return 10.08%Total Return 10.08% / $115,908

PUNCHCRAFT

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PUNCHCRAFT

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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES *

General Motors 16,670

Mahle Behr Mfg MGT Inc 12,600

US Army Grrsn-Dtroit Arsenal 5,400

Magneti Mrlli Cfap Suspensions 5,005

Johnson Perry & Associates 4,971

1-800-Hansons 4,000

Trianon Industries Corporation 3,141

Sterling Hts Assembly Plant 2,603

Gdls 2,300

St John Hospital and Med Ctr 2,051

Warren Stamping Plant 2,000

Iconma LLC 1,556

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 12,701 100,347 326,011

2010 Census Pop 11,857 97,330 317,263

2018 Estimate HH 5,010 41,511 135,014

2010 Census HH 4,631 40,151 130,941

Median HH Income $59,351 $49,849 $54,301

Per Capita Income $27,774 $26,449 $28,770

Average HH Income $70,175 $63,776 $69,251

PUNCHCRAFT

OFFERING SUMMARY

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present for sale this one-story building containing 21,303 square feet of gross building area, including 3,560 squarefeet of office space. The building has a concrete foundation with a concrete block and steel frame. The exteriors walls are concrete block and the roofis comprised of steel trusses with a flat steel deck and built-up composition roof covering. The subject, situated on two acres (87,054 square feet)was built in 1968.

Punchcraft has occupied this absolute net leased property since 2002. The lease stipulates that base rental income will be escalated annually to theCPI index. Punchcraft designs and manufacturers tools and components for the automotive and aerospace industry. In 2014, their parent company,Metaldyne, was acquired by American Axel & Manufacturing and went public on the NYSE (NYSE: AXL). American Axel reported record 2018 sales ofover $7 billion.

The subject is located in the city of Warren, Macomb County, Michigan. Macomb County is located in the southeastern portion of Michigan’s lowerpeninsula. The site is within the Detroit Metropolitan Statistical Area. Warren is the largest city in Macomb County. The Detroit region has anexcellent circumferential freeway system formed by Interstate 275, Interstate 696 and Interstate 94. In total, the area has five interstate freeways:Interstate 75, Interstate 94, Interstate 275, Interstate 696 and Interstate 96. These highways, in conjunction with the areas other major roadways,provide easy travel within the regional and excellent connections to other major markets in Michigan and nearby states. Three major airports servethe Metropolitan Detroit region. The primary industries that provide employment within Macomb County are the manufacturing (durable and non-durable goods) industry and the service industry. The major employers located in Macomb County are General Motors Corporation, Daimler ChryslerCorporation, Ford Motor Company, St. John Health Systems, General Dynamics, Land Systems, TRW Automotive, SBD Ameritech Michigan, and EDSCorporation, among others.

PROPERTY OVERVIEW

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▪ Absolute Net Lease; No Landlord Responsibilities

▪ Annual CPI Increases

▪ 10.08% Cap Rate

▪ Parent Company Reported 2018 Sales of Over $7 Billion

▪ Long Term Tenant as Has Resided at Property Since 2002

▪ Located in Warren - Largest City in Macomb County

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TENANT PROFILES

PUNCHCRAFT

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Punchcraft Machining & Tooling, LLC designs,

manufactures, and supplies prototypes, machining

fixtures, and production tooling for automotive and

aerospace industries. It offers tooling and assemblies for

hot and cold forming machines; metal stamping tooling;

and pallets, tombstones, inspection masters, and

assemblies. The company also provides support services,

such as force and leak testing. Punchcraft Machining &

Tooling, LLC was founded in 1958 and is based in Warren,

Michigan. Punchcraft Machining & Tooling, LLC operates

as a subsidiary of Metaldyne Powertrain Components,

Inc.

Metaldyne is a leading global designer and supplier of metal

formed components and assemblies for powertrain applications

including engine connecting rods, transmission valve bodies,

forged and finished differential gears and pinions, differential

assemblies, balance shaft modules, crankshaft dampers and

crankshaft pulleys. With a core competency in metalworking,

including cold forging, warm forging, powder metal and

aluminum die casting, backed by flexible, high-volume

production capabilities, Metaldyne provides design-to-launch

solutions that reduce cost, weight, cycle time, and complexity,

while improving vehicle performance.

In August 2014, Metaldyne merged with HHI and Grede to create

Metaldyne Performance Group. MPG subsequently went public

in December 2014 and was sold to American Axle &

Manufacturing in April 2017.

American Axel & Manufacturing

Metaldyne Performance Group

Punchcraft Machining & Tooling, LLC

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TENANT PROFILES

PUNCHCRAFT

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American Axle & Manufacturing, Inc. designs, engineers, manufactures, and supplies driveline and drivetrain systems and related components for light trucks, SUVs, passenger cars, crossover vehicles, and commercial vehicles. The company offers vehicle architectures, driveline systems, drivetrain systems, powertrain components, chassis system components, suspension modules, and metal formed products, in addition to similar products.

The company was incorporated in 1993 and is headquartered in Detriot, MI. AAM has over 25,000 associates operating at nearly 90 facilities in 17 countries to support our customers on global and regional platforms with a focus on quality, operational excellence and technology leadership. It offers its products through distributors.

In 2018, American Axle & Manufacturing reported record sales of $7.27 billion.

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30500 Ryan Rd, Warren, MI 48092LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEPUNCHCRAFT

PRICING AND VALUATION MATRIX


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REGIONAL AND LOCAL MAP

PROPERTY PHOTO

PUNCHCRAFT

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PUNCHCRAFT

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FINANCIAL

ANALYSIS

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INVESTMENT SUMMARYOFFERING SUMMARY

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PUNCHCRAFT

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FINANCIAL SUMMARY

THE OFFERINGProperty Punchcraft Machining & Tooling Property Address 30500 Ryan Rd

Warren, Michigan 48092Price $1,150,000Capitalization Rate 10.08%Price/SF $53.98

PROPERTY DESCRIPTIONYear Built / Renovated 1968Gross Leasable Area 21,303 SFZoning M-2Type of Ownership Fee SimpleLot Size 2.00 Acres

LEASE SUMMARYProperty Subtype Single Tenant IndustrialTenant Punchcraft Machining & Tooling Rent Increases Annual CPI IncreasesParent Company MetaldyneLease Type Absolute NetLease Commencement February 1, 2002Lease Expiration January 23, 2022Lease Term 20Term Remaining on Lease (Years) 2.4Landlord Responsibility No Landlord ResponsibilityTenant Responsibility EverythingRight of First Refusal/Offer No

ANNUALIZED OPERATING INFORMATIONINCOMENet Operating Income $115,908

RENT SCHEDULEYEAR ANNUAL RENT MONTHLY RENT RENT/SF CAP RATE

Current $115,908 $9,659 $5.44 10.08%

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LEASE SUMMARY

OFFERING SUMMARY

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PUNCHCRAFT

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FINANCIAL SUMMARY

Tenant: Punchcraft

Parent Company: Metaldyne

Credit Rating: No

Rent Commencement: February 1, 2002

Initial Lease Term 20 Years

Options: None

Lease Type: Absolute Net

$5.44/SF$0.45/SF/Month$115,908 Annual Rent

Base Rent:

Rent Increases: Annual CPI Increases

Operating InformationNOI as of 2019 $115,908Rent/SF $5.44

Gross Leasable Area 21,303 SF

LEASE SUMMARY

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THREE SINGLE- TENANT INDUSTRIAL PORTFOLIO OVERVIEW

OFFERING SUMMARY

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PUNCHCRAFT

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PORTFOLIO METRICS OVERVIEW

Asset Type City State SQFTYear Built/Renovated

Lease Commence

Lease Expiration

Lease Type Price

Listing CAP

Annual NNN Rent

Keo Cutters (25040 East

St.)Warren MI 26,640 1957, 1963,

1989, 19902/1/2002 1/23/2022 Absolute

Net$1,400,000 11.70% $163,848

Punchcraft(30500 Ryan

Rd.)Warren MI 21,303 1968 2/1/2002 1/23/2022 Absolute

Net$1,150,000 10.08% $115,908

Draw-Tite(105-2 L.M.

Gaines Blvd.)Starke FL 30,000 1993 2/1/2002 1/23/2022 Absolute

Net$1,350,000 9.86% $133,055

Key Metrics:• Total Portfolio Price: $3,900,000• Total Annual Rent: $412,811• Total Square Feet: 77,943 SF • Annual CPI Increases

**Note: Properties can be purchased individually or as a two or three property portfolio**

PUNCHCRAFT

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MARKET

COMPARABLES

PUNCHCRAFT

SALES COMPARABLES MAP

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PUNCHCRAFT (SUBJECT)

264 Executive Dr

25831 Commerce Dr

30545 Stephenson Hwy

5971 Product Dr

24650 Sherwood

SALES COMPARABLES

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2

3

4

5

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SALES COMPARABLES

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

Avg. $52.30

$0.00

$5.60

$11.20

$16.80

$22.40

$28.00

$33.60

$39.20

$44.80

$50.40

$56.00

PunchcraftManufacturing

264Executive

Dr

25831Commerce Dr

30545Stephenson

Hwy

5971Product Dr

24650Sherwood

PROPERTY NAME

MARKETING TEAM

PUNCHCRAFT

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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Asking Price $1,150,000Price/SF $53.98CAP Rate 10.08%Year Built 1968Occupancy 100%

PUNCHCRAFT Machining & Tooling30500 Ryan Rd, Warren, MI, 48092

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Close of Escrow 12/17/2018Sales Price $925,000Rentable SF 17,124Price/SF $54.02Year Built 1974Occupancy 100%

NOTESTenant is Superior Electric. Lease was signed August 1993.

264 EXECUTIVE DR264 Executive Dr, Troy, MI, 48083

SALES COMPARABLES

NOTESTenant is Control Crew, Inc. Lease was signed in July 2018.

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Close of Escrow 3/2/2018Sales Price $1,215,000Rentable SF 23,880Price/SF $50.88Year Built 1974Occupancy 100%

25831 COMMERCE DR25831 Commerce Dr, Madison Heights, MI, 48071

PROPERTY NAME

MARKETING TEAM

PUNCHCRAFT

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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3


NOTESTenant is Madison Electric Co. Lease was signed in June 2008.

30545 STEPHENSON HWY30545 Stephenson Hwy, Madison Heights, MI, 48071

SALES COMPARABLES

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Close of Escrow 9/7/2018Sales Price $1,075,000Rentable SF 20,440Price/SF $52.59Year Built 1966Occupancy 100%

5971 PRODUCT DR5971 Product Dr, Sterling Heights, MI, 48312

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NOTESTenant is Safe & Secure Home Health Care. Signed lease in October 2018.

24650 SHERWOOD AVE24650 Sherwood, Center Line, MI, 48015

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PUNCHCRAFT

LEASE COMPARABLES MAP

PUNCHCRAFT (SUBJECT)

13390 Cloverdale St

23840 Dequindre Rd

1101 Allen Dr

4

7

8

9

11

20

12

14

15

16

17

13

18

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1

2

3

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LEASE COMPARABLES

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Average Rent Per Square Foot

Avg. $5.48

$0

$1

$2

$3

$4

$5

$6

PunchcraftManufacturing

13390Cloverdale

St

23840Dequindre

Rd

1101Allen Dr

PROPERTY NAME

MARKETING TEAM

PUNCHCRAFT

LEASE COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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Asking Rent/SF $5.44Year Built 1968Occupancy 100%Lease Type NNNLot Size 2 acre(s)

PUNCHCRAFT MANUFACTURING30500 Ryan Rd, Warren, MI, 48092

Rentable SF 55,065Asking Rent/SF $5.20Year Built 1957Occupancy 100%Lease Type NNNLot Size 3.5

NOTESTenant is Wurth Baer. Lease term is from November 2017 to October 2022.

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13390 CLOVERDALE ST13390 Cloverdale St, Oak Park, MI, 48237

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Rentable SF 4,260Asking Rent/SF $5.50Year Built 1966Occupancy 100%Lease Type NNNLot Size .37

NOTESTenant is Viking Arborist, LLC. Lease term is from February 2019 to January 2021.

23840 DEQUINDRE RD23840 Dequindre Rd, Warren, MI, 48091

PROPERTY NAME

MARKETING TEAM

PUNCHCRAFT

LEASE COMPARABLES

rentpropertyname1


rentpropertyname1


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Rentable SF 24,582Asking Rent/SF $5.78Year Built 1976Occupancy 100%Lease Type NNNLot Size 1.37

NOTESTenant is Re-Source Partners. Lease term is from May 2017 to November 2022.

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1101 ALLEN DR1101 Allen Dr, Troy, MI, 48083

www.MarcusMillichap.com

P R E S E N T E D B Y

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Steve ChabenBroker of Record

Marcus & MillichapTwo Towne Square

Suite 450Southfield, MI 48076Tel: (248) 415-2600License: 0292650

Documents

PUNCHCRAFT - LoopNet...1-800-Hansons 4,000 Trianon Industries Corporation 3,141 Sterling Hts Assembly Plant 2,603 Gdls 2,300 St John Hospital and Med Ctr 2,051 Warren Stamping Plant