SALE LEASEBACK - Terry Coyne...of contacts. XS finds new merchandise through telemarketing, direct mail campaigns and by attending numerous trade shows/ conventions. XS then sells

100,000 SF WAREHOUSE SPACE ON 11+ ACRES | 100% LEASED | INDEPENDENCE | CUYAHOGA COUNTY | OHIO

CONFIDENTIAL OFFERING MEMORANDUM

INDEPENDENCE, OHIO

SALE LEASEBACK

77

DOWNTOWN CLEVELAND

Granger Rd.

Brecksville Rd.

21

1 INDEPENDENCE, OHIO 1

DISCLAIMER:The information contained herein, including any proforma income and expense information (collectively, the “Information”) is based upon assumption and projections

and has been compiled or modeled from sources we consider reliable and is based on the best available information at the time the brochure was issued. However, the

Information is subject to change and is not guaranteed as to completeness or accuracy. While we have no reason to believe that the Information set for in this brochure,

underwriting, cash flows, valuation and other financial information (or any information that is subsequently provided or made available to you) contains any material

inaccuracies, no representations or warranties, express or implied, are made with respect to the accuracy or completeness of the Information. Independent estimates of

proforma income and expenses should be developed before any decision is made on whether to invest in the Property. Summaries of any documents are not intended to be

comprehensive or all-inclusive, but rather only to outline some of the provisions contained therein and are qualified in their entirety by the actual document to which they

relate. You understand that the Information is confidential and is furnished solely for the purpose of your review in connection with a potential investment in the Property.

You further understand that the Information is not to be used for any other purpose or made available to any other person without the express written consent of Newmark

Knight Frank. This offering is subject to prior placement and withdrawal, cancellation, or modification without notice.

TERRY COYNE, SIOR, CCIMVice Chairman216.453.3001

[email protected]

KRISTY HULL, SIOR, CCIM Managing Director

[email protected]

For further information, contact our licensed real estate salespersons:

INDEPENDENCE, OHIO


Newmark Knight Frank has the exclusive right to market the 100% fee simple interest in a sale-leaseback on two buildings and land in Independence, Ohio. The total site consists of 11+ acres, two warehouses of 65,000 and 35,000 square feet, outside covered storage of approximately 32,000 square feet and two acres of uncovered storage. Property is served by on-site CSX Rail siding. Leaseback by two companies, XS Merchandise (www.xsmdse.com) and Manufacturers Wholesale Lumber (www.troymill.com) for three years on an absolute NNN lease. The Seller has been at this location since 1984 and continues to grow. Located in Independence, a community considered at the crossroads of Northeast Ohio with I-77, I-480 and SR 21 all crossing through its borders, it’s an appealing place to work, live and visit within the “Heart of Cuyahoga County.”

EXECUTIVE SUMMARY

$378,0002018

PROJECTEDNOI

100,000 SQUARE

FEET

Sq. Ft.

CENTRAL LOCATIONAT I-77/I-480

2 WAREHOUSEBUILDINGS

COVERED & OUTDOORSTORAGEACRES

+

TO VIEW A DRONE VIDEO

OF THISPROPERTY

PLEASE CLICK HERE

https://www.youtube.com/watch?v=Mby8eCviyys&feature=youtu.be


Occupancy 100%

Year 1 NOI $378,000

Annual Bumps 2%

Term 3 years with 2, three year options

Operating Expenses Absolute NNN

Sale Price $4,725,000

Cap Rate 8.00%

EXECUTIVE SUMMARY

7000 Granger Road• Two warehouse buildings

65,000 and 35,000 square feetleased to XS Merchandise

• Two covered outside storage units25,000 and 7,000 square feet

leased to Manufacturers Wholesale Lumber

• Two acres of land leased to Manufacturers Wholesale Lumber

• 11+ acres of land at the crossroads ofNortheast Ohio at I-480 & I-77

• Property is served by on-site CSX Rail siding.

PORTFOLIO SNAPSHOT

NUMBERS AT A GLANCE


INVESTMENT HIGHLIGHTS

7000 GRANGER ROAD OVERVIEW

Two buildings totaling approximately 100,000 square feet and two outdoor covered storage structures totaling approximately 32,000 square feet on 11.033 acres

PPN: 561-03-003Lumberland Properties LLC6.874 acres$21,003.38 annual taxesAlso listed with this is PPN: 561-03-008

PPN: 561-03-007Grangerland Properties LLC3.321 acres$13,256.36 annual taxes

PPN: 571-01-008Grangerland Properties LLC0.838 acres$1,134.28 annual taxes

Total Taxes: $35,394.02/year

Parcels are intercepted by B&O Newburg Railroad PPN: 561-03-002

SALE LEASEBACK OVERVIEW

Sale Price: $4,725,000(8.00% cap rate on below)

XS Merchandise leases back Buildings #1(65,000 sq ft) and #2 (35,000 sq ft) for a total of approximately 100,000 square feet

$282,000/year $2.82/sq ft

Manufacturers Wholesale Lumber leases back Buildings #3 (7,000 sq ft) and #4 (25,000 sq ft) as well as the land to the west.

$36,000/year for land$60,000/year for buildings $96,000/year total

Year 1 Total Rental Income/NOI: $378,000

Initial term of three (3) years followed by two (2) three (3) year options.

Bumps of 2% annually on all Year 1 rents.

Absolute Net lease structure with tenant being responsible for all components (taxes, structure, roof, maintenance, repair, snow plowing, insurance, etc.)

Both leases are co-terminous with each other.

7000 GRANGER ROAD PRICING OVERVIEW


7000 GRANGER ROAD AERIALS

480

77

77

ON-SITE CSX RAIL SIDING

Gran

ger R

d.

Brecksville Rd.21


77

GRANGER ROAD

#1

#2

#4

Cuyahoga

Rive

r

#3

BRECK

SVILLE R

OA

D

7000 GRANGER ROAD SITE AERIAL

7000 GRANGER ROAD AERIAL KEY

LAND

Tenant: Manufacturers Wholesale Lumber

Approx 2 acres

$36,000/year

$18,000/acre

BUILDING

Tenant: XS Merchandise

Approx 65,000 SF $180,000/year

$2.77/SF

BUILDING



$2.91/SF

BUILDINGS & 4:


Approx 7,000 SF & 25,000 SF $60,000/year

$1.88/SF

#3 #4#2#1


77

GRANGER ROAD

#1

#2

#4

Cuyahoga

Rive

r

#3

BRECK

SVILLE R

OA

D

7000 GRANGER ROAD AERIAL

7000 GRANGER ROAD AERIAL KEY

LAND


Approx 2 acres

$36,000/year

$18,000/acre

BUILDING



$2.77/SF

BUILDING



$2.91/SF

BUILDINGS & 4:


Approx 7,000 SF & 25,000 SF $60,000/year

$1.88/SF

#3 #4#2#1


WAREHOUSE PHOTOS


XS MERCHANDISE OFFICE/SHOWROOM


COVERED STORAGE PHOTOS


OUTDOOR STORAGE PHOTOS

RAIL PHOTOS

INDEPENDENCE, OHIO 11


7000 GRANGER ROADIndependence, Ohio

TENANT OVERVIEW

Manufacturers Wholesale Lumber1983, Marvin Schaefer, a former Forex Trader, and Steven Belman, an attorney, purchased Manufacturers Wholesale Lumber. Setting out to build a solid lumber company, the pair began by wholesaling softwood lumber to retail lumber yards and wood products to industrial corporations throughout the Midwest.

As Marvin and Steve built the Company, they focused all of their time, energy and resources on adding value to every business relationship. Customers and suppliers grew to rely on the Company to get things done right. In the late 1980’s, in order to maintain a continuous source of raw material, it became necessary for the Company to purchase one of its main suppliers. That supplier evolved into Troymill Wood Products.

Troymill is one of the largest pallet and lumber companies in the Midwest. From wooden pallets and boxes, to crates and grooved stock, to a huge inventory of hardwood, yellow pine and spruce lumber as well as top quality finished and specialty products.

www.troymill.com

XS MerchandiseXS Merchandise, Inc. is a family owned and operated business. Len Stern started the company in 1989 and, over the years, XS has grown into a nationally leading closeout wholesaler. With over 100,000+ sq. ft. of office, showroom and warehouse space, XS owns a large variety of high quality, brand name closeout merchandise at low prices.

Their success over the last 25 years has allowed them to build strong relationships with over 250 consumer product companies and 1,200 customers from around the world.

XS’ inventories is the result of manufacturers’ overstocks, package changes, discounted items and competitive bidding. XS actively searches for new and exciting merchandise through its vast network of contacts. XS finds new merchandise through telemarketing, direct mail campaigns and by attending numerous trade shows/conventions. XS then sells the closeout inventories to many large and mid-sized retailers, national catalog organizations, wholesalers and a variety of dollar stores across the country. In addition to closeout products, XS also maintains a line of many continuity items that are always in stock and sold primarily to the dollar store market.

http://www.xsmdse.com


Brecksville Rd.

Lom

bard

o Ct

r.

Brecksville Rd.

MapleHeights

Alexander Rd.

Dunham

Rd.

Broadway Ave

Dunham Rd.

Tinkers Creek Rd.

Turney Rd.

Canal Rd.

Valley View

IndependenceIndependence

LOCAL MAP

INDEPENDENCE, OHIO

NORTH


REGIONAL MAP

MEDINA

SUMMIT

GEAUGA

LORAINPORTAGE

WAYNE

STARK

LAKE

237

10

82

252 176

44

82

43

59

14

44

42

57

94

10

252

94

21

3

87

322

6

20

42

153

224

62

918

153

90

271

90

480

77

7180

271

77

Lake Erie

Avon Lake

Sheffield

Congress

Avon

Litchfield

Burbank

Lodi

Bay Village

Westlake

North Olmsted

Berea

Westfield Center

Medina

Sterling

Seville

Brunswick

Brook Park Seven Hills

ParmaBrooklyn

Cleveland

Valley View

Shaker HeightsWarrensville

Heights

Richmond Heights

North RandallGarfield Heights

Maple Heights

EuclidWickliffe

Mayfield

Orange

Solon

Pepper Pike

Willoughby Hills

Easton

Rittman

WadsworthBarberton

East Greenville Massillon

Green

McDonaldsvilleNorth Canton

Mogadore

North Royalton

Copley

Fairlawn

Brecksville

Macedonia

Cuyahoga Falls

Northfield

Stow

StreetsboroRichfield

Hudson

Bedford

Tallmadge

Aurora

Kent

Bainbridge

Twinsburg

East Canton

OrrvilleSmithville

Wooster

Marshallville

Ravenna

Akron

Rocky River BeachwoodLakewood

422

Canton

StrongsvilleCUYAHOGAMiddleburg Heights

Independence

Fairview Park

77

77

71

WarrensvilleHeights

NORTH

CENTRALNORTHEAST OHIO

LOCATION

CLOSE TO I-77 & I-480

PROVIDING IMMEDIATE ACCESS

TO ALL MAJOR FREEWAYS

AND SOUTHERN SUBURBS

INDEPENDENCE, OHIO


NEWROCKSIDE WOODS BOULEVARD N

EXTENSION

2018 ROADWAY PROJECTS PLANNED FORTHE ROCKSIDE ROAD BUSINESS DISTRICT

B

REC

KSV

ILLE

RD

The 2018 roadway projects planned for the Rockside Road Business District are monumental developments for the entire area, particularly those heading to or from I-77 & Rockside from Brecksville Road. 7000 Granger Road will be a major beneficiary of the improved and enhanced infrastructure planned for the I-480 & Transportation Boulevard area to accommodate IKEA and the property has rail service which will further enhance transportation and shipping options.

The city of Independence is planning two major infrastructure projects in the Rockside Road Business District this year. Engineering design work is underway for the extension of Rockside Woods Boulevard North from its current terminus at the Embassy Suites, northeast toward the AAA Building and Brecksville Road, where a new signalized intersection will be constructed. Brecksville Road will be widened north and south of the new intersection as part of the project to accommodate new designated left and right-turn lanes into the newly-created intersection at Rockside Woods Boulevard North. Beyond the physical extension of Rockside Woods Boulevard North, the project also includes underground utilities, sidewalks, pedestrian/street lighting and other roadway enhancements. The roadway extension project will be coordinated with the construction of Topgolf Independence, with the goal to simultaneously complete and open for operation both projects at the same time.There is also a major roadway rehabilitation project planned for West Creek Road. This project includes concrete repairs along the entire length of the roadway, as well as the installation of new sidewalks north of Patriots Way that will connect the hotels along Jefferson Drive with the existing sidewalk network. Due to the heavy vehicle travel along West Creek, much of the rehabilitation work will occur on evenings and weekends. Although plans are in place to minimize the project’s impact on traffic, delays will occur and must be expected throughout the duration of the project.

21

NORTH 77


TENANT OVERVIEWABOUT CLEVELAND

These days, Cleveland is considered part of the Midwest, as well as what many refer to as the “Great Lakes Region.” The city rose to prominence thanks to a booming steel industry and manufacturing that benefited from Cleveland’s location to major waterways. Many of those who reaped the financial rewards of Cleveland’s stance as an industry powerhouse built beautiful homes and shared their largesse with area museums and cultural institutions, setting them up for long-term success.

While the steel and manufacturing industries still exist to some extent in Cleveland, the area has undergone an incredible revival. The new economic powerhouses include health care and academics, with major hospital systems, universities and related businesses.

Add to that, the region is currently boasting more than $17 billion in capital developments -- $2.7 billion of which is tourism related.

Just under 400,000 people live in the city of Cleveland proper, spread over 78 square miles. And, nearly 2.1 million live in the metropolitan area.

Many make Cleveland home because they were raised there. Others have come for work or the relatively low cost of living and quality of life, including breezy commute times and a diverse population.

Clevelanders are big-time sports fans (football, baseball and basketball). They love their massive lake and their thousands of acres of park land. Cleveland is now receiving national accolades for its incredible food scene thanks to a mix of traditional, ethnic and trendy restaurants.

Cleveland is proud of our music scene, from the Rock and Roll Hall of Fame and Museum and Severance Hall, where the world-renowned Cleveland Orchestra plays, to the many indie concert venues around town.

MARKET OVERVIEW


TENANT OVERVIEW

ABOUT NORTHEAST OHIO

Northeast Ohio, the Cleveland Plus region, has a robust and diverse $170 billion economy. With nearly 2 percent average annual GRP growth rate since 1993, the economy boasts mature and emerging industries that are fueling future economic opportunity.

The Plus region remains one of the 12 largest economic regions in the U.S. and continues to be a leader in key industries. Economic drivers include:

• Leading heritage in advanced manufacturing

• World-renowned healthcare and educational institutions

• Biomedical industry growth faster than U.S.

• Scientific research and development growth doubling U.S.

• Fast-paced growth in professional, scientific and technical services

• Significant growth in aerospace-related manufacturing

• Opportunity in alternative energy manufacturing

• Entrepreneurial base and assistance programs

• Exponential growth in college-educated residents

MARKET OVERVIEW


Newmark Knight Frank (“Agent”) has been engaged as the exclusive agent for the sale of (the “Properties”), by Ownership (“Seller”).The property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with NKF as a “Registered Potential Investor” or as “Buyer’s Agent” for the identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions, and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum.The enclosed materials are bring provided solely to facilitate the prospective investor’s own due diligence, for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation of warranty, express or implied, is being made by Agent or Seller of any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy of completeness of the information contained herein. Summaries contained herein any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent not the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections, and conclusions without reliance upon the material contained herein.Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any

time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representation of agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by owner and any conditions to owner’s obligations thereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in a strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of the Seller or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipients(s) to NKF. Seller shall be responsible for any commission due to Agent in connection with the sale of the Property. Each prospective purchaser will be responsible for any claims for commissions by any other broker or agent in connection with a sale of the Property if such claims arise from acts of such prospective purchaser or its broker/agent’s authority to act on its behalf.If you have no interest in the Property at this time, please return this offering memorandum immediately to:Newmark Knight Frank1350 Euclid Avenue, Suite 300Cleveland, Ohio 44115ATTN: Terry Coyne216.453.3001 or email: [email protected] The information contained herein was obtained from sources believed to be reliable; however NKF makes no guarantees, warranties, or representations as to the completeness or accuracy thereof. The presentation or this Property is submitted subject to errors, omissions, change of price, or conditions, prior to the sale or lease, or withdrawal without notice.

CONFIDENTIALITY AGREEMENT

TERRY COYNE, SIOR, CCIMVice Chairman216.453.3001

[email protected]

KRISTY HULL, SIOR, CCIM Managing Director

[email protected]

For further information, contact our licensed real estate salespersons:

The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale and availability are subject to change or withdrawal without notice.

Documents

SALE LEASEBACK - Terry Coyne...of contacts. XS finds new merchandise through telemarketing, direct mail campaigns and by attending numerous trade shows/ conventions. XS then sells