national Sale-Leaseback industrial Portfolio opportunity

AN OFFERING FROM THE COLLIERS CENTRAL FLORIDA INDUSTRIAL INVESTMENTS TEAM

FOR SALE | COLLIERS INTERNATIONALVIEW ONLINE

PORTFOLIO OVERVIEW

TOTAL RENTABLE AREA

723,142 SFLAND SIZE

81.8 ACOCCUPANCY

100%

NUMBER OF BUILDINGS

15CLEAR HEIGHT

18’-40’ *Varies

YEARS CONSTRUCTED

1968-2006

C olliers International, as seller’s exclusive advisor, is pleased to offer this unique sale-leaseback opportunity. This opportunity provides an investor the ability to acquire a multi-state, single-tenant industrial portfolio, comprised of fifteen buildings across 6 US locations

(“Property”). FLANDERS, the property’s current long-term owner/occupant, is offering the deal with a 20-year leaseback of the facilities. FLANDERS will continue to base their HQ, Administrative, Engineering, Production, Warehousing and Operations out of the Property. Property locations include Evansville, IN, Marion, IL, Casper, WY, Lakeland, FL, and Longview TX. The combined properties total 81.8 acres, with 15 buildings totaling 723,142 SF. All properties will be 100% leased-back to FLANDERS with a market-based rent of approximately $3.8M for an initial term of 20 years with eight (8) five-year renewal options.

This 3rd generation, family-owned and operated business is based in Evansville, IN and now led by CEO, Allen Patterson. The family’s history with the company began in 1947, when Roy Patterson (Allen’s grandfather) co-founded FLANDERS. Roy built the company over his lifetime, igniting a similar commitment from

son, Dave Patterson. Dave succeeded in growing the company to over 750 employees with international expansion, while teaching his 3 sons the business. Dave continues to provide guidance at a corporate level, while working alongside his sons, Allen, Joe and Doug. With deep family roots, FLANDERS is a pioneering power systems technology company, that provides industry renowned electric motor services including large scale design, fabrication, repair and the automation and integration of systems utilized in a wide range of end markets. In addition, the Company is an industry leader in smart maintenance technologies and is the go to integration specialist for a range of 3rd party power systems and related components.

portfolio summary

U.S. SALE-LEASEBACK PORTFOLIOVIEW ONLINE

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offering procedureinvestment highlights

MISSION CRITICAL FACILITIES – During the initial stages of the COVID pandemic, FLANDERS was deemed an essential business and required to remain open at full operating capacity. With their main customer-base in industries such as Mining, Mills, Power Generation, Marine, Oil & Gas, and Specialty Industrial, the tenant is truly COVID-proof and will continue to generate essential work required throughout the pandemic.

NNN LEASE STRUCTURE WITH 20 YEAR FIXED TERM WITH 1.5% ANNUAL INCREASES - The Triple-Net (NNN) structure of the proposed lease will provide an investor with surety of cash flow over the entire 20-year term. The 20-year term (with 8, 5-year renewal options) will allow an investor multiple exit options for a sale, with significant remaining term prior to the lease expiration. The 1.5% annual rental increases will provide strong return growth over the term of the investment and provides an inflationary hedge.

“STICKY” TENANCY - FLANDERS has continuously operated out of these facilities since they were originally opened, tailoring each location to fit the demand in each market. FLANDERS has upgraded each facility with the additional power and infrastructure required to increase capacity and top line revenue growth. With over $100M of FLANDERS-owned equipment installed within the Property, the tenancy is beyond “sticky” and is now “welded” into likely continued occupancy at each location for the foreseeable future.

SIGNIFICANT DISCOUNT TO REPLACEMENT COST - Escalating land, labor, and construction costs have resulted in limited projected new construction. The Property is expected to transact at a basis well below replacement cost (estimated at $116 per square foot), giving the new owner a competitive advantage for many years to come.

FUTURE EXPANSION POTENTIAL - FLANDERS currently has significant capacity at its existing facilities; however, potential required expansion to support growth current growth projections can easily be accommodated for on the excess land included in the transaction. This provides an investor the ability to grow their investment as the expansion requirements of FLANDERS become a reality.

INTEGRATED MANUFACTURER WITH PATENTEDPRODUCTS - FLANDERS designs innovative systems and components to integrate with leading heavy machinery manufacturers. The Company currently has 17 patents for advanced technology solutions.

INTEREST OFFEREDFee-Simple Interest in all Properties. Offers on individual buildings will also be considered, however offers on the entire portfolio are preferred.

OFFERS DUE

A call for offers date will be established and communicated to all interested parties via separate email. Seller reserves the right to accept or reject any offer at any time and to extend the date for submission of offers for any reason whatsoever in its sole discretion.

PROPERTY TOURSRegistered buyers are encouraged to visit the Property prior to submitting an offer. Please contact Joe Rossi or Nick Hanson to schedule a tour.

FORM OF OFFERS

All prospective purchasers are requested to submit a written non-binding Letter of Intent or Proposal which specifically addresses the following items:

(a) Buying Entity

(b) Purchase Price

(c) Escrow Deposit

(d) Due Diligence Period

(e) Closing Period

(f) Confirmation of Proposed Lease Terms as outlined in this Offering Memorandum

(g) Financing & Any Other Contingencies along with details on timing and approvals required to waive such contingencie

U.S. SALE-LEASEBACK PORTFOLIOVIEW ONLINE

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1 2 3 4 5 6EVANSVILLE, IN EVANSVILLE, IN MARION, IL CASPER, WY LAKELAND, FL LONGVIEW, TX

ADDRESS Multiple Multiple Multiple 3245 Salt Creek Highway 2701 S Combee Road 901 Harrison Road

CITY Evansville Evansville Marion Casper Lakeland Longview

STATE IN IN IL WY FL TX

ZIP CODE 47725 47725 62959 82601 33813 75604

COUNTY Vanderburgh County, IN Vanderburgh County, IN Williamson County, IL Natrona County, WY Polk County, FL Gregg County, TX

PARCEL ID # (S) 10 Parcels 3 Parcels 3 Parcels 20501012067280 282824-000000-022110 21487

PARCEL SIZE (ACRES) 25.11 1.75 2.17 10.96 2.53 39.25

ZONING M-2 (General Industrial) M-2 (General Industrial) Ind/Res Ind BPC-2 (Industrial) Industrial

FLOOD ZONE X, FIRM Panel: 18163C0116D

X, FIRM Panel: 18163C0181D

X, FIRM Panel: 17199C0181D

D, FIRM Panel: 56025C1700D

X, FIRM Panel: 12105C0320G

X, FIRM Panel: 48183C0160F & 48183C0155F

CURRENT USEHQ, North Plant, South Plant,

generator and 5 ancillary buildings

Evansville, IN - Regional Service Center

Marion, IL - Regional Service Center

Casper, WY - Regional Service Center

Lakeland, FL - Regional Service Center

Longview, TX - Regional Service Center

CONSTRUCTION TYPE Mason/Steel Mason/Steel Mason/Steel PE Steel Mason/Steel Mason/Steel

# OF BUILDINGS 8 1 3 3 1 2

YEAR BUILT 1975-1991 1968 1972 1980-2006 1990 1980-2005

OFFICE SF 57,050 1,250 3,000 6,780 2,760 2,950

PRODUCTION SF 307,386 30,250 10,000 36,290 35,180 96,413

WAREHOUSE SF 43,421 8,000 40,860 12,812 6,340 22,400

TOTAL SF 407,857 39,500 53,860 55,882 44,280 121,763

BUILDING CLEAR HEIGHT (FT) 24' - 36' 18' - 24' 22' - 32' 22' -30' 30' - 32' 26' (40' high bay)

SPRINKLERED Wet System none Wet System None Wet System, none in office Wet System

TOTAL POWER Dedicated 6MVA transmission line at 12.47kV to entire facility 1200 A at 240VAC 12,470 Volts

12.47V overhead / Pole mount transformer 480V into facility

(upgrades to include new 200A 15kv transformer)

4160 Volts 22,900 Volts reduced to 480 Volts in the main shop

TESTING CENTER 1600kVA transformer 480VAC and 750VDC

230VAC 800A, 460VAC 400A, 2300VAC 60A, 4160VAC 30A, 500VDC 250A, 500VDC 15A,

Toshiba 75 & 150HP drive

1500KVA transformer 0/1000/2300/4160/7200 test

voltages, 480 Volt DC Field Power supply and a Toshiba

AC VFD

480V, 280A, 233KVA (current upgrades to include new

2000kva 12,480V multiple output oil filled pad mount transformer 2400V, 4160V,

7200V)

2500kVA transformer 240-7200 VAC and 0-750 VDC,

3000 Amp feed to plant, 800 Amp feed for Drive, 400 Amp

feed to plant infrastructure

2500KVA Transformer, AC up to 13KV, DC up to 600 Volts

GENERATORS 5 None None None 1 None

DOCK DOORS 37 1 1 3 0 1

GRADE DOORS 38 6 5 30 6 47

CRANES (TOTAL TONNAGE) 510 35 25 60 60 180

2019 ASSESSED VALUE $7,607,500 $286,600 $487,400 $1,698,640 $1,236,991 $4,197,010

2019 RE TAXES $168,062.40 $9,054.00 $34,739.00 $12,246 $22,196 $94,301

property summaryU.S. SALE-LEASEBACK PORTFOLIOVIEW ONLINE

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EVANSVILLE, IN

(BAUMGART)

• Specializes in heavy duty electric rotating equipment, controls, and power distribution optimization

• 110 crane capacity, 100,000 lb dynamic balancing capabilities, motor storage for rapid delivery of critical spares

Top 5 Customers (South Plant)• Logan Aluminum Incorporates• Arcelormittal LLC• Aleris Rolled Products Inc.• Nucor - Crawfordsville• Alcoa Warrick

EVANSVILLE, IN

(MARYLAND ST.)

• Specializes in full service machine repair, distribution, system integration, custom machining, & gear box repair

• 24/7 on call service, motor repair, full capability machine shop, distribution hub for motors & drives

Top 5 Customers • AK Steel Corp - Rockport• Duke Energy Corp Gibson• Westlake Corporation• Nutrien - PCS Phosphate Co Inc.• Toyota Motor Manufacturing

MARION, IL

• Specializes in motor repair for mining equipment. Due to limited future growth expectations, the operations/projects of this RSC are being largely consolidated with operations in Evansville, IN

Top 5 Customers • Marathon Pipeline• Lafarge Corp.• Sikeston Board of Municipal Utilities• River Cement Co.• Wieland

CASPER, WY

• Specializes in ARDVARC development and deployment, as well as new motor sales and motor repair

• DC & AC motor and generator repair, 24/7 on call service, motor exchange program, new equipment sales & distribution

Top 5 Customers • Arch Coal Inc/Black Panther Mine• Peabody Powder River Mining/N

Antelope• MMD Mineral Sizing Inc.• Arch Coal Inc./Coal Creek Mine• Kaiser Aluminum Washington LLC

LAKELAND, FL

• Specializes in AC & DC dragline control system developments and upgrades, and the repair, manufacture, and replacement of large scale motors

• 24/7 on call service, DC to AC motor & drive conversion services, motor exchange program, drive, control, & PLC troubleshooting & repair

Top 5 Customers • Mosaic Phosphate Company• North American Mining• PCS Phosphates (Nutrien)• Perry Supply Inc.• Mine Equipment and Design

LONGVIEW, TX• Specializes in motor repair and custom motor

manufacturing for a wide variety of end markets• Strong systems integration capabilities

Top 5 Customers • Vistra Energy• North American Coal• Evergreen Packaging• Westlake Chemical• San Miquel Electric Coop

U.s. Regional Service Center HighlightsU.S. SALE-LEASEBACK PORTFOLIOVIEW ONLINE

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U.s sale-leaseback portfolio

COLLIERS CENTRAL FLORIDAINDUSTRIAL INVESTMENTS TEAM

NICK HANSON, SIORManaging DirectorLic. No. SL3306771 D: +1 407 575 2372 E: nick.hanson@colliers.com

JOE ROSSI, CCIMExecutive Managing DirectorLic. No. BK655420 D: +1 407 230 2809 E: joe.rossi@colliers.com

THEVIN CAMPTON, CCIMVice PresidentLic. No. IA100085187 D: +1 720 833 4628 E: thevin.campton@colliers.com

MACKENZIE DAUGHERTY, CPMC, CPRCLicensed Client Services CoordinatorLic. No. SL3446204 D: +1 407 362 6134 E: mackenzie.daugherty@colliers.com

NATHAN LYNCHExecutive Managing Director | Debt & EquityLic. No. SL 3271168D: +1 813 559 7009 E: nathan.lynch@colliers.com

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