NNN Real Estate Investment Offering - unitedeq.netunitedeq.net/UEC_Infineon_OM.pdf · NNN Real...

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NNN Real Estate Investment Offering 10+ Year Remaining Base Lease with annual bumps R SF, 19401 VICTOR PARKWAY, LIVONIA, MI 48152 Offered by: Arnold Kramer, Senior Vice President Steven Kramer, Vice President United Equities Corp. United Equities Corp. 875 N Michigan Ave, #3100 875 N Michigan Ave, #3100 Chicago, IL 60611 Chicago, IL 60611 Direct: 312-523-7222 Direct: 312-208-0493 Tel: 312-787-2212, Ext 88 Tel: 312-787-2212, Ext 33 Fax: 312-803-9652 Fax: 312-803-9652 Email: [email protected] Email: [email protected]

Transcript of NNN Real Estate Investment Offering - unitedeq.netunitedeq.net/UEC_Infineon_OM.pdf · NNN Real...

Page 1: NNN Real Estate Investment Offering - unitedeq.netunitedeq.net/UEC_Infineon_OM.pdf · NNN Real Estate Investment Offering 10+ Year Remaining Base Lease with annual bumps R SF, 19401

NNN Real Estate Investment Offering10+ Year Remaining Base Lease with annual bumps

R SF,

19401 VICTOR PARKWAY, LIVONIA, MI 48152

Offered by:Arnold Kramer, Senior Vice President Steven Kramer, Vice President

United Equities Corp. United Equities Corp.

875 N Michigan Ave, #3100 875 N Michigan Ave, #3100

Chicago, IL 60611 Chicago, IL 60611

Direct: 312-523-7222 Direct: 312-208-0493

Tel: 312-787-2212, Ext 88 Tel: 312-787-2212, Ext 33

Fax: 312-803-9652 Fax: 312-803-9652

Email: [email protected] Email: [email protected]

Page 2: NNN Real Estate Investment Offering - unitedeq.netunitedeq.net/UEC_Infineon_OM.pdf · NNN Real Estate Investment Offering 10+ Year Remaining Base Lease with annual bumps R SF, 19401

Infineon Offering Memorandum Page - 2 -

19401 VICTOR PARKWAY, LIVONIA, MI 48152

INFINEON TECHNOLOGIES - INVESTMENT OVERVIEW

United Equities is pleased to offer to qualified principals and their brokering intermediariesthe opportunity to invest in 100% fee simple ownership in the property located at 19401Victor Parkway, Livonia, MI 48152. The 46,297 square foot property is 100% leased toInfineon North America, the US operating unit of Infineon Technologies AG, on a 10-yearand 6-month lease that commenced on December 17th, 2012 and runs to June 30, 2023.

19401 Victor Parkway is designed to the standards of LEED Silver certification. Locatedwithin the commercial corridor of Livonia, MI, the lease boasts a world-class tenant withannual escalations. The property is strategically located to provide mission critical marketaccess to Detroit’s automotive industry, and the property will serve as the North AmericanHeadquarters of Infineon’s Automotive unit, consisting of administrative and sales offices,as well as engineering, research, and development laboratories. Infineon is the world’ssecond largest supplier of semiconductors to the automotive industry.

Infineon Technologies is one of the world’s leading producers of semiconductors andsystem solutions. Infineon Technologies focuses on the three central challenges facingmodern society: Energy Efficiency, Mobility and Security and offers semiconductors andsystem solutions for automotive and industrial electronics and chip card and securityapplications. Infineon operates in 4 basic segments described as: Automotive, IndustrialPower Control, Power Management & Multimarket, and Chip Card & Security. In thefiscal year ending September 30, 2012, Infineon Technologies AG reported €3.9 Billion inrevenues. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and inthe USA OTC market under ticker symbol (IFNNY). Infineon Technologies employs closeto 26,000 people worldwide.

19401 Victor Parkway offers an investor long-term, stable and NNN passive incomethrough a well-positioned tenant in an essential location.

Broker participation is invited.

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Infineon Offering Memorandum Page - 3 -

LEASE SUMMARY & OWNERSHIP OFFERING

SITE DESCRIPTION

Number of Stories 2

Year Built 2012

Rentable Square Feet 46,297

Lot Size 4 Acres

Type of Ownership Fee Simple

Parking 232 Cars

Landscaping Decorative

Topography Level

LEED SILVER CERTIFICATION PENDING

CONSTRUCTION

Foundation Concrete Slab

Structural Framing Steel

Exterior Masonry, Steel, and Glass

Parking Surface Asphalt

Roof Flat

100% Ownership:Price: $11,069,536

Entry Rent: $787,044Average AnnualRent: $886,259

Average Cap Rate: 8.01%

Entry Cap Rate: 7.11%

Year 10 Cap Rate: 8.99%

LEASEProperty Type: STNL

Lease Type: NNN

Taxes: Tenant Pays Direct

Insurance: Tenant Pays Direct

Management: Tenant Pays Direct

Maintenance: Tenant Pays LL

$ per Square Foot $239.10RentCommencement: 12/17/2012

Base Lease Expiry 6/30/2023

Lease Term: 10.5 years

Options (3) 5-year options

Page 4: NNN Real Estate Investment Offering - unitedeq.netunitedeq.net/UEC_Infineon_OM.pdf · NNN Real Estate Investment Offering 10+ Year Remaining Base Lease with annual bumps R SF, 19401

Infineon Offering Memorandum Page - 4 -

FINANCIAL SUMMARY of LEASE

Square Feet46,297

Rental Rate byCalendar Year Period

Annual LeaseRate:Rent ($) Per SF

Monthy BaseRental Rate

Rent From Period

AnnualizedCap Rate (%)

Jan 1, 2013 - Dec 31, 2013 $17.00 $ 65,587.00 $787,044 7.11%

Jan 1, 2014 - Dec 31, 2014 $17.25 $ 67,516.00 $798,618 7.21%

Jan 1, 2015 - Dec 31, 2015 $17.75 $ 69,446.00 $821,772 7.42%

Jan 1, 2016 - Dec 31, 2016 $18.25 $ 71,375.00 $844,926 7.63%

Jan 1, 2017 - Dec 31, 2017 $18.75 $ 73,304.00 $868,074 7.84%

Jan 1, 2018 - Dec 31, 2018 $19.25 $ 75,233.00 $891,222 8.05%

Jan 1, 2019 - Dec 31, 2019 $19.75 $ 77,162.00 $914,370 8.26%

Jan 1, 2020 - Dec 31, 2020 $20.25 $ 79,091.00 $937,518 8.47%

Jan 1, 2021 - Dec 31, 2021 $20.75 $ 81,020.00 $960,666 8.68%

Jan 1, 2022 - Dec 31, 2022 $21.25 $ 82,949.00 $983,814 8.89%

Jan 1, 2023 - Jun 30, 2023 $21.75 $ 82,949.00 $497,694 8.99%

Total

$ 9,305,718.00

Square Feet46,297

Rental Rate by“Lease Year” Period

Lease Rate:Annual Rent($) Per SF

Monthy BaseRental Rate

Rent From Period

AnnualizedCap Rate (%)

Jan 1, 2013 - June 30, 2013 $17.00 $ 65,587.00 $393,522 7.11%

July 1, 2013 - June 30, 2014 $17.00 $ 65,587.00 $787,044 7.11%

July 1, 2014 - June 30, 2015 $17.50 $ 67,516.00 $810,192 7.32%

July 1, 2015 - June 30, 2016 $18.00 $ 69,446.00 $833,352 7.53%

July 1, 2016 - June 30, 2017 $18.50 $ 71,375.00 $856,500 7.74%

July 1, 2017 - June 30, 2018 $19.00 $ 73,304.00 $879,648 7.95%

July 1, 2018 - June 30, 2019 $19.50 $ 75,233.00 $902,796 8.16%

July 1, 2019 - June 30, 2020 $20.00 $ 77,162.00 $925,944 8.36%

July 1, 2020 - June 30, 2021 $20.50 $ 79,091.00 $949,092 8.57%

July 1, 2021 - June 30, 2022 $21.00 $ 81,020.00 $972,240 8.78%

July 1, 2022 - June 30, 2023 $21.50 $ 82,949.00 $995,388 8.99%

Total

$9,305,718

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Infineon Offering Memorandum Page - 5 -

FINANCIAL SUMMARY of LEASE (continued)

Square Feet

46,297Option

#Rental Rate by "Bump"

Schedule per Option Period

LeaseRate:AnnualRent($) PerSF

MonthyBase

RentalRate Rent From

Period

Annualized CapRate (%)

1 July 1, 2023 - June 30, 2024 $22.14 $ 85,437 $1,025,244 9.26%

1 July 1, 2024 - June 30, 2025 $22.81 $ 88,000 $1,056,000 9.54%

1 July 1, 2025 - June 30, 2026 $23.49 $ 90,640 $1,087,680 9.83%

1 July 1, 2026 - June 30, 2027 $24.20 $ 93,360 $1,120,320 10.12%

1 July 1, 2027 - June 30, 2028 $24.92 $ 96,160 $1,153,920 10.42%

Square Feet

46,297Option

#Rental Rate by "Bump"

Schedule per Option Period

LeaseRate:AnnualRent($) PerSF

MonthyBase

RentalRate Rent From

Period

Annualized CapRate (%)

2 July 1, 2028 - June 30, 2029 $25.67 $ 99,045 $1,188,540 10.74%

2 July 1, 2029 - June 30, 2030 $26.44 $ 102,017 $1,224,204 11.06%

2 July 1, 2030 - June 30, 2031 $27.24 $ 105,077 $1,260,924 11.39%

2 July 1, 2031 - June 30, 2032 $28.05 $ 108,229 $1,298,748 11.73%

2 July 1, 2032 - June 30, 2033 $28.89 $ 111,476 $1,337,712 12.08%

Square Feet

46,297Option

#Rental Rate by "Bump"

Schedule per Option Period

LeaseRate:AnnualRent($) PerSF

MonthyBase

RentalRate Rent From

Period

Annualized CapRate (%)

3 July 1, 2033 - June 30, 2034 $29.76 $ 114,821 $1,377,852 12.45%

3 July 1, 2034 - June 30, 2035 $30.65 $ 118,265 $1,419,180 12.82%

3 July 1, 2035 - June 30, 2036 $31.57 $ 121,813 $1,461,756 13.21%

3 July 1, 2036 - June 30, 2037 $32.52 $ 125,467 $1,505,604 13.60%

3 July 1, 2037 - June 30, 2038 $33.50 $ 129,232 $1,550,784 14.01%

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Infineon Offering Memorandum Page - 6 -

INFINEON TECHNOLOGIES FINANCIAL PROFILE

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Infineon Offering Memorandum Page - 7 -

DEMOGRAPHICS and AREA DESCRIPTION1-mile Demographic Summary:

3-mile Demographic Summary:

5-mile Demographic Summary:

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Infineon Offering Memorandum Page - 8 -

Page 9: NNN Real Estate Investment Offering - unitedeq.netunitedeq.net/UEC_Infineon_OM.pdf · NNN Real Estate Investment Offering 10+ Year Remaining Base Lease with annual bumps R SF, 19401

Infineon Offering Memorandum Page - 9 -

Offered by:

Arnold Kramer, Senior Vice President Steven Kramer, Vice President

United Equities Corp. United Equities Corp.

875 N Michigan Ave, #3100 875 N Michigan Ave, #3100

Chicago, IL 60611 Chicago, IL 60611

Direct: 312-523-7222 Direct: 312-208-0493

Tel: 312-787-2212, Ext 88 Tel: 312-787-2212, Ext 33

Fax: 312-803-9652 Fax: 312-803-9652

Email: [email protected] Email:[email protected]