interstate commerce park - loopnet · 2019-02-15 · alone. vacancy rates have declined...

INTERSTATE COMMERCE PARKGreensboro | North Carolina, 27406

100% Leased, Value-Add, Under Market Rents

Confidentiality Agreement & Offering Memorandum

https://www.crexi.com/properties/182444

https://www.crexi.com/properties/182444

COLLIERS INTERNATIONAL | 2

INTERSTATE COMMERCE PARK

Interstate Commerce Park (ICP) is a 218,537 square foot distribution and warehousing property comprised of five buildings on 9.99 acres of land in Greensboro, North Carolina. ICP presents the rare opportunity of owning a fully stabilized asset, while at the same time providing a value-add opportunity due to future lease expirations that provides for organic rent growth and upside. One of the site’s greatest assets is its location at the intersection of I-85/I-40 and S. Elm/Eugene Street at exit #125. The property has visibility from I-85/I-40, which has 154,827 VPD and has frontage on Elm/Eugene Street, which has 30,137 VPD. The property has historically low vacancy rates, and the current occupancy rate is 100%. Two factors have mainly attributed to the low vacancy rate: first, the below market rental rates are attractive to tenants, and second, the location is convenient and has easy access to I-85 and the entire North Carolina Triad area. This is especially attractive to distributors with intensive shipping/trucking requirements.

ICP is not only an ideal building for distribution and warehousing tenants, but it also represents an outstanding opportunity for real estate investors. The property has a great tenant mix with national tenants such as Goodyear Tire, Prologix, and Northern Composites, but also strong regional and local tenants such as Snider Tire, Cregger and Pegram-West.

INVESTMENT OVERVIEW



INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS > ORGANIC RENT GROWTH POTENTIAL

Interstate Commerce Park has in-place rents that are well below market rents ($2.80 PSF NNN Avg). The average market rental rate is $4.50 PSF NNN. Closing this gap as expiring leases are brought to market rent levels, provides an investor with solid rent and value growth opportunity.

> IDEAL LOCATIONSituated at a highly visible intersection in the southern portion of the city of Greensboro with frontage on I-40/I-85, Interstate Commerce Park is well-located in a primary traffic corridor in Greensboro. As part of the Triad region, the property also benefits from its accessibility to major markets along the Eastern Seaboard.

> BELOW REPLACEMENT COSTSBuilt in phases between 1973 and 2002, Interstate Commerce Park offers an opportunity to acquire a high-quality, low maintenance asset at well below replacement cost.



PROPERTY OVERVIEW

Address 110 E Meadowview RdGreensboro, NC 27406

Zoning LI - Light Industrial

Net Rentable Square Footage 218,537

Number of Buildings 5

Year Constructed Buildings 101, 112, 114: 2001-2002Buildings 102, 110: 1973

Land Area 9.9 acres

Space Flexibility 3,200-218,530 SF

Occupancy 100%

Number of Tenants 11

Asking Price $8,199,000

85BRANCH40

85BRANCH 40

DOWNTOWN GREENSBORO

S EL

M E

UGE

NE

STEXIT 125

SOURCE: Google Maps Photorealistic Rendering



SITE DESCRIPTION

Property Tax ID 0029829

Zoning LI - Light Industrial District

Land Area 9.99 acres; 435,164 SF

Topography Level with no areas of wetlands

Frontage/Access East Meadowview Rd (521 ft) & South Elm Eugene Street (417 ft)

PROPERTY OVERVIEW

CONSTRUCTION

Structural system

(Bldgs 101, 112 & 114)Heavy Metal Frame with Concrete Tilt Up Panel Construction

(Bldgs 102 & 110) Concrete block construction with steel

Foundation Monolithic Slab Foundation

Roof Flat & Gable Roofs with Metal & Membrane Coverings, Metal Guttering

Exterior Wall

Concrete tilt up walls onBuildings 112, 114, & 101,

concrete block exterior onBuildings 102 & 110



PROPERTY OVERVIEW

MECHANICAL

HVACCombination of Gas & Electric

Warehouse Heating System and Central A/C for office areas

UTILITIES

Water & Sewer City of Greensboro

Electricity Duke Energy

Gas Piedmont Natural Gas

Telephone Southern Bell Telephone

IMPROVEMENTS

Ceiling Height ±16’ - 24’ Eave Height

Windows Glass & Metal Storefront

Flooring Concrete

Lighting (BLDGS 101, 112, 114) Halogen/Florescent Lighting(BLDGS 102 & 110) LED

Life Safety 98.5% Sprinklered

Security Tenants provide individualsecurity systems for each space



SITE PLAN

4085

E CARTERET ST

E MEADOWVIEW RD

S EL

M E

UG

ENE

ST

Building 102

EXIT 125

Building 101

Building 110

Building 114

Building 112



LOCATION MAP | SURROUNDING WORKFORCE


Greensboro Fire Station, Police Station, & Water Resources

S E

lm E

ugue

ne S

t

Rand

lem

an R

d

85BRANCH40

85BRANCH

40

LESS THAN 3 MI. TO GREENSBORO CBD

Interstate Commerce Park not only has a highly visible location along highways I-85 and I-40, it is also near a variety of restaurant options. Less than 3 miles away is Downtown Greensboro, Greensboro Coliseum Complex, UNCG, and over 2 million square feet of retail.

IDEAL LOCATION OFF I- 40 & MINUTES TO DOWNTOWN GREENSBORO

30,137 ADT

154,827 ADT



LOCATION DRIVING DISTANCE NOTES

Interstate 85/40 FrontsI-85/I-40 154,827 VPD

Piedmont Triad International Airport (PTI)

8 Minutes6.3 Miles

Home to 5 International BrandsOver +12,000 Jobs Created

DOWNTOWN GREENSBORO

8 Minutes2.4 Miles

#1 In Economic Development in NC#4 In Economic Development in Southeast US

Interstate 74 16 Minutes10.8 Miles Centralized highway between Raleigh & Charlotte

Charlotte Douglas Int. Airport

1 Hour 32 Minutes96 Miles

45,909,899 Passengers Per Year Ranked 5th in USA’s Busiest Airports

LOCATION DRIVING DISTANCE NOTES

UNCG 9 Minutes3.3 Miles

+17,929 On-campus Students+250 Graduate, Undergraduate and Certificate Programs

Guilford College 13 Minutes6.3 Miles

+2,137 On-campus StudentsGuilford County

WINSTON SALEM 25 Minutes12 Miles

+242,203 PopulationLocated in Forsyth County (County Seat)

RDU Int. Airport1 Hour

13 Minutes77.4 Miles

9,943,331 Passengers Per Year 4,640 Employees

RTP Research Triangle Park

1 Hour 7 Minutes72.6 Miles

Largest Research Park in the Country 250 Companies | 50,000 People of Expertise

CHARLOTTE

RALEIGH

DURHAMGREENSBOROWINSTON-SALEM

110 E MEADOWVIEW

LOCATION MAP | DISTANCES



U.S. INDUSTRIAL MAP

250 Miles500 Miles

750 Miles

Chicago

Detroit

St. Louis

Cincinnati

Louisville

Pittsburgh

New York

Washington D.C.

RichmondNorfolk

Morehead City

Wilmington

Charleston

Savannah

Tampa

AtlantaBirmingham

Nashville

Memphis

Greensboro

MSA Headquartered FORTUNE 1000 Companies

Rank Name Revenue ($B)

23 Bank of America $95.2

50 Lowe’s $56.2

116 Duke Energy $25.7

139 Nucor $21.1

315 Sonic Automotive $9.2

366 Sealed Air $7.8

470 Domtar $5.6

514 American Tire Distributors $5.0

542 SPX $4.7

596 Resolute Forest Products $1.3

610 Belk $4.1

640 CommScope $3.8

715 Carlisle $3.2

772 Babock & Wilcox $2.9

834 Curtiss-Wright $2.6

837 Albemarle $2.6

±40%

of the U.S. population liveswithin a day’s drive ±55%

of the U.S. population liveswithin a 750 mile radius



PORTS DRIVING DISTANCE

Wilmington, NC 208 Miles

Morehead City, NC 224 Miles

Norfolk, VA 232 Miles

Charleston, SC 280 Miles

AIRPORTS DRIVING DISTANCE

Piedmont Triad 14 Miles

Person County 60 Miles

RDU International 77 Miles

Charlotte Douglas 95 Miles

THE TRIAD & EASTERN SEABOARD DISTRIBUTION

100 miles

200 miles

300 miles

One of the more significant factors in the local economy is its accessibility to major markets. The Triad is located along the eastern seaboard, approximately halfway between Washington, DC and Atlanta, Georgia. The Triad’s central location relative to larger metropolitan areas has helped to establish it as a distribution center for the Piedmont area.

The Triad is halfway between Charlotte and Raleigh, the largest cities in North Carolina. Three metropolitan areas, Greensboro/High Point/Winston-Salem, Raleigh, and Charlotte, form the metropolitan hubs of North Carolina.

Greensboro/High Point/Winston-Salem (TRIAD) is in the geographic center of these metropolitan areas, within 1.5 hours driving time of both Charlotte and Raleigh. Greensboro’s central location vis-à-vis these major markets have contributed to its emergence as a regional distribution center.



SECOND LARGEST INDUSTRIAL MARKET IN THE CAROLINAS

TRIAD INDUSTRIAL MARKETThe Triad industrial market contains approximately 266 million square feet of leased and owner occupied distribution and manufacturing space, second only to Charlotte as the largest industrial market in the Carolinas. Net absorption for the overall Triad market was positive 2,047,241 million square feet in the 4th quarter of 2017 alone. Vacancy rates have declined dramatically to 4.3% of direct vacancy throughout the market. Greensboro is equidistant from Atlanta, GA and Washington, DC.

SOUTH GREENSBORO SUBMARKETInterstate Commerce Park is located in the heart of the South Greensboro Submarket, which includes 7.7 million square feet of distribution and manufacturing space. The average rental rate in this submarket is .20 cents higher psf than the overall Greensboro market. Demand for this submarket is generated by its proximity to Interstates 40 & 85, and Highways 70 & 220. The Federal Express Air Hub and the FedEx ground mega-hub have attracted many companies to the area seeking outbound logistics, low operating costs, and a highly educated labor pool. Additionally, from this location companies literally sit in the epicenter of North Carolina. This is as central as one can get.

TRIAD | INDUSTRIAL MARKET OVERVIEW(GREENSBORO, WINSTON-SALEM, HIGHPOINT)

LOCATION INVENTORY OCCUPANCY RATE(4TH QUARTER 2018)

NET ABSORPTION(PAST 12 MONTHS)

AVG. ASKING NNN RENT

SOUTH GREENSBORO 7,700,000 97% 154,000 $4.64

TOTAL GREENSBORO INDUSTRIAL 153,000,000 95% 414,000 $4.44

INTERSTATE COMMERCE PARK 218,537 100% 75,698 $2.80



TRIAD INDUSTRIAL MARKETThe 266 Million SF Greensboro–Winston-Salem–High Point (“Triad”)warehouse market is second only to Charlotte as the largest industrial market in the Carolinas and has recorded an impressive 6.5 Million SF of positive net absorption over the past 24 months.

The Triad market is extremely tight featuring a market wide 96.1% occupancy rate overall.

ICP is located in the South Greensboro submarket of 7.7 Million SF, a 97% occupied submarket that has performed exceptionally well, having garnered 154,000 SF of positive net absorption over the last 12 months.

PREMIER INDUSTRIAL MARKET: Guilford County has the highestnumber of industrial sector jobs of any county in North Carolina and is among the top five in the Southeastern United States.

TRIAD | INDUSTRIAL MARKET OVERVIEW(GREENSBORO, WINSTON-SALEM, HIGHPOINT)

NO.1MANUFACTURINGLOCATION IN NC

NO.2INDUSTRIAL

MARKET

NO.5MANUFACTURINGLOCATION IN THE

SOUTHEAST

NO.1PLACE TO START

A SMALL BUSINESS

NO.2BEST STATE FOR

BUSINESSAND CAREERS

NO.2BEST PLACE TO

START A BUSINESS

NO.3BEST CITY FOR

YOUNG ITPROFESSIONALS

NO.17BEST PLACE TO

START A BUSINESS

WINNER OFPROSPERITY CUP



TRIAD | INDUSTRIAL MARKET OVERVIEW(GREENSBORO, WINSTON-SALEM, HIGH POINT)

WINSTON SALEMGREENSBORO

HIGH POINT

FEDEX (NYSE: FDX)made significant investment in the Triad by selecting the region to hold the company’s fifth major U.S. hub which offers companies within an hour’s drive a plethora of business advantages including the ability to meet higher customer demand through greater shipping flexibility.

RECENT ECONOMIC ANNOUNCEMENTSThe Triad serves as headquarters for five Fortune 500 companies including Reynolds America, BB&T, VF Corporation, Laboratory Corporation of America and Hanesbrands. The regional economy still maintains a strong presence in the textile, furniture and tobaccoindustries but has also diversified into fields such as aviation, logistics, life sciences and medicine. The unemployment rate for the Triad region is currently 5.4% as of Q3 2018, and the local economy is booming.

HONDAJETlocated their world headquarters at the Piedmont Triad International Airport (PTI) and recently announced plans to double production of their aircrafts over the next few years, likely attracting suppliers to the area.

POLO RALPH LAUREN (NYSE: RL)completed 400,000 square foot expansion of theirexisting 1.5 million square foot High Point Facility.

CATERPILLAR (NYSE: CAT)has grown their Greensboro manufacturingoperations to 250 employees, solidifying theirpresence in the Triad.

BB&T (NYSE: BBT)headquartered in the Triad, announced construction of a $34 million, 58,000 square foot leadership institute in Greensboro.

COCA COLA (NASDAQ: COKE)$4 million investment in 135,300 square foot facilityin Greensboro

B/E AEROSPACE (NASDAQ: BEAV)has recently expanded operations in Winston-Salemand plans to build a testing facility in the area.

PROCTER & GAMBLE (NYSE: PG)completed their 22,000 square foot expansion of their current facility, a total investment of approximately $8.9 million dollars (including equipment).

PUBLIXhas picked Greensboro for its $400M, 1,000 job distribution center. This will be a 1.8 million SF center located near Birch Creek Road and U.S. 70.



CAROLINAS INVESTMENT SALE COMPARABLES 2017 & 2018PROPERTY NAME

PROPERTY ADDRESS TOTAL SF SALE PRICE($PSF) SELLER BUYER SALE DATE

Avery Dennison Corp2025 16th StGreensboro

63,114$2,500,000

($40)16th Street Group LLC Brady Services Oct-18

Airport Distribution Center202 N Chimney Rock Rd

Greensboro764,582

$32,175,000($42)

Thackeray Partners, Somerset Properties

Blackstone, Talos Capital Jun-18

519 Patton Avenue519 Patton Ave

Greensboro48,613

$2,800,000($58)

Robert & Sons LLC NC Holdings Feb-18

fmr Steelcase250 Swathmore Ave

High Point244,851

$10,000,000($41)

Lexington Realty Comfort Systems USA Oct-17

162 North Cherry Street162 N Cherry St

Asheboro82,270

$2,950,000($36)

J.P. Thomas & Co MAS ACME USA Sep-17

206 North Pendleton Street206 N Pendleton St

High Point100,000

$4,120,000($41)

Mannington Mills IncStar International Furniture

IncJun-17



TRIAD LEASE COMPARABLES (2016-2018)

PROPERTY SQUARE FEET

RENTAL RATE

LEASE TYPE TERM TI START

DATE COMMENTS

404 N Chimney Rock Rd , Greensboro 46,074 SF $4.60 NNN - - Nov. 2018 Industrial Class B

4500 Green Point Dr, Greensboro 12,718 SF $5.25 NNN - - Nov. 2018 Industrial Class B. Built 1989.

1005 Norwalk St, Greensboro 22,500 SF $4.50 MG 1 Year - Nov. 2018 Industrial Class C

3012 S Elm Eugene St, Greensboro 38,130 SF $5.50 NNN - - Oct. 2018 Flex Class B

4809 Kroger Blvd, Greensboro 20,160 SF $5.25 NNN 5 Years - Mar. 2018 Industrial Class C

4501 Green Point Dr, Greensboro 13,879 SF $5.25 NNN 5 Years - Apr. 2018 Industrial Class B. Built 1990.

1660 Sullivan St, Greensboro 11,340 SF $4.28 MG 1 Year $0 Nov. 2018 Industrial Class C

220 Atwell, Greensboro 9,101 SF $5.30 MG 3 Years $0 July 2018 Industrial Class C



COLLIERS TEAM | BIOSDavid Divine | Director of Commercial Investment SalesWith over 20 years of office, industrial and retail investment sales experience, David Divine has a proven track record of maximizing values and returns for his clients. His clients include individual property owners, institutional owners, developers, banks, REIT’s, and special services. Delivering the Colliers’ promise of global teamwork and local expertise, David’s mission is to help clients achieve the highest and best return on their real estate investment in order to accelerate their success.

Richard Pol ley, CSM, RPA | President - Management Services/RDURick’s 33 year career in commercial real estate has been practiced in both public and private companies and has included a diversity of property types. His first 19 years in the industry were spent in the REIT world managing and leasing large institutional shopping malls and mixed use assets in 6 different markets along the east coast from Massachusetts south to North Carolina. Rick worked for Urban Retail Properties Co, The Rouse Company and General Growth during this time. As a Senior Vice President and Group Manager, Rick oversaw multiple malls and mixed use assets for clients that included JMB Realty, Met Life, JP Morgan Real Estate Investments and First Chicago Bank.

Ed Finley | Senior Financial AnalystEd joined the Colliers Raleigh-Durham Multifamily team in 2017. He has an extensive background in both pure and applied mathematics and adds expertise of property and project valuation in the residential and multifamily markets. Ed’s primary responsibilities include providing analysis and valuation for investment properties as well as due diligence and market research in the development of such properties. As a native of Raleigh, Ed has strong ties to the community and an intimate knowledge of the market.

Cole Bosson | Property ManagerCole specializes in investment sales for industrial properties throughout central and eastern North Carolina. He is responsible for financial analysis, business development, and real estate consultation. Over a five-year period, Cole has underwritten approximately $455mm in operating companies and commercial property, $150mm of which culminated in a closed deal. He has worked with a variety of commercial real estate property types (office, industrial, farmland, retail, and multifamily) and is well-versed in identifying and analyzing industry trends across multiple asset classes.

Joe Cinosky | Vice President of Investment SalesJoe Cinosky is a Commercial Investment Sales Broker who works with clients to share great ideas and creative solutions that help our customers accelerate their success. Colliers International is a top-tier global real estate services and investment management company. What sets us apart is not what we do, but how we do it. After graduating from the University of Maryland, Joe owned, operated, and managed lacrosse companies in Minnesota and North Carolina and spent ten years playing professional lacrosse before becoming an active investor and Broker.

This Offering Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the "Owner") to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and Colliers International RDU. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Offering Memorandum in any manner.

Neither the Owner or Colliers International RDU, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Offering Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Offering Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner's obligation therein have been

CONFIDENTIALITY AGREEMENT

This is a confidential Offering Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. By receipt of this Offering Memorandum, you agree that this Offering Memorandum and its contents are of a confidential nature, that you will hold and treat it in strictest confidence and that you will not disclose this Offering Memorandum or any of its contents to any another entity without the prior written authorization of the Owner or Colliers International RDU. You also agree that you will not use this Offering Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Colliers International RDU. If after reviewing

this Offering Memorandum, you have no further interest in purchasing the Property, kindly return this Offering Memorandum to Colliers International RDU.

DISCLAIMER

The information contained in this document has• been obtained from sources believed reliable. While Colliers International RDU does not doubt its accuracy, Colliers International RDU has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. Colliers International RDU and the Colliers International logo are service marks of Colliers International and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

AFFILIATED BUSINESS DISCLOSURE

Colliers International RDU operates within a global family of Colliers companies with many subsidiaries and/or related entities (each an "Affiliate") engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. In some cases. The names of these Affiliates show no reference to the Colliers Affiliation. At all times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Offering Memorandum may be received by our Affiliates, including AACRE Properties, LLC; AACRE, LLC. Those, or other, Affiliates may express an interest in the property described in this Offering Memorandum (the "Property") may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither Colliers International RDU nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, Colliers International RDU will act in the best interest of the client(s( it represents in the transaction described in this Offering Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Offering Memorandum.

DISCLAIMER

110 E MEADOWVIEW ROAD G r e e n s b o r o , N C

DAVID DIVINE Director of Commercial Investment SalesDIR +1 919 582 [email protected]

RICK POLLEY, CSM, RPAPresident - ManagementServices/RDUDIR +1 919 582 [email protected]

COLLIERS INTERNATIONALRaleigh-DurhamDIR +1 919 832 1110colliers.com/rdu

JOE CINOSKYVice President ofInvestment SalesDIR +1 973 722 [email protected]

interstate commerce park - loopnet · 2019-02-15 · alone. vacancy rates have declined...

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