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Ge Inspection Technologies Single Tenant Offering

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Ge Inspection Technologies Single Tenant Offering GE INSPECTION TECHNOLOGIES SINGLE TENANT OFFERING INVESTMENT RATED • 73,820 SF • 5 YRS TERM • $13.60/SF NOI • 8.25% CAP RATE DISCLAIMER The information contained in this Offering Memorandum is confidential and is provided for the sole purpose of allowing persons to evaluate whether there is interest in proceeding with further discussions with the owner regarding a possible transaction with respect to the property comprising the GE Inspection Technologies Single Tenant Offering, the (Asset). The information contained herein shall not be photocopied or disclosed to any other party and shall not be used for any other purpose. If the person receiving this Offering Memorandum does not choose to pursue such a transaction, this Offering Memorandum shall be returned to Jones Lang LaSalle (JLL). Neither the owner, nor JLL, nor any of their officers, directors, employees or agents, assume any responsibility or make any representations or warranties, whether express or implied, by operation of law or otherwise, with respect to the Asset or this Offering Memorandum or any information or statements (including financial statements and projections) contained herein or relating hereto, including the accuracy or complete-ness of such information or statements and the condition, quality or fitness of the Asset. Such information and statements have in many circumstances been obtained from outside sources, have not been tested or verified and may be subject to errors or omissions. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. Without limiting the foregoing, in the event this Offering Memorandum contains information relating any hazardous, toxic or dangerous materials in relation to the Asset, such information shall in no way be construed as creating any warranties or representations, express or implied, by operation of law or otherwise, by any party, as to the existence or non-existence or nature of such materials in, under, on or around the Asset. Potential investors are urged to perform their own examination and inspection of the Asset and information relating to same, and shall rely solely on such examination and investigation and not on this Offering Memorandum or any information or materials contained herein or otherwise provided. The only party authorized to represent the owner of the Asset is JLL, and the owner shall not be obligated to pay any fees or commissions to any other advisor, broker or representative. Any party entering into a transaction with the owner shall be obligated to pay any fees or commissions due any advisors, brokers or representatives, other than JLL, dealing with such party. This Offering Memorandum is provided subject to prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to the Asset, and is subject to withdrawal, all without notice or any liability. In no event shall the delivery or receipt of this Offering Memorandum be deemed to create any legal obligation to enter into any transaction with respect to the Asset, and only a definitive agreement signed by all parties shall create a binding commitment to enter into a transaction. Executive Summary 04 Property Overview 09 Market Overview 14 Financial Summary 17 TODD TOROK RYAN BARR RYAN BENNETT MANAGING DIRECTOR PRINCIPAL PRINCIPAL JLL Capital Markets Lee & Associates Lee & Associates 312 228 3738 760 448 2446 760 448 2449 JLL Industrial Capital Markets [email protected] [email protected] [email protected] 8755 West Higgins Road, Suite 750 Chicago, IL 60631 721 EXECUTIVE SUMMARY TRANSACTION SUMMARY Asking Price $12,170,000 Price PSF $164.90 Cap Rate 8.25% INTRODUCTION In-Place NOI $13.60 Jones Lang LaSalle (JLL), in cooperation with Lee & Associates, has been retained to Address 721 Visions Drive market for sale the fee simple interest in 721 Visions Drive, referenced herein as GE City, County Skaneateles, Onondaga Inspection Technologies Single Tenant Offering (the Offering). The Property is located in Skaneateles, New York, roughly 16 miles southeast of Syracuse. The Property was Ownership Fee Simple constructed as a build-to-suit for GE Innovation Technologies (the Tenant or GE), an Tenant GE Inspection Technologies operating division and designer / manufacturer of innovative digital solutions within GE Oil Parent Rating S&P: A- & Gas. The Tenant recently executed a five-year lease extension through January 2023 Initial Lease Execution 03/27/07 featuring contractual annual escalations. The lease provides GE with the option to terminate the lease on the last day of the forty eighth (48th) full calendar month by Lease Expiration 01/14/23 providing no less than 120 days prior written notice and delivering a Termination Fee Lease Type Net equal to the unamortized leasing commissions and three (3) months Base Rent. LL Responsibilities Roof & Structure GE INSPECTION TECHNOLOGIES | 5 | CONFIDENTIAL OFFERING MEMORANDUM Constructed as a build-to-suit for GE in 2007, the Offering consists of a 73,820 square-foot, free-standing facility situated on 17.77 acres1. Designed to fit GE’s specific use, the Property is demised to include production/assembly areas, office and shipping/storage. The building also features on-site amenities for the tenant’s employees, including a full-service cafeteria and gym. The Property is further distinguished by its abundant 2,000 amps, 277/480 volt power service and twenty (20) 20-ton RTU heating and A/C units. The site offers a generous 3.95 / 1,000 auto parking capacity, or 292 stalls, located within a stand-alone parking lot immediately north of the property. Pricing / Yield GE employs over 165 employees, including skilled engineers, at the facility which designs and manufactures remote visual inspection equipment for non-destructive $12,170,000 Asking Price testing in the aerospace, oil/gas, mining and power generation industries. After an initial ten-year term, the Tenant recently executed a five-year lease extension through 8.25% Cap Rate January 2023. The lease is a net lease with landlord responsibility limited to maintenance, repair and replacement roof and structural components of the building as well as lessor’s insurance and management of the facility. (1) Leased acreage is 15.99 acres with balance consisting of a strip of land along west border containing a drainage creek, for which Owner is responsible, and an easement for access road serving the property, for which tenant is responsible. GE INSPECTION TECHNOLOGIES | 6 | CONFIDENTIAL OFFERING MEMORANDUM INVESTMENT HIGHLIGHTS Subject Property COMMITTED TENANCY ATTRACTIVE LEASE STRUCTURE The Tenant recently executed a five-year lease extension Designed as a build-to-suit for GE in 2007, the Property is through January 2023. The lease features annual 1% rental occupied by a division of GE Oil and Gas, which is responsible escalations which allow for contractual yield growth for the design and production of advanced measurement, sensor-based inspection technology solutions for industrial throughout the lease term. Tenant is responsible for real sectors. The tenant employs over 165 employees on site, estate taxes, utilities, tenant’s insurance and maintenance relying on the highly skilled, advanced manufacturing and and repair of building systems, parking lots, driveways and engineering labor force that surrounds Syracuse and sidewalks. Landlord’s maintenance is restricted to Rochester metro areas. In addition to reliance on skilled labor maintenance, repair and replacement of building structure force, the Tenant has invested significantly into property, plant and roof. Landlord is responsible for lessor’s insurance policy and equipment that would be cost prohibitive to replicate and management of the Property, which are not recoverable and/or move. from Tenant. Notably, while not a party to the lease, the General Electric Company (Moody’s: A3; S&P: A-) maintains responsibility for the obligations of tenant under the lease. GE INSPECTION TECHNOLOGIES | 7 | CONFIDENTIAL OFFERING MEMORANDUM QUALITY BUILDING DESIGN The Property consists of a 73,820 square-foot facility situated on 17.77 acres. The Property is constructed using concrete masonry exterior walls with finished metal panels at higher elevations. The building offers 2,000 amps (277/480v) power service, twenty (20) 20-ton heating and A/C RTUs, a 75 kVa back-up generator and wet/dry pipe fire suppression system. The building roof system is a Firestone 0.45 mil fully-adhered TPO system. COMPELLING YIELD OPPORTUNITY The Offering presents an attractive opportunity to acquire a mission-critical facility together with a steady, predictable cash flow and the backing of an investment- rated parent at an attractive yield which represents a significant premium over return on GE corporate bond. GE INSPECTION TECHNOLOGIES | 8 | CONFIDENTIAL OFFERING MEMORANDUM 721 TENANT OVERVIEW The Subject Property is leased to GE Inspection Technologies, a Tenant: GE Inspection Technologies LP business line within GE Measurement & Control which falls within the umbrella of Baker Hughes, a GE company. GE Measurement & Control Premises: 73,820 SF is a leading innovator in advanced, sensor-based measurement; non- Lease Expiration: 1/14/23 destructive testing and inspection; flow and process control; turbine, generator, and plant controls; and condition monitoring. The company Parent: General Electric Company provides end-to-end solutions for industries
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