Single Tenant Net Lease Investment - LoopNet · Eastman Business Park (formerly Kodak Park) occupies space in both the City of Rochester and Greece. The Greater Rochester industrial

Single Tenant Net Lease Investment

104 & 105 Elmore Drive, Rochester, NY

ALLIANCE PRECISION PLASTICS

104 Elmore Drive

10,875 SF

105 Elmore Drive

74,402 SF

Attractive Annual Rent Increases

Property Overview

We are pleased to offer to qualified investors an opportunity to purchase (fee simple) a single tenant net lease industrial investment that is 100% leased to Alliance Precision Plastics in Rochester, NY. This location is Alliance’s primary manufacturing and distribution facility totaling 85,277 RSF and has been in operation at this location since its original construction in the 1960s. Since its construction, this property has received numerous expansions and improvements specifically to support the specialized machinery and process of Alliance; making it highly unlikely for Alliance to vacate upon expiration of their term on March 31, 2023.

Additionally, the subject property is located just two miles from the Rochester Technology Park (RTP), a 4,000,000 SF office, lab, manufacturing and warehouse space which is home to major tenants such as PBG, Federal Express, Citigroup, Sutherland Global Services, Kinney Drugs, Weldrite and many more. Furthermore, this property takes advantage of high barrier to entry in the surrounding market providing added security to potential investors. Lastly, due to the superior structural characteristics of this property to surrounding comparable buildings, industrial reutilization is highly achievable in the unlikely event Alliance does vacate in 2023. This is a rare opportunity to acquire an industrial investment with a proven, high quality tenant, that offers annual rental increases, located near one of the largest multi-use complexes in the U.S.

Alliance Precision Plastics | P. 2

Pricing

List Price SUBMIT ALL OFFERS

NOI $397,503

CAP Rate SUBMIT ALL OFFERS

Taxes NNN

Insurance NNN

CAM NNN

Lease Abstract

Tenant Trade Name Alliance Precision Plastics

Lease Start April 1, 2008

Lease Expiration March 31, 2023

Lease Term 15 Years

Term Remaining On Lease 5.4 Years

Base Rent $397,503

Rental Adjustments

4/1/2018 $405,4534/1/2019 $411,5354/1/2020 $417,7084/1/2021 $423,9734/1/2022 $430,333

Lease Type NN Lease

Roof & StructureLandlord Responsible*Roof is a metal roof with a lengthy remaining useful life

Property owner pays a $2,500 annual licensing fee to Monroe County for the use of the Licensed parking lot on the Premises.


INVESTMENT HIGHLIGHTS

Alliance Precision Plastics performs custom injection molding, mold design, mold building

and value-added contract assembly for companies

operating across the country and around the

world.


• Low Risk Industrial Investment - Experienced Tenant - Long Operating History

• High Quality Tenant - Operational for 64 Years - Over $46.2M in Sales as of 9/30/2016

• Employs Over 300 People With More Than 160 at this Location

• Rapid Increase in NOI - Annual Rental Increases Throughout Term

• Tenant has a Diversified Business with Largest Customer Representing only 8% of Total Business

• Functional Building with High Bay Warehouse, Abundant Power, Multiple Docks and Doors,

and Storage Space for Excess Tools

• Property is well Located in the Market Near Quality, Well Trained Labor

• Highly Respected Company with a Long Term Presence in Rochester Market

• Good Access to Rt 531, I-490, and I-390

• Close Proximity to Rochester Technology Park - One of the Largest Multi-Use Complexes in the U.S.

Tenants Include Citigroup, Federal Express, PBG, Kinney Drugs, Sutherland Global Services

• Ample Electric Service, Multiple Dock & Grade Doors, Well Maintained Structure & Mechanical Systems

• Conveniently Located Near Major Expressways

• Critical Tenant Location - Positioned Near Target Customers and Distribution Corridors

Company Financial Summary

• Alliance has reliably demonstrated stable-to-growing revenue and profitability trends. It suffered only a brief setback during the great recession, but returned to profitability in 2010 with 15.2% revenue growth and EBITDA growth exceeding 350%.

• Over the past 2 years, Alliance has continued to drive profitability, achieving EBITDA in excess of $3.0 million during fiscal years ended 2015 and 2016.

• Alliance is conservatively leveraged and maintained a long-term debt to capitalization ratio of just 41% as of fiscal year end 2016.

• Alliance benefits from diversified end-markets with approximately 50% to 55% of revenue from the business machines segment, 20% from the medical equipment segment, 15% from other industrial applications, and 10% from consumer products.

• Pre-recession sales reached $39.8 million in fiscal year ended March 31, 2007; with savvy investment in manufacturing technology, facilities and engineering skills, Alliance saw sales recover and grow to over $46.0 million in 2016.Company Overview

Alliance is a 64 year old, privately held company, which was founded in Rochester, New York, in 1953. Alliance Precision Plastics performs custom injection molding, mold design, mold building and value-added contract assembly for companies operating across the country and around the world. It has operations at two facilities in Rochester, NY, and a facility in Spindale, NC. Additionally, Alliance is a 50% partner with McAlpin Industries in AMMEX, a plastics, metals, and assembly operation in Ramos Arizpe, Mexico, near Monterrey.

The Company has built its reputation on delivering high-quality, custom-engineered stamping dies and die casting molds to industrial giants nationwide. In the early 1980’s, the Company expanded into turnkey solutions specializing in short-run, highly engineered plastic injection molding components for the medical, business machine, industrial and consumer end-markets.

Alliance’s Key Clients Include the World’s Largest Manufacturing Companies:


Elmore Drive

PROPERTY DESCRIPTION104 Elmore Drive

10,875 SF

105 Elmore Drive

74,402 SF

Address

104 & 105 Elmore Dr.New York 14606

MSA

Rochester

RSF

85,277 SF

Land Size

5.89 Acres

Type

Industrial


ELMGROVE RD.

152,416 CPD

101,986 CPD

MANITOU RD.

BUFFALO RD.

MT.

REA

D BL

VD.

490

490

390

390

531

ROCHESTER TECHNOLOGY PARK

GATES CHILL HIGH SCHOOL

AMERICAN PACKAGING CORP

AERIAL VIEW


Population 1-MILE 3-MILE 5-MILE

Estimated Population (2017) 4,383 43,111 131,968

Projected Population (2022) 4,418 43,270 132,258

Households 1-MILE 3-MILE 5-MILE

Estimated Households (2017) 1,735 17,718 53,106

Projected Households (2022) 1,750 17,786 53,217

Income 1-MILE 3-MILE 5-MILE

Avg. Household Income (2017) $69,489 $69,952 $66,725

Median Household Income (2017) $60,421 $56,693 $52,473

Business Facts 1-MILE 3-MILE 5-MILE

Total # of Businesses (2017) 84 2,757 6,279

Total # of Employees (2017) 564 36,152 85,410

$$

Rochester, New York

Rochester is located on the southern shore of Lake Ontario in Western New York. Rochester is the third most populous city in New York state with over 210,000 residents, and its metropolitan area has a population of nearly 1.1 million people. The Rochester area has been the birthplace to such corporations as Kodak, Western Union, Bausch & Lomb, Gleason and Xerox that conduct extensive research and manufacturing in the fields of industrial and consumer products.

Rochester is home to a number of Fortune 1000 and international businesses, including Eastman Kodak, as well as several national and regional companies, such as Carestream Health. Xerox was founded in Rochester in 1906 as The Haloid Company, and retains a significant presence in Rochester, although its headquarters are now in Norwalk, Connecticut.

MARKET OVERVIEW


Industrial Market


The Metropolitan Rochester industrial market is comprised of approximately 78.1 million square feet of owner and tenant-occupied space. Approximately 40.6% of the market’s inventory is located in the City of Rochester with the remaining 59.4% located in the suburban markets. Roughly 19 million square feet is owned and occupied by Eastman Kodak and Xerox. Eastman Business Park (formerly Kodak Park) occupies space in both the City of Rochester and Greece. The Greater Rochester industrial submarket includes roughly 755 buildings totaling over 3.3 million square feet, with a 2016 net absorption of 67,000 SF.

Eastman Business Park as well as the Western New York Science and Technology Advanced Manufacturing Park (STAMP) in Genesee County have been discussed as hub locations for next-generation technical-focused manufacturing. Moreover, multiple agricultural and food production projects across the Rocheseter region were announced in 2015, including a FedEx Ground totaling 225,000 SF in Farmington as well as Xerox’s $35M expansion to its emulsion aggregation toner plant at the company’s Webster campus.

Another Bright Spot for the Metro

The University of Rochester and the Rochester Institute of Technology create a steady stream of well-educated workers, providing hope

for additional innovation and recovery. Furthermore, the Integrated Photonics Institute for Manufacturing Innovation announced it will

locate its headquarters in Rochester. The institute will receive more than $600 million in public and private investment and is expected to

create 6,000 new jobs.

Colliers International | 3 Park Plaza, Suite 1200 | Irvine, CA 92614 | Snyder/Carlton Team

Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved

This Offering Memorandum contains select information pertaining to the business and affairs of Alliance Precision Plastics - Rochester, NY. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of Alliance Precision Plastics - Rochester, NY or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.


Investment Contacts:

Eric CarltonSenior Vice PresidentLicense No. [email protected]

Christopher D. Giunta Real Estate SalespersonLicense No. [email protected]

John KamanReal Estate SalespersonLicense No. [email protected]

Jereme SnyderExecutive Vice PresidentLicense No. [email protected]

Documents

Single Tenant Net Lease Investment - LoopNet · Eastman Business Park (formerly Kodak Park) occupies space in both the City of Rochester and Greece. The Greater Rochester industrial