3325 skyway drive auburn, al specialty industrial group€¦ · auburn is a bustling alabama city...

SPECIALTY INDUSTRIAL GROUP

3325 SKYWAY DRIVEAUBURN, AL56,698 SF OFFICE INDUSTRIAL FACILITY FOR SALEOFFERING MEMORANDUM

NON-ENDORSEMENT & DISCLAIMER NOTICE

Confidentiality & DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.

© 2020 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Tax and Legal Advice DisclaimerThis package has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Activity ID: ZAB0090181

Kent R. Williams, SIORSenior Managing Director InvestmentsDirect: 858.373.3193Email: [email protected]: CA 00823860

Vincent KrantzAirport Served SpecialistDirect: 858.373.3180Email: [email protected]: CA 01976199

Marcus & Millichap – San DiegoOffice: 858.373.31004660 La Jolla Village Drive, Suite 900San Diego, CA 92122www.marcusmillichap.com

Eddie GreenhalghAlabama Broker of RecordLicense: 00008-8298


4SPECIALTY INDUSTRIAL GROUP

3325 Skyway Drive, Auburn, AL

EXECUTIVE SUMMARYMarcus & Millichap is pleased to exclusively present the sale of 3325 Skyway Drive ("Subject Property"), a leased office warehouse located in Auburn, Alabama. The Subject Property, built in 2015 and proximity to the Auburn University Regional Airport, is a two-story office warehouse of approximately 56,698 SF. The Property is 100% leased to Initial Outfitters, a regional home party direct sales company.

Auburn is a bustling Alabama city of of approximately 66,000 residents. Auburn University, second largest school in Alabama with more than 30,000 enrolled students, is one of Auburn's major economic drivers. The City has invested nearly $1 billion into its industrial parks in the past 10 years, spurring a strong culture of tech, entrepreneurship, and start-ups. Fast population growth is attributed to the exceptional job market and career opportunities available in Auburn.

Summary of Terms$11,000,000$194.01/SF

8.00%Cap Rate

$880,000 Net Operating Income

Seller FinancingAvailable

• EXCEPTIONAL FUNCTIONALITY - Excellent office-industrial mix, two-story build, and loading docks suitable for various businesses and uses

• STRONG ECONOMIC DRIVERS - Auburn University, capital investments into tech and industry, career opportunities, and population growth in Eastern Alabama

• PRICE BELOW REPLACEMENT COST - A user looking to occupy the space will see this offering as a discount when compared to the cost of new construction

INVESTMENT HIGHLIGHTS

Auburn University Regional Airport

Subject Property

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PROPERTY OVERVIEWThe Subject Parcel is zoned Commercial. The Subject Building, constructed in 2015, consists of 18,900 ± SF of office space and 37,798 ± of industrial warehouse/manufacturing space. The building features masonry and metal construction, exceptional interior and exterior finishes, two elevators, full featured office buildout, and well-maintained warehouse/manufacturing areas.

There are two graded doors and one dock-high door for loading. The warehouse portion is broken down into separate light manufacturing areas, specialized to the specific needs of the current Tenant.

The office is complete with a wood-accented reception, private offices, bullpen areas, conference rooms, executive rooms, storage, kitchens and bathrooms, and more.



Address3325 Skyway Drive

Auburn, AL 36830

Parcel APN 09-08-27-Q1-000-003-000

Land Use Category COMMERCIAL

Building Area56,698 ± SF Total

18,900 ± SF Office (33%)

37,798 ± SF Warehouse (67%)

Lot Area 265,716 SF (6.1 ACRES)

Year Built 2015

Construction Masonry & Metal

No. of Stories 2

Loading 2 Graded, 1 Dock-High

Parking 213 Surface Spaces

3325 Skyway Drive100 mi to

Atlanta

100 mi to Montgomery


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The Subject Property is airport-served by the Auburn University Regional Airport, and is located 4 miles from Downtown Auburn and Downtown Opelika. I-85 provides convenient access between cities, and is a direct connection to Montgomery, Alabama and Atlanta, Georgia. A total population of 82,000 live within 5 miles of the Subject Property.



Initial Outfitters (IO) is a Christian-inspired direct sales company that sells personalized jewelry and gifts. The Company was founded in Auburn in 2006, and to this day IO led thousands of women to financial success, professional development, and personal growth. Initial Outfitters is rated A+ by the Better Business Bureau, and is a member of Direct Selling Association.

Initial Outfitters has occupied the Subject Property since 2015, and has exercised a renewal option which expires in 2023.

TENANT OVERVIEW

INITI A L OUTFIT TERS



FLOOR PLAN 1 S T FLOOR

Reception

Office Area

Office Area

Loading Area

Light Manufacturing Area

Warehouse Area

Warehouse Area



FLOOR PLAN 2ND FLOOR

Office Area

Office Area

Warehouse Area

Warehouse Area


Auburn City Center

Klein PlumbingNatural Resources

ConservationFairburn Ready Mix

Federal Bureau of Investigation

Southeast Medical Center

ABC Select Spirits

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I-85 Ramp

Academy Sports + Outdoors

Sam's Club

Candlewood Suites Auburn Auburn Mixed Martial

Arts

Fairburn Ready Mix

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OFFICE BUILDOUT



WAREHOUSE BUILDOUT



PRICING DETAILS

TEN A NT SUMM A RY

Tenant Name Initial Outfitters

Leased SF 56,698 (100%)

Lease Start 4/1/2020

Lease Expiration 4/1/2023

Annual Rent/SF $15.52

Total Rent/Month $73,333.33

Total Rent/Year $880,000

Lease Type NNN

Renewal Options None

Guarantee Personal Guarantee

$11,000,000$194.01/SF

8.00%Cap Rate

$880,000 Net Operating Income

56,698 SFRentable Built Area

NNNLease Type Seller financing available.

Please contact the listing broker for more details.

CITY OVERVIEWAUBURN, A L A B A M A

The city of Auburn was founded in 1836. The city is known as being one of the more progressive cities in the south with a nationally ranked public school system and a diverse population. Auburn University creates a significant international presence for the community with 2,235 international students and 500 international employees. Many other foreign nationals live and work in the community, and it is estimated that two of three residents are from other parts of the country creating a cosmopolitan feel. Auburn University Regional Airport, proximity to the Subject Property, is a non-commercial public-use airport designed solely to provide safe and efficient transportation for Auburn University personnel on official business.

Auburn University’s presence makes the town quite different from most small cities. A sense of community pride is created from The University as citizens and local alumni proudly identify themselves as being from the city of Auburn, home of Auburn University (AU). As a member of one of the nation’s top athletic conferences (SEC), The University hosts major sporting events year-round. These events continue to generate a tremendous amount of excitement and entertainment for area residents. Auburn University offers many other activities of interest as well including art shows, theatre, speakers, and concerts.



MARKET ANALYSISAUBURN IN THE FOREFRONT OF ECONOMIC GROW TH

Business Facilities Magazine ’s 2019 Metro Rankings Report ranks the Auburn-Opelika market fifth in economic growth potential by meeting the criteria for housing, investments and jobs.

A positive business environment, a viable workforce, a fantastic education system and a high quality of life have all fueled Auburn’s economy and growth over the years. Driven by continued population growth in East Alabama, rapidly expanding tourism and travel marketing, Auburn continues to experience steady commercial growth.

In the last 10 years, 84 new and expanding industrial projects have been announced with over 3,000 jobs and more than $975 million in capital investment. Auburn’s diversified industrial base has been built around small to medium-sized value added technology based manufacturing firms which includes 45 companies housed in four different parks.

The creation of technology-based startups is an important pillar of the City of Auburn’s Economic Development strategy. Auburn is home to several successful tech startups, such as CryoXcel, FetchMe, Flashtract, SWIGRO, and Tennibot.

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NATIONAL RECOGNITION

2013 “22nd Best County for Job Growth in the U.S. ” 2013 “10th Best Small City for Jobs in the U.S.” 2012 “17th Best Small Place for Business and Careers in the U.S.”

2013 “Smartest City in Alabama and 44th Smartest City in the U.S.” 2014 “Best City in Alabama” 2014 “Top 25 City for Retirement in the U.S. ”

2013 “18th Best Small Place for Business and Careers in the U.S.”

2014 “10th Best Small Place for Business and Careers in the U.S.” 2014 “4th Smartest City in the U.S. and Smartest City in Alabama ”

2015 “7th Best Small City for Jobs in the U.S.”

2015 “3rd Best Town to Raise a Family in Alabama” 2015 “One of the 100 Most Educated Cities in the U.S. ”

2015 “9th Best Small Place for Business and Careers in the U.S.”

2016 “6th Best Metro for Attracting Business in the U.S. ”

2018 “Top 100 Best Places to Live in the U.S.”

2016 “10th Best Small City for Jobs in the U.S.”

2016 “Top 25 Cities People are Moving to. ”

2016 “45th Best College Town/32nd Best Small College Town in the U.S.”

2017 “16th Best City for Job Creation in the U.S.” 2017 “2nd Best Zip Code to Live in Alabama”

2018 “10th Best Performing City for Economic Growth in the U.S. ”

2016 “Top Place to Retire in the U.S.”

2019 “Top 100 Places to Live in the U.S.” 2019 “25th Best Small Place for Business and Careers in the U.S.” 2019 “The South’s Best Retirement Town” 2019 “5th Best City for Economic Growth Potential in the U.S. ” 2018 “The South’s 2nd Best College Town”



TEAM CREDENTIALS

Our cutting-edge philosophy is to work hyper-specialized product types of industrial real estate on a national level. Our strategy of narrowing the focus of each team member to a very specific definition of product such as Fiber Lit Industrial or Cold Storage addresses the clear fact that buyers are most likely not local but more regional, national or even international. Typically, other agents work general product types such as “all industrial” or “all office” in a local market (oftentimes these same agents break up their day by trying to do both sales and leasing). This has led to the rise of the “generalist” local agent. Someone who is adequate at leasing, property management, and sales. While this and a solid grasp of the local market is good, it’s not always enough. Buyers and sellers of these product lines are becoming more sophisticated every day and appreciate our team members’ unique level of product specific knowledge which allows our team to “speak the language” of the owners (and operators) as well as assess a more accurate value to often complex improvements.

Marcus & Millichap is a leading firm specializing in commercial real estate investment sales, financing, research and advisory services, with offices across the United States and Canada. Our services are customized and personalized to meet the diverse needs of private investors, professionals and institutions.

Marcus & Millichap is a national industry leader due to the quality of our research and the depth and breadth of our team. With unmatched knowledge of the characteristics and requirements of both the local markets and within each property type, our investment specialists are able to maximize value for our clients. Each team of investment professionals utilizes specialized training, marketing and tailored communication tools to produce remarkable results for the unique needs of each transaction.


WILLI A MS SPECI A LT Y INDUS TRI A L GROUP

M A RCUS & MILLICH A P



TEAM CREDENTIALS

A senior managing director with over 30 years in the industry, Kent Williams is an authority in industrial sale transactions, leading a team of highly specialized and focused industrial experts. As industrial “niche” experts, Mr. Williams’ team covers cold storage, rail served, lit (fiber optics), and other highly specialized subsections of the industrial real estate industry. For many years, Mr. Williams was a partner of Marcus & Millichap, overseeing operations west of Denver in the US and Canada. Currently an active member of the San Diego Chapter of SIOR, Mr. Williams is proud of his contribution in developing the Masters in Real Estate program at the University of San Diego.

Vincent specializes in airport served and airport proximity industrial at a national scale. Vincent is an accomplished commercial real estate broker with experience in multifamily and industrial properties. As a licensed professional pilot and utilizing practical knowledge of airport requirements, Vincent flies to various regional airports to provide specialized, time-critical brokerage and advisory services to clients.

K ENT R . WILLI A MS , SIORSenior Managing Director - Investments

Airport-Served SpecialistV INCENT K R A NT Z


Kent R. Williams, SIORSenior Managing Director InvestmentsDirect: 858.373.3193Email: [email protected]: CA 00823860

Vincent KrantzAirport Served SpecialistDirect: 858.373.3180Email: [email protected]: CA 01976199

Marcus & Millichap – San DiegoOffice: 858.373.31004660 La Jolla Village Drive, Suite 900San Diego, CA 92122www.marcusmillichap.com

Eddie GreenhalghAlabama Broker of RecordLicense: 00008-8298

3325 skyway drive auburn, al specialty industrial group€¦ · auburn is a bustling alabama city...

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