Broker Offering Memorandum

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Briana Wade
6 years ago
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1 MSC WALBRIDGE COATINGS Presented By: Martin F. Gallagher, SIOR Jerry M. Malek, CCIM, SIOR

2 PROPERTY INFORMATION: Address: E. Broadway, Walbridge, Ohio Sale Price: $8,700, Building Size: Site Size: 335,484 SF 72 acres

3 TABLE OF CONTENTS: 1 INVESTMENT OVERVIEW 2 LOCATION OVERVIEW 3 BUILDING INFORMATION 4 PROPERTY PHOTOS 5 DEMOGRAPHIC ANALYSIS 6 MSC COMPANY INFORMATION

4 INVESTMENT OVERVIEW CB Richard Ellis Reichle Klein is pleased to present exclusively for sale the MSC Walbridge Coatings single tenant warehouse property consisting of 335,484 square feet, located in Walbridge, five minutes outside of Toledo, Ohio. MSC has been a tenant in the property since 1980 and they just recently exercised their last five year option commencing May 1, MSC is on an absolute triple net lease (NNN) in which they are responsible for all operating expenses as well as repairs and maintenance of the roof and structure. The property is located on 73 acres of land, is equipped with 4% office (9,644 square feet), and is rail served by CSX. MSC Walbridge Coatings Inc is an automotive quality electrogalvanizer with very unique capabilities. Their line, unlike any other line in the United States, allows them to electrogalvanize, pretreat, prime, and paint in one pass. Compared to conventional processing, this one-pass coating allows us to offer superior surface quality and enhanced corrosion protection. The lease is guaranteed by Material Sciences Corporation (MSC), a technology-based manufacturer of continuously processed specialty coated materials and services. The company is a market leader in its four principal product groups: laminates and composites, specialty films, coil coating, and electrogalvanizing. Founded in 1971 and headquartered near Chicago, MSC had $263 million in sales in fiscal In addition, Material Sciences reported $6.1 million in net income, equivalent to $0.42 per diluted common share. Investment Highlights Tenant recently exercised last 5-year option Lease equipped with annual increases of 2% Lease guaranteed by MSC with $263 million in sales for fiscal year 2007 Tenant has $75 million in equipment that would cost $10 million to move. Building equipped with four 27-ton cranes and has a clear ceiling height of 55 The property is CSX Rail served with 2 sets of crossover rails and rail doors of 16 x 24 Priced below replacement cost as well as significantly below the average market cost Current rental rate is considerably below market rental rate

5 LOCATION OVERVIEW: Location: Proximate Features: Major Businesses in Wood County: The Village of Walbridge is conveniently located alongside I-280 with easy and quick access to all points of the Midwest. The transportation hub of the Midwest is situated in the area of I-280, the Ohio Turnpike, and I-75, which is just a few miles to the west of this community. In close proximity to the City of Toledo, Walbridge residents can enjoy baseball at the new downtown Mud Hens Stadium, the Warehouse District, the fine restaurants along the Maumee River at the Docks, as well as, the Toledo Zoo, the Toledo Museum of Art and the Toledo Storm hockey team. Likewise, the University of Toledo, Bowling Green State University, Lourdes College, and Owens Community College are just a short distance from the community. Daimler Chrysler, Cooper Standard Automotive, Magna, Owen-Illinois Corporate Headquarters and Manufacturing, Walgreen s Distribution Center, First Solar, Nippon Sheet Glass, Johnson Controls, Southeastern Container, Great Lakes Windows Population & Income Characteristics: Radius From Subject Population # of Households 1 mile miles 33,372 13,605 5 miles 116,829 46,677 Average Household Income 1 mile $56,752 3 miles $48,600 5 miles $47,808

6 BUILDING INFORMATION: Site Description: Number of Stories 1 Year Built 1980 Lot Size 72 Acres Type of Ownership Fee Simple Parking 150 spaces Landscaping Minimal Topography Level Construction: Foundation Concrete slab Framing Reinforced steel Exterior Pre-engineered metal Parking Surface Asphalt paved Roof - Metal Mechanical: HVAC Roof mounted units Fire Protection Wet system Utilities All to site Interior Detail: Walls Pre engineered metal, drywall & wallpaper in office Ceilings Exposed, suspended tile in office Floor Coverings Exposed, carpet in office area Rest Rooms 9 total, one set in office area

7 Industrial Specifications: Concrete Floors 8-10 Ceiling heights ranging from Power equipped with 138 KVA 15 Overhead doors, 6 truckwell/docks CSX Rail served 2 sets of crossover rails and rail doors of 16 by 24 Drive-thru capability for tractor trailers in same bay as rail lines 7 Cranes, four 27-ton, two 10-ton, one 5-ton Underhook Crane bays 95 and 85 with 25 columns Two 600/1-175 horse powered boilers, Clever Brooks (for processing as well as heating) Two towers within manufacturing bay that extend into the air 110 Two waste water treatment areas for process water Features: Front office remodelled within the last 10 years with new ceilings, carpet, wallcoverings Tenant has $75 million in equipment that would cost $10 million to move Wet sprinkler system with back-up pumps Eight 3 million BTU steam heating units through the plant Drive-thru capability for tractor trailers in same bay as rail lines. Environmental standards to QS 14,000 standards every 6 months Electrical control area has a separate HVAC system

8 PROPERTY PHOTOS:

12 MSC COMPANY INFORMATION: Material Sciences Corporation (MSC) designs, manufactures and markets material-based solutions for acoustical and coated applications. The company focuses primarily on two categories of material-based solutions; acoustical, coated metal. The acoustical material-based solutions include multilayer composites consisting of metals, polymeric coatings and other materials used to manage noise and vibration. The coated material-based solutions include coil coated and electrogalvanized (EG) protective and decorative coatings applied to coils of metal in a continuous, high-speed, roll-to-roll process. Electronic products are extensions of its acoustical and coated applications, so electronic products are reported as acoustical sales when sold for disk drive applications, and as coated sales when sold for all other electronic applications. MSC operates five manufacturing plants in the United States and Europe; two facilities in Elk Grove Village, Illinois (Elk Grove Village); one facility in Morrisville, Pennsylvania (Morrisville); one facility in Walbridge, Ohio (Walbridge), and one facility in Eisenach, Germany. On June 20, 2005, MSC completed a transaction for the sale of substantially all of the assets of Electronic Materials and Devices Group (EMD) to TouchSensor Technologies, LLC. As a result, MSC has discontinued the operations of EMD. The Company s material-based solutions are designed to meet specific customer requirements for the automotive, building and construction, electronics, heating, ventilation and air conditioning (HVAC), lighting and appliance markets worldwide. Its acoustical and electronic products are primarily manufactured and marketed as MSC s own products. In case of coated metal applications, the Company generally acts as a toll coater by processing its customers metal for a fee, without taking ownership of the metal. MSC, through its subsidiaries, Material Sciences Corporation, Engineered Materials and Solutions Group, Inc., MSC Walbridge Coatings, Inc. (MSC Walbridge), MSC Laminates and Composites, Inc. and MSC Europe GmbH & Co., KG (MSC Europe), operates five manufacturing plants in the United States and Europe. During the fiscal year ended February 28, 2005 (fiscal 2005), the Company announced its expansion in the European market through an alliance with Arcelor SA (Arcelor). This alliance provides MSC Europe with expanded manufacturing, technical support, marketing and sales capabilities for its acoustical material-based solutions, primarily Quiet Steel, a multi-layer composite of metals, coatings and other materials, typically consisting of metal outer skins surrounding a thin viscoelastic core material. MSC supplies engineered material-based solutions to automotive, appliance and electronic equipment manufacturers worldwide. The Company manufactures composites typically consisting of steel or other metals in combination with polymers or other materials to achieve specific properties, such as noise and vibration reduction, also known as acoustical materials. MSC also laminates, coats and elctrogalvanizes various types of metal. These products consist of functionally engineered materials that are designed to meet specific customer requirements. MSC supplies its acoustical, coated metal and electronic materials to a variety of markets both in the United States and internationally.

13 Acoustical Material-Based Solutions The Company develops and manufactures continuously processed coated and laminated materials that reduce noise and vibration. Primary products included in the acoustical material-based solutions are Quiet Steel applications for disc brake noise dampers, automotive body panels and engine parts. Quiet Steel is engineered to meet a variety of needs in the markets served by the Company. The automotive industry is the major market for metal composites, which are being used to replace solid sheet metal parts, including body panel, floor pans, wheel wells, oil pans, valve covers and front engine covers. Quiet Steel is being evaluated for use in other components within appliances, lawn and power equipment and HVAC products. MSC produces Quiet Steel at its Elk Grove Village, Illinois, and Walbridge, Ohio facilities, where it shares the utilization of equipment used in the production of coated metal products. Quiet Steel is also manufactured in Europe through the Company s alliance with Arcelor. Acoustical material-based solutions represented approximately 50% of the Company s consolidated net sales during the fiscal year ended February 28, 2007 (fiscal 2007). Coated Material-Based Solutions In the coated metal material-based solutions, the Company s products include coil coated and EG protective and decorative coated metal for use as automotive body skins, metal buildings skins, appliance cabinets (refrigerators, freezers and other appliances), heating and ventilation applications, lighting, and furniture and fixtures. Its coated metal material-based solutions consisting of painted, EG protective and decorative coatings are applied to coil metal of various widths and thicknesses in a continuous roll-to-roll process. Coated metal material-based solutions represented approximately 50% of MSC s consolidated net sales in fiscal MSC s coatings are designed to produce both protective and decorative finishes. Its coil coated products are primarily used by manufacturers of building products, appliances, HVAC, lighting and automotive products. The Company manufactures EG solutions at its MSC Walbridge facility in Walbridge, Ohio. MSC Walbridge provides a complement of pure zinc and zinc-nickel plated products and organic coatings that offer corrosion resistance.

14 Material Sciences Corporation is a technology-based manufacturer of continuously process specialty coated material and services. The company is a market leader in its four principal product groups: laminates and composites, specialty films, coil coating, and electrogalvanizing. Founded in 1971 and headquartered near Chicago, MSC operates seven manufacturing facilities in the U.S. Its products are sold to manufacturers and distributors of industrial and consumer products around the world. The company s stock is traded on the New York Stock Exchange under the symbol MSC and is included in the Standard and Poor s SmallCap 600 Index. In fiscal 1996, MSC reorganized to better focus its resources for continued long-term growth. It quickly became apparent that we needed to clarify and reinforce the changes we made so that all of our audiences had a better understanding of the company. One result was to adopt a new corporate identity system. MSC s new logo represents the continuous manufacturing process that cuts across all of our businesses. The lines signify the multiple layers associated with our products, while the dot and line under the logo represent a roll of material unwinding, the starting point of all our manufacturing processes. During this time the Pre Finish Metals facility in Walbridge, Ohio was officially renamed MSC Walbridge Coatings, Inc. Walbridge Coatings Today Our facility in Walbridge, Ohio has increased capability to include: 72 Combination Electrogalvanizing Line (Line #6) that can coat coils to metal up to 72 inches wide at speeds of up to 600 feet per minute. Steel coils are unwound, pre-cleaned, tension levelled, cleaned electrolytically, and electroplated with zinc or zinc alloys. An optional organic coating can then be applied. 72 Edge Trim and Inspection Line (Line #9) that can handle coils of metal up to 72 inches wide and run at speeds of 1,000 feet per minute. Steel coils can be edge trimmed and/or inspected. Different types of coil can then be applied before rewinding the coil and packaging it for shipment. New, State-of-the-Art 72 Edge Trim and Inspection Line (Line #25) where steel coils can be edge trimmed and inspected on both sides. Can handled coils up to 72 inches wide and run at speeds in excess of 1,000 feet per minute. Walbridge Coatings has also expanded their product line to include zinc-nickel, zinc phosphate, dried-in-place phosphate, dry film lubricants, passivation chrome treatments, metal-to-metal laminate, etc. Customer base has also expanded to include automotive, computer, electronics, building, appliance, and hardware industries. MSC Walbridge Coatings Inc., is a QS9000, ISO9002, and ISO14001 certified facility CB Richard Ellis Reichle Klein. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

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