Nissan Distribution Center (I-55 Business Center) 3974 I-55 Frontage Road South, Jackson, MS, 39209 Phone: 212.972.7457 Fax: 212.686.0078 exp@exp1031.com www.exp1031.com Price: $7,250,000 NOI: $761,255 CAP: 10.50% No vacancy for class A industrial in the market 24 hour critical use facility for Nissan Motor Co (S&P: BBB+) Just in time parts distribution to Nissan s 4.2 million sf assembly facility in nearby Canton, MS Canton is the assembly plant for the award-winning Altima, Sentra, Armada, Xterra, Murano, Titan and Frontier pickup trucks and NV commercial and passenger vans Over $4.6 million invested in new roof, 14 new dock level truck doors and concrete trailer lot 32 foot clear ceiling heights, rail spur line and 36 dock level truck doors Class A tilt wall concrete construction Expansion space is leased to Jacobson Companies which occupies 18% of the building Low rent to reproduction cost and no other 32 foot clear buildings available within 200 miles
Property Investment Line Overview Map PROPERTY OVERVIEW: EXP Realty Advisors exclusively presents for sale a 224,566 sf concrete tilt up distribution and warehouse property located in Jackson, MS on 22.985 acres. The market is tight with no class A industrial space available due to Nissan suppliers leasing activity. The property is leased to Nissan Motor Co (S&P BBB+) which occupies 179,890 sf (80% of the building) and Jacobson Warehouse Company which occupies 40,318 sf (18% of the building). Nissan has a right of first refusal to lease and expand into the Jacobson space. The property recently underwent major renovations including 14 new truck dock doors, new office and bathrooms for Nissan as well as a four acre concrete trailer parking lot and a new looped truck entrance and exit. These improvements were made in connection with the Nissan lease and Nissan paid 35% of the cost up front. Nissan operates three shifts per day, seven days a week providing sub assembled parts for just in time delivery to the assembly lines in Canton, which are 18 miles away and include the award winning Nissan Altima and the redesigned Nissan Sentra. This Class A property, with 32 foot clear ceiling heights, could not be replicated for the low $3.46 psf rent Nissan is paying. There are no other available properties with 32 clear heights within 200 miles. Jackson, Mississippi, a regional distribution hub of the Southern United States. The building was extensively renovated in 2012-2013 which included a new roof on the entire building, upgrading of 22 dock doors, and utilities. The office portion of the building is approximately 5,970 square feet. The property, also known as the I-55 Business Center, is situated on approximately 23 acres and is strategically located near I-55, I-220 and I-20. Jacobson, which occupies 18% of the building, uses the facility for the warehousing and distribution of Marlboro cigarettes and cigars to CVS and Walgreen s distribution centers. Jacobson has approximately $60 million of tobacco inventory in the building and has 24 hour armed security. INVESTMENT SUMMARY Price: $7,250,000 CAP Rate: 10.50% NNN Rent: $761,255 Bld. Sq Ft: 224,566 sf Land Size: 22.985 acres Truck Doors: 36 Clear Heights: 32 feet LOCATION OVERVIEW: Jackson is the capital, as well as the most populous city of Mississippi. Jackson is located at the intersection of Interstates 55 and 20 and is known for its base of energy companies and as the heart of the government & legal community. It is strategically located in the center of the southeast United States and within 500 miles of all or part of 15 states and 76 metropolitan areas which comprise approximately 39 percent of the nation's population and 35 percent of the total personal income. Premier access to raw materials, labor and transportation is a competitive advantage to area business. TENANT OVERVIEW: Nissan Motor Co. Ltd. (BBB+): Nissan Motor Co., Ltd., together, with its subsidiaries, manufactures and sells automotive products and marine equipment primarily in Japan, the People s Republic of China, North America, and Europe. Renault-Nissan Alliance is a strategic Franco- Japanese partnership between automobile manufacturers Renault, based in Paris, France and Nissan. Nissan and its partner Renault are the 3 rd largest automaker in the world behind General Motors, and Volkswagen AG. The companies have been strategic partners since 1999. Jacobson Warehouse Company, INC. Jacobson Warehouse Company, INC. is a leading third party logistics company offering end-to-end supply chain management solutions around the globe. Jacobson operates more than 35 million square feet with approximately 7,000 employees, making them the 3rd largest 3PL warehouse provider in the United States.
Investment Property Nissan North Line Overview America Map - U.S. Manufacturing NISSAN NORTH AMERICA - CANTON: The Nissan vehicle assembly plant in Canton, Mississippi, is a 4.2 million square feet facility which began producing vehicles in May 2003. The plant currently builds the award-winning Altima, the Armada full-size SUV, Armada full-size sport utility vehicle, Titan King Cab full-size pickup, TitanCrew Cab full-size trucks, NV commercial vehicle, NV multi-passenger van, Frontier King Cab midsize pickup, Frontier Crew Cab mid-size pickup, Xterra mid-size SUV, and the Sentra compact sedan (2013). The plant has an annual production capacity of 450,000 vehicles. The company noted that whereas in 2011, 69 percent of the Nissans sold in the United States were made in North America, the figure will reach 85 percent by 2015. In 2012, the Canton team began producing additional vehicles in the Nissan fleet including Xterra and Frontier. In fact, Nissan Canton has become a center of expertise for body-on-frame trucks and will expand their talents to bring the remodeled Sentra compact cars on line in 2013. The next-generation Nissan Murano is on the move to the U.S. where it will be assembled by workers at Nissan s Canton Manufacturing and Assembly Plant beginning in 2014. The plant in Mississippi is a key toward keeping up with the company s intended growth, and Canton leaders are now hiring by the hundreds. Nissan officials hired about 300 new workers for the Canton plant in 2012, and another 700 will be hired soon, raising the work force at canton to over 5,000 employees. By 2013 the plant is going to be manufacturing at full capacity. Nissan Vehicle Assembly Plant Canton, Mississippi
Area Property Rent History Roll Line and Map Net Operating Income LEASE SUMMARY: Nissan Motor Co. Ltd. Term: New three year lease (3 years is typical for auto industry) Lease Expiration: October 31, 2015 Current Rent: $622,419.36 flat in base term. Options: Two one year options at a 3% increase Termination option: Rolling six month termination with penalty Right of first refusal to lease: Nissan has the right to lease the remainder of the building in the event Jacobson does not renew Jacobson Warehouse Company, INC. Lease Expiration: September 30, 2014 Current Rent: $114,169 flat in base term Options: Two three year options at $114,169 Base Rent per Month Base Rent per Year Square Footage Occupied Rent Per Square Foot Jacobson: Original Lease $ 9,514.08 $ 114,168.96 33,350 Jacobson: Expansion Space $ 2,055.58 $ 24,666.96 6,968 $3.44 psf Subtotal $ 11,569.66 $ 138,835.92 Nissan: Lease $ 51,868.28 $ 622,419.36 179,890 $3.46 psf Subtotal $ 51,868.28 $ 622,419.36 Total NOI $ 63,437.94 $ 761,255.28 10.50% Cap Rate $ 7,250,000 Notes: Total Square Footage Available 224,566 Total Square Footage Occupied 220,208 Total Square Footage Unoccupied 4,358 Percentage Occupied by Nissan 80.11% Percentage Occupied by Jacobson 17.95%
22 Dock Doors Whisper Nissan Distribution Valley Ranch Center (I-55 Business Center) Area Property Site Plan History Line Map New Circular Truck Entrance & Exit New Concrete 4 Acre Truck Trailer Parking Lot 14 New Truck Level Dock Doors for Nissan
Area Property Aerial History Line Map
Area Property History Line Photo Map
Area Property History Line Photo Map
Area Property Nissan History Automotive Line Map Components for Just-In-Time Delivery
Area Property Photos History Jacobson Line Map Space
Area Property New Four History Line Acre Map Concrete Trailer Lot Being Constructed for Nissan Nissan Automotive Components for Just-In-Time Delivery
Area Property History Line Site Plan Map
Area Property History Line Photo Map
Area Property History Line Photo Map
Area Property History Line Photos Map Including New Truck Level Dock Doors and Rail Spur Line
Area Property Front History Parking Line Map Lot & New Dock Doors Being Installed for Nissan
Area Property New Office History Line Space Map & Bathrooms for Nissan
Area Property Jacobson History Line Tenant Map Space
Area Property Jacobson History Line Tenant Map Space
Property Location Line Map Map
Property Demographic Line Data Map Radius 3 Mile 5 Mile 10 Mile Population: 2016 Projection 21,605 66,533 216,822 2011 Estimate 21,879 66,841 216,472 2010 Census 22,151 67,435 217,370 Growth 2011-2016 -1.30% -0.50% 0.20% Growth 2010-2011 -1.20% -0.90% -0.40% 2011 Population By Hispanic Origin 369 1,256 4,362 2011 Population by Race: White 4,607 16,829 74,916 Black or African American 16,726 48,242 135,089 American Indian and Alaska Native 42 108 350 Asian 58 326 1,593 Native Hawaiian and Pacific Islander 7 16 97 Other Race 187 616 2,253 Two or More Races 251 704 2,175 Households: 2016 Projection 7,432 23,258 78,960 2011 Estimate 7,568 23,427 78,505 2010 Census 7,655 23,625 78,819 Growth 2011-2016 -1.80% -0.70% 0.60% Growth 2010-2011 -1.10% -0.80% -0.40% Owner Occupied 4,335 13,272 46,125 Renter Occupied 3,233 10,155 32,380 2011 Avg Household Income $50,104 $51,780 $51,275 2011 Med Household Income $40,319 $40,958 $38,178 2011 Per Capita Income $17,490 $18,595 $19,953 2011 Households by Household Inc: Income Less than $15,000 1,028 3,481 13,980 Income $15,000 - $24,999 1,076 3,247 11,496 Income $25,000 - $34,999 1,080 3,148 10,315 Income $35,000 - $49,999 1,359 3,815 12,511 Income $50,000 - $74,999 1,566 4,657 13,653 Income $75,000 - $99,999 859 2,847 8,274 Income $100,000 - $149,999 478 1,757 5,825 Income $150,000 - $199,999 65 248 1,279 Income $200,000+ 57 227 1,167 Contact Us EXP Realty Advisors 118 East 28 th Street Suite #901 New York, NY 10016 Phone: (212) 972-7457 Fax: (212) 686-0078 www.exp1031.com Our Team Robert P. James President Phone: (212) 972-7457 Email: rob@exp1031.com Daniel de Sa Director of Sales Phone: (212) 972-7457 E-mail: dan@exp1031.com