Offering Memorandum Premier Platforms · southeast of Atlanta along the Interstate 20 (VPD...

Premier Platforms1469 Dogwood Drive SW, Conyers, Georgia 30012

Offering Memorandum

Subject Property Sale Leaseback

Stan Johnson Company 180 Madison Avenue | Suite 1500 New York, NY 10016 P: +1 646.778.5560

stanjohnsonco.com

Exclusively listed by

John Rotunno Associate [email protected]

Confidentiality & Restricted Use AgreementThis Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for

your consideration of the opportunity to acquire the commercial property described herein (the “Property”).

This COM may be used only as stated herein and shall not be used for any other purpose, or in any other

manner, without prior written authorization and consent of SJC.

This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This

COM contains descriptive materials, financial information and other data compiled by SJC for the convenience

of parties who may be interested in the Property. Such information is not all inclusive and is not represented

to include all information that may be material to an evaluation of the acquisition opportunity presented.

SJC has not independently verified any of the information contained herein and makes no representations

or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions

of documentation and/or financial information contained herein are qualified in their entirety by reference to

the actual documents and/or financial statements, which upon request may be made available. An interested

party must conduct its own independent investigation and verification of any information the party deems

material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the

right to negotiate with any number of interested parties at any time. The Property is offered and sold by its

owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any

customary warranties of title.

BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information

you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any

other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and

claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request

by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the

Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals,

you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees,

representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or

related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not

provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance

and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such

party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of

these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief

and specific performance, in connection with such a violation and shall not be required to post a bond when

obtaining such relief.

Chad A. Brown Keller Williams Realty Phone: 678-287-4800 ext.5667 License #: 355756

Property OverviewSection One

Subject Property

Premier Platforms (Sale Leaseback) • Conyers, GA 4

Investment Overview Investment Highlights

Stan Johnson Company is pleased to offer for sale to qualified investors, the

opportunity to purchase an industrial property located at 1469 Dogwood Drive

SW, Conyers, GA 30012 (the “Property”).

The Property is ± 11,200 square feet on 2.66 acres and offered under a newly

created 10-year lease to Premier Platforms, Inc. The new lease features an

absolute NNN structure, with annual rent increases and extension options.

Premier Platforms, Inc. is primarily engaged in renting or leasing heavy

construction equipment to clients.

Asking Price: $1,550,000Asking Cap Rate: ± 7.25%

Investing Proceeds in Business Premier Platform will use the proceeds from the sale leaseback

to pay off a small mortgage and use the majority to acquire new

heavy equipment that will increase revenue and satisfy the needs

of their clients.

Strong Private Credit Premier Platforms has a solid history with over 25 years

successfully operating in the greater Atlanta area. The company

continues to experience revenue and profit growth.

Long Operating History Performance Platforms has been operating at this location

successfully for approximately 20 years.

Sale Leaseback This sale leaseback allows the investor to create new lease terms

that are attractive and meet their investment needs.

Long-Term NNN Lease The new lease will be an Absolute NNN lease with no landlord

responsibilities and attractive annual rent increases.

Solid Industrial Market The property is located in an excellent industrial market

southeast of Atlanta along the Interstate 20 (VPD ±112,652)

corridor.

Significant Lot Advantages The large outside storage area is zoned to meet local zoning

requirements and can support the unique needs of operators

needing outside storage.


1469 Dogwood Drive SW, Conyers, GA 30012

Tenant Premier Platforms, Inc.

Building Size (SF) ± 11,200 SF (estimated)

Land Area 2.66 acres (includes outside storage)

Lease Start Upon Closing

Remaining Term 10 years

Lease Expiration 10 years after lease commencement

Renewal Options Two (2), 5-year options

Lease Type Fee Simple

Rent Escalations 5% every 5 years

Annual Rent $112,000

Rent per SF ± $10.00

Expenses NNN

Proposed Lease Terms

ATLANTA

CONYERS

Subject Property

Tenant OverviewSection Two

Representative Photo


Tenant Overview Tenant Profile

Tenant Name: Premier Platforms, Inc.

Credit Rating Private

Years In Business 25

Number of Locations 3

Revenue $11 million (estimated)

EBITDA $2 million (estimated)

Tenant Business Cranes and Aerial Lift Equipment

Premier Platforms Inc. provides equipment rentals, sales, and service of aerial platforms, carry deck

cranes, forklifts and reach forklifts including scissor lifts, boom lifts, and push around lifts in the North

& Middle Georgia areas. The company provides only top quality equipment from Skyjack™ Inc, Genie®,

Haulotte US Inc, JLG® Industries, Terex, Upright, Skyjack, Lull, Snorkel, Nissan, TCM, Clark, Heli and

Broderson.



Companies in this construction equipment industry rent and lease equipment to commercial and industrial entities for use in business

operations. Major companies that make up the industry include US-based AMECO (owned by Fluor), Herc Rentals (formerly Hertz Equipment

Rental), and United Rentals; UK-based Aggreko, Ashtead Group (owner of US-based Sunbelt Rentals), and Speedy Hire; and Japan-based Tokyo

Century Leasing and Mitsubishi UFJ.

The global construction equipment rental market is expected to exceed $140 billion by 2024, according to Global Market Insights. Europe and North America are

the largest markets; China and India are among those showing strong growth. The US commercial and industrial equipment rental and leasing industry includes

about 15,000 establishments (single-location firms and units of multi-location firms) with combined annual revenue of about $80 billion.

Industry Overview

Demand is driven by business and industrial activity, particularly in

nonresidential construction. The profitability of individual companies depends

on the merchandising mix and cost of financing rental inventory. Large

companies have economies of scale in buying equipment and having multiple

outlets to share equipment. Small companies can compete effectively by

providing specialty products for a local market and by offering superior

customer service. The US industry is concentrated with the top 50 companies

accounting for about 55% of revenue.

US corporate profits, an indicator of corporate demand for equipment rental,

rose 10.3% in the third quarter of 2018 compared to the same period in 2017.

The bank prime loan rate, which indicates the rates available to rental

companies for inventory financing, was 5.25% as of of December 2018, which

was up from a rate of 4.5% the same period in 2017.

Total US revenue for commercial and industrial machinery and equipment

rental and leasing rose 14.0% in the third quarter of 2018 compared to the

previous year.

Competitive Landscape Industry Indicators

Source: www.hoovers.com


“The global construction eq uipment rental market is expected to exceed $140 billion by 2024.”

- Global Market Insights

Market OverviewSection Three

Atlanta, GA


Conyers is the only city in Rockdale County, Georgia. The city is a suburb city located approximately twenty-four miles east of Atlanta. As of 2017, the city population was

16,015. Atlanta’s economy is producing a lot of new jobs. As a result of its above-average recovery, Atlanta has about 325,000 more jobs going into the end of 2018 than it did

at the height of the last cycle (i.e. 2007). And comparative analysis shows Atlanta remains ahead of other major metros in regards to its growth rate over the last several years.

The presence of the well-connected Hartsfield-Jackson International Airport helps attract potential residents and companies, including Mercedes-Benz and State Farm, who

have recently relocated major operations to the metro. Given its structural advantages, Atlanta remains in a solid position to attract even more growth in the future.

Location Overview

The industrial market in Atlanta continues to surge

benefiting from its role as a national distribution

hub, access to the growing Port of Savannah, and

the rapid growth of the metro itself. Logistics

space dominates the market, accounting for nearly

80% of all supply. That share is only expected to

increase as major tenants continue to ink deals

for modern warehouses near interstates in the

suburbs, while smaller industrial buildings inside of

the perimeter are prized for last-mile connectivity.

In removing low-functioning supply in the city

core, and adding build-to-suit facilities in the

industrial nodes, overall vacancy has steadily

fallen throughout the cycle, reaching a historical

low in late 2018. With vacancies now on par with

the national average, developers have started

construction on a pipeline likely to set a cyclical

high in 2019, with over 18 million SF in deliveries.

These conditions have created an environment

where industrial landlords can push rents, and

Industrial Market Overview

Source: www.costar.com

Sales Volume & Market Sale Price Per SF

cumulative rent gains in Atlanta have been in the

top third of the nation since the beginning of 2015.

Fundamentals are also attractive for investors,

who have traded more than $2 billion in industrial

assets each of the last five years, while setting a

new all-time high in 2018 at over $3 billion. Pricing

continues to appreciate, with the average over

$60/SF in 2018. This has helped push cap rates

below 7% in 2018 for the first time in the market’s

history.


I-90 (119,351 VPD

)

Acuity Brands CDC

Bio Lab

Ashley Capital LLC

Pactiv Corporation

Atlanta Pallet Rack

DiversiTechPemco IncBio Lab Inc

Teijin Aramid USA IncConyers Import and Domestic Auto Repair

Universal Hydraulics LLCCarSaturn

Tempur Sealy

Frey-Moss Structures

Inc

Cellofoam North America, Inc.

E Smith Box Inc

Latex Construction Co

RetailCorridor

RetailCorridor

DiversitechService Master Co

Pemco IncRabco Inc

Single Source, Inc.Compass Security Solutions

MidasBudget City Automotive

Bestline DoorsLL&A Auto RepairSafelite AutoGlass

Penske Used Truck CenterMorton Buildings, Inc.

Georgia Driving AcademyAg-Pro Companies

Martyn’s Auto Body Repair

Summit Grove Office

Park

I-20 (112,652 VPD)

Dogwood Dr SW (14,600 VPD)

N

Walker Lake

Lees Lake


Demographics 1469 Dogwood Dr SW, Conyers, Georgia, 30012 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.

Population

2018 Population 2,540 33,911 76,634

2023 Population 2,871 35,587 80,901

2010-2018 Annual Rate 0.66% 0.53% 0.87%

2018-2023 Annual Rate 2.48% 0.97% 1.09%

Households

2018 Total Households 1,053 11,955 27,640

2023 Total Households 1,190 12,558 29,201

2010-2018 Annual Rate 0.56% 0.51% 0.88%

2018-2023 Annual Rate 2.48% 0.99% 1.10%

2018 Average Household Income $42,429 $60,698 $67,826

N


Subject Property Photos

going beyond

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

Stan Johnson Company180 Madison Ave | Suite 1500New York, New York 10016P: +1 646.778.5560 | F: +1 646.778.5561

stanjohnsonco.com

John RotunnoAssociate [email protected]

Offered Exclusively by

Chad A. BrownKeller Williams Realty Phone: 678-287-4800 ext.5667 License #: 355756

Offering Memorandum Premier Platforms · southeast of Atlanta along the Interstate 20 (VPD...

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Transcript of Offering Memorandum Premier Platforms · southeast of Atlanta along the Interstate 20 (VPD...