investment opportunity ge inspections …...the region’ s major metropolitan center. it has been...
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GE INSPECTIONS TECHNOLOGY FACILITY721 Visions Drive, Skaneateles Falls, NY
Ryan Barr | Principal760.448.2446
Ryan Bennett | Principal760.448.2449
Todd Torok | Managing Director312.228.3738
PREPARED BY:
INVESTMENT OPPORTUNITY
OFFERED AT: $12,300,000 | 8.50% CAP
EXECUTIVE SUMMARY
GE INSPECTION FACILITY | Skaneateles Falls, NY
INVESTMENT SUMMARY
Tenant: GE Inspection Technologies, LP
Guarantor: General Electric Company (Corporate)
Building Size: 73,820 SF
Ownership: Fee Simple
Year Built: 2007
TERMS, BASE RENT & OPTIONS
Annual Base Rent: $1,045,043.76
Lease Commencement: January 15, 2008
Lease Expiration: January 14, 2023
Lease Term Remaining: 5+ Years
Options to Renew: (2) 5-Year Options
Rent Increases: 1% annually in Primary & Options
Lease Type: Double Net (NN)
Landlord Responsibilities: Roof, Foundation, Exterior & Load Bear-ing Walls, Replacement of Parking Lot, Driveways & Sidewalks
Tenant Responsibilities: Taxes, Insurance, Maintenance, HVAC
Lee & Associates and Jones Lang LaSalle - collectively the “Marketing Team” - have been exclusively retained to market for sale the fee-simple interest in 721 Visions Drive located in Skaneateles Falls, NY. The Property, which sits on approximately 17.78 acres, consists of a 73,820-square-foot concrete industrial building that is 100% leased to GE Inspection Technologies, LP, a wholly-owned subsidiary of General Electric Company, on a long-term double-net lease through mid-January 2023. The tenant recently exercised a lease extension for an additional five (5) years, with 1% annual rent increases in the primary term as well as the two (2) five-year options.
GE Inspection Technologies is a business unit of GE that offers smart, predictive, integrated industrial measurement, inspection and control products. The company develops and manufactures every bore scope in the world for GE out of this location, which was built in 2007 as a custom build-to-suit location for the tenant. The site features specialized clean lab improvements and highly technical materials specific to this location, confirming the site as an irreplaceable location for the tenant.
The Property is located in Skaneateles Falls, NY, which lies approximately 16 miles southwest of Syracuse. The City of Syracuse is the region’s major metropolitan center, with approximately 136 million people living within a 750-mile radius of Syracuse. This radius includes the populations of Boston, New York City, Philadelphia, Baltimore, Washington, Pittsburgh, Toronto and Montreal. Within a 750-mile radius of the Greater Syracuse area, companies have access to over 50% of all United States business establishments, United States and Canadian manufacturing facilities and United States wholesale sales.
Its central location at the intersection of two major interstates - the east-west thruway, I-90, and the north-south I-81 - and a well-developed transportation network have made Syracuse a major distribution center, with more than 150 motor carriers and small package carriers servicing the area, as well as seven major airlines and affiliated commuter services offering approximately 250 daily arrivals and departures to the region.
PROPERTY SUMMARY
RENT SCHEDULE - PRIMARY TERM
Start Date End Date NOI/Yr NOI/Mo NOI/SF/Yr NOI/SF/Mo Increase over Previous Term
(Current) 2/1/2017 1/14/2018 $1,045,043.76 $87,086.98 $14.16 $1.18 --
(Extension) 1/15/2018 1/14/2019 $1,055,494.20 $87,957.85 $14.30 $1.19 1%
1/15/2019 1/14/2020 $1,066,049.14 $88,837.43 $14.44 $1.20 1%
1/15/2020 1/14/2021 $1,076,709.63 $89,725.80 $14.58 $1.21 1%
1/15/2021 1/14/2022 $1,087,476.73 $90,623.06 $14.73 $1.23 1%
** 1/15/2022 1/14/2023 $1,098,351.50 $91,529.29 $14.88 $1.24 1%
OPTION PERIODS - (2) 5-Year Options
Option 1 1/15/2028 1/14/2029 $1,109,335.00 $92,444.58 $15.03 $1.25 1%
1/15/2029 1/14/2030 $1,120,428.36 $93,369.03 $15.18 $1.26 1%
1/15/2030 1/14/2031 $1,131,632.64 $94,302.72 $15.33 $1.28 1%
1/15/2031 1/14/2032 $1,142,948.97 $95,245.75 $15.48 $1.29 1%
1/15/2032 1/14/2033 $1,154,378.46 $96,198.20 $15.64 $1.30 1%
Option 2 1/15/2033 1/14/2034 $1,165,922.24 $97,160.19 $15.79 $1.32 1%
1/15/2034 1/14/2035 $1,177,581.47 $98,131.79 $15.95 $1.33 1%
1/15/2035 1/14/2036 $1,189,357.28 $99,113.11 $16.11 $1.34 1%
1/15/2036 1/14/2037 $1,201,250.85 $100,104.24 $16.27 $1.35 1%
1/15/2037 1/14/2038 $1,213,263.36 $101,105.28 $16.43 $1.37 1%
GE INSPECTION FACILITY | Skaneateles Falls, NY
** Tenant has the right to terminate after 4 years.
• Recognizable Corporate Brand: The property is leased by GE Inspection Technologies, LP, a business unit of General Electric Corporation (NYSE: GE) that offers smart, predictive, integrated industrial measurement, inspection and control products with solutions for oil & gas, aerospace, power generation & more. General Electric Corporation is an American multinational company that operates through the following segments: Power & Water, Oil and Gas, Aviation, Healthcare, Transportation and Capital which cater to the needs of Financial services, Medical devices, Life Sciences, Pharmaceutical, Automotive, Software Development and Engineering industries.
• Corporate Guaranty: The lease is corporate guaranteed by General Electric Corporation, which has ranks high in the Forbes Global 2000, is one of the largest firms in the United States by revenue, and has business units throughout the world. This stability and industry excellence offers an investor an outstanding investment opportunity.
• Custom Build to Suit Construction: Built in 2007 as a custom build to suit location for GE Inspection Technologies, the site features specialized clean lab improvements and highly technical materials, confirming this site as a irreplaceable location for the tenant.
• Proximity to Syracuse: The property is located approximately 16 miles from Syracuse. The City of Syracuse, located in Onondaga County, is the region’ s major metropolitan center. It has been appropriately called the Crossroads of New York State, due to its central location and the fact the State’s two major interstate routes the east-west New York State Thruway (Interstate 90) and north-south Interstate 81 intersect here.
• Transportation Hub: More than 150 motor carriers and small package carriers service the Syracuse area. Air and rail terminals are just 15 minutes from downtown. Seven major airlines, along with affiliated commuter service, offer approximately 250 daily arrivals and departures.
• Excellent Demographics: There are over 191,000 people who live within a 15 mile radius of the subject property. The Average Household Income tops $98,000 within a 5 mile radius, reflecting a strong economy and draw for workers.
PROPERTY HIGHLIGHTS
GE INSPECTION FACILITY | Skaneateles Falls, NY
PROPERTY PHOTOS
GE INSPECTION FACILITY | Skaneateles Falls, NY
LOCATION MAP
GE INSPECTION FACILITY | Skaneateles Falls, NY
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DEMOGRAPHICS
GE INSPECTION FACILITY | Skaneateles Falls, NYDemographic Source: Applied Geographic Solutions 04/2017, TIGER Geography page 1 of 1©2017, Sites USA, Chandler, Arizona, 480-491-1112
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SUMMARY PROFILE2000-2010 Census, 2017 Estimates with 2022 ProjectionsCalculated using Weighted Block Centroid from Block Groups
Lat/Lon: 42.9876/-76.4548RS1
721 Visions Dr5 mi radius 10 mi radius 15 mi radius
Skaneateles Falls, NY 13153PO
PULA
TIO
N
2017 Estimated Population 13,361 79,456 193,178
2022 Projected Population 13,021 77,591 190,958
2010 Census Population 13,462 81,204 194,400
2000 Census Population 13,485 81,569 194,202
Projected Annual Growth 2017 to 2022 -0.5% -0.5% -0.2%
Historical Annual Growth 2000 to 2017 -0.1% -0.2% -
2017 Median Age 45.2 43.2 41.9
HO
USE
HO
LDS
2017 Estimated Households 5,402 33,391 81,179
2022 Projected Households 5,482 34,114 83,540
2010 Census Households 5,249 32,891 78,872
2000 Census Households 5,095 31,549 75,840
Projected Annual Growth 2017 to 2022 0.3% 0.4% 0.6%
Historical Annual Growth 2000 to 2017 0.4% 0.3% 0.4%
RAC
E AN
DET
HN
ICIT
Y
2017 Estimated White 95.5% 91.9% 89.1%
2017 Estimated Black or African American 1.3% 4.1% 5.5%
2017 Estimated Asian or Pacific Islander 1.0% 1.0% 1.3%
2017 Estimated American Indian or Native Alaskan 0.3% 0.3% 0.5%
2017 Estimated Other Races 1.8% 2.7% 3.6%
2017 Estimated Hispanic 2.1% 2.6% 3.8%
INC
OM
E 2017 Estimated Average Household Income $99,429 $79,553 $77,660
2017 Estimated Median Household Income $80,427 $66,868 $66,329
2017 Estimated Per Capita Income $40,477 $33,812 $32,843
EDU
CAT
ION
(AG
E 25
+)
2017 Estimated Elementary (Grade Level 0 to 8) 1.8% 1.9% 2.1%
2017 Estimated Some High School (Grade Level 9 to 11) 5.0% 7.2% 6.8%
2017 Estimated High School Graduate 25.5% 27.5% 27.7%
2017 Estimated Some College 15.5% 18.1% 18.0%
2017 Estimated Associates Degree Only 12.9% 14.0% 13.2%
2017 Estimated Bachelors Degree Only 21.9% 18.4% 18.7%
2017 Estimated Graduate Degree 17.4% 12.8% 13.4%
BUSI
NES
S 2017 Estimated Total Businesses 778 3,581 7,245
2017 Estimated Total Employees 8,695 41,029 85,309
2017 Estimated Employee Population per Business 11.2 11.5 11.8
2017 Estimated Residential Population per Business 17.2 22.2 26.7
5 Miles
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GE INSPECTIONS TECHNOLOGY FACILITY721 Visions Drive, Skaneateles Falls, NY
Ryan Barr | Principal760.448.2446
Ryan Bennett | Principal760.448.2449
Todd Torok | Managing Director312.228.3738
MARKETING TEAM
INVESTMENT OPPORTUNITY
No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice.