nestlÉ distribution facility

NESTLÉ DISTRIBUTION FACILITY4545 EAST 50TH STREET, DES MOINES, IA 50317

OFFERING MEMORANDUM

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 thor-ough 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. © 2017 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.

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NESTLÉ DISTRIBUTION FACILITY4545 EAST 50TH STREETDES MOINES, IA 50317

SUMMARY

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OFFERING SUMMARYNESTLÉ - DES MOINES, IA 50317

THE OFFERING

PRICE $1,400,000

CAP RATE 6.90%

PRICE/SF $350

BASE RENT $96,600

PROPERTY SUMMARY

RENTABLE SQUARE FEET 4,000 SF

PARCEL NUMBER 060-00712122000

LOT SIZE 2.20 Acres

TYPE OF OWNERSHIP Fee Simple

YEAR BUILT 2018

DOCKS 4 Exterior Loading Docks

CONSTRUCTION Steel Frame

FOUNDATION Concrete

OFFICE BUILD OUT Approximately 1,400 SF

POWER1,000 amp Transformer

w/ 800 amp 3-Phase Service

HEIGHT Slopes From 20’ to 15’

INVESTMENT HIGHLIGHTS

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LEASE OVERVIEW

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DOUBLE NET LEASEMinimal Landlord Responsibility

Population of 190,000 within 5 Miles

Nestlé Dreyer’s Ice Cream Company

Corporate Guaranteed Lease

Des Moines is the Capital and most

Populous City in the State of Iowa

Close Proximity to

Interstates 35, 80, and 235

TENANT TRADE NAME Nestlé SA (NSRGY)

OWNERSHIP Public

TENANTNestlé Dreyer’s

Ice Cream Company

LEASE GUARANTOR Corporate

LEASE TYPE Double Net

ROOF & STRUCTURE Landlord Responsibility

LEASE TERM 5 Years

LEASE COMMENCEMENT 05/14/2018

RENT COMMENCEMENT 06/01/2018

LEASE EXPIRATION 05/31/2023

YEARS LEFT ON INITIAL LEASE 4 Years

INCREASES 7.5% at Option

OPTIONS TO RENEWOne, 5-Year Option

(180 Day Notice)

ANNUAL BASE RENT $96,600

4 YEARS Left on Current Lease

NEWLY CONSTRUCTED Build-to-Suit

7.5% RENT INCREASE AT OPTION RENEWAL

TENANT OVERVIEW

Nestlé S.A. is a Swiss transnational food and drink company headquartered in Vevey, Vaud, Switzerland. It is the largest food company in the world, measured by revenues and other metrics, since 2014. It ranked No. 64 on the Fortune Global 500 in 2017 and No. 33 on the 2016 edition of the Forbes Global 2000 list of largest public companies.

Nestlé’s products include baby food, medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of Nestlé’s brands have annual sales of over CHF1 billion (about US $1.1 billion) including Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer’s, Vittel, and Maggi. Nestlé has 447 factories, operates in 189 countries, and employs around 339,000 people. It is one of the main shareholders of L’Oreal, the world’s largest cosmetics company.

Snapshot of Current Nestlé Portfolio of Companies

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SUBJECT PROPERTY

DES MOINES INTERNATIONAL AIRPORT

19 MILESDOWNTOWN DES MOINES

10.5 MILES

PROXIMITY TO INTERSTATE 80

1.9 MILESPROXIMITY TO INTERSTATES 35 & 235

4.5 MILES

DISTANCE TO:

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SUBJECT PROPERTY

DOWNTOWN DES MOINES

DES MOINES INTERNATIONAL AIRPORT

10.5 MILES

19 MILES 6

SUBJECT PROPERTY

McDonald’s

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DES MOINES

METRO

OVERVIEW

DES MOINES METROOVERVIEW

Home to roughly 639,000 people, the Des Moines metro is the

largest in the state of Iowa and consists of Dallas, Guthrie,

Madison, Polk and Warren counties. The market is approximately

195 miles northeast of Kansas City and 330 miles west of

Chicago. The population is expanding far quicker than the national

average, with nearly 40,000 additional people expected over the

next five years. Incomes are also above the national average,

supporting growth in goods and services.

DEMOGRAPHICS

ECONOMY

METRO HIGHLIGHTS

AFFORDABLE COST OF LIVINGThe cost of living in the metro is 10 percent below the national average, providing higher disposable incomes.

ACTIVE FINANCIAL SERVICES BASEThe mortgage headquarters for Wells Fargo and the national headquarters of Principal Financial Group provide a broad base of financial services jobs.

AGRICULTURE CENTERAccess to fertile farmland and its status as a top producer of corn, soybeans, pork and eggs nationally underpin the metro’s diverse agricultural industry.

Boosted by the diverse agriculture and research environment, John Deere and DuPont Pioneer employ more than 5,000 people combined. There are also several other smaller supply-chain firms.

Hy-Vee, a regional retail grocery and drugstore chain, is headquartered in West Des Moines. Thecompany employs roughly 6,400 people.

In addition to Wells Fargo and Principal Financial Group, who together employ more than 20,000 workers, Nationwide provides thousands of jobs in Des Moines.

Major tech companies Facebook and Microsoft have invested more than $3.5 billion in five datacenter sites. Several other technology firms also have data center facilities in the metro.

2017POPULATION:

252K2017

HOUSEHOLDS:

35.72017

MEDIAN AGE:

$64,400 2017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,3007.4%

Growth2017-2022*:

6.2%

Growth2017-2022*:

639K2017

POPULATION:

252K2017

HOUSEHOLDS:

7.4%

Growth2017-2022*:

6.2%

Growth2017-2022*:

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PopulationIn 2018, the population in your selected geography

is 190,951. The population has changed by 14.10%

since 2000. It is estimated that the population in

your area will be 195,479 five years from now, which

represents a change of 2.37% from the current year.

The current population is 49.19% male and 50.81%

female. The median age of the population in your area

is 35.7, compare this to the Entire US average which

is 38.0. The population density in your area is 2,426.73

people per square mile.

EmploymentIn 2018, there are 133,738 employees in your selected

area, this is also known as the daytime population.

The 2000 Census revealed that 68.31% of employees

are employed in white-collar occupations in this

geography, and 31.60% are employed in blue-collar

occupations. In 2018A, unemployment in this area is

3.93%. In 2000, the average time traveled to work was

19.3 minutes.

IncomeIn 2018, the median household income for your selected

geography is $60,501, compare this to the Entire

US average which is currently $58,754. The median

household income for your area has changed by 33.79%

since 2000. It is estimated that the median household

income in your area will be $70,800 five years from now,

which represents a change of 17.02% from the current

year.

The current year per capita income in your area is

$34,396, compare this to the Entire US average, which

is $32,356. The current year average household income

in your area is $82,038, compare this to the $Entire US

average which is $84,609.

HousingIn 2000, there were 45,271 owner occupied housing

units in your area and there were 23,833 renter occupied

housing units in your area. The median rent at the time

was $501.

Race & EthnicityThe current year racial makeup of your selected area

is as follows: 78.31% White, 9.31% Black, 0.07%

Native American and 5.26% Asian/Pacific Islander.

Compare these to Entire US% averages which are:

70.20% White, 12.89% Black, 0.19% Native American

and 5.59% Asian/Pacific Islander.

People of Hispanic origin are counted independently

of race. People of Hispanic origin make up 8.88%

of the current year population in your selected area.

Compare this to the Entire US average of 18.01%.

HouseholdsThere are currently 79,167 households in your

selected geography. The number of households

has changed by 14.56% since 2000. It is estimated

that the number of households in your area will be

81,802 five years from now, which represents a

change of 3.33% from the current year. The average

household size in your area is 2.33 persons.

DEMOGRAPHICS 5 MILE RADIUS

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DEMOGRAPHICS 5 MILE RADIUS

2000 Population 167,348


2018A Population 190,951


2000 Households 69,104




2018 Average HH Size 2,330

POPULATION HOUSEHOLDS

2017 Daytime Population 251,322

EMPLOYMENT

Median HH Income $60,501

Per Capita Income $34,396

Average HH Income $82,038

2017 INCOME

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Iowa Broker of RecordJon RuzickaLicense #[email protected]: (952)852-9767

nestlÉ distribution facility

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