offering memorandum l&w supply (abc supply)

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L&W SUPPLY (ABC SUPPLY)

OFFERING MEMORANDUM

2155 W NORDALE DRIVE | APPLETON, WI 54914

BROKER OF RECORD

KYLE MATTHEWSBroker of RecordLIC #9381054-91 (WI)

EXCLUSIVE LISTING AGENTS:

ALEX HARROLDAssociate Vice President & Senior Director - Industrial

DIRECT 1 310 919 5790MOBILE 1 310 977 [email protected] # 02009656 (CA)

CONTENTINVESTMENT SUMMARY 3

TENANT OVERVIEW 8

PROPERTY OVERVIEW 9

MARKET & LOCATION OVERVIEW 11

WILDER DENHOLMAssociate - Industrial

DIRECT 1 310 919 5778MOBILE 1 203 253 [email protected] # 02071254 (CA)

| MATTHEWS REAL ESTATE INVESTMENT SERVICES | 3

INVESTMENT SUMMARYINVESTMENT HIGHLIGHTS

• Strong/Strategic Location – Strategically located 3 Miles from Appleton

International Airport and 2 miles from Downtown Appleton

• Below Market Rent/No Options to Renew – L&W Supply is paying below

market rent of $2.45 per square foot compared to market rent of $3.50 -

$5.40 per square foot within the Outagamie County Industrial Submarket

experiencing vacancy levels of 1% (Costar). L&W Supply has no options to

renew the lease.

• Future Upside – The tenant recently exercised their last option to renew

and continues until December of 2023, offering a new Landlord high

upside to renegotiate the lease at market rent levels in the future.

• Building Features – Large footprint (61,675 SF) with multiple buildings on-

site (5 buildings), allowing them to store materials and equipment inside

and outside.

• Dense Industrial Market – Located within an industrial corridor with

50+ Industrial facilities, within minutes of Americold Logistics, Atlas Cold

Storage, Motion Industries, Johnson Controls, All-Lift Systems, Fastenal

and many more.

• National Tenant – L&W Supply is one of the nation’s leading distributors

of construction and building products. Recently acquired by ABC Supply,

the largest wholesale distributor of roofing and building products in the

nation with 700+ locations, $8 Billion in Sales, and S&P’s BB rating.

L&W SUPPLY 2155 W Nordale Drive Appleton, WI 54914

List Price $2,065,000

Cap Rate - Current 7.31%

Cap Rate - Proforma Inquire

GLA ± 61,675 SF

Price PSF $33.48

Lot Size ± 3.70 Acres

Year Built 1980

Annualized Operating DataLease Commence Monthly Rent Annual Rent Rent/SF Cap Rate

Current $12,592 $151,104 $2.45 7.31%

Market Rent (CoStar Reported)

$3.50 - $5.40 SF

Tenant L&W Supply (ABC Supply)

Type of Ownership Fee SImple

Lease Guarantor ABC Supply Co. Inc.$8B Revenue / S&P: BB / 700+ Locations

Lease Type NN

Utilities, CAM, Taxes, HVAC, Partial Taxes

Tenant Responsible

Roof & Structure / Paving, Partial Taxes

Landlord Responsible

Original Lease Term 10 Years

Lease Commencement 12/29/2003

Lease Expiration Date 12/31/2023

Term Remaining 5 Years

Increases None

Options None


SURROUNDING AREA

VERSATILE STORAGE

SUBJECT PROPERTY

W NORTHLAND AVE

INTE

RST

ATE

41

WI-96

WI-125

SUBJECT PROPERTY

TENANT OVERVIEW

8 | L&W SUPPLY | TENANT OVERVIEW

ABC SUPPLY

ABC Supply Co., Inc., who recently acquired L&W Supply, is the largest wholesale distributor of roofing in the United States and one of the nation’s largest distributors of siding, windows and other select exterior and interior building products, tools and related supplies. Since their start in 1982, they have grown to become a national organization with more than 700 branches and other facilities in 49 states.

Their success is the result of an unwavering focus on a single, simple guiding principle - treat contractors (large and small) with respect and give them the products and services they need to build their businesses. They offer high quality products, superior service and competitive pricing, ensuring the contractors have the products they need - when and where they need them.

±7,000

TEAM MEMBERS

WORLDWIDE

700+

NATIONWIDE

LOCATIONS

PRIVATE

COMPANY TYPE

BELOIT, WI

HEADQUARTERS

WWW.ABCSUPPLY.COM

WEBSITE

L&W SUPPLYL&W Supply is one of the nation’s largest distributors of wallboard and building materials and is built on being committed to the success of their customers’ work. L&W Supply has local branches that are considered part of the community where they seamlessly work together to meet their consumers’ needs. L&W Supply employees possess extensive knowledge across all markets and industries, therefore, they can help anyone with any project from inquiry to invoice.

L&W Supply also takes pride in the quality of their products. They partner with industry-leading brands to ensure their customers have the access to the best products and resources out there to get the job done well. With extensive technical training, L&W Supply teams strive to keep up with the industry as it evolves and implement any new innovations and supplies.

Overall, L&W Supply is anyone’s project “go-to”, no matter the project’s complexity. They are committed to seeing their customer’s projects through and helping these customers every step of the way.

BBSTANDARD & POOR’S

CREDIT RATING

1982YEAR FOUNDED

$8BSALES VOLUME


PROPERTY OVERVIEW

10 | L&W SUPPLY | PROPERTY OVERVIEW

THE OFFERINGAddress

2155 W Nordale DriveAppleton, WI 54914

GLA ± 61,675 SF

Lot Size ± 3.70 Acres

APN 10-2-2905-00

SITE DESCRIPTION

PARCEL MAP


AREA OVERVIEW

LOCATION OVERVIEW

Appleton is a city located north of Lake Winnebago in Wisconsin. The city shares its history with Lawrence University and their relationship that was established in the early years continues to exist today. Education was and continues to be, a priority in Appleton. Lawrence University has around 1500 students and sits on 84 acres of land east of downtown.

Business has been responsible for Appleton’s economic prosperity and progressive attitude. The paper industry, specifically, has been at the forefront of the development in Appleton with the development of the first paper mill in 1853. Business was also driven by the operation of a commercially successful electric streetcar, retail trade on College Avenue, the Wisconsin Telephone Company, and the Appleton Post Crescent newspaper.

Today, the residents of the community are proud of Appleton’s past and present, and they have great hope in the city’s future and a strong dedication to its ongoing betterment.

POPULATION1-Mile 3-Mile 5-Mile

2023 Projection 12,527 66,868 130,006

2018 Estimate 12,519 64,483 126,859

2010 Census 11,931 61,060 120,147

Growth 2017-2022 3.03 % 3.70 % 2.48 %

INCOME 1-Mile 3-Mile 5-Mile

2018 Est. Average Household Income

$73,742 $75,681 $79,353

12 | L&W SUPPLY | LOCATION OVERVIEW

APPLETON, WI

HOUSEHOLDS1-Mile 3-Mile 5-Mile

2023 Projection 5,342 28,971 56,248

2018 Estimate 5,070 27,264 53,317

2010 Census 4,885 25,242 49,228

Growth 2017-2022 5.37 % 6.26 % 5.50 %


LAWRENCE UNIVERSITYLawrence, University is a residential liberal arts college and conservatory of music founded in 1847 by Mark Burstein and located adjacent to downtown Appleton. Exclusively devoted to undergraduate education, Lawrence takes pride in it’s supportive and welcoming community and currently possesses around 1,500 students.

Diversity and curiosity are fostered by the 167 professors teaching at the university. 92% of the faculty posess either a Ph.D. or other terminal degree and continuously devote themselves to their students through a process coined as “Engaged Learning”. Lawrence sees this method as the most effective way to prepare their students for the future and the key to leading lives of personal fulfillment and professional accomplishment. Engaged learning involves learning that goes beyond the classroom and is what distinguishes a “Lawrence Education” from the rest.

This Offering Memorandum contains select information pertaining to the business and affairs of the L&W Supply located at 2155 W Nordale Drive Appleton, WI 54914 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

The Offering Memorandum and its contents are confidential;

You will hold it and treat it in the strictest of confidence; and

You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

CONFIDENTIALITY & DISCLAIMER STATEMENT


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L&W SUPPLY (ABC SUPPLY)2155 W NORDALE DRIVE | APPLETON, WI 54914


OFFERING MEMORANDUM

BROKER OF RECORDKYLE MATTHEWS

Broker of RecordLIC #9381054-91 (WI)

WILDER DENHOLMAssociate - Industrial

DIRECT 1 310 919 5778MOBILE 1 203 253 0044

[email protected] # 02071254 (CA)

ALEX HARROLDAssociate Vice President & Senior Director -

Industrial

DIRECT 1 310 919 5790MOBILE 1 310 977 1651

[email protected] # 02009656 (CA)

offering memorandum l&w supply (abc supply)

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