NOAA National Logistics & Reconditioning Center: Grandview, MO (Kansas City MSA)

INVESTMENT OVERVIEW(1,2,3)

CLASS A INDUSTRIAL DISTRIBUTION SPACE
The Property consists of 225,617 square feet of class A industrial distribution space. Building features include state-of-the-art safety and security measures, as well as a commitment to energy efficiency and use of eco-friendly materials. Furthermore, the Property represents best-in-class industrial building specifications, including a large dock and drive-in doors, efficient energy systems, and 32-foot high ceilings.

MISSION-CRITICAL FACILITY
This facility is the only NOAA NLSC/NRC facility in the United States. NLSC (National Logistics Support Center) and NRC (National Reconditioning Center) are the Sole Providers of logistical and depot field support for a high volume of mission-critical National Weather Service equipment. Built-to-suit for NOAA and completed in November 2015, the National Logistics and Reconditioning Center repairs and warehouses computers, electronics, and radar equipment used by meteorologists to create forecasts and track approaching storms.

LONG-TERM GSA LEASE WITH UNITED STATES GOVERNMENT
The Property is 100% leased to NOAA through the General Services Administration (GSA) and backed by the credit of the United States government (S&P AA+ / Moody’s Aaa / Fitch AAA). There are currently 15.5 years (4) remaining on the original 20-year lease term, which expires on October 31, 2035.

ASSUMABLE NON-RECOURSE DEBT WITH ONLY A 9% EQUITY REQUIREMENT
This offering allows an investor to acquire the property with a 9% equity requirement and by assuming the existing, non-recourse financing in place. The subject property is structured as a zero cash flow offering but contains a small amount of residual cash flow.

SIGNIFICANT DEPRECIATION POTENTIAL
Potential depreciation could allow investor to match their entire equity investment in just 3 years

$9,876,747 OF AMORTIZATION IN 10 YEARS / 3x ORIGINAL EQUITY INVESTMENT(2)
The debt amortization during the first ten years of ownership is three times the original equity investment, or $9,876,747.

KANSAS CITY METRO LOCATION
NOAA has been operating in Kansas City since 1949. The NOAA facility is located 19 miles south of downtown Kansas City in the geographic center of the country and at times referred to as the “Heart of America.” This strategic location allows it to operate as the sole repair and distribution center for NOAA and its sub-agencies. The metro’s population of more than 2.1 million, which reflects a growth rate of 18% since 2000, is expected to exceed 2.2 million residents by 2022. There are more limited access highway lane-miles per capita than any other large US metro area, over 50% more than the average American metropolitan area.

UNIQUE FINANCING STRUCTURE OFFERS SEVERAL KEY ADVANTAGES(1,2)

• The subject property’s low equity requirement may provide a portfolio diversification strategy for 1031 exchange investors seeking to acquire multiple trade properties
• The 9% equity requirement is an ideal investment vehicle for investors seeking to add a credit tenant to their portfolio or trust with a minimal cash outlay
• The offering may present a tax deferred exchange strategy for investors in a 1031 exchange saddled with a large debt liability and little equity to trade by providing high leverage, non-recourse financing that is difficult to find in today’s market
• Paydown / Re-advance structure on debt allowing a unique tax deferral strategy

(1) Rentable Area, Lot Size, Guarantor, Lease Terms, Building Specifications, Year Built, Total Amortization, Percentage Amortization to Equity and S&P Rating are estimates. Buyer is responsible for verifying during the Due Diligence process.
(2) Warning-This is a projection model only and in no way guarantees the performance of the subject property. Buyer will need to rely on their internal projections only in determining the suitability of this investment.
(3) Warning-IRS Circular 230 Disclosure: Marcus & Millichap and its affiliates do not provide tax advice and nothing contained herein including, without limitation, the provision of the following preliminary cost segregation estimate, should be construed to be tax advice. Please be advised that any discussion of U.S. tax matters contained herein (including any attachments) (I) is not intended or written to be used, and cannot be used, by the recipient of any Information for the purpose of avoiding U.S. tax-related penalties; and (II) was written to support the promotion or marketing of the transaction or other matters addressed herein. Accordingly, any recipient of this marketing brochure should seek advice based on your particular circumstances from an independent tax advisor.
(4) Tenant has termination right in Year 15 of the lease.

MO Broker of Record: Brad Barham
License: 2013016939