Injection Molding Facilities

Victor & North Liberty (Cedar Rapids), IA

Bldg Size: 276,520 sq. ft. Land: 37.19 Acres Lease Type: Single Tenant NNN

Price: $10,409,234 Yield: 9.13 (CAP) Expiration Date: 8/31/2023

This investment consists of the fee interest in two 15 year NNN leased industrial facilities with 2.25% annual escalations in Victor, Iowa and North Liberty (Cedar Rapids), Iowa. The property can be purchased with $3,809,234 over the existing mortgage yielding the buyer an 11.84% cash on cash return. The tenant is privately held and one of the top 75 custom molders in the United States, led by a savvy CEO with over 30 years of industry experience. Tenant currently operates 118 injection molding machines in 3 plants in Arkansas & Iowa ranging from 30 ton to 3,000 ton in size. Tenant has a solid base of earnings via its relationship with Whirlpool, Electrolux, Kawasaki, Viking, Arctic Cat, Life Cycle and Stryker Medical. Following the recent acquisition of another injection molding company, Tenant’s 2008 combined pro forma revenue is $68.2 million with EBITDAR of $8.9 million and low debt levels. Post close of proposed transactions, the company will have $9.3 million of debt; less than 1.2x pro forma EBITDA at the proposed rent rates. The company will use proceeds from this transaction to pay down its current debt and will have over $4 million of availability on its line of credit.

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