CS1031 Midwest Industrial, DST
Long-Term Absolute Net Lease New 20-year, absolute net lease with 2% average annual rent escalations. Tenant is responsible for all expenses, including taxes, insurance, maintenance, repairs and capital improvements. Desirable Tenant Creative Extruded Products is an original equipment manufacturer and aftermarket manufacturer of vehicle parts for the auto industry with more than $40 million in revenues and $9 million EBITDA on average annually.¹
Founded in 1979, the company has a diversified client base and strong domestic market share. Creative Extruded Products has grown to have approximately 300 employees with 14 production lines.² The company has a robust in-house engineering team that designs all of its manufactured parts, and designs and develops all of its production equipment needed to manufacture the final products. The company holds industrial certifications including ISO 9001 and IATF16949, the International Standard for Automotive Quality Management Systems. The certifications are a necessity in the industry and would be very difficult to re-attain if production lines were relocated.
Growing Revenue In early 2019, Creative Extruded Products acquired an injection molding company, which allows it to manufacture new parts using different materials. The new lines of production and the expansion of existing lines allow the company to potentially grow revenues and diversify its client base by adding new products for a variety of new vehicles. Due to a new partnership with Volkswagen, the company will provide injection moldings for vehicles manufactured in America.
Excellent Location The facility is strategically located in a dense industrial corridor within the North Dayton MSA, the metro’s largest submarket of Dayton, Ohio.3
Sources: 1. Creative Extruded Products Income Statement (between 2014 and 2018)
2. Creative Extruded Products, LLC
3. Costar Market information is provided for educational purposes and is general in nature. It may not predict the performance of the property.
Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 Midwest Industrial, DST offering and member FINRA/SIPC. Capital Square and WealthForge are not affiliated.
Consider the Risks: An investment in the Interests involves substantial investment and tax risks, including, without limitation, the following risks:
- Past performance is not a guarantee of future results.
- The economic success of the Interests will depend upon the results of operations of the Property. Fluctuations in vacancy rates, rent schedules, and operating expenses can adversely affect operating results or render the sale or refinancing of the Property difficult or unattractive.
- The Master Tenant’s capitalization is supported solely by the cash flow from the underlying tenant lease. The Sponsor is not under any obligation to contribute capital to the Master Tenant.
- No assurance can be given that future cash flow will be sufficient to make the debt service payments on any borrowed funds and also cover capital expenditures or operating expenses.
- No assurance can be given that Beneficial Owners of Interests will realize a substantial return (if any) on their investment or that they will not lose their entire investment in the Trust.
- The Interests are not freely transferable by the Beneficial Owners.
- There are various risks associated with owning, financing, operating, and leasing commercial properties in Ohio.
- The Interests do not represent a diversified investment.
- Beneficial Owners must completely rely on the Master Tenant to collect the rent and operate, manage, lease, and maintain the Property.
- The Beneficial Owners have no voting rights with respect to the management or operations of the Trust or in connection with the sale of the property.
- There are various conflicts of interest among the Trust, the Sponsor, the Signatory Trustee, and their Affiliates.
- The Interests are illiquid.
- There are tax risks associated with an investment in the Interests.
- There are risks related to competition from properties similar to and near the property.
- There may be environmental risks related to the property.
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LocationTipp City (Dayton MSA), OH
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Overview
Industrial corporate headquarters and manufacturing facility