7 STAFFORDSHIRE PLACE
7 STAFFORDSHIRE PLACE Toronto, ON INVESTMENT OPPORTUNITY INDUSTRIAL ASSET | 100% OCCUPIED | 57,853 SQ. FT.
1
Evan S. White* Executive Vice President 416.798.6232 [email protected] *Sales Representative
Ted McNab* Vice President 416.798.6226 [email protected]
2
EXECUTIVE SUMMARY
3
EXECUTIVE SUMMARY
THE OPPORTUNITY CBRE Limited (“CBRE”), on behalf of John B. Davies (the “Vendor”), is pleased to offer for sale a 100% freehold interest in 7 Staffordshire Place, Toronto (the “Property”), a 57,853 sq. ft. freestanding industrial building on 2.0 acres as well as a 0.53 acre parking lot located south of the building which is used as a parking lot. The previous owner, Darcor Limited, sold the building as a 10 year leaseback in 2008. There are 2.9 years left on their lease which ends January 31st, 2018. Darcor Limited was founded in 1931 and has been the world leader in high performance caster solutions. They manufacture a complete line of high quality, ergonomic casters, wheels and protective rubber bumpers for all industries. Their products are widely used in the medical, automotive, floor sweeping and lift truck industries.
HIGHLIGHTS INCLUDE:
Confidential Information Memorandum 4
100% single tenant facility with quality tenant
Portion of the building has been recently constructed
Parking lot area has residential zoning. This potentially could be developed if an alternate parking solution is found. This could include a partial demolition of the existing structure or alternate neighboring site.
Located in a developing neighborhood.
PROPERTY OVERVIEW
5
THE PROPERTY Building Specs
Warehouse
Office
Total
Clear height
Shipping
Original Building (1954)
35, 316 sq. ft.
1,575 sq. ft.
36,891 sq. ft.
12’8” & 18’
1 Truck level 1 Drive in
Addition (1997)
14,619 sq. ft.
6,343 sq. ft.
20,962 sq. ft.
24’
2 Truck level 1 Drive in
49,935 sq. ft.
7,919 sq. ft.
57,853 sq. ft.
12’8” – 24’
3 Truck level 2 Drive in
Total Site Specs
Size
Zoning
Building
2 Acres
E1
Parking lot
0.53 Acres
RM (U4)(X2) * Residential
Original Building 36,891 sq. ft. Zoning: E1
Confidential Information Memorandum 6
New Addition 20,962 sq. ft. Zoning: E1
Parking Lot 0.53 Acres Zoning: RM (U4)(X2)
THE PROPERTY
Confidential Information Memorandum 7
This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved. Mapping Sources: Canadian Mapping Services [email protected]; DMTI Spatial, Environics Analytics, Microsoft Bing, Google Earth
ZONING E1 Zoning - Permitted Uses With Conditions
E1
RM (u4)(x2)
Building – Employment: E1 E1 Zoning - Permitted Uses
Parking Lot – Residential: RM(u4)(x2) RM Zoning - Permitted Uses
RM Zoning - Permitted Uses With Conditions E1
Confidential Information Memorandum 8
RM (U4) (X2)
ZONING RM (u4)(x2) Zoning Permitted Building Types a) b) c) d) e)
Detached House Semi-Detached House Duplex Triplex Fourplex
Principle Building Requirements
Exception RM 2
Confidential Information Memorandum 9
FINANCIAL OVERVIEW
Confidential Information Memorandum
10
INCOME OVERVIEW Income Summary Asking Price
$4,650,000
Rent
Annual
$313,919.40
Property Management Fee
2% of gross rent
Return
6.75%
Lease Expiry
January 31st, 2018
CURRENT RENT We are currently in year 8 of the lease term. Lease year
Area
Rent PSF
Monthly Rent
Annual Rent
1-5
57,853 sq. ft.
$5.00
24,105.41
$289,264.92
6-10
57,853 sq. ft.
$5.50
26,159.95
$313,919.40
ADDITIONAL RENT As set out in the current lease, Darcor Limited is to pay “Additional Rent” without deduction or set-off, the tenant’s proportionate share of the operating costs (based on 57,853 sq. ft.)
OPERATING COSTS Lighting and other utilities, signage, cleaning, snow and refuse removal, supervising, policing and security, parking lots and landscaping Repair and replacement of all equipment used in the operation and maintenance of the Land and Building Repair, other than major structural repair Insurance premiums Property management fee which shall be 2.5% of the gross rent Taxes Confidential Information Memorandum 11
RENEWAL Darcor Limited has the right of renewal for five (5) years on the same terms and conditions as set forth in the existing lease. The minimum rental to be paid during the renewal term shall not be less than the basic rent paid during the last twelve (12) months of the current rental term and shall be settled by agreement between the Landlord and the Tenant within three (3) months prior to the expiration of the existing term. If the Tenant and Landlord fail to agree in the specified time period, then the minimum rental shall be fair rental value.
1
Evan S. White* Executive Vice President 416.798.6232 [email protected] *Sales Representative
Ted McNab* Vice President 416.798.6226 [email protected]
2
EXECUTIVE SUMMARY
3
EXECUTIVE SUMMARY
THE OPPORTUNITY CBRE Limited (“CBRE”), on behalf of John B. Davies (the “Vendor”), is pleased to offer for sale a 100% freehold interest in 7 Staffordshire Place, Toronto (the “Property”), a 57,853 sq. ft. freestanding industrial building on 2.0 acres as well as a 0.53 acre parking lot located south of the building which is used as a parking lot. The previous owner, Darcor Limited, sold the building as a 10 year leaseback in 2008. There are 2.9 years left on their lease which ends January 31st, 2018. Darcor Limited was founded in 1931 and has been the world leader in high performance caster solutions. They manufacture a complete line of high quality, ergonomic casters, wheels and protective rubber bumpers for all industries. Their products are widely used in the medical, automotive, floor sweeping and lift truck industries.
HIGHLIGHTS INCLUDE:
Confidential Information Memorandum 4
100% single tenant facility with quality tenant
Portion of the building has been recently constructed
Parking lot area has residential zoning. This potentially could be developed if an alternate parking solution is found. This could include a partial demolition of the existing structure or alternate neighboring site.
Located in a developing neighborhood.
PROPERTY OVERVIEW
5
THE PROPERTY Building Specs
Warehouse
Office
Total
Clear height
Shipping
Original Building (1954)
35, 316 sq. ft.
1,575 sq. ft.
36,891 sq. ft.
12’8” & 18’
1 Truck level 1 Drive in
Addition (1997)
14,619 sq. ft.
6,343 sq. ft.
20,962 sq. ft.
24’
2 Truck level 1 Drive in
49,935 sq. ft.
7,919 sq. ft.
57,853 sq. ft.
12’8” – 24’
3 Truck level 2 Drive in
Total Site Specs
Size
Zoning
Building
2 Acres
E1
Parking lot
0.53 Acres
RM (U4)(X2) * Residential
Original Building 36,891 sq. ft. Zoning: E1
Confidential Information Memorandum 6
New Addition 20,962 sq. ft. Zoning: E1
Parking Lot 0.53 Acres Zoning: RM (U4)(X2)
THE PROPERTY
Confidential Information Memorandum 7
This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved. Mapping Sources: Canadian Mapping Services [email protected]; DMTI Spatial, Environics Analytics, Microsoft Bing, Google Earth
ZONING E1 Zoning - Permitted Uses With Conditions
E1
RM (u4)(x2)
Building – Employment: E1 E1 Zoning - Permitted Uses
Parking Lot – Residential: RM(u4)(x2) RM Zoning - Permitted Uses
RM Zoning - Permitted Uses With Conditions E1
Confidential Information Memorandum 8
RM (U4) (X2)
ZONING RM (u4)(x2) Zoning Permitted Building Types a) b) c) d) e)
Detached House Semi-Detached House Duplex Triplex Fourplex
Principle Building Requirements
Exception RM 2
Confidential Information Memorandum 9
FINANCIAL OVERVIEW
Confidential Information Memorandum
10
INCOME OVERVIEW Income Summary Asking Price
$4,650,000
Rent
Annual
$313,919.40
Property Management Fee
2% of gross rent
Return
6.75%
Lease Expiry
January 31st, 2018
CURRENT RENT We are currently in year 8 of the lease term. Lease year
Area
Rent PSF
Monthly Rent
Annual Rent
1-5
57,853 sq. ft.
$5.00
24,105.41
$289,264.92
6-10
57,853 sq. ft.
$5.50
26,159.95
$313,919.40
ADDITIONAL RENT As set out in the current lease, Darcor Limited is to pay “Additional Rent” without deduction or set-off, the tenant’s proportionate share of the operating costs (based on 57,853 sq. ft.)
OPERATING COSTS Lighting and other utilities, signage, cleaning, snow and refuse removal, supervising, policing and security, parking lots and landscaping Repair and replacement of all equipment used in the operation and maintenance of the Land and Building Repair, other than major structural repair Insurance premiums Property management fee which shall be 2.5% of the gross rent Taxes Confidential Information Memorandum 11
RENEWAL Darcor Limited has the right of renewal for five (5) years on the same terms and conditions as set forth in the existing lease. The minimum rental to be paid during the renewal term shall not be less than the basic rent paid during the last twelve (12) months of the current rental term and shall be settled by agreement between the Landlord and the Tenant within three (3) months prior to the expiration of the existing term. If the Tenant and Landlord fail to agree in the specified time period, then the minimum rental shall be fair rental value.
