Hanon Systems

Carey, Ohio

Offering Summary

  • Status: closed
  • Price: Confidential
  • GLA: 237,155 SF
  • Net Operating Income: $1,218,876
  • Price/SF: $73.42
  • Year(s) Built: 2016
  • Year(s) Renovated: 2018
  • Lot Size (Acres): 34.55
  • Lease Type: Double Net
  • Major Tenants: Hanon Systems
  • 237,155 SF Hanon Systems Net Leased Manufacturing Facility in Carey, OH
  • Double-Net Lease with 8 Years Remaining
  • Original 10-Year Lease Early-Extended and Premises Expanded to More Than Double the Original RBA in 2018
  • 2% Annual Rent Increases Provide Real NOI Growth Over Term & Inflation Hedge
  • Modern, High-Quality Construction: 107,000 SF Original Structure Delivered in 2016 & 135,000 SF Addition Completed in 2018
  • Minimal Deferred Maintenance & Low Landlord Capital Expenditures: Only $42K in Landlord-Responsible Maintenance & Repairs Required Since 2017 (<$10K Per Year)
  • 34.55 Total Acres Included in Sale with Ability to Build an Additional 100,000 – 300,000 SF to Accommodate Tenant Needs and Ensure they Continue to Operate at the Site for Years to Come
  • Sticky Real Estate: Substantial Landlord Construction Cost & Tenant Investment into FF&E, Tenant Has 10-Year Real Estate Tax Incentive from City of Carey
  • Only 18,476 SF (8%) Allocated as Office Space – 92% of RBA is Production & Warehousing
  • Hanon Systems Manufactures Automotive HVAC & Cooling Systems Including Heat Exchangers, Compressors, Water Pumps, Transmission Oil Pumps & Battery Chillers – Ideally Poised to Take Advantage of Electronic Vehicle (EV) Proliferation with Substantial Existing Market Share
  • Publicly-Traded Tenant: $8 Billion Market Cap Global Automotive Supplier, In Business Since 1986 with Global HQ in Daejon, South Korea; Traded on the Korean Stock Exchange
  • Hanon Systems Products are Used by Numerous Traditional Automotive Manufacturers as well as in EV’s from Audi, Mercedes, Porsche, Volkswagen, Ford, Hyundai, Jeep, Rivian, Fiat, Lucid Motors, Skoda & More
  • 1 of Only 2 Hanon Systems Manufacturing Plants in the U.S.; Hanon Operates 51 Manufacturing and 3 Innovation Centers across 21 Countries
  • Supportive Local Workforce Base with 6,233 Residents within 5-Mi & 18,567 Residents within 10-Mi
  • Located in Northwestern Ohio – Logistically Superior State within a One-Day Drive to 60% of the U.S. Population Including the Entire East Coast; Within Mere Hours to Numerous Domestic and Foreign Automotive Manufacturers Plants Throughout OH, KY, MI, IN, and More
  • Within 20 Minutes to One Hour of Three Major Interstates – I-80/I-90 (Major East-West), I-71 (Major North-South), and I-75
  • Carey, OH – Rural Ohio City with Substantial Industrial Operations in the Area Including Vaughn Industries, Continental Structural Plastics, Kasai, National Lime & Stone Company, The Shelly Company, Transglobal Door, and More
EXCLUSIVELY LISTED BY:

Erin Patton

Senior Managing Director