Prism Plastics

Meadville, PA

Offering Summary

  • Status: closed
  • Price: $3,875,000
  • CAP Rate: 7.00%
  • GLA: 68,730 SF
  • Net Operating Income: $271,362
  • Price/SF: $59
  • Year(s) Built: 1981, 1993-1995
  • Lot Size (Acres): 4.183 Acres
  • Lease Type: Double Net
  • New 7-Year Net Lease of Existing 68,730 SF Prism Plastics Manufacturing Facility in Meadville, PA
  • Offering Consists of Three Connected Buildings and a Freestanding Shop on 4.18 Acres; 83% Production & Warehousing RBA and 17% Office RBA
  • Prism Plastics is Wholly Owned by Marmon Group, a Berkshire Hathaway Company (NYSE: BRK-A); Marmon Reported Over $7.6 Billion in 2020 Revenue & Berkshire Reported $286 Billion in 2020 Revenue with a $660 Billion Market Cap
  • Very Landlord-Favorable Double-Net Lease: Landlord-Responsibilities Limited to Replacement of Roof, Structure & Parking Lot Only (Tenant Required Repair & Maintain)
  • Sticky Real Estate with Massive Tenant Investment into Fixtures & Building Equipment – Compressed Air Systems, Central Chiller Plants, 480V/277V 3-Phase Electrical Service with On-Site Transformers, Large HVAC Capacity, Wire Guided Tow Motor System, Six Overhead Cranes, and More
  • Strong Commitment to the Site: Prism & its Predecessor Have Been Operating at the Site Since 1980, New 7-Year Lease Commenced August 1, 2021
  • Mission-Critical Facility: Operates 24/7, Largest Prism Plastics Manufacturing Facility of 6 Facilities Across the U.S. and Mexico; Over Double the Size of each of their Next Two Largest Facilities
  • Primary Manufacturing On-Site Includes Plastic Injection Molding of Tight-Tolerance Electrical Connectors as well as Engineering & Machining of Complex Molds & Tooling; 37 Molding Machines on Site up to 450-Ton Models, with Robots and Automation as well
  • $175,000 in Capital Improvements to be Completed in 2021 Including Roof & Gutter Repairs, Parking Lot Resurfacing & Striping, HVAC Repairs, and More
  • Low Rent Factor of $3.95/SF; Priced Well-Below Replacement Cost at $59/SF
  • $0.25/SF Rent Increase in 2024 Increases CAP Rate by 42 BPS; CPI Increases in Options
  • Tenant Indemnifies Landlord for Enviro/ Haz Mat Issues Whether Occurring During or Prior to the Lease; Indemnity Survives Termination/Expiration of Lease
  • Logistically Superior Location: Facility is Located Just 1.8 Miles from I-79 – Major North-South Interstate Connecting to Pittsburgh & Erie, and within an 8-Hour Drive of 40% of the U.S. Population Including the Entire East Coast
  • Meadville, PA is 1.5 Hours North of Pittsburgh, 45 Minutes South of Erie, PA, and Less Than 2 Hours from Cleveland
  • Meadville is the County Seat of Crawford County with a Market Population of 88,765 – Highly Stable Manufacturing Workforce
EXCLUSIVELY LISTED BY:

Erin Patton

Senior Managing Director