TRMI & SnackWerks | Springfield, MI

• PRICING  - $4,567,125
• CAP RATE - 8.00%
• NOI - $365,370
• LEASE TYPE - NNN
• BUILDING SIZE - 86,574 SF*
  • *114,162 SF including mezzanine level
• LOT SIZE - 10.80 ACRES

TRMI & SNACKWERKS
This offering is for a 100% occupied, two-tenant NNN industrial manufacturing property featuring TRMI and Snackwerks as the tenants. TRMI, a subsidiary of Tokai Rika Co Ltd (A+ credit rating), is a manufacturer of automobile parts and accessories, including key systems, shift levers, restraint systems, and switches for original equipment manufacturers. SnackWerks is a flexible, mid-scale food manufacturer that specializes in the production of high-quality snacks across a variety of product formats.

NNN LEASES - MINIMAL LANDLORD RESPONSIBILITIES
Both tenants operate under triple net leases, resulting in minimal landlord management obligations. Landlord’s responsibilities are limited to the roof & structure. Additionally, the property recently underwent a $1.5 million renovation, including a ~65% new TPO roof with a 20-year transferable warranty and new & upgraded building systems, which include substantial updates to the fire sprinkler system - new pump, electronics, ESFR pipes and heads.

​​​​​​​INVESTMENT GRADE CREDIT ANCHOR TENANT (TRMI)
The anchor tenant, TRMI, is a fully owned subsidiary of Tokai Rika Co Ltd, a Japanese publicly traded company with an investment grade credit rating of “A+”. Tokai Rika Co also has annual revenue exceeding $3.8 billion.

NEW LONG-TERM LEASES IN PLACE
TRMI and SnackWerks both have long-term leases in place, which expire on 3/31/2028 (TRMI) and 10/31/2030 (SnackWerks), respectively. This brings the Weighted Average Lease Term (WALT) to 3.8+ Years. TRMI’s lease features 2% annual bumps and two, 3-year renewal options, while SnackWerks has two, 5-year renewal options with rent set at Fair Market Value.

POTENTIAL FOR VALUE-ADD - ADDITIONAL 27,588 SF MEZZANINE
The property has value-add potential with additional leasable area of 27,588 SF on the mezzanine level, providing an investor with the opportunity for increased rental income.

EXCELLENT REAL ESTATE FUNDAMENTALS
The subject property is strategically located in a hotbed of industrial properties within Springfield. Additionally, the below market rent provides security and a strong basis for future upside for any potential investor.