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leasebacks for sale

Leasebacks For Sale Net Lease Industrial

Date October 29, 2016

The Boulder Group is pleased to exclusively market  a leasebacks for sale single tenant SC2 Supply Chain Services and Solutions (SC2) sale leaseback opportunity located in the Peoria MSA. The property is strategically positioned in the immediate vicinity to numerous large Caterpillar manufacturing plants. The SC2 property is utilized for contract packaging and cross dock services for Caterpillar. The SC2 lease will have an initial primary term of seven years remaining upon close of escrow. This absolute triple net lease will feature 2% annual rental escalations.

The SC2 property is located on over 44 acres and features five steel office-warehouse light industrial buildings of different sizes totaling 482,236 square feet. The surrounding area is affluent with average annual household incomes within a five mile radius in excess of $104,000. There are over 45,000 people living within a seven mile radius of the property. Mossville is a town located just north of Peoria and is part of the Peoria MSA. The Peoria MSA has a population of approximately 375,000 people, making it the third largest metropolitan area in the state of Illinois. 

In addition to being utilized for contract packaging and cross dock services for Caterpillar, top coat industrial finishing is also performed on a small array of service parts received at this location prior to packaging. The contract packaging business services post production service parts throughout Caterpillar’s dealer network. Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Caterpillar is a publicly traded company on the New York Stock Exchange (CAT) with a market capitalization in excess of $46 billion. 

In addition to the Caterpillar plants, the immediate area will soon benefit from a recently announced partnership between Caterpillar and SunSelect. In the partnership, SunSelect would buy land that Caterpillar owns next to its energy generation facility to build a hydroponic greenhouse. The greenhouse would use excess thermal energy and carbon dioxide from Caterpillar’s facility, boosting healthy plant production. While plans aren’t finalized yet, the empty land could soon be filled with up to 60 acres of greenhouses and bring 300 jobs to the area. The SunSelect company launched in British Columbia in 1985, now operates more than 70 acres of greenhouses in Canada and California, serving as one of the largest producers of bell peppers in North America.

SC2 currently offers air filtration products & service, steel fabrication, kitting, assembly, industrial blasting & painting, inventory management, warehousing, and in-house maintenance across 11 locations in three states (Illinois, Wisconsin & Texas). Currently, SC2 is the largest down-state Illinois contract packager for a Caterpillar and Mitsubishi.