SVN/Stewart Commercial Group has been retained as the exclusive broker in a 10-year sale leaseback of approximately 175,480 SF of industrial space located in Homer, MI and occupied by RSB Transmissions. RSB Transmissions NA, Inc. is a division of a successful India based multinational company, RSB Transmissions (I) Ltd, which was established in 1975. RSB has facilities in 8 different cities globally. They specialize in manufacturing propeller shafts, axles, transmission components, aluminum castings, ferrous castings, running gear systems and construction equipment aggregates. Their customers include John Deere, Volvo, Caterpillar, International, Fiat, Ashok Leyland, TATA, Mahindra, etc..

The sale leaseback terms include a 10-year Absolute NNN lease with the tenant assuming responsibilities for all CAM, Property Tax, Insurance, and capital expenditures. First year annual rent is proposed to be $210,000 or $1.20/psf NNN. The proposed rental rate is less then 50% of market average. The offering is priced at a very attractive 9.5% cap rate and is priced at $2,210,526. At $12.60/sf the asset that will sell substantially below replacement cost and prevailing market value. The tenant desires the option to buy back the property by the 5th year of their lease.

The property is comprised of two buildings. The main building is approximately 164,680 and includes a 66,540/sf addition that was added in 2012. A second building square feet of 10,800 square feet is used primarily for storage. The buildings are situated on approximately 15 acres of land located just west of town.

Location Description:

Homer, MI is a small community located in southeastern Calhoun County. It is part of the Battle Creek, Michigan Metropolitan Statistical Area. Homer is located at the junction of M-60 and M-99 and is situated on the Kalamazoo River.. The picturesque downtown area contains several turn-of-the-century buildings and an old fieldstone library. Many Residents work in the surrounding communities of Battle Creek, Jackson, Marshall, and Albion, MI.

Highlights:

>> New 10-Year Absolute NNN Lease (No Landlord Responsibilities)

>> Very Attractive 9.5% Cap rate and Low Price Point of $2,210,526

>> Priced At Replacement Cost of $12.60 PSF

>> Multinational Tenant in Business Since 1975

>> 175,480 sq/ft occupied, 66,540 SF Addition in 2012

>> Leaseback Rental Rate far below market ($1.20 psf)

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Sales Info:

>> Commision split: 2.0%