RamFab Industrial Investment

Investment Overview

Rare opportunity to acquire a long-term leased industrial property occupied by RAM Fabrication LLC (RAMFab), a manufacturer of fabricated metal products serving the HVAC and related industries. The property consists of approximately 17.42 acres across two parcels and includes four buildings located at 2449 and 2462 Patterson Bridge Road Extension in Hephzibah, Georgia. While the business name has changed over the years, this property has been used for sheet metal manufacturing since 1977. The property is subject to an amended and restated 120-month lease commencing December 9, 2024, providing a long-term income stream with three additional five-year renewal options. Initial base rent is $390,000 annually, with contractual increases to $429,000 during the first renewal period, $450,450 during the second renewal period, and $472,972.50 during the third renewal period. The lease is structured as a triple-net lease, with the tenant responsible for real estate taxes, operating expenses, utilities, and the majority of property maintenance. The landlord retains responsibility for structural components, including the foundation, exterior walls and roof. The property also benefits from a broad permitted use provision and a tenant right of first offer related to potential development of currently undeveloped portions of the property - there's significant room for new development which creates value-add potential for the new owner - the tenant has a right of first refusal to occupy any new improvements made on the property. Tenant does not have a ROFR on the purchase of the property. The combination of a long-term industrial tenancy, contractual rent growth, NNN lease structure, and substantial acreage provides an attractive opportunity for an investor seeking durable cash flow with additional long-term upside. Note: The current owner provided $78,080 to tenant for improvements to the front office. In return, the tenant pays an additional $1,100 per month throughout the remainder of the initial term. Pricing and based on an NOI of $390,000, asking cap of 8%, with a reimbursement of current owners $78,080, for a total asking price of $4,953,080. This will allow the new owner to receive obtain a true 10% rent increase each renewal.

Investment Highlights

• Long-Term Lease: 120-month initial term commencing December 9, 2024, with three additional five-year renewal options.
• Contractual Rent Growth: Base rent increases from $390,000 to $429,000 at the first renewal, followed by 5% increases at each subsequent renewal period.
• NNN Lease Structure: Tenant is responsible for real estate taxes, operating expenses, utilities and the majority of property maintenance, limiting the landlord's ongoing operating responsibilities.
• 17.42± Acres: Property encompasses approximately 17.42 acres across two parcels, providing a significant land component and potential future utility.
• Established Industrial Tenant: RAM Fabrication (RAMFab) operates the facility as an industrial manufacturing operation, providing an existing operational use for the property and a long-term occupancy commitment.