NN SINGLE-TENANT INVESTMENT OPPORTUNITY

Q-PAC Systems, Inc.

4010 Deerpark Blvd, Elkton, FL 32033

CONTENTS

1 Executive Summary.........3

2 Sale Analysis.........4

3 Property Summary.........5

4 Economic Analysis.........8

5 Our Team........9

EXECUTIVE SUMMARY

The opportunity to acquire a high quality single tenant industrial building that was built in

2018 for the tenant MAS-HVAC, a top 25 fastest growing company in Northeast Florida, is

now leased to an even faster growing sister company Q-PAC Systems, Inc., which provides

light assembly manufacturing of fan systems for large commercial buildings. Q-PAC was

a division of MAS-HVAC until 2019, when the growth of Q-PAC began outpacing MAS-

HVAC and became an independent company, with common ownership of MAS-HVAC.

Revenues for Q-PAC now outpace MAS-HVAC who has relocated to Minneapolis, MN.

SALE ANALYSIS

INVESTMENT CONSIDERATIONS

Price $4,395,000

Cap Rate 6.70%

Lease Commencement 3/1/2020

Lease Expiration 2/28/2026

Lease Term Remaining 6 years

Total Rent (NOI) $295,350

Rent Escalations 3% annual

Renewal Options

Four 5-year renewal options

Land Size SF 236,095

Acres 5.49

Building Size SF 34,400

DEMOGRAPHIC SNAPSHOT

Radius 1 mile 3 miles 5 miles

Population 1,309 8,079 31,928

Avg HHI $63,539 $70,739 $68,373

5-Year Growth 16.42% 16.86% 16.33%

TRAFFIC COUNTS

Primary Rd 19,324

Secondary Rd 60,027

PROPERTY SUMMARY

Parcel RE# 363870020

Building Size 34,400 SF

Office Area 3,600 SF

Land Area 5.49 AC

Year Built 2017

ZoningPUD - Light Manufacturing/Warehousing

ADDRESS4010 Deerpark BoulevardElkton (St. Augustine), FL

BUILDING SUMMARY

Construction Metal Panels with Stucco finish over a steel structural frame

Roof PEMB standing seam metal roof

Power 277/480 volts, 3 phase, 4 wire

Col. Spacing 60’ x 24’

Loading

Four grade level doors (14’ w x 16’ h)Loading dock with two truck po-sitions served by a single dock door (10’ w x 14’ h)

Clear Height 27’10” clear at eaves

Sprinkler Sys Wet system, .20 GPM over 1,500 SF

Auto Parking 54 standard; 3 handicap

HVAC

90 ton air cooled chiller with energy recovery system

(Full building under HVAC, including warehouse)

LOCATION

St. Augustine

St. Augustine South

CONCEPTBuild-to-suit industrial manufacturing

4010 Deerpark Blvd., Elkton, FL 32033

TENANTQ-PAC Systems, Inc.

CLOSE TO I-95

4 MILES FROM ST. AUGUSTINE

St. A

ugustine -

4 m

iles

LOCATION

Within the expanding St. Augustine Industrial Park, home to over a dozen corporate warehouses and with immediate proximity to I-95 just 21 miles south of Jacksonville and 4 miles west of St Augustine

Maker of fan systems for large commercial buildings

INVESTMENT CONSIDERATIONS

NATIONAL SINGLE TENANT CAP RATE MARKET

POPULATION DENSITY

AVG HH INCOME

ECONOMIC ANALYSIS

COMMENTSSt. Augustine Industrial Park is home to major tenants including ConAgra, Kehe Distributors, Waste Pro and 84

Lumber. Institutional owners in the park include GCP (First Coast Distribution Center), Investcorp (ConAgra) and The

Simpson Organization (Kehe). Proximity to I-95 and available labor make this an attractive industrial park for inves-

tors and occupiers alike. The low vacancy in this sub-market (1.6% - Q4 2019) as well as locally and nationally,

coupled with rising rents are drawing investors to this type of investment. The quality and age of the building and

improvements make this asset a compelling investment. Nationally, cap rates for single tenant industrial assets have

been trading at a blended average cap rate of 7.1%.

SITE DESCRIPTIONThe 1.7 MSF St. Augustine Industrial Park has attracted several large industrial occupiers due to its proximity to the

interstate highway system with the interchange to I-95 only ½ mile from the park’s entrance. This master-planned,

quality park is four miles from the City of St. Augustine with outstanding access to a skilled, educated and afford-

able workforce.

TENANT OVERVIEWQ-PAC manufactures fan systems for large commercial building applications. The company was a subsidiary of

MAS-HVAC and rolled out into a separate entity in 2019. Q-PAC’s revenues exceed MAS-HVAC’s and is now the

sole tenant in the building with MAS-HVAC relocating its operations to Minneapolis, MN. Both companies share

common ownership

Both companies were founded by Clarke Story, P.E., who conceptualized a new manufacturing process that

specializes in energy recovery and fan systems solutions for large commercial buildings. Through steady growth,

innovation and top-notch customer service, MAS-HVAC was selected on of the top 25 fastest growing companies

in Northeast Florida in 2016 and 2017.

AREA DESCRIPTIONThe Jacksonville MSA continues to grow and expand, along with the economy, through a diverse set of industries,

including seaport, distribution, technology, healthcare and office jobs. Being one of the major seaports along the

east coast, distribution has always been a strength of Jacksonville, along with the Naval Air Station being situated

along the St John’s River which runs through Jacksonville and into the Atlantic Ocean. Jacksonville has the distinc-

tion of being the largest city in the state of Florida, by land size and is considered one of the major cities in the

state of Florida.

PJ Behr serves as the Vice President of Brokerage Services in the Orlando office. In the last 17 years PJ has focused on net leased investment properties, at times working alongside the Asset Management and Development teams to reposition retail properties for their highest and best use including leasing to tenants such as Walgreens, AutoZone, CVS Pharmacy, Starbucks and Cracker Barrel. He has also worked on Investment Committees for a publicly traded REIT, helping acquisition teams evaluate real estate, tenant credit, lease negotiations, and portfolio management.

Throughout his career, PJ has been involved in more than 1,250 sales transactions across 47 states with volume in excess of $1.8B. He is experienced in his field with a 10-year institutional background with a non-traded REIT that eventually went public and was later acquired by GE Capital, and has managed a 1031 investment sales team that averaged more than $250 million in sales transactions per year for 10 years. Properties acquired and disposed of during this time were leased to notable restaurant clients and other national retailers.

Recent notable assignments include large institutional sale-leasebacks for industrial and retail clients, as well as buyer representation for an 8-unit master lease portfolio, large class-A office sale (off-market), a Publix grocery anchored center, and government leased properties.

VICE PRESIDENT,

BROKERAGE SERVICES

MEET PJ BEHR

MULTIPLE FAMILY OFFICES(MIAMI, ORL, NY, DALLAS)

PJ BEHR

COMPANIES REPRESENTED

With 30 years of commercial real estate brokerage experience, Mark leads the Industrial Brokerage practice in Foundry Commercial’s Jacksonville office. Mark’s responsibilities include expanding Foundry’s Industrial platform through enhanced delivery of services to both owners and occupiers as well as pursuing opportunities for Foundry’s Development and Investment platform.

Formerly with CBRE, Cushman & Wakefield and Graham & Company, Mark has completed over 20 MSF of transactions with an aggregate value in excess of $600 million.

Mark is a member of the Society of Industrial and Office Realtors (SIOR), certified by the St. Onge Institute and a member of the Council of Supply Chain Management Professionals (CSCMP).

SENIOR VICE PRESIDENT,

BROKERAGE SERVICES

MEET MARK SCOTT

MARK SCOTT

COMPANIES REPRESENTED

CHARLOTTERALEIGH

ORLANDOMIAMI

JACKSONVILLETAMPA

BOCA RATONATLANTA

NASHVILLEDALLAS

full- service

BROKERAGE, LEASING, PROPERTY MANAGEMENT,

PROJECT MANAGEMENT

11MARKETS SERVED

asset types

SPECIALIZING IN

OFFICE INDUSTRIAL

RETAILHEALTHCARE

NOT-FOR-PROFIT80BROKERS

357ASSOCIATES

$6BIN BROKERAGE

TRANSACTIONS

$1.4BINVESTMENT ACTIVITY

56MSFLEASING & MANAGEMENT

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11-year-old company whose DNA is

made up of some of the most respected

entrepreneurial real estate firms in the

Southeast U.S. With offices from Raleigh

to Miami to Dallas, Foundry is deeply

entrenched in the fastest growing region

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CONTACTPJ BEHR407.540.7746pj.behr@foundrycommercial.com

MARK SCOTT904.699.3518mark.scott@foundrycommercial.