Offering Memorandum DYNALABS · 2017 Population 14,096 127,759 290,428 2017 Total Households 6,827...

DYNALABSSt. Louis, Missouri

Passive Lease Structure | Rapidly Growing Tenant | LEED Certified Building | Near Cortex Innovation Community

Offering Memorandum

Subject Property

Confidentiality and Restricted Use Agreement

This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC.

This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.

BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief. Stan Johnson Company

6120 S Yale Ave, Suite 300 Tulsa, Oklahoma 74136 +1 918.494.2690

www.stanjohnsonco.com

Zach Harris Director [email protected] +1 918.794.9524

Offered Exclusively by

In Association With: Brett Butler, MO Lic #2014014142

Brad Pepin Senior Director [email protected] +1 918.794.9503

Table of ContentsSection One: About the Investment

The Offering ................................................................ 5

Investment Highlights.............................................. 6

Property Overview ................................................... 7

Lease Abstract ........................................................... 8

Section Two: Tenant Information

Tenant Overview ...................................................... 10

Section Three: Location Information

Location Overview ...................................................12

Aerial Map....................................................................13

Demographics ...........................................................14

Property Photos ..................................................15-16

Subject Property

DYNALABS - St. Louis, MO 4

About the InvestmentSection One


The Offering

Demographics

1 mile 3 miles 5 miles

2017 Population 14,096 127,759 290,428

2017 Total Households 6,827 57,795 128,984

2017 Average Household Income $59,305 $55,497 $55,012

Offering Summary

Price $7,110,000

Cap Rate 6.50%

Annual Rent $462,210 ($13.82/SF)

Property Summary

Location 2327 Chouteau Ave, St. Louis, MO 63103

Tenant DYNALABS, LLC

Property Description Office/Laboratory/Warehouse

Building Size 33,445 SF; 2-story building

Land Area +/- 1.55 acres

Year Built 1978; redeveloped in 2011

Ownership Type Fee Simple (Land & Building)

Primary Term Twelve (12) years

Lease Expiration January 31, 2024

Remaining Term Six (6) years

Price: $7,110,000

Cap Rate: 6.50%

Stan Johnson Company is pleased to exclusively offer for sale to qualified investors the fee simple interest in a LEED-Certified office building located at 2327 Chouteau Avenue in St. Louis, Missouri (the “Property”). The Property is fully leased to DYNALABS, LLC (the “Tenant”), a pharmaceutical testing firm based in St. Louis. The Property serves as the Tenant’s headquarters and sole operating/testing facility.

The Property, a former boiler facility, was constructed between 1947 and 1970 and fully redeveloped in 2011 into two separate buildings now known as Chouteau Crossing. DYNALABS, which was named one of the fastest growing companies in St. Louis, occupies the smaller +/-33,445-square-foot facility at Chouteau Crossing. The new facility more than quadrupled DYNALABS operating space and allowed the company to grow significantly. The adjacent +/-96,000-square-foot building is occupied by Sheet Metal Workers’ Local 36.

The Property is situated just outside of the downtown core of St. Louis within one-half mile of Interstate 64 to the north and Interstate 44 to the south. Both Saint Louis University and the Saint Louis University Hospital & School of Medicine are also located within one-half mile of the Property.

DYNALABS, LLC is a private, internationally known, quality assurance company that provides analytical testing services, products and consulting to the compounding pharmaceutical industry. Founded in 2003, DYNALABS experienced triple-digit growth in the first few years of business. After moving into their brand-new, state-of-the-art, LEED-Certified building (“the Property”) in early 2012, the company experienced additional growth, including a five-fold increase in revenue.

In 2016, DYNALABS finished a $1.5 million expansion to double the size of its testing facility. This expansion project added a 15,500-square-foot second floor that features wet chemistry and analytical laboratories and an area for glassware washing and drying. Additionally, DYNALABS announced in November 2017 that it was spending $1.2 million to expand its microbiology lab and office space. The renovation, expected to be completed in the first quarter 2018, will double capacity to relieve overcrowding and improve overall workflow. With the completion of this renovation, DYNALABS will have invested in excess of $4.7 million of its own capital into building improvements/renovations since their initial lease commitment.


Investment HighlightsStrong & Growing Tenant DYNALABS, LLC, founded in 2003, experienced five-fold increase in revenue after moving into the Property in early 2012. The company reported $11.5 million in revenue in 2016, along with 56% 3-year growth. In addition, DYNALABS was named one of Inc.’s 5000 Fastest Growing Private Companies in 2017 which represents their fourth time to make the list.

Mission-Critical Facility for Tenant Fully redeveloped for DYNALABS in 2011, the Property serves as their headquarters and sole facility of operation. They currently employ 98 professionals on site.

Passive Lease Structure Limited Landlord maintenance and repair responsibilities related to roof and structure provide investors a long-term passive income stream on a fully renovated building.

Demographics The Property location features a population in excess of 125,000 and an average household income of approximately $55,000 within a 3-mile radius.

Proximity to Local Universities Saint Louis University, one of the nation’s oldest and most prestigious Catholic universities with nearly 13,000 undergraduate and graduate students, and the Saint Louis University Hospital & School of Medicine are located less than two miles from the Property. In addition, Harris–Stowe State University is located adjacent to the main campus of Saint Louis University and is within two miles of the Property. Washington University, a private research university with over 14,000 students, is located less than six miles west of the Property.

Near the Cortex Innovation Community The Property is situated approximately two miles west of the Cortex Innovation Community, a 200-acre innovation hub and technology district integrated into St. Louis’ historic Central West End and Forest Park Southeast neighborhoods. Cortex is the Midwest’s premier innovation hub of bioscience and technology research, development and commercialization.


Property Overview2327 Chouteau Avenue | St. Louis, MO 63103

TENANT: DYNALABS, LLC

OWNERSHIP TYPE: Fee Simple (Land & Building)

BUILDING SIZE: 33,445 SF; 2-story building

LAND AREA: +/- 1.55 acres

YEAR CONSTRUCTED: 1978; redeveloped in 2011

PARKING: 55 spaces

Formerly the site of a boiler facility, Chouteau Crossing is now home to the greenest buildings in the state of Missouri. The Gold LEED certification can be attributed in large part to the sustainable construction process, during which 70% of the old building elements were retained and 40% of the materials were regionally made. As a result of green construction practices, the developer earned the designation of City of St. Louis — Development of the Year in 2011.

While a lot of sustainable elements are easy to recognize, including recycled metal exterior panels and renewable cork and bamboo throughout the building, many go unnoticed. Starting at the roof of the Sheet Metal Workers Union facility (adjacent property), the building has solar panels, wind turbines, a 6,000-square-foot green roof and a 4,000-square-foot rooftop garden. Deep below the ground, geothermal wells help regulate the heating and cooling. The completed project, which stands on the corner of Chouteau and Jefferson Avenues, has become an exemplary model for the possibilities of green architecture in an urban setting.

Click to view video of Chouteau Crossing, the highest rated LEED structure in St. Louis

https://vimeo.com/250650972/107ea5c735


San Antonio

Alorica_Land.xlsx

All items

Lease Abstract

2327 Chouteau Avenue | St. Louis, MO 63103

TENANT: DYNALABS, LLC

GUARANTOR: DYNALABS, LLC

PROPERTY USE: Office and analytical testing laboratory; LEED Gold certified

BUILDING SIZE: 33,445 SF; 2-story building

PRIMARY LEASE TERM: Twelve (12) years

LEASE COMMENCEMENT: February 1, 2012

LEASE EXPIRATION: January 31, 2024

LEASE TERM REMAINING: Six (6) years

ANNUAL RENT: $462,210 ($13.82/SF)

RENT INCREASES: 10% increase February 1, 2022

RENEWAL OPTIONS: Two (2) at five (5) years each

RENEWAL RENT: Fair Market Value Rental Rates

EXPENSE STRUCTURE: NN

LANDLORD EXPENSES: Repair of structural portions of the building and foundation; replacement of the roof.


Tenant InformationSection Two


Representative Photo

Tenant OverviewDYNALABS LLC is a privately held, internationally known, quality assurance company that provides analytical testing services, products and consulting to the compounding pharmaceutical industry. Its clients include hospitals and 503A compounding pharmacies, 503B outsourcing facilities and chemical re-packagers. DYNALABS currently employs 98 full-time, part-time and contracted professionals. The Company is registered with the FDA and is licensed by the Drug Enforcement Agency and the Missouri Bureau of Narcotics and Dangerous Drugs.

Founded in 2003, DYNALABS experienced triple-digit growth in the first few years of business. In 2012, the Company moved into their brand-new, state-of-the-art, Gold Level LEED Certified Building (the Subject Property).With this new facility came additional growth, including a five-fold increase in revenue. In 2016, DYNALABS finished a $1.5 million expansion of its chemistry department and nearly doubled its workforce, and another $1.3 million expansion was announced in November of 2017. The newest renovation, expected to be complete in the first quarter of 2018, will double capacity to relieve overcrowding and improve workflow, among other changes. With the completion of this renovation, DYNALABS will have invested in excess of $4.7 million of its own capital into building improvements/renovations since their initial lease commitment.

DYNALABS continues to expand their portfolio of chemistry and microbiological testing services, minimizing the amount of testing they need to outsource and allowing them to more tightly control the quality of services and results they deliver to clients. DYNALABS is also growing their DVx product and service, the CQI Program, as well as consulting services. In the future, the Company plans to expand into different markets and countries. DYNALABS reported $11.5 million in revenue in 2016, along with 56 percent 3-year growth.

As an analytical testing laboratory, DYNALABS is uniquely suited to understand a business’s daily challenges. Whatever the specific

environment, goal or challenge, DYNALABS can help integrate testing and tools to build quality and improve bottom line; collect and analyze data to address issues such as vendor qualification, training validation and diversion monitoring; and use their knowledge of the

pharmaceutical industry to increase revenue and grow business.

August 16, 2017 – For the fourth time, DYNALABS LLC made the 2017 Inc. 5000 list of the fastest-growing private companies in America. Out of nearly 7 million private companies moving the economy forward every day, only a small fraction demonstrate remarkable and consistent high growth.

DYNALABS LLC is proud to have made this list again. DYNALABS continues to grow every day and impacts the economy and patients’ safety and lives. It conducts all business with its guiding principles of patient safety, affordable healthcare, and business success in mind.

The companies that make this list are the superheroes of the U.S. economy. They wield such powers as strategy, service, and innovation. This year, companies that made the list, on average, have grown six-fold since 2013. Making the list four times is an extraordinary accomplishment, especially because every year it gets tougher to make the list as the starting base grows. Only a fraction of companies make the list more than once, and a mere one in ten have made the list four times.

DYNALABS LLC Named One of Inc.’s 5000 Fastest Growing Private Companies in 2017


Location InformationSection Three


Location OverviewSt. Louis is a city and major U.S. port in Missouri, built along the western bank of the Mississippi River, on the border with Illinois. The city had an estimated 2015 population of 315,685 and is the cultural and economic center of the Greater St. Louis area which boasts more than 2.9 million people, making it the largest metropolitan area in the state. Known since the early days as the “Gateway City” because of its access to transportation routes in all directions, St. Louis is an important center of commerce and culture for the Mississippi River Basin.

Occupied by nearly 40 colleges, universities and technical schools, St. Louis is home to Washington University, Saint Louis University and University of Missouri–St. Louis. In addition to its importance as a bio-tech and business center, the rivers and Port of St. Louis play a large role in moving goods throughout the country. The economy of metro St. Louis relies on manufacturing, trade, transportation of goods, and tourism. The metro area is home to major corporations, including Anheuser-Busch, Express Scripts, Centene, Boeing Defense, Emerson, Energizer, Panera, Enterprise, Peabody Energy, Ameren, Ralcorp, Monsanto, Scottrade, Edward Jones, Go Jet, Purina and Sigma-Aldrich.

Boasting an ever-growing hospitality and tourism industry, St. Louis welcomes 25.9 million annual visitors. Along with jogging and bicycle trails, ball fields, 36 holes of golf and green space, Forest Park features many of the area’s top cultural and recreational attractions, including the St. Louis Zoo, the St. Louis Art Museum, the Missouri History Museum, the Municipal Opera, and the St. Louis Science Center. Other points of interest in the City include the 67,000-seat Dome at America's Center, the 1,400-seat Ferrara Theatre, the famed Gateway Arch, Missouri Botanical Gardens, and the 19,000-seat Scottrade Center arena.

St. Louis also has two professional sports teams: the St. Louis Cardinals of Major League Baseball and the St. Louis Blues of the National Hockey League. The St. Louis Cardinals, 11-time World Series Champions, have some of the most dedicated baseball fans in the country, as they descend on Busch Stadium every season clad in red. Next to the stadium is the newly built Ballpark Village entertainment district, featuring dining, nightlife and entertainment, as well as the Cardinals Hall of Fame & Museum.

Thousands of companies call St. Louis home, including 18 Fortune 1000 companies. The St. Louis area also has one of the most well-educated workforces; Bachelor degree attainment is nearly 10% higher than the national average.


BERCO

VILLA LIGHTING

CORPORATE CENTER IMRIE-GIELOW

MO DEPT OF SOCIAL SERVICES

ST LOUIS UNIVERSITY HOSPITAL & SCHOOL OF

MEDICINE

CORRIGAN COMPANY

ST. LOUIS WOOD WORKS

GOODWILL OUTLET CENTER & DISTRIBUTION

ST LOUIS UNIVERSITY

12,949 STUDENTS

HARRIS-STOWE STATE UNIVERSITY

METRO ST LOUIS TRANSIT

SIGMA-ALDRICH

CORP

SIGMA-ALDRICH

CORP

ST LOUIS BUSINESS CENTER

METROLINK

SIGMA-ALDRICH

CORP

ACI PLASTICS

AMEREN SERVICESINT’L ASSOC OF

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VANGUARD TRUCK SALES

PALLET LOGISTICS

ACE RENTAL & SALES

UNI-SELECTBISSELL FRAME

POLYONE CORP

US PAINT CORP

UNION STATION

FBI

MARCONE SUPPLY

STATE OF MO

MARKET PLAZA

VANTAGE CORP

ICS CONSTRUCTION

TIEMANN INDUSTRIAL

SUPPLY

TNG

WELLS FARGO HEADQUARTERS

Downtown West St. Louis

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ST. LOUIS UTILITY

AVATARARIO SYRUP CO.

TABOR PLASTICS COMPANY

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5 miles

1 m il e

DemographicsPopulation 1 mile 3 miles 5 miles

2010 Population 14,037 125,373 293,184

2017 Population 14,096 127,759 290,428

2022 Population 13,995 127,404 286,800

2010-2017 Annual Rate 0.06% 0.26% -0.13%

2017-2022 Annual Rate -0.14% -0.06% -0.25%

Households 1 mile 3 miles 5 miles




2010-2017 Annual Rate 0.16% 0.30% -0.10%

2017-2022 Annual Rate -0.12% -0.04% -0.23%

Household Income 1 mile 3 miles 5 miles

2017 Median Household Income $38,206 $35,320 $36,445

2017 Average Household Income $59,305 $55,497 $55,012

290kpopulation

$55kavg. HH inc.

3 miles

(5 miles)

(1 mile)

(5 miles)

going beyond

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

Offered Exclusively by

Stan Johnson Company 6120 S Yale Ave, Suite 300 Tulsa, Oklahoma 74136 +1 918.494.2690

www.stanjohnsonco.com

Zach Harris Director [email protected] +1 918.794.9524

In Association With: Brett Butler, MO Lic #2014014142

Brad Pepin Senior Director [email protected] +1 918.794.9503

Offering Memorandum DYNALABS · 2017 Population 14,096 127,759 290,428 2017 Total Households 6,827...

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Transcript of Offering Memorandum DYNALABS · 2017 Population 14,096 127,759 290,428 2017 Total Households 6,827...