Recent 3-Year Lease Extension with Minimal Landlord Responsibilities
– The tenant has occupied the property since 2006 and recently signed a 3-year lease renewal, demonstrating their commitment to the facility.
– Landlord responsibilities are limited to the repair and replacement of the property’s structure, foundation, load bearing walls, floor slab, roof and plumbing.
– The tenant has no remaining options to extend their lease, providing flexibility to ownership.
Several Major Capital Improvements Have Been Made to the Property in Recent Years
– A new TPO roof with a 20-year warranty was added to the property in 2020.
– The parking lot was resurfaced and striped in 2019.
– Other recent capital improvements include one new set of dock bumpers, new metal hand railings leading to office entry doors, new overhead LED lighting in warehouse, new LED lighting in the parts area of the warehouse, new LED lighting in the office and showroom area, new side service door and more.
– Ownership is currently working on replacing the concrete in front of the loading docks.
York International & Johnson Controls to be Acquired by Bosch
– Bosch, the German manufacturing giant whose portfolio includes several premium kitchen appliance brands, has agreed to purchase the residential and light commercial heating, ventilation and air conditioning business of Johnson Controls International Plc for $8 billion in cash.
– The acquisition is the largest in Bosch’s history, and includes a North American duct business joint venture with Hitachi Ltd. The deal is expected to close within a year, subject to regulatory approval.
– The HVAC business will be added to Bosch’s Home Comfort division, which is expected to nearly double in sales to about $9.8 billion.
Demand for Industrial Real Estate Remains Extremely Strong
– The Madison, WI Industrial Real Estate markets boasts an incredibly low vacancy rate of 2.8% as of Q4 2023.
– The national vacancy rate for industrial properties between 10,000 and 50,000 square feet sits at 3.6% as of Q2 2024, the least vacant size tranche.
– The 10,000 – 50,000 square foot size tranche accounted for less than 2.7 percent of active industrial construction volumes as of June 2024.
Located in Booming Madison Wisconsin
– Madison Wisconsin is the second largest city in the state of Wisconsin with a metropolitan population of nearly 700,000.
– Home to the University of Wisconsin-Madison, the largest University in the state of Wisconsin with 50,000+ students as of 2023.
– U.S. News ranked Wisconsin’s Madison, WI third for the best quality of life in the U.S. in 2024.
