Case Studies

These case studies provide examples of Omega’s transaction underwriting and execution which allows us to best understand a tenant’s story and viability of a facility location, all to ensure commensurate return and stability to investors:

DHL (Pfizer 3PL), Vonore, TN

629,682 sq. ft.

Cold Storage, Distribution Facility

7 Years

Guaranteed triple net lease

10.3%

Avg. annual net cash return

  • Property

    630,000 s.f. distribution center on 100 acres serving as Pfizer pharmaceuticals primary distribution facility for over-the-counter products. 7 year triple net lease with two 5 year renewal terms.
  • Tenant

    Occupied by Exel, Inc., as the contract operations and logistics provider for Pfizer for its entire OTC line of products nationwide.. Lease is guaranteed by Deutsche Post DHL, the world’s largest logistics company.
  • Market

    Located outside of Knoxville in Vonore, TN within the Tellico West Industrial Park. Positioned near three key distribution and heavy-load interstates, providing coverage to >2/3rds of North America in 1-3 days by truck.
  • Economics

    Purchased off-market at a 8.75% capitalization rate. Investors are receiving an avg. annual net cash-on-cash return of 10.3% over the lease term.

Smithfield Foods – Greenfield, IN

419,052 sq. ft.

Cold Storage

20 Years

Guaranteed absolute net lease

8%

Avg. annual net cash return

  • Property

    419,000 s.f. distribution center and headquarters under a long-term sale/leaseback with Smithfield Foods. Guaranteed 20 year initial lease term with additional options and expansion rights.
  • Tenant

    Smithfield Foods is the largest producer of pork products in the world, and with a strong focus on customer service, they began looking at ways they could service their customers better than ever before.
  • Market

    Located in Greenfield, IN, along I-70 on the east side of Indianapolis, the “Crossroads of America”. The location allows Smithfield to distribute to the Mid-West and Northeast, as well as accessing their production facilities, within 1-2 days drive time.
  • Economics

    Purchased at a 6.2% capitalization rate in a sale/leaseback transaction; acquisition was based on Smithfield’s cost of construction with no developer mark-up, enabling the tenant to lower its occupancy cost. Investors are receiving an average annual net cash-on-cash return of approximately 8% over the lease term.

Sherwin-Williams, Effingham, IL

1,220,000 sq. ft.

Distribution Facility

13 Years

Guaranteed absolute net lease

2.6 Million

Profit at closing

  • Property

    1.2M s.f. distribution center supplies all Sherwin-Williams products across the Mid-West and Inter-Mountain states. A new 10-year absolute net lease in place at acquisition.
  • Tenant

    S&P “A” credit rated tenant with $10.2B net sales and $1.08B in net operating cash flow in 2013
  • Market

    Considered the “crossroads of opportunity,” Effingham, IL is strategically positioned at the intersection of two cross-country highways making it ideal for distribution, with the ability to reach the majority of the U.S. within a one-day’s drive.
  • Economics

    Omega principals and affiliates contracted the property off-market, and during 45 day due diligence successfully negotiated a 10 year lease extension. The property was then sold at closing to a 3rd party for a $2.6 million profit.

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