Case Study: Sherwin-Williams, Effingham, IL
Guaranteed absolute net lease
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 for an 8% cap rate, 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.