Developing Trust through Transparency and Vision

Manufacturing Essential Asset II, DST

Manufacturing Essential Asset II, DST

308 Church St., Honea Path, SC 29654

The Property is a 96,204 SF industrial facility leased long-term to an affiliate of US Medical Glove Company (USMGC). This facility is the only chemical manufacturing plant in the US capable of producing polyisoprene, a key component in latex-free surgical gloves. USMGC and affiliates are a diversified medical manufacturer, Dept. of Defense contractor funded by Health & Human Services, and a member of the Presidental National Emergency Task Force. They are advancing the federal government’s goal of generating industrial-scale capabilities for manufacturing domestically-made surgical, medical, and industrial nitrile gloves. The offering is structured as an all-cash, debt-free DST with a projected 7.0% Year-1 cash on cash return for 1031 exchange investors.

$18,645,494

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Deal Highlights

Vertically Integrated Sponsor

CAI Investments, LLC is a vertically integrated real estate development and investment company with ~$1.5 billion AUM and over 5.6 million SF under management.

Stable Cash Flows

The property is projected to generate 7.0%+ cash on cash returns to Investors over the course of the hold.

Support from Government Agencies

Following the pandemic, government agencies such as the Dept. of Defense and Dept. of Health and Human Services continue to support the onshoring efforts of medical supply manufacturing through the Buy America Act and other government initiatives. Interest and support from both government services position US Medical Glove Company as the largest manufacturer of nitrile and other non-latex surgical gloves in the United States.

Mission Critical Facility

Located in the Greenville, SC MSA, this facility is the only chemical manufacturing plant capable of producing polyisoprene, a key component in latex-free surgical gloves. This positions USMGC as the only US glove manufacturer producing its raw materials domestically. USMGC is committed to business operations by retaining the facility's key employees and upgrading the property's infrastructure and state-of-the-art equipment.

Expanding Industry

The global disposable gloves market generated an est. $12.4B in revenues in 2022 and is projected to grow at a compounded annual growth rate of 3.9% from 2023-2030 (Global Market Insights).

Long-Term NNN Lease

The tenant signed a 22-year Absolute NNN lease with two 10-year lease renewal options. Rent increases by 2% annually and is guaranteed by US Medical Glove Company, LLC.

Debt-Free Offering

This DST is an all-cash, debt-free offering.

Property Details

  • Eligibility: 1031 Exchange Only
  • Estimated Hold Period: 10 Years
  • Investment Type: Equity
  • Minimum Investment: $100,000
  • Investment Strategy: Core Plus

Sponsor Documents

Please refer to the Manufacturing Essential Asset II, DST – Private Placement Memorandum (PPM) for details regarding distributions and fees.

Management

TEAM

CAI Investments, LLC (“CAI”) is a vertically integrated real estate development company headquartered in Las Vegas, NV. Founded in 2011 by Christopher Beavor, CAI finances, develops, and manages commercial properties in growing markets across the United States. Its primary focus is to find quality assets in desirable locations while working with national brands to add value to its clients. CAI’s current portfolio includes industrial, hospitality, office, quick service restaurants, and multifamily assets. CAI’s mission statement is “Developing Trust Through Transparency and Vision.”
Matthew Tucker

Director of Acquisitions matthew@caicap.com

Christopher Calles

Senior Associate calles@caicap.com

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    1031 Risk Disclosure:
    • There is no guarantee that any strategy will be successful or achieve investment objectives;
    • Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
    • Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
    • Potential for foreclosure – All financed real estate investments have potential for foreclosure;
    • Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
    • Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
    • Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits

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