Manufacturing Essential Asset, DST
2001 N. Division St., Harvard IL 60033
The Property is a 1,548,217 SF class A manufacturing facility leased long-term to US Medical Glove Company (USMGC). The facility is being used as the global headquarters of USMGC where it manufactures American-made nitrile gloves and medical equipment as apart of federal government’s mandate to re-shore critical goods and services in April 2023. USMGC and affiliates are a diversified medical manufacturer, Dept. of Defense contractor funded by Health & Human Services, and a member of the Presidential 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 a DST available for 1031 exchange investors.
$18,645,494
View Presentation
Deal Highlights
- Vertically Integrated Sponsor
- Stable Cash Flows
- Support from Government Agencies
- Expanding Industry
- Long-Term NNN Lease
- Carbon Footprint
- American Made
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 6.62%+ 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.
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 23.5-year Absolute NNN lease with four 5-year lease renewal options. Rent increases by 2% annually and is guaranteed by US Medical Glove Company, LLC.
Carbon Footprint
Lowest carbon footprint nitrile glove machines versus competitors
- 7x Smaller
- Uses 11x less electricity
- Uses 10x less water
American Made
100% American made machines and chemical composition makes nitrile gloves Berry Amendment compliant.
Property Details
- Eligibility: 1031 Exchange Only
- Estimated Hold Period: 10 Years
- Investment Type: Equity
- Minimum Investment: $100,000
- Investment Strategy: Core Plus
Sponsor Documents
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.”
INTERESTED IN INVESTING?
Submit your contact information and a member from our team will assist in your interests.
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