Troy Distribution Center_Property for Sale
Troy Distribution Center_Property for Sale

Troy Distribution Center

1260 Brukner Drive, Troy, OH, 45373, US

Asset description

Jones Lang LaSalle (“JLL”), as exclusive advisor to ownership, has been retained to market for sale the fee-simple interest in the Troy Distribution Center, a fully occupied, 211,925 square foot industrial facility located in the affluent suburb of Troy, OH (the “Offering”, the “Property”, or the “Asset”). Built in 1996 and situated less than a half-mile from Interstate 75 and less than 15 miles from the Dayton International Airport, the Property represents the opportunity to acquire a well located and highly functional distribution center strategically located in the Upper Valley submarket of Dayton.


This two-tenant facility is 100% leased with just over half of the Property occupied by an investment grade tenant with more than a decade of tenure (Hobart is a wholly owned subsidiary of Illinois Tool Works (ITW), ITW currently has an A1 long-term rating from Moody’s and an A+ S&P rating). The Troy Distribution Center is a well-positioned, cross-dock asset being offered to investors at a basis below replacement cost in a historically low-vacancy market with strong rent growth. The Asset has in-place WALT of 2.8 years or 7.4 years with all options exercised; 47% of GLA is assumed to roll to a market rate renewal option in year 3 of the analysis, creating income growth during the hold period while avoiding significant leasing costs. 

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Attributes

Building area net
211,925 sf
Occupancy
100%
Tenants
2
WALT
2.8 years

Media

Investment highlights

IDEALLY LOCATED CROSS-DOCKED LOGISTICS FACILITY

• The Troy Distribution Center offers immediate access to the four-way Interstate-75 Interchange through West Market Street (State Road 55), creating an easy connection to Interstate-70 to the south

• Asset is set 10 to 15 minutes north of Dayton International Airport and downtown Dayton is reachable in less than 20 minutes

• All major Midwest markets are reachable from the Property within a one-day truck drive, as well as New York City, Toronto, and a large portion of the southeast United States


MISSION CRITICAL FACILITY FOR  LONG-STANDING INVESTMENT GRADE TENANT

• Hobart, a wholly-owned subsidiary of Illinois Tool Works (NYSE: ITW, Moody’s: A1, S&P: A+), operates within 53% of the Property

• Troy has been Hobart’s main home since the company’s founding in the early 1900’s, the Hobart corporate headquarters is located just 3 miles from the Offering

• The warehouse space utilized by Hobart within the Troy Distribution Center is vital to the company’s storage and shipping operations, allowing investors confidence of assured and consistent cash flows

• With an 11+ year tenure at the Troy Distribution Center and current term through May 2029, Hobart has displayed significant commitment to the Asset and has long been a notable piece of the Troy industrial market


ABILITY TO CREATE SIGNIFICANT CASH FLOW GROWTH BY MARKING IN-PLACE RENTS TO MARKET

• JLL estimates in-place rents to be roughly 15%below current market rates

• In-place rent roll is made up by a long-tenured, investment grade tenant with nearly 10 years of term if both remaining options are exercised, as well as a newer tenant whose rent can potentially be marked up upon the February 2027 onset of their remaining FMV option

• Strong user demand in the overall Dayton industrial market has led average asking rates up into the $5.00 - $5.25 PSF range, representing 7%average annual rent increases between 2021 and 2024


BLUE-COLLAR BASED LOCAL ECOMONY WITH IMPRESSIVE INCOME LEVELS

• More than 58% of the overall workforce that live within 10-miles of the Troy Distribution Center are blue-collar employees

• The average household income in this 10-mile radius ($86k per year) is nearly 30% above the U.S. average, as you move in within 3-miles of the Asset, the average household income increases to more than $98k per year

Troy Distribution Center 4_Property for Sale
Troy Distribution Center 4_Property for Sale

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Last updated
May 1, 2025