DURA Automotive Portfolio

Deal Type:
Sale Leaseback
Price:
$104,705,882
Cap Rate:
8.50%
Current Rent:
$8,900,000
Lease Type:
Triple Net
Lease Term:
20 years
Landlord Responsibilities:
None
Renewal Options:
Four 5-Year Options at 2% Escalators Through Renewal Terms
Rent Increases:
2.0% Annual Rent Increases

Investment Highlights

  • 20-year, absolute triple net lease with 2% annual rent increases
  • Tenant is a leading global designer and manufacturer of automotive products with a long-term operating history of 106 years
  • Subject facilities are the future of the new DURA business; locations identified by the company’s footprint optimization initiative as long-term strategic and mission-critical to the business
  • New ownership by MiddleGround Capital, a leading sponsor and hands-on operator with a collective 200 years of automotive experience
  • DURA is MiddleGround Capital’s largest investment to date with $133 million of MiddleGround equity invested into the business
  • Sale leaseback proceeds will be used to fund remaining capital investments required for the Battery Tray program (Daimler contract with $1.7 billion Life of Program revenue)
  • Battery Tray product market is growing at a 35% CAGR; Battery Tray will transform the business under MiddleGround’s ownership to align DURA with secular growth trends in the automotive industry
  • Facility footprint creates significant barriers to entry; given the significant engineering requirements and custom, long lead time nature of the production equipment, it would take multiple years to recreate DURA’s manufacturing footprint
  • Robust site-level performance at subject properties and many millions of dollars invested by the Tenant in equipment and machinery at the properties

Listing Agents

Chelsea Mandel

Vice President
516 850 6962
Chelsea@stream-cp.com
Jeff Lizzo STREAM Capital Partners

Jeff Lizzo

Vice President
630 222 8409
Jeff@stream-cp.com
Jonathan Wolfe STREAM Capital Partners

Jonathan Wolfe

Managing Principal
312 310 2798
Jonathan@stream-cp.com
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