TI Group Automotive Systems, LLC Global HQ
Net Lease
2020 Taylor Road, Auburn Hills, Michigan
Ownership Type:
Fee Simple
Landlord Responsibilities:
Foundation repair and replacement (does not include roof)
Renewal Options:
Three, 5-Year Options
Building Sq. Ft.:
192,308 SF
Rent Increases:
Annual CPI increase between 1.5% - 3.00% (Every April)
Investment Highlights
- Institutional-Grade Credit with Global Scale: The Property is 100% leased to TI Group Automotive Systems and backed by a full corporate guarantee from TI Fluid Systems Limited, a globally recognized Tier 1 automotive supplier. The guarantor provides an absolute, unconditional, and irrevocable guarantee of all lease obligations, offering investors durable credit support from an established international platform with deep OEM relationships and significant operational scale. Revenue and EBITDA for 2024 was $3.5B and $414M, respectively.
- Long-Term, Passive NNN Cash Flow: Investors benefit from a 15-year triple-net (NNN) lease structure with approximately +/-13 years of remaining term, minimizing landlord responsibilities and expense exposure. The lease features annual CPI-based rent escalations (1.5%–3%), providing built-in income growth and an inflation hedge. The offering presents stable in-place cash flow with a Year 1 NOI of $3.8 million and an attractive 6.75% cap rate.
- Strategic Midwest Manufacturing Location: Located in Auburn Hills, Michigan, the Property sits within one of the most prominent automotive and manufacturing corridors in the United States. The area is home to major OEMs and suppliers, benefiting from a highly skilled labor pool, robust infrastructure, and long-standing industry presence, reinforcing the Property’s strategic importance to the tenant’s operations.
- Mission-Critical Facility with Proven Tenant Commitment: A ±192,308 SF office, flex, and R&D hub integral to the tenant’s operations, further reinforced by a recent 2024 expansion (48,400 SF expansion)—demonstrating long-term commitment and significant capital investment in the Property.
- Strong Industrial Market Fundamentals: The ±192,308 SF facility serves as a mission-critical office, flex, and R&D hub supporting the tenant’s engineering and production capabilities. As a key supplier of fluid storage and thermal management systems across ICE, hybrid, and EV platforms, the tenant remains deeply embedded in evolving vehicle architectures. Coupled with the guarantor’s global footprint, high barriers to entry, and entrenched customer relationships, the investment offers long-term income durability supported by essential operations within the automotive supply chain.
- Attractive Basis & Replacement Cost Advantage: The acquisition offers investors the opportunity to acquire a specialized R&D and flex industrial asset at a basis likely below replacement cost. Given the rising costs of labor, materials, and highly customized buildouts for automotive engineering facilities, replicating this asset would require significant capital and time, reinforcing downside protection.
Ownership Type:
Fee Simple
Landlord Responsibilities:
Foundation repair and replacement (does not include roof)
Renewal Options:
Three, 5-Year Options
Building Sq. Ft.:
192,308 SF
Rent Increases:
Annual CPI increase between 1.5% - 3.00% (Every April)
