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Creation Technologies 1729 Jaggie Fox Way, Lexington, KY 40511
OFFERING MEMORANDUM
ACTUAL PHOTO
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to
be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to
provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest
in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.
Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the
income or expenses for the subject property, the future projected financial performance of the property, the size and
square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or
asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or
the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its
occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from
sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the
information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and
makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.
All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap
is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights
reserved.
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with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any
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tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
51,557 VPD
80,840 VPD
RESIDENTIAL
LEXINGTON, KENTUCKY
18,882 VPD
60,429 VPD
42,556 VPD
COVENTRY ELEMENTARY
558 STUDENTS
SANDERSVILLE ELEMENTARY
739 STUDENTS
SUBJECT PROPERTY
EMERALD 24 PHASE II
237 UNITS
RESIDENTIAL INDUSTRIAL SITES
60,429 VPD
51,557 VPD
EMERALD 24 PHASE II
237 UNITS
SUBJECT PROPERTY
RESIDENTIAL
18,882 VPD
PRICING DETAIL & OPERATING DATA
Address:1729 Jaggie Fox Way, Lexington, KY 40511
Price Market Bid
Net Operating Income $625,768
Built / Renovations 1998 / 2004 and 2007
Gross Leasable Area (GLA) 75,000 SF
Sublessee (GLA) 31,922 SF
Lot Size +/- 8.16 Acres
Zoning I-2 (Heavy Industrial)
Ownership Fee Simple
RENT SCHEDULE / CREATION TECHNOLOGIES
YEAR ANNUAL RENT MONTHLY RENT RENT/SF
Current – 10/31/2019 $625,768 $52,143 $8.57
11/01/2019 – 07/31/2022 $688,345 $57,362 $9.43
TOTAL: $2,518,662 Outstanding Scheduled Rent as of 11/01/2018
LEASE SUMMARY
Property Subtype Single Tenant Industrial Manufacturing
Tenant Creation Technologies
Sublessee Hands On Originals
Guarantor Creation Technologies International Inc.
Lease Type Absolute Triple-Net (NNN)
Lease Commencement August 1, 2007
Lease Expiration July 31, 2022
Lease Term Fifteen-Years
Term Remaining (Years) Three Years, Eight Months
Sublessee Renewal Option 1 01/01/2019 – 12/31/2020
Sublessee Renewal Option 2 01/01/2021 – 07/31/2022
Landlord Responsibility Insurance-Reimbursed
Tenant Responsibility Utilities, Taxes, Roof, Structure and Ins.
Right of Refusal NoYEAR ANNUAL RENT MONTHLY RENT RENT/SF
Current – 12/31/2018 $127,500 $10,625 $3.99
01/01/2019 – 12/31/2020 $133,875 $11,156 $4.19
01/01/2021 – 07/31/2022 $140,569 $11,714 $4.40
Notes: Utilities Reimbursement Annual Minimum $45,000 | Taxes, Insurance and Maintenance Expenses: Maintenance Cap is $30,000
RENT SCHEDULE / HANDS ON ORIGINALS
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➢ Absolute Triple-Net (NNN) Lease with Over Three Years Remaining | Ten Percent Rental Increase on November 1, 2019
➢ Corporate Guarantee | Creation Technologies International Inc. | Over $500 Million in Revenue
➢ Property is Currently Leased by Creative Technologies International (Dark)
➢ 31,922 Square Feet Subleased to Hands On Originals with 41,078-Square Feet of Vacancy
➢ Versatile Building Can Be Easily Converted between Single and Multi-Tenant
➢ More Than $2,500,000 In Scheduled Rent Payments Outstanding as of November 1, 2018
➢ Class B Industrial Building, 75,000 Square Feet | Block and Metal with E.I.F.S Construction
➢ 37,000 Square Feet Built in 1998, Expanded by 18,000 Square Feet in 2004 and 20,000 Square Feet in 2007
➢ Approximately 8.16 Acre Lot Exceptionally Located in North of Lexington
➢ Population Growth by Eight Percent since 2010 | Exceeding 353,600 Residents, over 410,500 Employees and more than 145,500
Households
➢ Over $73,500 Average Household Incomes within Ten-Mile Radius
➢ Located One-Mile Northwest of Expressway-421 with over 60,400 Vehicles Per Day
➢ Located less than Two-Miles North of Amazon Fulfillment Center | 604,000 Square Feet
➢ Located Three-Miles Southwest of Interstate-65/75 which see over 80,800 Vehicles Per Day
➢ Eight-Miles from Bluegrass International Airport
➢ Among Other Prominent Industrial Users: UPS, FedEx, LBX, Trane, Amazon, Innovative Mattress Solutions, Rexel, Big Ass Fans,
TruGreen and Averitt
➢ Surrounded by 21 Million Square Feet of Industrial Sites
INVESTMENT OVERVIEW
INVESTMENT HIGHLIGHTS
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INVESTMENT OVERVIEW
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to present the Creation Technologies International Building at 1729 Jaggie Fox Way in Lexington, Kentucky. The
offering is a 75,000-square foot (8,500 square feet of office) single tenant, corporate guaranteed, absolute (triple-net) leased asset, situated on
approximately 8.16 acres. There are over three years remaining on the lease with above market rents and ten percent rental increase in 2019. Currently,
31,922-square feet is subleased to Hands On Originals and 41,078-square feet is vacant.
1729 Jaggie Fox Way is well equipped for high-tech electronic manufacturing, with a versatile layout, sufficient clearance, block/metal/exterior insulation
and finish system construction. The building is temperature and humidity controlled, has four docks with levelers, one drive in door, all with partitioned
loading area, ample parking, wet sprinklered, twelve inch epoxy finished floors, deionized water filtration system, floor drainage, collection and treatment
system, security system with exterior cameras and badge accessibility. The entire production floor of this asset has a connectivity grid for added process
versatility, intra/internet connectivity, electric and water utilities, compressed air and vacuum lines.
Sixty-six percent of the U.S. population can be reached within one days drive time from this location. Lexington is strategically located at the intersection of
Interstates-64 and 75 in Fayette County, Kentucky. Lexington is accessible by air with over 100 direct and nonstop flights. Nestled among world famous
Thoroughbred Horse Farms and the heart of Bourbon Country, Blue Grass Airport (LEX) welcomes travelers with one of the most beautiful air approaches
in the nation. Lexington and Central Kentucky are anchored by the University of Kentucky Wildcats with more than 30,000 students and the historical Rupp
Arena with more than 23,500 seating capacity. Lexington is home to a variety of interesting attractions, including Horse Racing and Bourbon Distillery
tours. www.visitlex.com. Keeneland Racecourse and horse racing revenue brings over $590,000,000 of total economic impact into the area. Keeneland
has been ranked the #1 track in North America and consistently in the top 10 tracks in the world. www.bloodhorse.com
The subject property is located in a premier industrial park in the desirable and convenient Northern Corridor of Lexington with excellent access to
Interstate-64 and Interstate-75. This building is surrounded by other major tenants such as Crown Lift Trucks, Averitt Trucking, Big Ass Fans and Trane.
The property is within two-miles of UPS, FedEx, and the Amazon Fulfillment Center. Jaggie Fox Way is between three of the most major roadways in
Lexington and Central Kentucky, Citation Boulevard, Georgetown Road and New Circle Road with over 80,000 vehicles per day combined. This location is
adaptable with surrounding industry, retail, residential housing, apartments, schools and additional development.
An incoming investor has the ability to acquire an exceptionally well positioned asset with zero landlord obligations backed by a global tenant in an
exceptional location with state of the art capabilities and multiple exit strategies.
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HIGH-TECH INDUSTRIAL CAPABILITIES
INVESTMENT HIGHLIGHTS
ELECTRICITY
PHYSICAL BUILDING
GRID HANGING FROM THE CEILING AT 10’
SAFETY
SPECIALIZED ATTRIBUTES
❑ 480 and 220 Panels throughout most of Production Space
❑ DI Water Generating System (30 gallons per minute, Heated and Softened recirculating System)
❑ HVAC throughout the Entire Facility (Gas Heat Systems)
❑ ESD (Electrostatic Discharge) Flooring to Minimize Static Electricity in the Production Area
❑ Humidity Controlled Production Area to Reduce Static Electricity during Heating Months
❑ Specifically Designed Computer Room with Fiber Optics
❑ Used to Provide Flexible Production area for quick moves of Equipment and Production Cell
❑ Grid supports:
❑ 110 Electrical Connections throughout
❑ Internet
❑ Water Lines
❑ Compressed Air Lines (These tie into the Mechanical Room)
❑ Vacuum Air Lines (These tie into the Mechanical Room)
❑ Sprinklered throughout
❑ Security System including Doors and Motion Detectors
❑ Fire Monitoring System
❑ Twenty Feet Clear Height at the Low Points
❑ Floor Drains that run to Water Treatment Pit
❑ Mezzanine Space for Offices and Storage
❑ Well Lit Production Area (Mostly 50 lumens)
❑ Breakroom with Outdoor Patio
❑ Trash Compactor set up including Access Door and Platform
❑ Lawn Sprinkler System
❑ Roof Top HVAC Units with Catwalks for Easy Access
ORIGINAL SITE PLAN
PROPERTY PHOTOS INTERIOR/EXTERIOR
FRONT PARKING
DOCKING REAR PARKING
INTERIOR
TENANT OVERVIEW
ABOUT CREATION TECHNOLOGIES
Creation Technologies, a private company and 25-year leader in creating
transformative design and manufacturing solutions for original equipment
manufacturers (OEMs). Creation is a full-service, global EMS provider that
offers integrated, transformative solutions in Product Development, Rapid
Prototyping, Lean Manufacturing, Fulfillment and After-Market services.
They help OEMs execute results-driven roadmaps across the product
lifecycle with transparency, technology leadership, and cross-functional
collaboration so you can achieve better business results.
Creation Technologies was founded in 1991 to help OEMs succeed in
providing responsive, cost-effective and customized solutions to their
customers in a changing and demanding technology landscape. Creation
Technologies has 14 locations in 4 countries with 3,000 dedicated
professionals. Creation has 10 Manufacturing Facilities, 2 Design Centers,
Rapid Prototyping Center and 2 Support Centers.
Creation is honored to win 2017’s ‘Highest Overall Customer
Rating’ for EMS Providers over $500 million, as judged solely
by third-party feedback from customers of all EMS Providers.
This is the third year in a row that Creation has received this
honor, winning ‘Highest Overall’ in 2016 and 2015 as well.
Creation ranks first overall amongst ALL companies in ALL 5
categories of Responsiveness, Value for Price, Dependability,
Quality, and Technology. www.creationtech.com
y.
TENANT OVERVIEW
ABOUT HANDS ON ORIGINALS
Hands On Originals, Inc. engages in the sellingof Christian, School and coming soon forBusinesses apparel and promotional items.The company was founded in 1986 and isbased in Lexington, Kentucky.
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Created on January 2018
POPULATION 3 Miles 5 Miles 10 Miles
▪2022 Projection
Total Population 54,180 141,548 376,747
▪2017 Estimate
Total Population 48,146 134,796 353,697
▪2010 Census
Total Population 44,260 126,053 326,425
▪2000 Census
Total Population 30,092 110,403 282,593
▪Current Daytime Population
2017 Estimate 62,753 218,696 410,589
HOUSEHOLDS 3 Miles 5 Miles 10 Miles
▪2022 Projection
Total Households 20,233 57,200 156,521
▪2017 Estimate
Total Households 17,681 53,806 145,559
Average (Mean) Household Size 2.40 2.27 2.32
▪2010 Census
Total Households 16,158 50,239 134,386
▪2000 Census
Total Households 11,275 45,012 116,460
▪Occupied Units
2022 Projection 20,233 57,200 156,521
2017 Estimate 18,938 58,291 155,482
HOUSEHOLDS BY INCOME 3 Miles 5 Miles 10 Miles
▪2017 Estimate
$150,000 or More 4.17% 4.96% 8.55%
$100,000 - $149,000 9.77% 8.23% 12.78%
$75,000 - $99,999 11.95% 9.92% 12.35%
$50,000 - $74,999 17.37% 15.71% 17.60%
$35,000 - $49,999 13.38% 12.87% 12.46%
Under $35,000 43.36% 48.30% 36.27%
Average Household Income $58,549 $56,307 $73,571
Median Household Income $42,148 $36,680 $51,702
Per Capita Income $22,215 $23,455 $30,725
HOUSEHOLDS BY EXPENDITURE 3 Miles 5 Miles 10 Miles
Total Average Household Retail Expenditure $55,348 $50,906 $60,414
▪Consumer Expenditure Top 10 Categories
Housing $13,265 $12,466 $14,487
Transportation $10,766 $10,008 $12,245
Shelter $6,698 $6,363 $7,254
Food $6,057 $5,688 $6,738
Personal Insurance and Pensions $4,408 $3,931 $5,194
Health Care $3,595 $3,355 $3,827
Utilities $3,579 $3,416 $4,097
Entertainment $2,018 $1,944 $2,343
Apparel $1,698 $1,529 $1,956
Household Furnishings and Equipment $1,401 $1,332 $1,671
POPULATION PROFILE 3 Miles 5 Miles 10 Miles
▪Population By Age
2017 Estimate Total Population 48,146 134,796 353,697
Under 20 25.31% 24.43% 24.95%
20 to 34 Years 27.17% 30.08% 26.03%
35 to 39 Years 8.90% 6.77% 6.95%
40 to 49 Years 12.99% 11.48% 12.39%
50 to 64 Years 16.19% 16.22% 17.74%
Age 65+ 9.44% 10.99% 11.97%
Median Age 33.77 31.96 34.35
▪Population 25+ by Education Level
2017 Estimate Population Age 25+ 31,900 81,687 228,164
Elementary (0-8) 6.40% 6.11% 3.48%
Some High School (9-11) 11.70% 10.40% 6.58%
High School Graduate (12) 28.47% 26.69% 22.66%
Some College (13-15) 20.86% 20.38% 20.62%
Associate Degree Only 7.45% 6.44% 7.69%
Bachelors Degree Only 14.78% 16.68% 21.84%
Graduate Degree 8.94% 12.02% 16.33%
MARKET OVERVIEW
MARKET OVERVIEW
IncomeIn 2017, the current year average household income in your
area is $73,571, compare this to the US average which is
$81,217. The median household income for your selected
geography is $51,702, compare this to the US average
which is currently $56,286. The median household income
for your area has changed by 28.79% since 2000. It is
estimated that the median household income in your area
will be $61,879 five years from now, which represents a
change of 19.68% from the current year.
The current year per capita income in your area is $30,725,
compare this to the US average, which is $30,982.
PopulationIn 2017, the population in your selected geography is
353,697. The population has changed by 25.16% since
2000. It is estimated that the population in your area will be
376,747 five years from now, which represents a change of
6.52% from the current year. The current population is
49.04% male and 50.96% female. The median age of the
population in your area is 34.35, compare this to the US
average which is 37.83. The population density in your area
is 1,124.67 people per square mile.
HouseholdsThere are currently 145,559 households in your selected
geography. The number of households has changed by
24.99% since 2000. It is estimated that the number of
households in your area will be 156,521 five years from
now, which represents a change of 7.53% from the current
year. The average household size in your area is 2.32
persons.
EmploymentIn 2017, there are 410,589 employees in your selected area,
this is also known as the daytime population. The 2000
Census revealed that 65.42% of employees are employed in
white-collar occupations in this geography, and 34.56% are
employed in blue-collar occupations. In 2017,
unemployment in this area is 4.28%. In 2000, the average
time traveled to work was 22.00 minutes.
Race and EthnicityThe current year racial makeup of your selected area is as
follows: 75.98% White, 13.92% Black, 0.04% Native
American and 3.52% Asian/Pacific Islander. Compare these
to US averages which are: 70.42% White, 12.85% Black,
0.19% Native American and 5.53% Asian/Pacific Islander.
People of Hispanic origin are counted independently of race.
People of Hispanic origin make up 6.80% of the current year
population in your selected area. Compare this to the US
average of 17.88%.
MARKETING TEAM
HousingThe median housing value in your area was $176,650 in
2017, compare this to the US average of $193,953. In 2000,
there were 65,230 owner occupied housing units in your
area and there were 51,230 renter occupied housing units in
your area. The median rent at the time was $466.
Source: © 2017 Experian
DEMOGRAPHICS
MARKET OVERVIEW
OVERVIEW
LEXINGTON
The Lexington area is known as the horse capital of the world and is
home to two race tracks and the Kentucky Horse Park. The metro has a
population of 501,000 individuals and is composed of Bourbon, Clark,
Fayette, Jessamine, Scott and Woodford counties. The market is located
about 70 miles east of the state capitol in Frankfort and about an hour
south of Cincinnati. Louisville and the Kentucky Derby are approximately
80 miles to the west.
501K
2016POPULATION:
203K
2016HOUSEHOLDS:
35.8
2016MEDIAN AGE:
$48,900
2016 MEDIAN HOUSEHOLD INCOME:
DEMOGRAPHICS
U.S. Median:
37.7U.S. Median:
$57,2006.4%
Growth2016-2021*:
5.8%
Growth2016-2021*:
ECONOMY
METRO HIGHLIGHTS
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
MANUFACTURING INDUSTRYManufacturing serves an important role in the local economy with products
ranging from composite material to aromatherapy merchandise.
HIGHER-EDUCATION INSTITUTIONSMajor secondary institutions in the area include the University of Kentucky,
Transylvania University and Bluegrass Community and Technical College.
CORPORATE PRESENCESeveral headquarters are located in Lexington, including Lexmark International,
A&W Restaurants and Temper Sealy International.
▪ The metro has a highly educated workforce with more than a third of the population having a
bachelor’s degree or higher.
▪ Manufacturing has a strong presence in Lexington. The largest is Toyota Motor, which employs
12,500 workers in their plant. Other notable manufacturers include Lockheed Martin, Hitachi
Automotive Services, Webasto Roof Systems and Trane Lexington.
▪ Lexington is also home to the JIF manufacturing plant, reportedly the largest peanut butter
manufacturing facility in the world. The fast-food chain Fazoli’s is also headquartered in the metro.
www.MarcusMillichap.com
P R E S E N T E D B Y :
Joel Dumes
Senior Vice President Investments
Senior Director – National Retail Group
Cincinnati Office
Tel: (513) 878-7720
Fax: (513) 878-7710
Licenses: OH SAL.2003013045, KY 63818
Stan Falk
First Vice President Investments
Senior Director - National Retail Group
Cincinnati Office
Tel: (513) 878-7721
Fax: (513) 878-7710
License: OH SAL.2012001364
Darpan Patel
Senior Associate
Associate Director - Net Leased Properties
Group
Cincinnati Office
Tel: (513) 878-7723
Fax: (513) 878-7710
License: OH SAL 2012000748
Sal Ramundo
Associate – Office/Industrial
Cincinnati Office
Tel: (513) 878-7736
Fax: (513) 878-7710
Licenses: KY 239856
BROKER OF RECORD: COLBY HAUGNESS