Just Closed: Central Steel Fabricators
LA JOLLA, CA, May 15, 2024 – Legacy West Partners are pleased to announce the successful acquisition of an industrial manufacturing/distribution building, tenanted by Central Steel Fabricators (“CSF”). The property is approximately 83,000 square feet and located in Broadview, IL, a suburb of Chicago. This industrial property was introduced to us in 2022 by the LIVE Ventures’, NASDAQ (“LIVE”), subsidiary specializing in steel.
The tenant, CSF, executed a new 20-year NNN lease with 2% annual increases upon close of escrow, allowing for an initial 8.50% CAP with estimated 10% cash-on-cash returns. We successfully secured attractive interest-only financing despite the current challenging financing environment. Additionally, we maintained a more favorable interest rate as market conditions shifted considerably.
Since 1969, Central Steel Fabricators, Inc. has been a highly regarded manufacturer of specialized fabricated metal products primarily for the communications industry. CSF is led by tenured engineers who provide value in the excellence of the products they produce, and the top-tier service delivered to CSF’s customers. Additionally, CSF will have significant credit enhancement by merging with Precision Industries, allowing for an 5x EBITDA enhancement, increasing value of investors.
With a minimal capital raise requirement, the CSF offering was made available to a select group of qualified investors. We are delighted to report that the appraisal value has exceeded the closing price, additionally bolstered by credit enhancements following the merger of LIVE Ventures’ two other profitable steel facilities.
We are currently finalizing negotiations on additional income-producing properties, which are priced below market value and demonstrate substantial appreciation potential. We will continue to offer investment opportunities to our existing and new qualified investors. For further information and to discuss future opportunities, please contact us directly and sign up for our Investor Network.