Globally Recognized Tenant – Fortune 500 Company (#23) – Revenues of Nearly $71 Billion – Largest Employer in Iowa City – The building is leased to Oral-B Laboratories, part of the multi-billion dollar Procter & Gamble Company (S&P: AA-), an American multinational consumer goods corporation that specializes in a wide range of personal health/consumer health, and personal care and hygiene products; these products are organized into several segments including Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine, & Family Care. Procter & Gamble sells 65 products in more than 180 countries and territories, and reported revenues of nearly $71 billion in 2020, reflecting an increase of 5% over 2019. As the largest employer in Iowa City, Procter & Gamble/Oral-B has other facilities in the region dedicated to the manufacture and distribution of its products.
Significant Capital Improvements Made by Procter & Gamble (Estimated $16M) – $65M in Equipment Currently in the Building – Strong Commitment to the Site – In 2017, Procter & Gamble purchased the property and put approximately $16M of improvements into the building. These improvements include office buildout, R&D and lab buildout, improved power capabilities and the addition of a crane. Today P & G estimates that there is roughly $65M is equipment being utilized in this facility.
Mission-Critical Facility for Oral-B Operations – 100% of Oral-B Electric Brushes/Flossers Globally Manufactured at this Location – ISO 13485 Medical Device Designation – 24/7 Facility Operations – 100% of all Oral B electric toothbrushes and flossers globally are manufactured at this property, making this site a mission critical location for Oral-B’s core operations. The facility runs 24 hours a day, 7 days a week, with three shifts of 150 people per shift, just to keep up with demand. Additionally, the building has ISO 13485 medical device designation, a certification that demonstrates the high-quality standards of its manufacturing processes and affirming the tenant’s commitment to the site.
5+ Years Remaining on the NNN Lease – Recent Early Lease Extension – Annual Rent Increases – The Oral-B original lease commenced in October 2017 and Oral B recently executed a 4-year lease extension early in June 2020, leaving 5+ years remaining on its term. The lease features annual rent increases of 1.75% through the Primary Term as well as the (3) remaining options. The triple-net (NNN) lease requires the tenant to reimburse for taxes, insurance, and the maintenance of the building. The landlord has minimal maintenance responsibilities on the asset, providing an investor with a true passive investment grade credit income stream.
Strategic Location Along Hwy 1 – Less than 1 Mile from On/Off Ramp to Hwy 218/27 – Proximity to Downtown Iowa City & University of Iowa – The subject property is located along Hwy 1 less than one mile from the on/off ramp to Highway 218/27, just minutes to the interchange with Interstate 80, providing excellent access to distribution arteries throughout the state. The location is less than 3 miles from downtown Iowa City and the University of Iowa. The site also greatly benefits from its location adjacent to the Iowa City Municipal Airport.
Located in Iowa City, IA – Within Iowa City & Cedar Rapids CSA (Pop: 450,000) – Proximity to University of Iowa, One of the Area’s Largest Employers – The Amazon building is located in Iowa City, Iowa, approximately 30 miles south of Cedar Rapids. Iowa City is the fifth-largest city in Iowa with an estimated population of 75,130 (U.S. Census Bureau 2019). It is located at the center of the Iowa City Metropolitan Statistical Area (MSA), which encompasses Johnson and Washington counties and has a population of over 173,000.
Iowa City is home to the University of Iowa, a public research university. It is the second-largest university in the state, employing nearly two thousand people with an enrollment of over thirty-thousand students. This creates a large, educated workforce for surrounding businesses.