The asset is a functional and well located two story, steel structure warehouse and distribution facility built 20 years ago.
- Renegotiate lease with existing tenant or find new tenants – UI was able to find a replacement tenant prior to the expiration of the in place lease, and identified several tenants with interest prior to acquisition of the asset
- Undertake minor capex and refresh the building through painting and other maintenance – all capex and painting of the building was successfully completed prior to the new tenant beginning their lease
- Change property usage from restricted use to general warehouse use—usage change created immediate value enhancement
The asset is best suited as a warehouse distribution facility for a single tenant or can be demised to service two tenants given its size and layout.
Located approximately 5 kilometers from the Tokorozawa Interchange on the Kanestu Expressway and 35 kilometers from the Tokyo CBD, the property is situated in the Tokorozawa/Miyoshi submarket of Saitama in the greater Tokyo area. Tokorozawa/Miyoshi is located in the south western part of Saitama prefecture and given its proximity to Tokyo can be considered a suburb of Tokyo. From this location the facility can service not only the entire Saitama and Tokyo markets but also Gunma and Ibaraki Prefectures making its coverage area extensive and an excellent inland logistics location. It is located next to Tokorozawa and Kawagoe, with a combined population in excess of 700,000 people, making it an easy area to find and retain part time workers for the facility.