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CAI Investments Converts $182 Million DST Offering to 506(c)

CAI Investments has converted its massive $182 million Manufacturing Essential Asset Delaware statutory trust offering to a Reg. D 506(c) offering. Launched as a 506(b) offering in April 2023, the offering had raised more than $52 million of the planned $182 million in equity from accredited investors prior to the conversion.

The DST purchased the former Motorola North American headquarters property from the United States Marshals Service in 2021 and secured the U.S. Medical Glove Company as its sole tenant in March 2023.

“Working with financial professionals continues to be of upmost importance to us at CAI,” says James Hickey, senior vice president of capital markets for CAI Investments. “We’ve watched the financial services industry evolve, taking advantage of marketing tools available through technology. Offerings need to shift, as well, to ensure they can act within regulatory guidelines. This is why we made the change to a 506(c).”

The 1.5 million-square-foot facility is a rarity in the continental United States with its combined office, manufacturing, and distribution facilities. USMG, a Department of Defense contractor, secured a 23.5-year lease beginning in May 2023. Serving as its global headquarters, USMG is the only U.S.-based company with the capacity to produce FDA-approved surgical, medical, and industrial nitrile gloves. They have also expanded to manufacture other medical protective products through a recent acquisition.

Currently the USMG customer list includes – through direct contracts or contracts with Prime Vendors – such agencies as the U.S. Border and Customs Protection, Defense Logistics Agency, U.S. Postal Service, FEMA, and private entities such as Adventis Health.

Headquartered in Las Vegas, CAI Investments is a real estate development company that finances, develops, and manages commercial properties in key markets across the United States.

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