Manufacturing Essential Asset II
Industrial property in Honea Path, SC · sponsored by CAI Investments
Manufacturing Essential Asset II was a DST sponsored by CAI Investments that owned an industrial property in Honea Path, SC (96,204 sq ft). Its last Form D was filed Sep 13, 2024.
How it ended
No outcome recorded · under 7 years
The record lists the offering as fully subscribed; the last Form D was filed Sep 13, 2024.
Key facts
- Minimum investment
- $100,000From the Form D
- Offering size
- $22,284,282Equity offered, per the Form D
- Sold
- 3.4%Form D, Sep 13, 2024; the % is our arithmetic
- Investors reported
- Form D, Sep 13, 20242
- Selling commissions
- Form D Item 15; the % is our arithmetic$2,217,286 · 9.9% of offering
- Financing
- All cash. This offering reports no mortgage debt.How it is financed ↓
- Offered under
- Rule 506(c)May be advertised publicly. Every buyer’s accredited status must be verified.
Figures come from SEC Form D filings unless a source is cited. Sponsor-stated figures are as reported by the sponsor; Top1031 does not independently audit them. On a 45-day clock? Find day 45 and day 180 →
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Ask a 1031 specialist about this recordFree. About: Manufacturing Essential Asset II. Top1031 is not a broker-dealer.Manufacturing Essential Asset II · Honea Path, SC · Photo: caicap.com
What did the Trust own?
CAI Investments acquired the plant at 308 Church St. in Honea Path, South Carolina through a sale-leaseback, leaving the chemical operator in place; the purchase price was not disclosed. 3 CAI describes the facility as the only plant in the United States able to produce polyisoprene, the key input in latex-free surgical gloves. 2 U.S. Medical Chemical Company, a U.S. Medical Glove Company subsidiary, runs the operation. 3
- Reported location
- Honea Path, SC
- Property size
- 96,204 sq ft
How was it financed, and what did it cost to sell?
There is no lender in the capital stack — no loan to service, refinance, or mature, and no lender reserves. Exchangers who must replace debt from a mortgaged relinquished property will not find leverage to match here.
Debt
- Financing
- All cash. This offering reports no mortgage debt.
- May convert to a REIT (721)
- Target hold
- 10 years From CAI Investments’ offering documents (Aug 2024). As reported by the sponsor.
Costs and terms from the Form D
- Selling commissions
- $2,217,286 · 9.9% of offering
- Finders’ fees
- $0
- Paid to officers, directors and promoters
- $2,054,719 · 9.2% of offeringForm D Item 16
- Broker-dealers named in the Form D
- 1 named in the Form D
Show the firms
- Emerson Equity LLC · CRD 130032
Individual representatives named in Item 12 are not listed.
- Date of first sale
- Sep 9, 2024
- Minimum investment
- $100,000
Form D Item 15 and Item 16 amounts may be the issuer’s estimates; each percentage is Top1031’s arithmetic on two Form D figures. Item 16 can overlap Item 15, so Top1031 does not add them together. The issuer marked these amounts as an estimate.
What are the deal terms?
From CAI Investments’ offering documents (Aug 2024).
Your exit
- Can the sponsor's affiliate buy investors out?
- No
Rent and the bills
- Who pays rent to the trust?
- A master tenant affiliated with the sponsor
- Who pays for roof and structural repairs?
- Investors, through the trust
- Who pays if taxes or insurance go up?
- The tenant or master tenant
Your rights
- Can investors remove the manager?
- No
- How are disputes with the sponsor resolved?
- Mandatory arbitration
Who's behind the Trust?
CAI Investments is a Las Vegas–based real estate sponsor; the Trust's Form D names Christopher Beavor as a related person and manager of the issuer. 1 MEA II is the second offering in CAI's Manufacturing Essential Asset DST series. On March 14, 2025, CAI announced it had completed the $22.28 million capital raise for the Trust. 4
- Sponsor
- Offerings on record
What does the SEC record show?
The Trust filed once and never amended: a single Form D covering the entire offering, reporting a first sale on September 9, 2024. 1 It was offered under Rule 506(c), the exemption that allows public advertising so long as every purchaser's accredited-investor status is verified.
- Legal Trust name
- Manufacturing Essential Asset II, DST
- SEC CIK
- 2035986
- First Form D
- Sep 13, 2024
- Latest Form D
- Sep 13, 2024
- Filings on record
- 1
- Offered under
- Rule 506(c)May be advertised publicly. Every buyer’s accredited status must be verified.
- Source filing
SEC Form D filings, newest first
| Filed | Form | Offering amount | Amount sold | Investors | Filing on SEC EDGAR |
|---|---|---|---|---|---|
| Form D | $22,284,282 | $770,576 | 2 | EDGAR |
Amounts, investor counts and minimums are as filed with the SEC on Form D. The change lines are Top1031’s arithmetic between consecutive filings; a new Form D notice starts a new count.
A Form D is the notice a sponsor files when it starts raising money. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
Common questions
- What happened to Manufacturing Essential Asset II?
- Manufacturing Essential Asset II is a Historical offering. The record lists the offering as fully subscribed; the last Form D was filed Sep 13, 2024.
- Who is the tenant, and who stands behind the rent?
- The property is leased to an affiliate of U.S. Medical Glove Company, and CAI reports the lease is guaranteed by US Medical Glove Company, LLC. AltsWire reported that the plant is operated by U.S. Medical Chemical Company, a subsidiary of U.S. Medical Glove Company, which continued operating the facility after the sale-leaseback. This is a single-tenant asset, so all rent comes from that one relationship.
- How long is the lease?
- That is the one open question in the public record. CAI Investments' offering page describes a 22-year absolute NNN lease with two 10-year renewal options and 2% annual rent increases, while other listing data for the same 96,204-square-foot Honea Path facility describes a 15-year absolute-net lease. Nothing publicly filed resolves the difference; the lease itself and the offering documents would.
- What does "all cash" mean for my exchange?
- It means the Trust holds the property without mortgage financing. There is no loan to refinance and no debt maturity to plan around. For a 1031 exchange, though, it also means there is no Trust-level debt to replace: an investor selling a mortgaged property who needs to match that debt to avoid boot would not get debt relief from this structure.
- Could the Trust convert into a REIT interest?
- Top1031's data records no 721/UPREIT exit feature for this Trust — that is the structure where a DST's property is later contributed to a REIT's operating partnership in exchange for OP units. Absent that mechanic, the expected path is ownership of the single property until a sale. The offering documents and trust agreement govern what the trustee may actually do.
- Where exactly is the property?
- At 308 Church St. in Honea Path, South Carolina 29654, per CAI Investments' offering page — a small town in Anderson County in the state's upstate region. It is a single-tenant industrial and chemical manufacturing facility rather than a warehouse or distribution building, which matters because special-purpose plants have a narrower pool of replacement tenants if the current occupant leaves.
In the news
Sources
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DST interests are illiquid private securities. You may lose some or all of your investment. Distributions, tax treatment, and exit timing are not guaranteed. Review the current offering documents before investing.