Thanks for all the ideas guys! For me, getting ideas out of my box helps a lot to either directly solving the challenge with those ideas or boosting my imagination. I forwarded all your ideas to my engineering team and we came up with a simple way to do it...at least on paper. The job can be done on a small punch press where the die will part the rod and do the bend will simply not touch the 1/2" on each end. I don't care it the rest of the threads are mashed a bit. One of the guys is fairly certain he knows how to part the rod and still be able to start a nut easily.
There still is some debate if it will be better to part the rod in a separate operation for the ergonomics. Sometimes it IS better and faster to have two simple operations than one that is more complex.