Post on 04-Apr-2018
transcript
Sunbelt RentalsMemphis, Tennessee
OFFERING MEMORANDUM
In association with:
David McGahren615-301-2801David.McGahren@cassidyturley.comTN Lic #249454
Christopher Sheldon415-677-0441Chris.Sheldon@cassidyturley.comLic #01806345
Andrew Bogardus 415-677-0421Andy.Bogardus@cassidyturley.comLic #00913825
Douglas Longyear 415-677-0458Doug.Longyear@cassidyturley.comLic #00829911
Disclaimer
The information contained in this marketing brochure (“Materials”) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving the Materials from Cassidy Turley (“Agent”). The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property/properties (“Property”) for potential purchase.
The Materials have been prepared to provide unverified summary financial, property, and market information to a prospective purchaser to enable it to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Property.
Photographs: The photos and aerials in this offering memorandum show the actual property that is being offered for sale.
The information contained in the Materials has been obtained by Agent from sources believed to be reliable; however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent makes no representation or warranty regarding the Property, including but not limited to income, expenses, or financial performance (past, present, or future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating substances (PCB’s, asbestos, mold, etc.); compliance with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant (tenants’ intentions regarding continued occupancy, payment of rent, etc). A prospective purchaser must independently investigate and verify all of the information set forth in the Materials. A prospective purchaser is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating and evaluating the Property.
By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.
Sunbelt Rentals, Inc. i
The Offering• An industrial building located in Memphis, Tennessee leased to Sunbelt Rentals, Inc. until
July 2024. The building was originally constructed in 1995 and renovated for Sunbelt Rentals, Inc. in 2005. The building contains 17,787± square feet of pre-engineered metal and concrete block with a sales / office area of 5,000 square feet and a warehouse area of 12,787 square feet.
• Price – $1,720,000 Cap Rate – 6.75%
Lease / Tenant• Sunbelt Rentals, Inc. is the second largest equipmement rental company in the U.S.
• Sunbelt specializes in the rental of machinery, vehicles and tools through 358 rental locations.
• Sunbelt was formed in 1983 and serves mostly industrial construction customers.
• Sunbelt just renewed early to extend the lease to 10 years.
Real Estate• Located on a larges 7.59 acre parcel.
• The parcel has secure fencing around a majority of the site
• The property has extra site area for truck staging and car parking, and for future building expansion.
Area Strengths• The property is located in a clean industrial business park setting.
• The property is in close proximity to Highway 78 / Interstate 22, and Memphis International Airport.
The Offering / Investment Highlights
SKF USA, Inc. 2FedEx Ground iSunbelt Rentals, Inc. ii
Disclaimer i
Investment Highlights ii
Investment Overview 1
Sunbelt Rentals, Inc. 2
Ashtead Group, plc 3
Site Plan 4
Area / Location Maps 5
Aerials 7
Memphis 10 Economy 11 Colleges & Universities 12 Memphis International Airport 13
Demographics 14
Sunbelt Rentals
Table of Contents
In association with:
David McGahren615-301-2801David.McGahren@cassidyturley.comTN Lic #249454
Christopher Sheldon415-677-0441Chris.Sheldon@cassidyturley.comLic #01806345
Andrew Bogardus 415-677-0421Andy.Bogardus@cassidyturley.comLic #00913825
Douglas Longyear 415-677-0458Doug.Longyear@cassidyturley.comLic #00829911
Location 4517 South Mendenhall Road, Memphis, Tennessee
Lot Size Approximately 7.59 acres – 330,620± square feet
Improvements Constructed in 1995 and renovated in 2005 for SUNBELT RENTALS, INC., a 17,787± square foot pre-engineered metal building and concrete block with office sales area (5,000 square feet) and warehouse area (12,787 square feet). There are three drive-in doors ranging from 10’ x12’ to 12’ x 12’, one 10’ x 12’ dock-high door and ceiling height of 16’ to 18’.
There is ample land for outdoor equipment display of tenant’s construction equipment for rent, plus there is area for building expansion.
Lease Leased to SUNBELT RENTALS, INC., for 10 years from July 1, 2014 until June 30, 2024. The annual rent of $116,000 increases annually by 1.75% throughout the primary lease term. The lease is net with the tenant responsible for all taxes, maintenance and most insurance. The tenant is also responsible for having a HVAC maintenance contract, and paying repairs up to $750. The landlord is responsible for the roof, structure, exeterior portions of the building, and the repair and replacement of the HVAC system over $750. The landlord is also required to carry a $2 million liability insurance policy. There are two 5-year options to renew with 1.75 % annual rental increases.
Price: $1,720,000 – 6.75% Cap
Financing The property will be delivered free and clear of financing
Annual Rent
OptionsOption Years Annual Rent Return
Option 1 — Year 11 $137,064 7.97%
Year 12 $139,463 8.11%
Year 13 $141,904 8.25%
Year 14 $144,387 8.39%
Year 15 $146,914 8.54%
Option 2 — Year 16 $149,485 8.69%
Year 17 $152,101 8.84%
Year 18 $154,661 8.99%
Year 19 $157,368 9.15%
Year 20 $160,122 9.31%
Investment Years Annual Rent Return
1 $116,000 6.75%
2 $118,030 6.86%
3 $120,096 6.98%
4 $122,198 7.10%
5 $124,336 7.23%
6 $126,512 7.36%
7 $128,726 7.48%
8 $130,098 7.56%
9 $132,390 7.70%
10 $134,707 7.83%
Investment Overview
Sunbelt Rentals, Inc. 1
SUNBELT RENTALS, INC., the U.S. subsidiary of ASHTEAD GROUP, PLC, is one of the largest firms in the US that specializes in the rental of machinery, vehicles, and tools through 358 rental locations. Originally formed in 1983, Sunbelt serves mostly industrial and construction customers in commercial, residential, municipal, and service industries.
Sunbelt Rentals is the second largest equipment rental company in the United States. With a fleet of equipment valued for approximately $3 billion, Sunbelt offers a range of general construction equipment, industrial tools, pumps and power generation equipment, trench shoring, scaffolding, remediation and restoration equipment, and much more.
In addition to general tool capabilities, Sunbelt rounds out its highly diversified product mix with the offerings of specialty divisions. Designed to serve distinct customer segments requiring a high level of technical expertise, Sunbelt’s specialty divisions include concentrations in Pump & Power, Scaffolding, Pile Driving, Oil & Gas, Climate Control and an Industrial Resource Group. Innovative and adaptable, Sunbelt’s specialty divisions provide trained experts and specific equipment for projects requiring a more focused knowledge base and equipment set.
Website: http://www.sunbeltrentals.com
Sunbelt Rentals, Inc.
ASHTEAD GROUP PLC– STOCK SYMBOL “ASHTY” is one of the largest equipment rental groups in the world with a network of 494 locations in the U.S. and the United Kingdom. Headquartered in England, the Group provides customers with a comprehensive product line, including larger items such as aerial work platforms, backhoes, excavators and forklift trucks, as well as smaller items such as power saws, ladders, and small pumps.
The Group conducts its equipment rental operations in the U.S. under the name Sunbelt Rentals and in the United Kingdom principally under the name A-Plant. Sunbelt Rentals is the second largest equipment rental company in the U.S. with 358 locations operating in major metropolitan centers across the U.S., and A-Plant is the second largest equipment rental company in the United Kingdom with 106 locations nationwide, operating in a mature, stable market. The Group offers a wide range of equipment for rent. The U.S. operation, Sunbelt Rentals, comprises 85% and 15% is generated in the UK by A-Plant.
For the fiscal year ended April 30, 2014, revenue was up 20% to US$2.19 billion. Its pre-tax income was up 50% compared to the comparable 2013 fiscal year.
It is listed on the London Stock Exchange (“AHT”)
Website: http://www.ashteadgroup.com
Ashstead Group, plc does not guarantee the lease.
Ashtead Group, plc
124 A-Plant Accommodation delivered at a James Fisher Marine Services (JFMS) in Barrow-in-Furness, EnglandSunbelt Rentals, Inc. 3
This Sunblet Rentals is located just off Highway 78/ Interstate 22 at 4517 S. Mendenhall in the heart of Memphis’s industrial real estate market - Southeast Memphis. The building has great ingress/ egress to all major interstate systems and has great visibility.
Easy access to major thoroughfares and logistics centers: Memphis International Airport – 5.5 miles, BNSF Intermodal Yard – 0.5 miles, Interstate 240 — 5.5 miles, Interstate 55– 6.5 miles.
Location
Sunbelt Rentals, Inc. 6
EASY WAY FOOD STORES
SECURITY FIRE PROTECTION CO.
S MENDENHALL ROAD
MIDWAY DISTRIBUTION CENTER 3 BLDG COMPLEX
798,600 SF
EASY WAY FOOD STORES
SECURITY FIRE PROTECTION CO.
THE SOLAE COMPANY
4405 S MENDENHALL 8,772 SF
MACKENZIE & PAIR GLASS CO.
ARCHER’S AUTO CARE
OTTO ELECTRIC
INDUSTRIAL AIR CORPORATION
51 CONCRETE
BNSF MEMPHIS
4395 S MENDENHALL 11,130 SF
MIDWAY DISTRIBUTION CENTER, 3 BLDG COMPLEX
798,600 SF
4580 S
MEN
DEN
HALL
168,0
00 S
F
4550 S MENDENHALL 170,600 SF
4550 S MENDENHALL 460,000 SF
4370 S MEN
DEN
HALL
203,145 SF
4400 S MENDENHALL
90,918 SF
4450 S MEN
DEN
HALL
94,140 SF
4400 S MEN
DEN
HALL
106,850 SF
MENDINHALL BUSINESS CENTER, 5 BLDG COMPLEX
665,053
4444 S MENDENHALL 170,000 SF
HUNGERFORD R
OAD
EASLEY SHEET METAL FABRICATION CO.
S MENDENHALL ROAD
4339 S MENDENALL 27,500 SF
BNSF MEMPHIS
MIDWAY DISTRIBUTION CENTER
MENDINHALL BUSINESS CENTER
MEMPHIS INTERNATIONAL
AIRPORT
CEVA LOGISTICS
OAK HAVEN WAREHOUSEKYOCERA
MEMPHIS OAKS DISTRIBUTION CENTER
JOHNSON & JOHNSON
GMC
CON-WAY FREIGHT
WILLIAM-SONOMA DISTRIBUTION
NIKE DISTRIBUTION
GREAT NECK SAW MANUFACTURING
SOLAE
SOLAE
SOLAE
SOUTHPOINT DISTRIBUTION CENTER
FREIGHTLINER LLC
E SHELBY DRIVE
MALON
E ROAD
NIKE FACTORY
SYSCO
TENNESSEE FEDERAL BLDG
EMERSON EGS ELECTRICAL
FRED’S SUPER DOLLAR DISTRIBUTION
LAMAR AVENUE
LAMAR AVENUE
STAPLES DISTRIBUTION
SUMMIT DISTRIBUTION
CENTER
Lake Charles (continued)
Memphis
Memphis is located in the southwestern corner of Tennessee, and the county seat of Shelby County. Memphis had a population of 655,155 in 2012, making it the largest city in the state of Tennessee, the largest city on the Mississippi River, the third largest in the Southeastern United States, and the 20th largest in the United States. The greater Memphis metropolitan area, including adjacent counties in Mississippi and Arkansas, had a 2010 population of 1,316,100. This makes Memphis the second-largest metropolitan area in Tennessee.
Sunbelt Rentals, Inc. 10
Lake Charles (continued)
EconomyThe city’s central location has led to much of its business development. Located on the Mississippi River and intersected by five major freight railroads and two Interstate Highways, I-40 and I-55, Memphis is ideally located for commerce in the transportation and shipping industry. The city is home to Memphis International Airport, the world’s second busiest cargo airport , which serves as a primary hub for FedEx Express shipping.
Memphis is the home of three Fortune 500 companies: FedEx, AutoZone, and International Paper. Other major corporations based in Memphis include Allenberg Cotton, American Residential Services, Baker, Donelson, Bearman, Caldwell & Berkowitz, Cargill Cotton, City Gear, First Horizon National Corporation, Evergreen Packaging, Fred’s, GTx, Guardsmark, Lenny’s Sub Shop, Perkins Restaurant and Bakery, ServiceMaster, Thomas & Betts, True Temper Sports, Varsity Brands, and Verso Paper. Corporations with major operations based in Memphis include Carrier, Merck & Co., Medtronic, Sharp Manufacturing, Smith & Nephew, and Technicolor Home Entertainment Services. The Federal Reserve Bank of St. Louis also has a branch in Memphis.
FedEx World Headquarters
Sunbelt Rentals, Inc. 11
Lake Charles (continued)
Colleges & Universities
Colleges and universities located in the city include the University of Memphis, including University of Memphis Cecil C. Humphreys School of Law, Rhodes College, Christian Brothers University, Memphis College of Art, LeMoyne–Owen College, Baptist College of Health Sciences, Memphis Theological Seminary, Harding School of Theology, Embry–Riddle Aeronautical University, Worldwide (Memphis Campus), Reformed Theological Seminary (satellite campus), William R. Moore College of Technology, Southern College of Optometry, Southwest Tennessee Community College, Tennessee Technology Center at Memphis, Visible Music College, and the University of Tennessee Health Science Center. Memphis also has campuses of several for-profit post-secondary institutions, including Concorde Career College, ITT Technical Institute, Remington College, and University of Phoenix.
The Memphis area is home to many private, college-prep schools: Briarcrest Christian School, Christian Brothers High School, Evangelical Christian School, First Assembly Christian School, Hutchison School, Lausanne Collegiate School, Memphis University School, Saint Benedict at Auburndale, St. George’s Independent School, St. Agnes Academy, Immaculate Conception Cathedral School, St. Mary’s Episcopal School, and Elliston Baptist Academy.
University of Memphis FedEx Forum
Sunbelt Rentals, Inc. 12
Lake Charles (continued)
Memphis International AirportMemphis International Airport (MEM) is located 9 miles from the business center of East Memphis and 11 miles south of downtown Memphis, Tennessee. Memphis is home to worldwide shipping company Federal Express (FedEx), which uses Memphis Airport as a “SuperHub” making it the busiest and largest cargo airport in the world. Eight airlines operate at the airport with non-stop service throughout the US as well as Toronto, Canada, and Amsterdam, Netherlands. The airport serves more than 10 million travelers annually.
FedEx SuperHub - Memphis International AirportSunbelt Rentals, Inc. 13
Demographics
Census 2010 Summary 5 miles 10 miles 15 miles
Population 173,353 548,272 962,242
Households 63,145 208,381 366,136
Families 43,498 138,766 242,031
Average Household Size 2.73 2.58 2.58
Owner Occupied Housing Units 37,041 129,808 225,139
Renter Occupied Housing Units 26,104 78,573 140,996
Median Age 31.8 34.5 34.8
2013 Summary
Population 175,665 554,080 969,896
Households 63,854 210,525 369,215
Families 43,637 139,118 242,178
Average Household Size 2.74 2.58 2.58
Owner Occupied Housing Units 36,052 126,427 218,668
Renter Occupied Housing Units 27,801 84,097 150,547
Median Age 32.3 35.0 35.2
Median Household Income $43,141 $46,754 $45,569
Average Household Income $57,533 $69,782 $66,982
2018 Summary
Population 181,317 570,689 996,476
Households 65,819 216,825 379,460
Families 44,600 142,105 246,806
Average Household Size 2.74 2.59 2.58
Owner Occupied Housing Units 37,655 131,705 227,409
Renter Occupied Housing Units 28,164 85,120 152,051
Median Age 33.2 35.8 36.0
Median Household Income $51,762 $54,766 $53,815
Average Household Income $66,273 $83,073 $79,373
Trends: 2013-2018 Annual Rate
Population 0.64% 0.59% 0.54%
Households 0.61% 0.59% 0.55%
Families 0.44% 0.43% 0.38%
Owner Households 0.87% 0.82% 0.79%
Median Household Income 3.71% 3.21% 3.38% Beale StreetSunbelt Rentals, Inc. 14
Cassidy Turleywww.thinknnn.com
For more information please contact:In association with:
David McGahren615-301-2801David.McGahren@cassidyturley.comTN Lic #249454
Christopher Sheldon415-677-0441Chris.Sheldon@cassidyturley.comLic #01806345
Andrew Bogardus 415-677-0421Andy.Bogardus@cassidyturley.comLic #00913825
Douglas Longyear 415-677-0458Doug.Longyear@cassidyturley.comLic #00829911