Sunbelt Rentals OFFERING MEMORANDUM - ctbt.com · [email protected] Lic #00829911. Disclaimer. The information contained in this marketing brochure (“Materials”)

Sunbelt RentalsMemphis, Tennessee

OFFERING MEMORANDUM

In association with:

David [email protected] Lic #249454

Christopher [email protected] #01806345

Andrew Bogardus [email protected] #00913825

Douglas Longyear [email protected] #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:





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., 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

Site Plan

MEND

ENHALL ROAD

±17,787 SQ FT

OUTDOOR DISPLAY AREA

FENCE

N

GATE

GATE


Area Map

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


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


MIDWAY DISTRIBUTION CENTER, 3 BLDG COMPLEX

798,600 SF

4580 S

MEN

DEN

HALL

168,0

00 S

F



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


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.



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



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



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




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




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

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Documents

Sunbelt Rentals OFFERING MEMORANDUM - ctbt.com · [email protected] Lic #00829911. Disclaimer. The information contained in this marketing brochure (“Materials”)