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8/14/2019 Single Tenant - RSC - Mankato MN
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MANKATO, MN
OFFERING MEMORANDUM
RSC EQUIPMENT RENTAL
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The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended
to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to
provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of
interest in the subject property. The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with
respect to the income or expenses for the subject property, the future projected financial performance of the property,
the size and square footage of the property and improvements, the presence or absence of contaminating substances,
PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements
thereon, or the financial condition or business prospects of any tenant, or any tenants plans or intentions to continue
its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained fromsources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the
information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and
makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.
All potential buyers must take appropriate measures to verify all of the information set forth herein.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP
AGENT FOR MORE DETAILS.
This information has been secured from sources we believe to be reliable, butwe make no representations or warranties, expressedorimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
CONFIDE
NTIALITYAGREEMENT
CONFIDE
NTIALITY
AGREEM
ENT
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SECTION ONE
...............................................PRICING & FINANCIAL ANALYSIS
SECTION TWO
..................................................PROPERTY DESCRIPTION
SECTION THREE
...................................................RECENT SALES
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
TABLE
O
FCONTENTS
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RSC EQUIPMENT RENTALMANKATO, MN
PRICING&FINANCIAL
ANALYSIS
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FIRST TRUST DEED
Loan Amount $1,112,500
Loan Type Proposed New
Interest Rate 6.5%Amortization 25 Years
ANNUALIZED OPERATING DATA
310 West Mabel Street
Mankato, MN 56002
Price $1,541,138
Down Payment 30% $462,341
Rentable Square Feet 5,900
Price/SF $261.21
CAP Rate 8.00%
Year Built 2008
Lot Size N/A
Type of Ownership Fee Simple
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressedorimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
LOCATION
PRICING&FINANCIAL
ANALYSIS
FINANCING
Loan information is time sensitive and subject to change.Contact your local Marcus & Millichap Capital Corporationrepresentative.
Rent Increases Annual Rent Monthly Rent
First 5 Years Initial $123,291.00 $10,274.25
Second 5 Years Initial $138,696.00 $11,558.001st 5 Year Option $156,036.00 $13,003.00
2nd 5 Year Option $175,536.00 $14,628.00
3rd 5 Year Option $197,484.00 $16,457.00
Base Rent ($20.90/SF) $123,291
Net Operating Income $123,291
Debt Service 90,140
Net Cash Flow After Debt Service 7.17% $33,151
Total Return 7.17% $33,151
Tenant Trade Name RSC Equipment Rental
Ownership Public
Tenant Corporate Store
Lease Guarantor Corporate Guarantee
Lease Type Absolute Net
Roof and Structure Tenant Responsible
Lease Term Ten Years
Lease Commencement Date July, 2008
Rent Commencement Date July, 2008
Lease Expiration Date August 2017
Term Remaining on Lease Ten Years
Increases 12.5% Every Five Years and at
Options Three, 5 Year Options
Financial Overview
TENANT SUMMARY
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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
PRICING&FINANCIAL
ANALYSIS
Financial Quote - Mark One Capital
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This information has been secured from sources we believe to be reliable, butwe make no representations or warranties, expressedorimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
PRICING&FINANCIAL
ANALYSIS
Property Name RSC Equipment Rental
Property Address 310 West Mabel Street
Mankato, MN 56002
Property Type Net Leased Miscellaneous
Rentable Square Feet 5,900
Tenant Trade Name RSC Equipment Rental
Ownership Public
Tenant Corporate Store
Sales Volume 1.7 Billion
Net Worth 3.83 Billion
Lease Guarantor Corporate Guarantee
Stock Symbol NYSE:RRR
Lease Commencement Date July, 2008
Rent Commencement Date July, 2008
Lease Expiration Date August 2017
Term Remaining on Lease Ten Years
Lease Type Absolute Net
Roof and Structure Tenant Responsible
Lease Term Ten Years
Year 1 Net Operating Income
Increases 12.5% Every Five Years and at Options
Options to Renew Three, 5 Year Options
Yes
No. of Locations 500 Locations in North America
Headquartered Scottsdale, AZ
Web Site http://www.rscrental.com/
Franchisee Profile
Other Concepts Owned
Tenant Overview
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RSC EQUIPMENT RENTALMANKATO, MN
PROPERTYDESCRIPTION
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Tenant Highlights
RSC Equipment Rentals is the premier provider of rental services in North America with over 500 locationsthroughout 39 of the US States and four (4) Canadian Provinces. RSC Equipment Rentals is traded on the
New York Stock Exchange for $20/share as RRR and is the second largest national equipment rental chain.
RSC has a client base of primarily non-residential construction, manufacturing, governmental, and
industrial sectors. Equipment rented to clients ranges from large equipment such as backhoes, forklifts, air
compressors, scissor lifts, booms and skid-steer loaders to smaller items such as pumps, generators,
welders and electric hand tools. 85% of revenues are derived from equipment rentals and 15% from sales of
used equipment. RSCs average fleet age is 25 months, which is one of the youngest in the industry.
Original equipment cost of the fleet was $2.5 billion and RSC has invested $2.2 billion in its fleet over the
past four (4) years. During the last 15 months, RSC fleet utilization was 70% and the company had over
470,000 customers during this period. The top 10 customers represented only 7% of overall revenues
showing a diverse client base.
RSC Equipment Rentals (RRR) vs. Competition
Business has been strong the past four (4) years, as RRR has achieved 15 consecutive quarters of positive
'same store sales' growth. The equipment rental market was $34.8 billion business in 2006 and had growth
of 8%-9% overall in 2007. The top 10 companies in the sector accounted for 30% of overall revenues in 2006.
Interestingly, while this is a fairly fragmented sector, RSC has grown exclusively organically and not via
acquisitions.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressedorimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
PROPERTYDESCRIPTION
Tenant Overview
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PROPERTYDESCRIPTION
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
PROPERTYDESCRIPTION
THE OFFERING
Property RSC Equipment Rental
Property Address 310 West Mabel Street
Mankato, MN 56002
SITE DESCRIPTION
Year Built 2008
Rentable Square Feet 5,900
Lot Size N/A
Type of Ownership Fee Simple
Property Summary
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LOCAL MAP
REGIONAL MAP
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
PROPERTYDESCRIPTION
Area Maps
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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
PROPERTYDESCRIPTION
Aerial
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RSC EQUIPMENT RENTALMANKATO, MN
RECENT
SALES
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1)2)3)4)
Subject PropertyRSC Corporate San Benito, TexasRSC Corporate Port Arthur, TXRSC Corporate Tulsa, OKRSC Corporate Hammond, LA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
RECENT
SALES
Recent Sales Map
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0.00
40.00
80.00
120.00
160.00
200.00
240.00
280.00
320.00
360.00
400.00
Subject RSCCorporate
SanBenito,Texas
RSCCorporate
PortArthur,
TX
RSCCorporate
Tulsa,OK
RSCCorporate
Hammond,LA
Avg $329.82
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Subject RSCCorporate
SanBenito,Texas
RSCCorporate
PortArthur,
TX
RSCCorporate
Tulsa,OK
RSCCorporate
Hammond,LA
Avg 7.75%
AVERAGE PRICE/SF
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
RECENT
SALES
AVERAGE CAP RATE
CAP Rate & Price/SF
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1
2
RSC EQUIPMENT RENTAL
310 West Mabel StreetMankato, MN 56002
RSC CORPORATE SAN BENITO, TEXAS
1720 West US 77 BR
San Benito, TX 78586
RSC CORPORATE PORT ARTHUR, TX
905 West Jade Avenue
Port Arthur, TX 77643
SUBJECT PROPERTY
Close of Escrow: 8/27/2008 Sales Price: $1,743,367
Rentable SF: 6,450 Down Payment: 38%
Year Built: 2008 CAP Rate: 7.75%
$270.29
Close of Escrow: In Contract Sales Price: $1,634,709
Rentable SF: 5,940 Down Payment: N/A
Year Built: 2008 CAP Rate: 7.75%
$275.00
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressedorimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
RECENT
SALES
Rentable Square Feet: 5,900 Sales Price: $1,541,138Year Built: 2008 Down Payment: $462,341
CAP Rate: 8.00%
Price/SF: $261.21
Recent Sales
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4
RSC CORPORATE TULSA, OK
8200 Charles Page Boulevard
Tulsa, OK 74063
RSC CORPORATE HAMMOND, LA
802 Westin Oaks Drive
Hammond, LA 70401
3
Close of Escrow: In Contract Sales Price: $2,264,658
Rentable SF: 5,900 N/A
Year Built: 2008 CAP Rate: 7.75%
$383.00
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressedorimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Chicago, Inc. 2008 Marcus & Millichap P0090391
RECENT
SALES
Close of Escrow: In Contract Sales Price: $2,309,806
Rentable SF: 5,900 Down Payment: N/A
Year Built: 2008 CAP Rate: 7.75%
$391.00
Recent Sales
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OFFERING MEMORANDUMIn Conjunction With: Indiana
MANKATO, MN
Offices Nationwide
www.MarcusMillichap.com
RSC EQUIPMENT RENTAL
Presented By:Presented By:Presented By:Presented By:
Russell R. KlusasRussell R. KlusasRussell R. KlusasRussell R. Klusas
AssociateAssociateAssociateAssociate
National Office and Industrial Properties GroupNational Office and Industrial Properties GroupNational Office and Industrial Properties GroupNational Office and Industrial Properties Group
Oak Brook OfficeOak Brook OfficeOak Brook OfficeOak Brook Office
Tel: (630) 570-2242Tel: (630) 570-2242Tel: (630) 570-2242Tel: (630) 570-2242
Fax: (630) 570-2210Fax: (630) 570-2210Fax: (630) 570-2210Fax: (630) 570-2210
[email protected]@marcusmillichap.comRussell.Klusas@[email protected]