Single Tenant - RSC - Mankato MN

8/14/2019 Single Tenant - RSC - Mankato MN

1/19

MANKATO, MN

OFFERING MEMORANDUM

RSC EQUIPMENT RENTAL


2/19

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


6/19


PRICING&FINANCIAL

ANALYSIS

Financial Quote - Mark One Capital


7/19

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


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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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.


PROPERTYDESCRIPTION

Tenant Overview


11/19

PROPERTYDESCRIPTION


PROPERTYDESCRIPTION

THE OFFERING

Property RSC Equipment Rental

Property Address 310 West Mabel Street

Mankato, MN 56002

SITE DESCRIPTION

Year Built 2008


Lot Size N/A

Type of Ownership Fee Simple

Property Summary


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LOCAL MAP

REGIONAL MAP


PROPERTYDESCRIPTION

Area Maps


13/19


PROPERTYDESCRIPTION

Aerial


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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


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


RECENT

SALES

AVERAGE CAP RATE

CAP Rate & Price/SF


17/19

1

2


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


$275.00


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


18/19

4

RSC CORPORATE TULSA, OK

8200 Charles Page Boulevard

Tulsa, OK 74063

RSC CORPORATE HAMMOND, LA

802 Westin Oaks Drive

Hammond, LA 70401

3


Rentable SF: 5,900 N/A


$383.00


RECENT

SALES


Rentable SF: 5,900 Down Payment: N/A


$391.00

Recent Sales


19/19

OFFERING MEMORANDUMIn Conjunction With: Indiana

MANKATO, MN

Offices Nationwide

www.MarcusMillichap.com


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]

Single Tenant - RSC - Mankato MN

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