Sunbelt Rental

Challenge
Commercial and industrial equipment and tool rental investment properties are highly sought-after assets. Combine a ferocious appetite from investors for the product class with compressed cap rates, long-term lease term, and historically low interest rates, and you have the makings for record-breaking sales prices. The challenge: putting the investment property under contract in Q4 of 2021, getting through a tenant’s right of first refusal, and closing the deal before the end of the year.

Action
Our team at Stirling Investment Advisors (SIA) jumped into action. SIA immediately contacted existing Sunbelt Rentals property owners as well as REITs and private investors looking for a strong industrial investment property. SIA’s existing relationship with active investors, REITs, and brokers in the markets SIA serves played a critical role in the success of the transaction. As the only Sunbelt deal actively on the market in the Gulf South, and only one (1) of four (4) available throughout the U.S., the opportunity to invest in this single tenant net lease property was highly desirable.

Result
SIA's core focus is guiding clients to real estate wins...and no win is sweeter than when an investor achieves everything on its wish list:​

  • Three (3) competitive offers received within a matter of weeks of listing the property
  • SIA assisted seller in the successful negotiation of tenant's right of first refusal
  • With two (2) days remaining in 2021, SIA closed on the transaction, providing the seller with 2021 tax benefits
  • A cap rate of 5.70% was achieved, resulting in a final sales price that was within 3.45% of list price.

 

Testimonial
“Justin Langlois and Griffin Lenox with Stirling Investment Advisors hit the ground running, selling our industrial investment property prior to the end of the year. We achieved an amazing sales price and we got to take advantage of year-end tax benefits.” - Stanley Cheathum