Challenge

As North America’s premier rental equipment company, Sunbelt Rentals offers a highly diversified product mix, including general construction equipment, industrial tools, pumps, power generation, climate control & HVAC, shoring solutions, scaffolding, remediation and restoration equipment, and more. The property’s location, in particular, has an extremely rare and beneficial rental escalation structure of CPI annually with a two percent minimum and a six percent annual maximum. Located directly in Salt Lake City, this facility is positioned along State Route 201, with an average daily traffic count of ±94,000. The city is further situated within a larger metropolis known as the Salt Lake City-Ogden-Provo Area, a corridor that stretches along a 120-mile segment with a population of around 3,000,000.

Strategy

The use of Matthews™ extensive marketing initiatives, paired with the agent’s combined databases, widened the property’s overall reach and interest. The property was acquired through a 1031 Exchange, where the buyer achieved a strong asset leased to a national credit tenant.

Results

Thanks to Matthews™ national reach, expertise, and private database, the brokers achieved a significant sale in the city of Salt Lake City. Having previous relationships with both the buyer and seller allowed the agents to facilitate a deal in a timely manner that met the long-term financial goals of both parties.

In summary, the sale was exceptional, with noteworthy achievements, including establishing a new price per square foot benchmark for industrial properties in Salt Lake City and a 4.44 percent cap rate which set a cap rate benchmark for Sunbelt Rental leased properties on a national level.