Purchase Price | $7,500,000 |
---|---|
Annual Rental Income | $468,750 |
Cap Rate | 6.25% |
Lease Term | 12 Years |
City | Dallas MSA |
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United Rentals Triple Net Investment Opportunity
Dallas MSA, Texas
This offering represents a premier opportunity to acquire a United Rentals industrial equipment rental facility located within the Dallas Metropolitan Statistical Area. Positioned on a well-located industrial parcel with excellent highway access, fee simple ownership, and an absolute triple net lease backed by a corporate guarantee, this property provides investors with a stable, long-term income stream from one of the nation’s largest and most financially secure equipment rental companies. With a 12-year lease term and no landlord responsibilities, this asset is ideal for investors seeking predictable cash flow and strong tenant credit in a robust real estate market.
Location and Market Overview
The property is strategically located within the Dallas MSA, with proximity to major transportation corridors including Interstate 35E, Interstate 20, and the President George Bush Turnpike. Daily traffic counts on adjacent roadways exceed 48,000 vehicles, ensuring excellent accessibility and visibility for the tenant’s operations. The site benefits from strong industrial demand driven by Dallas’s thriving construction, energy, and infrastructure sectors.
Dallas is one of the fastest-growing metro areas in the country with a population exceeding 7.5 million. Its diversified economy spans technology, finance, healthcare, manufacturing, logistics, and construction. The region’s robust infrastructure and business climate continue to attract corporate expansion and population growth, fueling demand for industrial real estate assets like this.
Demographics
The surrounding trade area features a large workforce and solid household incomes. Within three miles of the property, the population exceeds 100,000 residents with average household incomes over $102,000. The Dallas metro’s expansive labor pool and economic diversity support ongoing demand for industrial and equipment rental services.
Property Details
The subject property occupies approximately 4.5 acres and includes a modern industrial building totaling 50,000 square feet. The facility features high clear height ceilings, multiple drive-in and dock-high loading doors, expansive yard space for equipment storage, and secure fencing. The site layout is optimized for heavy equipment access, parking, and operational efficiency.
Ownership is fee simple, providing the investor full rights to land and improvements without ground lease restrictions, allowing for long-term control and flexibility.
Lease Structure and Tenant Guarantee
The property is leased to United Rentals North America, Inc. under an absolute triple net (NNN) lease, where the tenant assumes all property-related expenses including taxes, insurance, maintenance, and structural repairs. This lease structure ensures a passive investment with zero landlord management responsibilities.
The lease term is a firm 12 years with no renewal options, providing a predictable income stream. Rental increases of 2.5% annually are built into the lease, offering consistent growth and inflation protection.
United Rentals is the largest equipment rental company in North America, with an investment-grade corporate credit rating and a nationwide footprint exceeding 1,200 locations. The corporate guarantee from United Rentals North America, Inc. delivers exceptional financial security to investors.
Tax Benefits and Bonus Depreciation
While industrial properties may have limited bonus depreciation on buildings, investors can benefit from accelerated depreciation of certain components through cost segregation. Combined with the stable income stream, this can improve after-tax returns.
Surrounding Area and Trade Drivers
Dallas serves as a major hub for construction, energy, infrastructure development, and manufacturing, all driving demand for equipment rental services. The property is located in an established industrial submarket surrounded by complementary industrial tenants, enhancing the location’s appeal.
Excellent highway access, including proximity to major interstates, facilitates efficient transportation of heavy equipment and supplies throughout the region.
Investment Highlights
Buyer Profile and Financing
This asset is ideal for 1031 exchange buyers, institutional investors, family offices, and private equity seeking a secure, long-term net lease investment with minimal management. The fee simple ownership, absolute NNN lease, and corporate guarantee make this property highly financeable. Investors benefit from steady cash flow, annual rent increases, and exposure to a strong regional economy.
Conclusion
This United Rentals facility in the Dallas MSA offers a best-in-class net lease investment with long-term income stability and growth. Featuring an absolute triple net lease, corporate guarantee, 12-year lease term, and fee simple ownership on a large industrial parcel with superior transportation access, this asset represents a compelling opportunity for investors seeking passive, inflation-protected cash flow from a creditworthy tenant.
Qualified investors are encouraged to request the full offering memorandum, financial details, and acquisition process information.