| Purchase Price | $14,500,000 |
|---|---|
| Annual Rental Income | $942,500 |
| Cap Rate | 6.5% |
| Lease Term | 10 Years |
| City | Memphis |
This offering represents the rare opportunity to acquire a single-tenant industrial distribution facility leased to Sherwin-Williams Company (NYSE: SHW), one of the world’s largest and most recognized paint and coatings manufacturers. Headquartered in Cleveland, Ohio, Sherwin-Williams operates over 5,000 retail locations across North America and maintains a robust network of manufacturing and distribution facilities to support its global supply chain. The company is investment-grade rated (S&P: BBB, Moody’s: Baa2) and continues to expand its logistics footprint to meet the needs of its $23+ billion revenue stream.
The subject property is secured by a long-term absolute net lease, offering investors durable income with zero landlord responsibilities. Under the terms of the lease, Sherwin-Williams is responsible for all taxes, insurance, and maintenance obligations. Scheduled rental increases provide a built-in hedge against inflation, ensuring predictable and growing cash flow over the lease term.
Founded in 1866, Sherwin-Williams has grown into a global leader in paints, coatings, and related products, serving professional, industrial, commercial, and retail customers. The company’s strong balance sheet, consistent profitability, and investment-grade credit rating make it one of the most sought-after tenants in the net lease investment sector. Its distribution and logistics network plays a critical role in supporting retail operations, contractor accounts, and industrial partnerships, making facilities like this one mission-critical to Sherwin-Williams’ long-term success.
The property is strategically located in the Memphis metropolitan area, one of the nation’s most important distribution and logistics hubs. Known as “America’s Distribution Center,” Memphis is home to FedEx’s global headquarters and SuperHub, as well as major hubs for UPS, DHL, and the U.S. Postal Service. This connectivity, combined with access to five Class I railroads, seven federal highways, and the Mississippi River port system, positions Memphis as a premier location for national supply chain operations.
The Memphis MSA’s central U.S. location allows for one-day truck service to nearly 70% of the U.S. population, making it an ideal market for large-scale distribution tenants such as Sherwin-Williams. The facility benefits from proximity to major interstate arteries (I-40, I-55, and I-69), ensuring efficient transportation and logistics capabilities.
The Memphis industrial market continues to see strong demand, with national retailers, manufacturers, and e-commerce companies expanding their distribution footprints in the region. Over the past decade, Memphis has consistently ranked among the top U.S. logistics markets by square footage of leased industrial space. National tenants including Amazon, Nike, Williams-Sonoma, and International Paper maintain significant warehouse and distribution operations in the area, underscoring the market’s long-term stability and desirability.
With vacancy rates for large-format distribution centers remaining low and absorption levels steady, properties like this Sherwin-Williams facility are positioned to maintain strong tenant demand and long-term asset value.