Purchase Price | $3,350,000 |
---|---|
Annual Rental Income | $217,750 |
Cap Rate | 6.5% |
Lease Term | 10 Years |
City | Nashville MSA |
Sunbelt Rentals Triple Net Investment Opportunity
Nashville MSA, Tennessee
This offering presents a premier opportunity to acquire a Sunbelt Rentals facility located in the high-growth Nashville Metropolitan Statistical Area. With fee simple ownership, a 10-year absolute triple net lease backed by a corporate guarantee, and a strategically positioned industrial parcel near major highways, this property provides investors with long-term, stable income from one of the largest and most respected equipment rental companies in North America. With no landlord management responsibilities, this asset is ideal for investors seeking predictable, passive income and a creditworthy tenant in a thriving market.
Location and Market Overview
The property is strategically located within the Nashville MSA, benefiting from proximity to major transportation corridors including Interstate 24, Interstate 65, and Interstate 40. Daily traffic counts on the main frontage exceed 46,000 vehicles, offering excellent visibility and accessibility. The site’s location provides strong logistical access to construction projects and industrial activity across Middle Tennessee.
Nashville is among the fastest-growing metros in the Southeast, with a population of more than 2 million. Its economy is anchored by healthcare, technology, finance, tourism, and a booming construction sector driven by the city’s rapid expansion. Continued population growth, coupled with major corporate relocations and infrastructure investment, fuels sustained demand for industrial services and equipment rentals.
Demographics
The trade area surrounding the property is characterized by strong income levels and a growing population. Within a three-mile radius, the population exceeds 95,000 with average household incomes of approximately $92,000. Expanding to five miles, the population surpasses 225,000, with average household incomes near $88,000. Nashville’s steady population growth and housing demand create an ongoing need for construction and development services, directly supporting Sunbelt Rentals operations.
Property Details
The property sits on approximately 4.1 acres and includes a modern industrial facility totaling 21,000 square feet. The building is designed specifically for heavy equipment rental and includes high clear height ceilings, multiple drive-in and dock-high doors, expansive secured yard space for equipment storage, and perimeter fencing. The site layout allows for efficient ingress and egress, accommodating high traffic volumes of large vehicles and machinery.
Ownership is fee simple, granting the investor full rights to both land and improvements without ground lease encumbrances, ensuring maximum control and long-term flexibility.
Lease Structure and Tenant Guarantee
The property is leased to Sunbelt Rentals, Inc. under an absolute triple net (NNN) lease. The tenant assumes responsibility for all property-related expenses including taxes, insurance, maintenance, and structural repairs. This structure provides the landlord with a completely passive investment.
The lease term is a firm 10 years, with 2% annual rental increases, offering consistent income growth and protection against inflation.
Sunbelt Rentals, a subsidiary of Ashtead Group plc, is a national leader in equipment rental with more than 1,200 locations across North America. The corporate guarantee ensures strong financial backing and security for investors.
Tax Benefits and Bonus Depreciation
This property qualifies for accelerated depreciation opportunities through cost segregation studies, allowing investors to maximize tax advantages while benefiting from a reliable income stream.
Surrounding Area and Trade Drivers
Nashville continues to experience explosive growth, fueled by new residential and commercial developments, expanding healthcare facilities, and robust infrastructure projects. The property is located in an established industrial corridor near major distribution centers, construction suppliers, and logistics operators. Proximity to the Nashville International Airport and multiple interstate highways enhances the site’s operational efficiency and value.
Investment Highlights
Buyer Profile and Financing
This asset is ideal for 1031 exchange buyers, institutional investors, REITs, family offices, and private equity groups seeking a secure, long-term net lease investment. The fee simple ownership, corporate guarantee, and absolute triple net lease ensure lender appeal and competitive financing terms. Investors benefit from stable cash flow, built-in rental growth, and a tenant aligned with Nashville’s booming construction market.
Conclusion
This Sunbelt Rentals facility in the Nashville MSA represents a best-in-class net lease investment offering secure, passive income with long-term growth potential. Featuring a 10-year absolute NNN lease, corporate guarantee, annual rental escalations, and fee simple ownership, this property offers investors an excellent opportunity to acquire a stable, inflation-protected cash flow stream in one of the fastest-growing markets in the United States.
Qualified investors are encouraged to request the full offering memorandum, financial analysis, and acquisition details.