INVESTMENT HIGHLIGHTS
EARLY 6-YEAR NNN LEASE EXTENSION WITH ADDITION OF SPIDER BY BRANDSAFWAY OPERATIONS
In 2022, Spider by BrandSafway, Hydro Rents by BrandSafway’s sister company, also moved its Vancouver, WA operations into this property. Both brands are operated by BrandSafway and work in concert with each other. As a result of this move, the Tenant extended its lease an additional 6 years, showing strong commitment to the site.
3% ANNUAL RENT INCREASES
The Lease features rare 3% annual rent increases during the lease term and all options, providing an investor with a hedge against inflation.
HIGH-QUALITY 2020 CONSTRUCTION WITH 2022 EXPANSION
The Property was a build-to-suit for Hydro Rents by BrandSafway in 2020 and features high quality finishes in both the exterior and interior of the building. In 2022, the Property was renovated to accommodate the addition of Spider by BrandSafway’ operations. A sprinkler system was installed to allow high-pile racking and a second floor was added to provide an area for training and office space.
MINIMAL LANDLORD RESPONSIBILITIES
The NNN Lease features minimal landlord management or repair responsibilities (landlord responsible for roof, structure, and HVAC replacement). As the Property was just built in 2020, there are no foreseeable capital expenditures.
STRATEGIC INDUSTRIAL LOCATION
The Property is located just off of NE Fourth Plain Blvd (16,900+ VPD), a main east-west arterial through Vancouver, and is nearby I-205 (123,000+ VPD) and SR 500 (74,000+ VPD), providing easy access to any direction or area of the Vancouver-Portland MSA and beyond.
CORPORATE GUARANTY WITH STRONG BACKING
The Lease is guaranteed by Hydro Rents Northwest Inc. Hydro Rents by BrandSafway currently operates 9 locations throughout the U.S. and Canada. In 2020 BrandSafway acquired AGF Access Group, the parent company of Hydro Rents and three other divisions (Winsafe, Hydro Mobile, and AGF Access). Hydro Rents became Hydro Rents by BrandSafway. BrandSafway’s portfolio of brands operates more than 360 locations in 30 countries and has a majority equity sponsorship by Clayton, Dubilier & Rice (CD&R) and Brookfield Business Partners. CD&R has invested in 86 businesses with an aggregate transaction value of more than $130 billion. Brookfield Business Partners is listed on the New York and Toronto stock exchanges (NYSE:BAM) and has more than $385 billion of assets under management.
SURROUNDED BY NEW INDUSTRIAL DEVELOPMENT
The Property is surrounded by over 35 acres of new industrial construction within a 2-mile radius, including a new, 290,000 SF warehouse within blocks of the Property. If development continues at this pace, the Orchards industrial submarket is on track to become one of the top industrial submarkets in all of the Vancouver/Portland MSA, per CoStar.
AFFLUENT, HIGH-GROWTH POPULATION SUBMARKET
The Property is located in the dense and rapidly growing Orchards submarket and benefits from a population of over 208,000 residents within a 5-mile radius, with average household incomes exceeding $94,000. Since 2010 the population has grown over 24% within a 5-mile radius and nearly 16% within a 1-mile radius.
INCOME TAX-FREE STATE
Washington State is an Income Tax-Free State.
Listing Agents:
CLAYTON J. BROWN
