Ferguson Enterprises Inc. BBB+ Credit Tenant 101 W Mockingbird Ln

Investment Highlights

Highly Desirable BBB+ Credit Tenant - Ferguson Enterprises, Inc. (NYSE: FERG) Over $650,000 of Capital Improvements Invested for Ferguson to Perform Daily Operations Nearest Ferguson is 98 miles away from Subject Property Strategically Located in the Heart of Golden Crest which is the Key Economic and Industrial Hub in Texas Ferguson Recently Exercised their Option and Converted the 3-Year Extension to a 5-Year Tax-Free, Business-Friendly State of Texas

Executive Summary

Marcus & Millichap is pleased to present to the market a highly desirable asset occupied by Ferguson Enterprises, Inc., a BBB+ credit tenant (NYSE: FERG) located in Victoria, Texas. The property consists of a main concrete building totaling 26,116-square feet and a 10-garage door building consisting of 4,300-square feet on a 3.11-acre lot. Ferguson executed a 65-month lease in 2016 and requested major capital improvements to the building to be able to conduct their daily operations. The improvements were in excess of $650,000 and included high-grade concrete to be laid in the storage yard, paved areas and drive-in ramps that needed to be redesigned and improved to be able to allow over 25,000 pounds of operations. The property was also completely fenced off in designated areas with 8-foot cedar fencing on the side and 6-foot in the back of the property allowing the tenant to have a secure and private yard. In 2022, Ferguson converted their 1st lease option to extend to a 5-year extension showing commitment to the site. There are 2 (3-year) extensions remaining at the end of their lease on August 31st, 2027. The tenant is paying only $6.40 annual rent per square foot, which is below the market rental rate of over $9.00 annual rent. The tenant is also benefiting from the 3.11-acre lot that they utilize and has extensive benefits to their daily operations. This offering is ideal for an investor who is seeking to acquire a very desirable asset occupied by a BBB+ credit tenant in a location that has a proven track record for a tenant who exercised they option to extend with a modification to extend the option showing commitment to the location. The property is being offered at a very attractive 6.00% capitalization rate and includes 90% CPI increases at each extension period.

• Sale Type    Investment
• Property Type    Retail
• Property Subtype    Freestanding Freestanding General Retail Restaurant Freestanding
• Building Size    827
• Year Built    2023
• Price    1,887,000
• Price Per SF    2,282
• Cap Rate    5.30
• NOI    100,000
• Tenancy    Single
• Building Height    1 Story

• Mezzanine
• Signage
• Yard
• Storage Space
• Air Conditioning