United Site Services: Strong National Credit Tenant – Sales Revenues Over $500 Million (2018) – Acquired by $6.5 Billion Global Investment Firm in 2017 for $1.15 Billion – United Site Services is the nation’s leader in portable toilet rentals, restroom trailer rentals, and temporary fencing. Founded in 1999, the company has over 100 locations across the United States and has revenues of $240 million (Source: D&B Hoovers). The company offers its services for construction, events, agriculture, seasonal, emergency, government, and industrial markets in the United States.
In 2017, United Site Services was acquired by Platinum Equity for $1.15 billion. Platinum Equity is a global investment firm with $13 billion of assets under management and a portfolio of approximately 30 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund.
3% Annual Rent Escalations – Long Term Passive NNN Lease – Minimal LL Responsibilities – The subject property is leased to United Site Services of Florida, LLC, a wholly owned subsidiary of United Site Services, Inc. United Site Services has 8 years remaining on a 10-year term. The landlord friendly Triple-Net (NNN) lease features 3% annual rent increases that continue throughout the two (5)-Year option periods, offering an investor an ideal long-term passive investment with tremendous income growth.
Hard to Replicate Subject Property Within Market – Limited Relocation Options for Tenant Due to Unique Use – High Likelihood of Long-Term Tenancy at Location – The tenant has extremely limited relocation options due their unique use and trend by cities to phase out heavy industrial and outside storage uses. This provides an investor with mitigated vacancy risk long term and there is a high likelihood the tenant will remain at this location long-term.
Property Fits Tenant’s Unique Needs – Ideal Building Configuration – 2.97 Acre Secure Fenced in Yard Space for Storage– This site ideally suits the unique needs of the tenant with a large 2.97 Acre required fenced outdoor storage yard. In addition, the building is a perfect fit for the tenant’s needs with a warehouse/storage facility, office, and a fence repair area. Properties that meet this tenant’s requirements are extremely hard to replicate in this market.
Strategic Location Allowing Distribution to Miami-Dade County & the Florida Keys – 34 Miles from Downtown Miami – Near All Major South Florida Highways – The property is conveniently located on NW 10th Avenue, near south Florida’s three major highways – Hwy 997, Hwy 1 and Ronald Reagan Turnpike – providing for easy access to Downtown Miami, just 34 miles away. Additionally, the site’s strategic location in the city of Homestead makes it one of the last stops for industrial real estate before going into the Florida Keys. Its proximity to Homestead Air Reserve Base (8.5 miles) and the Homestead-Miami Speedway (6 miles) offer strong synergy for the tenant’s use, providing a steady stream of demand.
Located in Homestead – Principal City within Miami Metropolitan Area – Gateway to the Florida Keys – Dynamic Growth & Development – The subject property is located in the city of Homestead, a city within Miami-Dade County in southern Florida just 34 miles south of Miami. The city is located near the southern terminus of the Homestead Extension of Florida’s Turnpike where it ends at its junction with U.S. 1, immediately north and east of Florida City. Homestead is primarily a Miami suburb and is a principal city within the Miami Metropolitan Area, the second-most populous in the southeastern United States and the seventh-largest metro in the nation, with an estimated 2018 population of 6.1 million residents.
Over the last decade, Homestead has had significant housing development and the population is expected to grow 7.7% by 2023. This growth has spurred new businesses and infrastructure developments in the area and is feeding a strong demand for more distribution in the region. The region has seen tremendous growth in population, commerce and infrastructure development and is located in an advantageous distribution point to service both Southern Miami-Dade County and the Florida Keys.