Single Tenant - RSC - Mankato MN

RSC EQUIPMENT RENTAL
MANKATO, MN
OFFERING MEMORANDUM
CONFIDENTIALITY AGREEMENT
CONFIDENTIALITYAGREEMENT
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended
to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to
provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of
interest in the subject property. The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with
respect to the income or expenses for the subject property, the future projected financial performance of the property,
the size and square footage of the property and improvements, the presence or absence of contaminating substances,
PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements
thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue
its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from
sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the
information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and
makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.
All potential buyers must take appropriate measures to verify all of the information set forth herein.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP
AGENT FOR MORE DETAILS.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Chicago, Inc. © 2008 Marcus & Millichap P0090391
TABLE OF CONTENTS
SECTION ONE
...............................................PRICING & FINANCIAL ANALYSIS
SECTION TWO
..................................................PROPERTY DESCRIPTION
SECTION THREE
...................................................RECENT SALES
PRICING & FINANCIAL ANALYSIS
MANKATO, MN
Financial Overview
LOCATION ANNUALIZED OPERATING DATA
310 West Mabel Street Rent Increases Annual Rent Monthly Rent
Mankato, MN 56002 First 5 Years Initial $123,291.00 $10,274.25
Second 5 Years Initial $138,696.00 $11,558.00
Price $1,541,138 1st 5 Year Option $156,036.00 $13,003.00
Down Payment 30% $462,341 2nd 5 Year Option $175,536.00 $14,628.00
Rentable Square Feet 5,900 3rd 5 Year Option $197,484.00 $16,457.00
Base Rent ($20.90/SF) $123,291
Price/SF $261.21
Net Operating Income $123,291
CAP Rate 8.00%
Debt Service 90,140
Year Built 2008 Net Cash Flow After Debt Service 7.17% $33,151
Lot Size N/A Total Return 7.17% $33,151
Type of Ownership Fee Simple
TENANT SUMMARY
Tenant Trade Name RSC Equipment Rental
Ownership Public
Tenant Corporate Store
Lease Guarantor Corporate Guarantee
Lease Type Absolute Net
Roof and Structure Tenant Responsible
Lease Term Ten Years
Lease Commencement Date July, 2008
Rent Commencement Date July, 2008
Lease Expiration Date August 2017
Term Remaining on Lease Ten Years
Increases 12.5% Every Five Years and at
Options Three, 5 Year Options
FINANCING
FIRST TRUST DEED
Loan Amount $1,112,500
Loan Type Proposed New
Interest Rate 6.5%
Amortization 25 Years
Loan information is time sensitive and subject to change.

Contact your local Marcus & Millichap Capital Corporation
representative.
1
Financial Quote - Mark One Capital
2
Tenant Overview
Property Name RSC Equipment Rental
Property Address 310 West Mabel Street
Mankato, MN 56002
Property Type Net Leased Miscellaneous
Rentable Square Feet 5,900
Tenant Trade Name RSC Equipment Rental
Ownership Public
Tenant Corporate Store
Sales Volume 1.7 Billion
Net Worth 3.83 Billion
Lease Guarantor Corporate Guarantee

Stock Symbol NYSE:RRR
Lease Commencement Date July, 2008
Rent Commencement Date July, 2008
Lease Expiration Date August 2017
Term Remaining on Lease Ten Years
Lease Type Absolute Net
Roof and Structure Tenant Responsible
Lease Term Ten Years
Year 1 Net Operating Income
Increases 12.5% Every Five Years and at Options
Options to Renew Three, 5 Year Options
Yes
No. of Locations 500 Locations in North America
Headquartered Scottsdale, AZ
Web Site http://www.rscrental.com/

Franchisee Profile
Other Concepts Owned
3
PROPERTY DESCRIPTION
MANKATO, MN
Investment-Location Overview
This offering is for a RSC Equipment Rental net leased building in

INVESTMENT Mankato, Minnesota. The lease terms are ten-(10) years with three, 5
HIGHLIGHTS year options including a 12.5% increase at year five-(5) of the initial
RSC Corporate Guarantee-New term and at the options. It is an absolute triple net lease (NNN) with no
York Stock Exchange Traded and management to the landlord whatsoever. The lease is corporately
500 Locations
guaranteed by RSC Equipment Rentals Inc. and the property was built
Absolute NNN-10 Year Initial out by a preferred developer of corporate in 2008. RSC Equipment
Term, and Increase During Initial Rental (NYSE:RRR) has a credit rating of B+ from S & P 500 and has
Term
over 400 locations in more than 30 states.
12.5% Increases Every Five-(5)
Years and at Options 3 (5 Year) The City of Mankato is located one hour South of Minneapolis,
Minnesota. The subject property is 4 miles to the north of the University
Equipment Rentals Industry $34 of Minnesota, Mankato which has a total student population of 19,000.
Billion/Year and RSC Ranked 2nd The subject property is just off Interstate 14 which has a daily traffic
Overall in Industry
count exceeding 26,000.
4 Miles North of Minnesota
University, Mankato - 19,000
Students
Off Highway 14, Traffic Counts

Over 26,000
S & P Credit B+
5
Tenant Overview
Tenant Highlights
RSC Equipment Rentals is the premier provider of rental services in North America with over 500 locations
throughout 39 of the US States and four (4) Canadian Provinces. RSC Equipment Rentals is traded on the
New York Stock Exchange for $20/share as RRR and is the second largest national equipment rental chain.
RSC has a client base of primarily non-residential construction, manufacturing, governmental, and
industrial sectors. Equipment rented to clients ranges from large equipment such as backhoes, forklifts, air
compressors, scissor lifts, booms and skid-steer loaders to smaller items such as pumps, generators,
welders and electric hand tools. 85% of revenues are derived from equipment rentals and 15% from sales of
used equipment. RSC’s average fleet age is 25 months, which is one of the youngest in the industry.
Original equipment cost of the fleet was $2.5 billion and RSC has invested $2.2 billion in its fleet over the
past four (4) years. During the last 15 months, RSC fleet utilization was 70% and the company had over
470,000 customers during this period. The top 10 customers represented only 7% of overall revenues
showing a diverse client base.
RSC Equipment Rentals (RRR) vs. Competition

Business has been strong the past four (4) years, as RRR has achieved 15 consecutive quarters of positive
'same store sales' growth. The equipment rental market was $34.8 billion business in 2006 and had growth
of 8%-9% overall in 2007. The top 10 companies in the sector accounted for 30% of overall revenues in 2006.
Interestingly, while this is a fairly fragmented sector, RSC has grown exclusively organically and not via
acquisitions.
6
Property Summary
THE OFFERING
Property RSC Equipment Rental
Property Address 310 West Mabel Street
Mankato, MN 56002
SITE DESCRIPTION
Year Built 2008
Rentable Square Feet 5,900
Lot Size N/A
Type of Ownership Fee Simple
7
Area Maps
LOCAL MAP
REGIONAL MAP
8
Aerial
9
RECENT SALES
MANKATO, MN
RECENT SALES
Recent Sales Map
Subject Property
1) RSC Corporate San Benito, Texas
2) RSC Corporate Port Arthur, TX
3) RSC Corporate Tulsa, OK
4) RSC Corporate Hammond, LA
11
RECENT SALES
CAP Rate & Price/SF
AVERAGE CAP RATE
8.00 Avg 7.75%
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Subject RSC RSC RSC RSC
Corporate Corporate Corporate Corporate
San Port Tulsa, Hammond,
Benito, Arthur, OK LA
Texas TX
AVERAGE PRICE/SF
400.00
360.00
Avg $329.82
320.00
280.00
240.00
200.00
160.00
120.00
80.00
40.00
0.00
Subject RSC RSC RSC RSC
Corporate Corporate Corporate Corporate
San Port Tulsa, Hammond,
Benito, Arthur, OK LA
Texas TX
12
RECENT SALES
Recent Sales
310 West Mabel Street
Mankato, MN 56002
Rentable Square Feet: 5,900 Sales Price: $1,541,138
Year Built: 2008 Down Payment: $462,341

CAP Rate: 8.00%
Price/SF: $261.21
SUBJECT PROPERTY
1 RSC CORPORATE SAN BENITO, TEXAS

1720 West US 77 BR
San Benito, TX 78586
Close of Escrow: 8/27/2008 Sales Price: $1,743,367

Rentable SF: 6,450 Down Payment: 38%
Year Built: 2008 CAP Rate: 7.75%
$270.29
2 RSC CORPORATE PORT ARTHUR, TX

905 West Jade Avenue
Port Arthur, TX 77643
Close of Escrow: In Contract Sales Price: $1,634,709
Rentable SF: 5,940 Down Payment: N/A
$275.00
13
RECENT SALES
Recent Sales
3 RSC CORPORATE TULSA, OK
8200 Charles Page Boulevard
Tulsa, OK 74063
Rentable SF: 5,900 N/A

$383.00
4 RSC CORPORATE HAMMOND, LA

802 Westin Oaks Drive
Hammond, LA 70401
Rentable SF: 5,900 Down Payment: N/A

$391.00
14
MANKATO, MN
OFFERING MEMORANDUM
In Conjunction With: Indiana
Presented By:
Russell R. Klusas
Associate
National Office and Industrial Properties Group
Oak Brook Office
Tel: (630) 570-2242
Fax: (630) 570-2210
Russell.Klusas@marcusmillichap.com
Offices Nationwide
www.MarcusMillichap.com

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RSC EQUIPMENT RENTAL

Tenant Corporate Store

Lease Guarantor Corporate Guarantee

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term Ten Years

Lease Commencement Date July, 2008

Rent Commencement Date July, 2008

Lease Expiration Date August 2017

Term Remaining on Lease Ten Years

Increases 12.5% Every Five Years and at

Options Three, 5 Year Options

Loan information is time sensitive and subject to change.

Property Address 310 West Mabel Street

Property Type Net Leased Miscellaneous

Rentable Square Feet 5,900

Tenant Trade Name RSC Equipment Rental

Tenant Corporate Store

Sales Volume 1.7 Billion

Net Worth 3.83 Billion

Lease Guarantor Corporate Guarantee

Lease Commencement Date July, 2008

Rent Commencement Date July, 2008

Lease Expiration Date August 2017

Term Remaining on Lease Ten Years

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term Ten Years

Year 1 Net Operating Income

Increases 12.5% Every Five Years and at Options

Options to Renew Three, 5 Year Options

No. of Locations 500 Locations in North America

Web Site http://www.rscrental.com/

Other Concepts Owned

This offering is for a RSC Equipment Rental net leased building in

Off Highway 14, Traffic Counts

RSC Equipment Rentals (RRR) vs. Competition

8.00 Avg 7.75%

Year Built: 2008 Down Payment: $462,341

1 RSC CORPORATE SAN BENITO, TEXAS

Close of Escrow: 8/27/2008 Sales Price: $1,743,367

Year Built: 2008 CAP Rate: 7.75%

2 RSC CORPORATE PORT ARTHUR, TX

Close of Escrow: In Contract Sales Price: $1,634,709

Rentable SF: 5,940 Down Payment: N/A

Year Built: 2008 CAP Rate: 7.75%

Close of Escrow: In Contract Sales Price: $2,264,658

Rentable SF: 5,900 N/A

4 RSC CORPORATE HAMMOND, LA

Rentable SF: 5,900 Down Payment: N/A

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