Single Tenant - Rsc - Mankato Mn

RSC EQUIPMENT RENTAL MANKATO, MN

OFFERING MEMORANDUM

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

CONFIDENTIALITY AGREEMENT CONFIDENTIALITYAGREEMENT

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended

SECTION TWO ..................................................PROPERTY DESCRIPTION SECTION THREE ...................................................RECENT SALES

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

PRICING & FINANCIAL ANALYSIS

RSC EQUIPMENT RENTAL MANKATO, MN

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

1st 5 Year Option

$156,036.00

$13,003.00

2nd 5 Year Option

$175,536.00

$14,628.00

3rd 5 Year Option Base Rent ($20.90/SF)

$197,484.00

$16,457.00

Price Down Payment Rentable Square Feet Price/SF

$1,541,138 30% $462,341 5,900 $261.21

CAP Rate

8.00%

Year Built

2008

Lot Size

N/A

Type of Ownership

Net Operating Income Debt Service

Ownership Tenant Lease Guarantor Lease Type Roof and Structure

7.17% $33,151

Total Return

7.17% $33,151

Fee Simple

RSC Equipment Rental Public Corporate Store Corporate Guarantee Absolute Net Tenant Responsible

Lease Term

Ten Years

Lease Commencement Date

July, 2008

Rent Commencement Date

July, 2008

Lease Expiration Date Term Remaining on Lease Increases Options

$123,291 90,140

Net Cash Flow After Debt Service

TENANT SUMMARY Tenant Trade Name

$123,291

PRICING & FINANCIAL ANALYSIS

Financial Overview

August 2017 Ten Years 12.5% Every Five Years and at Three, 5 Year Options

FINANCING FIRST TRUST DEED Loan Amount Loan Type Interest Rate Amortization

$1,112,500 Proposed New 6.5% 25 Years

Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative.

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

1

PRICING & FINANCIAL ANALYSIS

Financial Quote - Mark One Capital

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

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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

PRICING & FINANCIAL ANALYSIS

Tenant Overview

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 Headquartered Web Site

500 Locations in North America Scottsdale, AZ http://www.rscrental.com/

Franchisee Profile

Other Concepts Owned

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

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PROPERTY DESCRIPTION

RSC EQUIPMENT RENTAL MANKATO, MN

INVESTMENT HIGHLIGHTS

This offering is for a RSC Equipment Rental net leased building in Mankato, Minnesota. The lease terms are ten-(10) years with three, 5 year options including a 12.5% increase at year five-(5) of the initial

RSC Corporate Guarantee-New York Stock Exchange Traded and 500 Locations

term and at the options. It is an absolute triple net lease (NNN) with no

Absolute NNN-10 Year Initial Term, and Increase During Initial Term

out by a preferred developer of corporate in 2008. RSC Equipment

12.5% Increases Every Five-(5) Years and at Options 3 (5 Year)

PROPERTY DESCRIPTION

Investment-Location Overview

management to the landlord whatsoever. The lease is corporately guaranteed by RSC Equipment Rentals Inc. and the property was built Rental (NYSE:RRR) has a credit rating of B+ from S & P 500 and has over 400 locations in more than 30 states. 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 Billion/Year and RSC Ranked 2nd Overall in Industry

of Minnesota, Mankato which has a total student population of 19,000. The subject property is just off Interstate 14 which has a daily traffic 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+

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

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PROPERTY DESCRIPTION

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.

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

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THE OFFERING Property

Property Address

RSC Equipment Rental 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

PROPERTY DESCRIPTION

Property Summary

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

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PROPERTY DESCRIPTION

Area Maps

LOCAL MAP

REGIONAL MAP 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

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PROPERTY DESCRIPTION

Aerial

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

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RECENT SALES

RSC EQUIPMENT RENTAL MANKATO, MN

RECENT SALES

Recent Sales Map

1) 2) 3) 4)

Subject Property RSC Corporate San Benito, Texas RSC Corporate Port Arthur, TX RSC Corporate Tulsa, OK RSC Corporate Hammond, LA

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

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AVERAGE CAP RATE 8.00

Avg 7.75%

7.00 6.00 5.00

RECENT SALES

CAP Rate & Price/SF

4.00 3.00 2.00 1.00 0.00 Subject

RSC Corporate San Benito, Texas

RSC Corporate Port Arthur, TX

RSC Corporate Tulsa, OK

RSC Corporate Hammond, LA

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 Corporate San Benito, Texas

RSC Corporate Port Arthur, TX

RSC Corporate Tulsa, OK

RSC Corporate Hammond, LA

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

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RSC EQUIPMENT RENTAL 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

RECENT SALES

Recent Sales

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

Year Built:

2008

CAP Rate:

7.75% $275.00

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

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3

RSC CORPORATE TULSA, OK 8200 Charles Page Boulevard Tulsa, OK 74063 Close of Escrow:

In Contract

Rentable SF:

5,900

Year Built:

2008

Sales Price:

$2,264,658 N/A

CAP Rate:

7.75%

RECENT SALES

Recent Sales

$383.00

4

RSC CORPORATE HAMMOND, LA 802 Westin Oaks Drive

Hammond, LA 70401 Close of Escrow:

In Contract

Sales Price:

$2,309,806

Rentable SF:

5,900

Down Payment:

N/A

Year Built:

2008

CAP Rate:

7.75% $391.00

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

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RSC EQUIPMENT RENTAL 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 [email protected]

Offices Nationwide www.MarcusMillichap.com