H&E Equipment Montana Portfolio 4 Industrial Properties Offered at $7,296,042 CAD in Multiple Locations
INVESTMENT HIGHLIGHTS
- H&E Equipment Services, Inc. (NASDAQ: HEES; S&P: BB-) is one of the largest and fastest-growing equipment rental companies in the nation.
- The assets operate as equipment rental facilities, where majority of the businesses’ inventory is stored outside.
- Agriculture is Montana’s largest industry and generates an average of $2 billion each year.
- Subject to individual net leases featuring ±9.3 years of term remaining and two 5-year renewal options.
- The properties boast ideal floor area ratios (FAR) with an average of 3.46%, allowing significant flexibility for future uses.
EXECUTIVE SUMMARY
CBRE is pleased to offer investors the opportunity to acquire the H&E Montana Portfolio comprised of four rental equipment facilities tenanted by H&E Equipment Services, Inc. (NASDAQ: HEES; S&P: BB-) — one of the largest and fastest-growing equipment rental companies in the nation with 157 locations throughout 32 states. On a trailing 12-month basis through September 30, 2024, H&E generated $696 million of adjusted EBITDA on total revenues of $1.52 billion. On January 14, 2025, United Rentals, Inc. (NYSE: URI; S&P: BB+) announced that it will acquire H&E for $92 per share in cash, reflecting a total enterprise value of approximately $4.8 billion.
These assets operate as equipment rental facilities, where majority of the businesses’ inventory is stored outside. Smaller footprint building(s) used for office, showroom and maintenance purposes are located at each of the sites. Equipment available to rent at each of the locations includes aerial work platforms, earthmoving equipment, general equipment, and material handling.
Totaling 32,320 square feet across four sites, the properties are subject to individual net leases featuring ±9.3 years of term remaining with attractive 3% rent increases throughout the term and in each of the two 5-year renewal options. The properties boast ideal floor area ratios (FAR) with an average of 3.46%, allowing significant flexibility for future uses.
According to a study conducted by Construction Coverage, Montana has experienced a 17.5% increase in construction jobs from 2018 to 2023. The rapid increase in construction employment creates significant synergy for rental equipment businesses as heightened demand for machinery and tools drives greater rental activity.
These assets operate as equipment rental facilities, where majority of the businesses’ inventory is stored outside. Smaller footprint building(s) used for office, showroom and maintenance purposes are located at each of the sites. Equipment available to rent at each of the locations includes aerial work platforms, earthmoving equipment, general equipment, and material handling.
Totaling 32,320 square feet across four sites, the properties are subject to individual net leases featuring ±9.3 years of term remaining with attractive 3% rent increases throughout the term and in each of the two 5-year renewal options. The properties boast ideal floor area ratios (FAR) with an average of 3.46%, allowing significant flexibility for future uses.
According to a study conducted by Construction Coverage, Montana has experienced a 17.5% increase in construction jobs from 2018 to 2023. The rapid increase in construction employment creates significant synergy for rental equipment businesses as heightened demand for machinery and tools drives greater rental activity.
PROPERTY FACTS
| Price | $7,296,042 CAD |
| Price / SF | $225.74 CAD / SF |
| Cap Rate | 7.25% |
| Sale Type | Investment NNN |
| Status | Active |
| Number of Properties | 4 |
| Individually For Sale | 0 |
| Total Building Size | 32,320 SF |
| Total Land Area | 21.47 AC |
PROPERTIES
| PROPERTY NAME / ADDRESS | PROPERTY TYPE | SIZE | YEAR BUILT | INDIVIDUAL PRICE |
|---|---|---|---|---|
| 3810 US Highway 2 W, Havre, MT 59501 | Industrial | 7,200 SF | 2017 | - |
| 2566 Truck Byp, Lewistown, MT 59457 | Industrial | 9,560 SF | 2012 | - |
| 2809 Vaughn Rd, Great Falls, MT 59404 | Industrial | 6,560 SF | 1959 | - |
| 54359 US Highway 2, Glasgow, MT 59230 | Industrial | 9,000 SF | 2019 | - |
1 of 1
CONTACTS
-
Thomas Carr -
Brian Pfohl -
Jason Rosauer -
Patricia Loveall -
Abby Kelly -
Kaitlyn Wolf -
Leah Lindell -
CBRE
