US LBM 3-Property Portfolio- Derby, Hardwick, & Williamstown, VT

STRONG CORPORATE GUARANTEE – MISSION-CRITICAL REGIONAL PLATFORM The portfolio is fully leased to US LBM, the largest privately held building materials distributor in the United States, operating more than 450 locations nationwide and generating approximately $8.2 billion in annual revenue. The three facilities collectively serve as US LBM’s core operating platform across Vermont and northern New England, supporting contractors, builders, and professional end users throughout the region. As essential components of the tenant’s regional distribution network, the properties represent mission-critical locations that reinforce long-term tenancy stability.
RECENTLY RENEWED INDUSTRIAL NNN LEASE WITH SCHEDULED RENT GROWTH US LBM recently executed a five-year lease renewal, demonstrating continued commitment to the locations after decades of successful operations at these facilities. The portfolio is leased under an industrial NNN structure providing investors with stable, passive cash flow and minimal management responsibilities. US LBM is responsible for taxes, insurance, paving, HVAC, electrical, mechanical systems, and all operating expenses, while the landlord is responsible only for roof and structure. The lease features 10% rent increases every five years, providing built-in income growth and protection against inflation.
HIGHLY FUNCTIONAL DISTRIBUTION FACILITIES WITH SIGNIFICANT OUTDOOR STORAGE Each property is purpose-built for building materials distribution, featuring efficient layouts, functional loading configurations, and expansive outdoor storage areas that support lumber storage, material handling, and truck circulation. The portfolio spans ±39.74 acres with only 8.04% building coverage, providing substantial yard space that is increasingly difficult to replicate due to zoning restrictions, land constraints, and rising development costs. The properties have recently benefited from approximately $500,000 in capital improvements across the portfolio, including roof replacements, interior renovations, steel racking installation, and paving improvements, with the majority funded directly by the tenant. Industrial outdoor storage (IOS) facilities with this level of land coverage are increasingly scarce across New England markets.
ATTRACTIVE BASIS IN HIGH BARRIER TO ENTRY INDUSTRIAL MARKET The portfolio is offered at an attractive basis relative to replacement cost, providing investors the opportunity to acquire functional distribution facilities at approximately $43 per square foot. Vermont’s industrial market is characterized by limited new development, restrictive zoning, and a high percentage of owner-occupied facilities, creating significant barriers to entry for new supply. Combined with the portfolio’s large land positions and industrial outdoor storage (IOS) functionality, the offering presents a rare opportunity to acquire functional industrial real estate in a high barrier to entry market.

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Yves Bradley