Strong Corporate Tenant – The Lease Guarantor, US LBM, is one of the nation’s largest and fastest-growing building materials distributors, providing professional builders, remodelers, and contractors with a full range of lumber and specialty products. The company operates over 460 locations across 35 states, serving nearly every major U.S. market. In 2023, Platinum Equity acquired a co-controlling stake from Bain Capital, aligning US LBM with two of the largest and most sophisticated private equity sponsors in the country. In 2024, US LBM generated $7.8 billion in revenue, underscoring the strength, scale, and long-term security of the tenancy.
Rare Absolute NNN Lease / Below-Market Rent – The property is secured by a true Absolute NNN lease (zero landlord responsibilities), offering investors a fully passive income stream. US LBM entered into a 10-year lease in July 2021 with 2.00% annual rent escalations, providing built-in inflation protection. Current rent of $3.87/SF is considered below-market (per CoStar), creating long-term upside. These factors position the asset as an exceptional 1031 exchange opportunity.
Significant Capital Improvements Made by Tenant – Since relocating operations to this facility in 2020, the tenant has invested more than $1 million into property improvements, underscoring its importance within the Columbus MSA since 2011. Brand-Vaughan Lumber moved into this larger, more functional site in 2020 before being acquired by US LBM in 2021. Following the acquisition, US LBM doubled down on the location, completing a major renovation at their sole expense, including new roof systems with a 10-year warranty and a high-
capacity racking system. Additional upgrades include reinstallation of on-site rail service and graveling of ±3.25 acres to support excess parking and industrial outdoor storage. These significant investments highlight US LBM’s long-term commitment to this facility.
Newly Renovated / Functional IOS – This newly renovated ±129,738 SF facility is situated on ±15.25 acres (19% building/lot coverage), providing abundant yard space for open storage and operation of heavy infrastructure and fleet-based logistics. Along with IOS capabilities, the facility can stack inventory up to the 30’ clear height. Featuring fourteen (14) dock-high doors and four (4) grade-level doors, this mission-critical facility is designed to support high-throughput operations and 24/7 field service mobilization.
Bill Pedersen
License # 80041 (GA)
Matthews Real Estate Investment Services
1600 West End, Ste. 1500 Nashville, TN 37203
(866) 889-0550