• Strong Corporate Guarantee (1,250+ Locations) / “A” Credit Parent Company (Home Depot) – SRS Distribution is one of the fastest growing building and specialty supply distributors in the United States. In June 2024, Home Depot (NYSE: HD) completed its $18.25 Billion acquisition of SRS Distribution, providing investors with exposure to an S&P “A” credit rated parent company. Home Depot has continued to aggressively expand the SRS platform, including the $5.5 Billion acquisition of GMS Inc. completed in September 2025 through SRS Distribution. SRS now operates 1,250+ locations nationwide, reinforcing the scale and strength of the lease guarantor’s platform.
• Below-Market Rent & Discount to Replacement Cost – SRS is currently paying only $5.36/SF, which is below Little Rock market average rents of $7.23/SF according to CoStar, providing attractive long-term mark-to-market potential. At approximately $82/SF, the acquisition basis is below replacement cost, providing investors with downside protection and significant embedded value.
• Long Term Industrial NNN Lease / 3.00% Annual Rent Increases - The subject property is secured by a 10-year industrial NNN lease that commenced in 2026 and features attractive 3.00% annual rent increases, providing durable cash flow growth and a strong hedge against inflation.
• Functional Facility / $1.4 Million in Recent Capital Improvements – In connection with SRS’s new 10-year lease, approximately $1.4 million was invested in significant capital improvements, including a new ±51,180 SF heavy-duty paved IOS yard, ±15,000 SF circulation drive, fencing/gates, concrete and parking improvements, exterior lighting, fire-line upgrades and roof maintenance. The ±66,929 SF facility on ±6.21 acres now provides a highly functional layout with full truck circulation for distribution and building materials operations.
• Strategic Central U.S. Distribution & Logistics Location – Located in Little Rock, Arkansas’ capital and largest city, the Property is strategically positioned just off I-40, a major east-west freight corridor providing direct connectivity to Memphis and Nashville, while I-30 provides a direct interstate connection to Dallas–Fort Worth. The Property is also immediately adjacent to a major Union Pacific rail yard, with access to I-440, Clinton National Airport and the Arkansas River further supporting the location’s strong multimodal logistics connectivity.