BROKER NEWS

Colorado IOS is Here!

Introducing Colorado IOS, a new brokerage division specializing in the purchase, sale, and leasing of industrial outdoor storage (IOS) properties across Colorado. This initiative is spearheaded by the Quiver Investments team and designed to address the growing demand for real estate solutions tailored to industries like logistics, construction, and transportation.

For more information about the new division or how IOS Colorado can help solve your IOS needs, please contact Ben Swanson ([email protected]) or John Witt ([email protected]).

Plus, they have a great zoning resource for Colorado here: https://www.colorado-ios.com/industrynews/municipalzoningshortcuts

CorePoint RE Has Launched!

Marc Smouha launches Corepoint RE, a New York-based firm specializing in industrial transactions across Florida and the Greater Southeast U.S. By combining advanced analytics with deep local market expertise, Corepoint RE delivers exceptional guidance and results for clients.

Reach out to Marc Smouha if you're interested in connecting and check out CorePoint RE’s website here! 

INDUSTRY NEWS

United Rentals Acquires H&E Equipment Services

United Rentals, a leading equipment rental company, has announced its agreement to acquire H&E Equipment Services for $4.8 billion, including $1.4 billion in debt. The deal offers H&E shareholders $92 per share in cash, representing a 109.4% premium over the previous closing price. The acquisition is expected to close in the first quarter of 2025.

Reasons for the Merger:

• Strategic Expansion: This acquisition aligns with United Rentals' strategy to grow its core business by expanding its fleet and enhancing its presence in key U.S. markets. H&E's network of approximately 160 branches across over 30 states complements United Rentals' existing operations, increasing capacity in strategic regions.

• Enhanced Service Offerings: H&E's diverse equipment portfolio, including aerial work platforms, earthmoving equipment, and material handling equipment, will broaden United Rentals' rental offerings. This expansion enables United Rentals to provide a more comprehensive range of equipment solutions to its customers.

• Operational Synergies: The merger is projected to generate approximately $130 million in annual cost synergies within two years, primarily through reductions in corporate overhead and operational efficiencies. Additionally, United Rentals anticipates about $120 million in annual revenue cross-sell synergies by the third year, as H&E customers gain access to United Rentals' specialty rental services.

Importance of the Merger:

• Market Leadership: The acquisition solidifies United Rentals' position as a dominant player in the equipment rental industry, significantly expanding its fleet by nearly 64,000 units. This expansion enhances the company's ability to meet increasing demand across various sectors.

• Financial Growth: The deal is expected to be accretive to United Rentals' adjusted earnings per share and free cash flow in the first year post-closing, indicating a positive financial impact and value creation for shareholders.

• Customer Benefits: Customers of both companies will hopefully benefit from a more extensive and diversified equipment portfolio, improved service capabilities, and access to a broader geographic network, enhancing overall customer experience and satisfaction.

In summary, United Rentals' acquisition of H&E Equipment Services represents a strategic move to expand its market presence, diversify its equipment offerings, and achieve significant operational synergies, thereby strengthening its position in the equipment rental industry.

Realterm Makes Strategic Lending Debut

Realterm has made its strategic entry into the lending market by originating a $70.8 million loan to GreenPoint.

Key Details:

• Collateral: The loan is secured by an eight-property, 163-acre industrial outdoor storage (IOS) portfolio located in Arizona, Colorado, Georgia, Michigan, and Texas.

• Strategic Expansion: This move marks Realterm's expansion into credit services, aiming to fill financing gaps as traditional bank lending becomes more constrained.

• Expert Leadership: Paul Sisson, Head of Credit, and Kate Sarris, Senior Vice President of Credit Solutions, both joined Realterm in 2023, bringing extensive experience to build out the firm's credit platform. Lantern Real Estate Advisors + Partners represented GreenPoint in the transaction.

Realterm's entry into the credit market provides alternative financing options, particularly valuable as traditional lending channels have been slow to understand the industrial outdoor storage asset class.

This strategic move underscores Realterm's commitment to expanding its service offerings and addressing the evolving needs of the industrial real estate market.

QXO Attempts to Acquire Beacon Roofing Supply

QXO Inc., led by Brad Jacobs, has proposed an $11 billion all-cash acquisition of Beacon Roofing Supply at $124.25 per share—a 37% premium over Beacon's 90-day average.

Why This Matters:

• Strategic Expansion: QXO aims to revolutionize the $800B building products distribution industry through digital commerce, with plans to build a $50B company in the next decade.

• Market Dynamics: Beacon, the largest publicly traded distributor of roofing materials in the U.S. and Canada, has seen its shares hit all-time highs following the proposal.

  Next Steps: Beacon's board has rejected the offer, citing undervaluation, while QXO is prepared to nominate directors to Beacon's board, indicating a potential proxy battle ahead.

Stay tuned as this story unfolds, potentially reshaping the landscape of building products distribution.

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