Edgen Murray | Carlsbad, NM
Industrial
Investment Highlights
Build-to-Suit for an Investment Grade Credit Company
Subject Property was a build-to-suit for Edgen Murray, a Sumitomo Corporation Company
with the Lease being corporately guaranteed by Sumitomo. Edgen Murray is a global
supplier of specialized products for energy and infrastructure markets. The company
manages procurement and provides value-add services and delivery of plate, sections,
pipe, fittings, flanges, and valves. This location serves as a field office for Southeast New
Mexico, in the Permian Basin, servicing the oil and gas industry. Sumitomo currently
ranks #238 in the Global Fortune 500 Rank and they hold an investment grade credit
rating of BBB+ with Standard and Poor’s. As of the TTM, Sumitomo has Revenues of
$42.9 Billion and a Net Worth of $22.9 Billion.
Strategic Field Office Location in the Second Largest Oil Field in the World
The Subject Property is a field office that houses materials for the nearby oil and gas
production sites in the Permian Basin. The Permian Basin is the 2nd largest oil field in
the world and covers an area of 75,000 square miles and is composed of more than
7,000 fields. Current 2021 estimates are that the region is producing nearly 4.3 million
barrels of oil per day and over 15 billion cubic feet of natural gas per day. The Permian
Basin production has quadrupled over the last eight years, in contrast with decline of
most other established oil fields.
Strong Lease Economics with 2% Annual Rental Increases
The Tenant is operating under an eight (8) year primary lease term with approximately
6.75 years remaining. There are scheduled 2% annual rental increases throughout the
lease term providing a hedge against inflation. Additionally, the Tenant is operating
under a Net Lease with the Tenant being responsible for all expenses and the Landlord
only being responsible for the roof and structure.
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The information contained herein has been obtained from sources deemed reliable or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.