Ferguson (NYSE: FERG) | Mission-Crit Distribution Facility
10-Year Lease | Seven-Figure Tenant Renovation | Mission-Critical to FSU
Marketing description
Value REIS is pleased to present the opportunity to acquire a mission-critical Ferguson distribution facility located at 889 Mabry Street in Tallahassee, Florida, serving Florida State University and the greater Tallahassee market. The property is leased to Ferguson Enterprises (NYSE: FERG), a BBB+ rated, industry-leading distributor with approximately $30+ billion in annual revenue and a national footprint of 1,700+ locations
The asset is secured by a corporate-guaranteed, modified NNN lease with approximately 9 years of remaining term, providing durable, bond-like cash flow backed by an essential, non-discretionary business model. The current NOI is $355,775.76, offered at a 6.00% cap rate, with 10% rental increases at each of the two 5-year option periods
Ferguson has made a seven-figure, tenant-funded capital investment into the facility, completing substantial functional renovations including showroom modernization, office and administrative upgrades, warehouse layout optimization, high-bay lighting, electrical enhancements, ADA compliance improvements, and exterior site upgrades. These investments materially increase switching costs and create high barriers to relocation, reinforcing long-term tenancy durability
The ±28,850 SF building sits on a ~4.80-acre site with ±68,367 SF of covered industrial outdoor storage, offering excellent functionality for distribution, staging, and contractor-oriented operations. The location benefits from immediate proximity to Florida State University, driving consistent demand tied to ongoing facilities maintenance, infrastructure upgrades, and capital improvement projects within an education-anchored economy
This offering represents a rare opportunity to acquire a high-credit, essential-use industrial asset with long-term lease security, embedded rent growth, and significant tenant commitment in a stable, institutionally supported market.
Investment highlights
Ferguson (NYSE: FERG) – BBB+ rated industry leader generating ~$29B in annual revenue and serving as a critical distributor across plumbing, HVAC, waterworks, and infrastructure sectors.
Mission-Critical Location Serving Florida State University – Strategic Campus Proximity – Enables same-day fulfillment and rapid-response contractor support tied directly to university operations.
Significant Tenant Capital Investment – Ferguson has invested roughly seven figures of direct capital into the facility, demonstrating long-term operational commitment and strategic importance within its regional distribution network. Tenant-funded improvements materially increase switching costs and relocation barriers, reinforcing tenancy durability and reducing future leasing risk for ownership.
Functionality-Focused Renovations – Improvements were completed to enhance operational efficiency and customer service capabilities rather than cosmetic upgrades. Enhancements include showroom and sales counter build-out, optimized warehouse layout and product flow, upgraded electrical infrastructure and high-bay lighting, ADAcompliant restroom improvements, and modern office and conference space. These upgrades align the property with Ferguson’s long-term branch operating standards and reduce near-term capital expenditure exposure for future ownership.
Education-Anchored Stability – The property benefits from demand tied directly to Florida State University’s ongoing facilities maintenance, infrastructure upgrades, and capital improvement projects, supporting consistent product demand, stable tenant operations, and defensive, bondlike income characteristics within Tallahassee’s education-driven economy.
High Barriers to Relocation – Institutional relationships, specialized build-out, and logistical advantages create strong tenant retention
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