Credit Tenant with Long-Term Net lease: The Property offers strong stability with a long term net lease to SWECO, a leading manufacturer of customized industrial separation equipment since 1991. The lease is guaranteed by Smith International, a wholly owned subsidiary of Schlumberger (NYSE: SLB, S&P: “AA-“) the world’s largest technology and service distributor for the oil and gas industry.
Mission Critical Asset: The property currently serves as SWECO’s global headquarters, operating as both an industrial location and office space for leadership management. SWECO has invested substantial amount of capital to expand the property to suit the needs of their manufacturing, distribution, and administrative teams. The total of approximately 100,000 sf across four renovations have been added since their initial occupancy.
SWECO’s lease includes annual escalations throughout the primary lease term (May 2030) and option period (1-10 year).
While SWECO has over 100 facilities across the world, the Florence location is one of their only completely independent and vertically integrated full-service manufacturing and distribution centers.
SWECO has also recently consolidated its Oklahoma facility into the current Florence operation in order to house its oil and gas manufacturing processes under one roof. As a result, SWECO leased an additional 100,000 sf warehouse adjacent to the existing facility (not part of the offering) to house all the manufactured parts. Additionally, SWECO recently leased 33,000 sf adjacent to this facility further solidifying SWECO’s commitment to this location.
Strategic Location: The Property is located in the middle of an expansive network of freeways and highways within an industrial zone, making distribution and receiving operations very efficient. Additionally, the property is located just a few miles east of the I-71, the most direct route to Cincinnati, the major hub of industrial activity within the Midwestern United States.
