Universal Pressure Pumping, Inc.

Uniontown | PA

Universal Pressure Pumping, Inc.

2198 University Drive Lemont Furnace, PA 15456

Offering Summary

  • Status: accepted offer
  • Price: $7,800,000
  • CAP Rate: 7.75%
  • GLA: 201,325 SF
  • Net Operating Income: $604,197
  • Price/SF: $39
  • Lot Size (Acres): 39.26
  • Lease Type: Double Net
  • Major Tenants: Universal Pressure Pumping, Inc., a Delaware corporation
  • Net Leased Industrial Oil & Gas Service Operation with 11 Years Remaining on Double-Net Lease in Uniontown, PA
  • Tenant Just Exercised Early 10-Year Lease Extension thru May 2034 with Scheduled Rent Increases
  • Tenant is a Wholly-Owned Subsidiary of Patterson-UTI Energy, Inc. (NASDAQ: PTEN); $2.8B Market Cap Onshore Oil & Gas Contract Drilling Services Company in Business Since 1978
  • Tenant’s Parent Company Patterson-UTI Energy, Inc. Carries Moody’s “Baa3” Investment-Grade Credit Rating
  • Universal Pressure Pumping, Inc. (UPP) Operates Pressure Pumping, Fracking & Well Drilling Services throughout the Area’s Prominent Marcellus & Utica Shale Formations
  • UPP Has Been in Business for Over 40 Years and has Operations throughout 8 Oil Field Regions in 6 States (OH/PA/WV & TX/OK/NM)
  • Substantial Building Fixtures & Equipment – Multiple Overhead & Jib Cranes, Compressed Air Systems, Water Filtration, Fume Extractors, Paint Shop/Blast Booth Equipment, etc.
  • Tenant Fully Indemnifies Landlord for Any/All Issues Relating to Hazardous Materials & Environmental Laws in Regards to the Property; Indemnification Survives Lease Expiration
  • Minimal Landlord Responsibilities: Roof/Structure Replacement & Some Mechanical
  • Entire Building 1 Roof (Approx. 144,000 SF, 71% of RBA) Replaced or Coated in 2014; Under 12-Year Warranty into 2026
  • Low Rent Factor of $3.05/SF on the 201,325 SF Total Building RBA; Rent Equates to Approx. $16K Annually Per Acre of Total Leased Land Area
  • 39.26 Acres of Total Land Included in Sale Across Two Adjacent Parcels
  • Situated Along Route 119 Directly Between Uniontown and Connellsville Providing Strong Workforce Base; 10-Mile Population of 75,000
  • Located Just 1 Hour South of Pittsburgh; Part of the Pittsburgh CSA which is Home to a Population of 2.7 Million

Craig Fuller

Senior Managing Director