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Net Lease

Drilling Tools International

1514 S County Rd 1309, Midland, TX 79707

Listing Price: $12,613,539

Cap Rate
8.25%
Gross SF
52,246
Price/Gross SF
$241.43
Lot Size
10.99 acres
Year Built
2012
Rentable SF
52,246

Investment Overview

Marcus & Millichap is pleased to present this single-tenant, net-leased, industrial portfolio located in Midland and Odessa, Texas. There are three properties in this portfolio leased to Drilling Tools International, Inc., Black Diamond Oilfield Rentals, LLC, and Reach Wireline, LLC. These properties are available together or separately. Drilling Tools International, Inc. is located off State Highway 191 on South County Road 139 in Midland, Texas. The property has four buildings consisting of 52,246 square feet and is sitting on 10.99 acres. The lease has approximately nine and one-half years remaining and includes periodic rent increases. Drilling Tools International (DTI) provides a wide range of rental tools, technology, and services to the drilling, completion, and production segments of the oil and gas industry, serving operators, drilling contractors and oilfield services companies. Black Diamond Oilfield Rentals, LLC is located off Texas State Highway Loop 250 on North County Road 1148 in Midland, Texas. The property has four buildings consisting of 32,000 square feet and is sitting on 13.75 acres. The lease has approximately twelve years remaining and includes one and one-quarter-percent annual rent increases. Black Diamond Oilfield Rentals is a privately held service company with extensive industry experience that rents and services drill pipe, landing strings, heavy-weight drill pipe, drill collars, tubing, blow-out preventers and handling tools. Reach Wireline, LLC is located off West Interstate 20 in Odessa, Texas. The property is a 17,200-square-foot facility and is sitting on 5.67 acres. The lease has approximately one and one-half years remaining and includes two-percent annual rent increases. Founded in early 2017 by a team of diverse and experienced wireline service professionals, Reach Wireline saw a need for cased-hold completion solutions for today’s extended reach laterals and unconventional plays. Reach Wireline is headquartered in Fort Worth with regional operations in the Permian and Delaware basins, Marcellus formation, and looking at the Denver-Julesburg (DJ) basin next.

Investment Highlights

  • STNL Industrial Portfolio in Midland/Odessa, TX (Three of a Seven-Property Portfolio Across Texas)
  • Crude Oil and Natural Gas Prices are at Pre-Pandemic Levels
  • Large Lots Allowing Outside Storage (Vital to the Operation of Each Tenant)
  • Long-Term Leases on Two of the Three Assets
  • Varying Rent Growth

Exclusively Listed By

Financing By

Net Lease

Drilling Tools International

Listing Price: $12,613,539

Cap Rate
8.25%
Gross SF
52,246
Price/Gross SF
$241.43
Lot Size
10.99 acres
Year Built
2012
Rentable SF
52,246

Investment Highlights

  • STNL Industrial Portfolio in Midland/Odessa, TX (Three of a Seven-Property Portfolio Across Texas)
  • Crude Oil and Natural Gas Prices are at Pre-Pandemic Levels
  • Large Lots Allowing Outside Storage (Vital to the Operation of Each Tenant)
  • Long-Term Leases on Two of the Three Assets
  • Varying Rent Growth

Investment Overview

Marcus & Millichap is pleased to present this single-tenant, net-leased, industrial portfolio located in Midland and Odessa, Texas. There are three properties in this portfolio leased to Drilling Tools International, Inc., Black Diamond Oilfield Rentals, LLC, and Reach Wireline, LLC. These properties are available together or separately. Drilling Tools International, Inc. is located off State Highway 191 on South County Road 139 in Midland, Texas. The property has four buildings consisting of 52,246 square feet and is sitting on 10.99 acres. The lease has approximately nine and one-half years remaining and includes periodic rent increases. Drilling Tools International (DTI) provides a wide range of rental tools, technology, and services to the drilling, completion, and production segments of the oil and gas industry, serving operators, drilling contractors and oilfield services companies. Black Diamond Oilfield Rentals, LLC is located off Texas State Highway Loop 250 on North County Road 1148 in Midland, Texas. The property has four buildings consisting of 32,000 square feet and is sitting on 13.75 acres. The lease has approximately twelve years remaining and includes one and one-quarter-percent annual rent increases. Black Diamond Oilfield Rentals is a privately held service company with extensive industry experience that rents and services drill pipe, landing strings, heavy-weight drill pipe, drill collars, tubing, blow-out preventers and handling tools. Reach Wireline, LLC is located off West Interstate 20 in Odessa, Texas. The property is a 17,200-square-foot facility and is sitting on 5.67 acres. The lease has approximately one and one-half years remaining and includes two-percent annual rent increases. Founded in early 2017 by a team of diverse and experienced wireline service professionals, Reach Wireline saw a need for cased-hold completion solutions for today’s extended reach laterals and unconventional plays. Reach Wireline is headquartered in Fort Worth with regional operations in the Permian and Delaware basins, Marcellus formation, and looking at the Denver-Julesburg (DJ) basin next.

Exclusively Listed By

Financing By

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