New 10-Year Lease, 9% Cap Rate – USA Compression

The Permian Basin’s continued prominence as one of the world’s largest and most productive oil and natural gas fields provides a secure and growing market for USA Compression's services. As the demand for natural gas infrastructure remains robust, driven by both domestic and international demand for LNG, USA Compression’s role in supporting the transportation and processing of natural gas will continue to be indispensable. The strategic location of the facility, coupled with the stability of a long-term lease from a reputable tenant, offers an excellent opportunity for investors seeking a low-risk, income-generating asset with the potential for long-term appreciation. This offering is ideally suited for those looking to benefit from the ongoing energy boom in the Permian Basin while securing a steady and predictable return on investment.This new custom build to suit/lease is a nearby relocation and expansion for USA Compression Partners (NYSE: USAC) in Mentone, TX. Strategically positioned between Carlsbad and Midland/Odessa, the property serves as a vital operational hub for the tenant, who has committed to a 10-year lease with 2% annual escalations. The lease features minimal landlord responsibilities and secured by a financially robust tenant with long-term gas compression work in the area, servicing the critical infrastructure of the country’s accelerating power needs. The purpose-built facility includes a 6.9-acre fenced truck & equipment yard, office/warehouse and on-site lodging for staff. Projected lease commencement is May 1st, 2025, following site completion.