DSI – Ocala FL

DSI
3040 NW Gainesville Rd, Ocala, FL 34475, USA

Sands Investment Group is pleased to exclusively offer for sale this 20,000 SF, 5.5-Acre Industrial Outdoor Storage (IOS) facility, Triple Net (NNN) Net Leased to DSI, a leading wholesaler serving the water systems and groundwater industry. The facility is a mission-critical build-to-suit project that will allow DSI to consolidate 3 Ocala facilities into a single location. Originally founded in 1954, DSI has been operating in Ocala for over 25 years. DSI operates more than 20 branches across 8 Southeastern states and is part of Headwater Companies, a wholly owned subsidiary of Franklin Electric Co., Inc. (NASDAQ: FELE). The lease is guaranteed by Franklin Electric and includes annual increases at the greater than 3% or CPI, making this a very secure, long-term, inflation-protected investment.

  • Exceptionally Strong Corporate Guaranty From a Public Company: Franklin Electric Co., Inc. (NASDAQ: FELE) guarantees the lease. Franklin Electric has a market capitalization exceeding $4.66 billion and generated annual revenues of approximately $2.1 billion for the year ended 2025. The company is a global leader in the manufacturing and distribution of systems and equipment for moving and protecting water and fuel.
  • True CPI Rent Increases: Annual base rent will increase by the greater of 3% or CPI-U, offering absolute inflation protection.
  • Strong Operating Platform: The tenant, Drillers Services, LLC (DSI), is part of Headwater Companies, LLC, a wholly owned subsidiary of Franklin Electric. Headwater Companies consists of 7 companies operating across 85 locations in 39 states. Headwater Companies acquired DSI in April 2017.
  • Long Operating History: DSI was founded as Drillers Services, LLC in 1954. DSI is a wholesaler to the water industry, including water well, wastewater, environmental, and industrial products. DSI services the Southeast region of the United States with 20+ branches in 8 states and has been operating in Ocala for 25 plus years.
  • Consolidation of 3 Locations: DSI currently operates in 3 leased locations in Ocala. The separate properties are both operationally inefficient and inadequate to keep up with demand. This build-to-suit facility will consolidate all of their locations and provide room for a much-needed expansion.
  • New Construction with Space to Grow: The subject property effectively quadruples the tenant’s laydown yard and consolidates operations into 1 modern, highly functional warehouse building with a 2nd structure that provides additional covered storage. All of this ensures that DSI will have the space to meet demand well into the future.
  • Top Florida Industrial Market: Ocala, Florida, is a top national distribution hub driven by its central location, major highway access, and rapid growth. Ranked 17th nationwide for warehousing, it serves millions of consumers across the Southeast. 4 of the state’s 6 major trucking arteries (I-75, Florida Turnpike, US 301, and US 27) run through or near Ocala.
  • 8 Million People Within a 2-Hour Drive: Ocala is located in central Florida and is within a 2-hour drive of 4 major markets: Gainesville, Orlando, Tampa, and Jacksonville, which places one-third of the State’s Population within easy reach.
  • Security Deposit: $100,000 initially; reduced to 2 months’ rent upon completion of construction and delivery of the premises to the tenant.
  • Concrete Laydown Yard: The property’s laydown yard offers superior load capacity.

In Cooperation With SIG RE Services, LLC – Lic. #CQ1055229 BoR: Andrew Ackerman – Lic. FL #BK3369953

DSI
3040 NW Gainesville Rd, Ocala, FL 34475, USA

DRILLERS SERVICE, INC.

Drillers Service, Inc. (DSI) is one of the leading wholesale distributors serving the water industry across the Southeastern United States. Founded in 1954, the company supplies water well, wastewater, water treatment, turf irrigation, and industrial products through an extensive branch network. DSI is recognized for its strong customer service, broad product inventory, and long-standing relationships with leading manufacturers. Today, DSI operates as a subsidiary of Headwater Companies, continuing its expansion while supporting contractors with reliable products and technical expertise.

 

FRANKLIN ELECTRIC CO. INC

Franklin Electric Co., Inc. (NASDAQ: FELE) is a global leader in water, fuel, and electrical systems, serving customers in more than 100 countries. Founded in 1944, the company manufactures pumps, motors, drives, controls, and monitoring systems for residential, commercial, agricultural, industrial, and municipal markets. The company maintains low leverage, strong cash flow generation, and solid retained earnings, supporting its financial strength and long-term stability.

Price

$6,078,400

Cap Rate

6.15%

PREMISES

20,000 SF

YEAR BUILT

2026

RENEWAL OPTIONS

3 x 5 Year Options

Lease Expiration

09/30/2036

Lease Type

NNN

RENTAL INCREASES

Annual, Greater of 3% or CPI-U

BROKERS

Eric Vultaggio
Philadelphia
Andrew S. Ackerman
Atlanta

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