INVESTMENT OFFERING

SAB Capital is pleased to present the opportunity to acquire a single-tenant industrial / service distribution facility leased to Capitol Building Supply, Inc., a GMS company operating under SRS Distribution, a wholly owned subsidiary of The Home Depot (NYSE: HD). The location operates under the New England Gypsum brand, the platform’s regional New England building materials business serving professional contractors across Connecticut and surrounding markets. Capitol Building Supply has a broad Mid-Atlantic operating footprint, while New England Gypsum extends the platform’s reach across the New England region through the distribution of drywall, ceilings, steel framing, and related interior building materials. Following Home Depot’s $5.5 billion acquisition of GMS completed in September 2025, the tenancy benefits from alignment with a nationally recognized building materials distribution platform with investment-grade parent ownership. The property is strategically located at 3250 Main Street H in Hartford, Connecticut, offering immediate access to Interstates 91 and 84, the region’s primary north-south and east-west transportation corridors. This central location allows New England Gypsum to efficiently service contractors throughout nearly all of Connecticut, reinforcing the site’s importance within the tenant’s regional distribution network. The property’s connectivity, functional layout, and role within the tenant’s operations contribute to the long-term stickiness of the tenancy.

The lease features 3.00% annual rent escalations beginning in 2028, providing contractual NOI growth throughout the remaining term and renewal options. Current in-place rent of $4.67/SF is significantly below market for functional industrial and service-oriented space in Central Connecticut, creating a compelling combination of tenant retention, future mark-to-market potential, and downside protection. At 18,000 square feet on 1.53 acres, the asset offers investors fee simple ownership of a well-located distribution facility at an attractive price per square foot relative to local industrial sale comparables and replacement cost.

The surrounding market further supports the investment thesis, with more than 542,000 residents and average household income exceeding $115,000 within a 10-mile radius. These dense regional demographics, combined with Hartford’s strong highway infrastructure and contractor-oriented industrial demand, position the property as a compelling opportunity to acquire platform-aligned income, annual rent growth, and real estate value at a below market basis.

• GMS / SRS Platform Tenant | New England Gypsum Operating Brand
  • The property is leased to Capitol Building Supply, Inc., a GMS company operating under SRS Distribution, a wholly owned subsidiary of The Home Depot (NYSE: HD). The Hartford location operates under the New England Gypsum brand, serving professional contractors throughout Connecticut and the broader New England market.
• Passive Net-Lease Income | 3.00% Annual Growth
  • The property is 100% leased under a NN lease structure with 3.00% annual rent escalations, providing investors with durable income and contractual NOI growth.
• Below-Market Rent | $4.67/SF
  • In-place rent is significantly below market for functional industrial/service space in Central Connecticut, supporting tenant retention while providing future mark-to-market upside.
• Mission-Critical Connecticut Distribution Location
  • New England Gypsum uses the property to service nearly all of Connecticut, excluding Fairfield County, reinforcing the site’s importance within the tenant’s regional operating network.
• Immediate Access to I-91 and I-84
  • The property benefits from strong access to Hartford’s primary north-south and east-west transportation corridors, supporting last-mile delivery, contractor service routes, and regional logistics efficiency.
• Below-Market Price per Square Foot
  • At approximately $78/SF, the offering is priced below the local comparable average of approximately $94/SF, providing investors with a compelling basis relative to surrounding industrial/service assets.