Marcus & Millichap is pleased to present the opportunity to acquire the property located at 707 Nelson Lane in Wharton, Texas, leased by Ranger Energy Services, LLC. The subject property consists of approximately 18,462 square feet of warehouse space and is situated on 13.62 acres of land. The three-building asset features six grade-level doors, metal construction, and an interior crane. With a building coverage ratio of just 3 percent, the property contains ample outdoor storage space that can easily accommodate additional developments. Positioned along U.S. Route 59 (Lloyd Bentsen Highway) that feeds directly into Interstate 69, the asset sits 67 miles southwest of Downtown Houston.
This sale offers investors the opportunity to acquire a stabilized cash-flowing asset at an above-market cap rate of 8.86 percent. In January 2024, Ranger Energy Services signed a five-year triple net lease, granting the landlord and tenant an early termination clause. Ranger Energy Services has already invested roughly $80,000 in tenant improvements to the property’s IT infrastructure and the installation of gravel lots. Formed in 2016 out of a three-way merger, Ranger Energy Services is one of the largest providers of high-specification mobile rig well services, cased hole wireline services, and ancillary services in the U.S. oil and gas industry. Publicly traded under the ticker symbol RNGR on the New York Stock Exchange, Ranger Energy Services operates in nine states throughout the central-western U.S. from Texas up to North Dakota.
The subject property sits just outside of the Houston market in a tertiary area. There are 3 million square feet of industrial space within a 20-mile radius of the asset. Toward the end of Q2 2024, the vacancy rate in this area bucked the national trend, dipping by 40 basis points to 2.1 percent. Despite availability remaining tight, the year-over-year increase in asking rents decelerated to 1.5 percent during Q2. With no industrial properties under construction, vacancies and rent growth will be unimpeded by new supply for the foreseeable future (CoStar).
As the fifth most populous metro area in the U.S., Houston houses over seven million people in southeastern Texas. The market is composed of nine counties: Harris, Galveston, Brazoria, Fort Bend, Chambers, Montgomery, Austin, Liberty and Waller. The Gulf of Mexico, which borders the metro to the southeast, provides access to markets around the world via the Port of Houston, making it a prime location for import/export. Houston’s economy has diversified in recent years, with the healthcare and technology sectors showing strong growth. As Houston’s population continues to grow, primarily to the northwest, many companies are expanding to the region to provide goods and services to the increasing population.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0040046)
