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Lubbock, TX

2002 North Avenue N

Address:
2002 North Avenue N, Lubbock, TX 79403
Property Type:
Sale Leaseback
Price:
$6,060,000
Cap Rate:
9.00% cap
NOI:
$545,400
Square Feet:
181,800 sqft
Lot Size:
31.22 Acres
Price Per Square Foot:
$33.33
Year Built:
1993-2001
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Investment Highlights

Investment Highlights

Investment Highlights

  • 181,800-Square-Foot Industrial Property Situated on 30 Acres
  • Features Three Fully Sprinklered Buildings with Three-Phase Power and Ability to Subdivide
  • O’Hair Shutters Will Lease 100 Percent of the Property at Closing Until 6/30/23, After Which They Will Consolidate into 36,000 Square Feet and Renew That Space for Three Years
  • After O’Hair Shutters Consolidates, The Remaining 145,800 Square Feet Can Be Leased Up for an Attractive Pro Forma Return
  • O’Hair Shutters Has Been in Business for Over 80 Years and Continues to Advance by Integrating State-of-the-Art Design and Manufacturing
  • Strategically Located Within Close Proximity to Major Thoroughfares, Including US 84, Loop 289, and I-27
  • Excess Land for Further Development, Outside Storage, or Trailer Parking
  • Tough Barrier-to-Entry Market with 2.1% Vacancy and 6% Rent Growth

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire 2002 North Avenue N in Lubbock, Texas, leased to O’Hair Shutters. The property consists of approximately 181,800 square feet of industrial space and is situated on 31.22 acres of land. The asset features three fully sprinklered buildings, equipped with three-phase power, and can be converted into multi-tenant use. With excess land, the property is suitable for future development, outside storage, or trailer parking. Upon sale, O’Hair Shutters will fully occupy the property through June 30, 2023. After this date, O’Hair Shutters will renew its lease for three years and consolidate into 36,000 square feet of the asset’s space. Subsequently, 145,800 square feet will become available, allowing an investor to increase rental rates to achieve pro forma returns. For over 80 years, O’Hair Shutters has manufactured custom hardwood shutters and continues to advance its business by integrating state-of-the-art design and manufacturing processes. The property is desirably located near U.S. Route 84, Texas State Highway Loop 289, and Interstate 27.

The subject property is situated within the North Inner Loop, a submarket containing 5.5 million square feet of industrial space. The submarket primarily consists of logistics facilities, which account for 4.5 million square feet. The remaining inventory pool consists of 1.0 million square feet of specialized space and 60,000 square feet of flex space. Over the past year, the vacancy rate in the North Inner Loop declined and sits just 68 basis points above its 10-year low of 2.9 percent in Q1 2022. In the second quarter, market rent growth for industrial properties in the North Inner Loop rose to a 10-year high of 5.9 percent, comparable to the overall market. With no inventory currently under construction, there will be no significant supply pressure on vacancies or rents for the foreseeable future (Costar).

Located in the Texas Panhandle, Amarillo thrives as a major transportation hub. With 201,000 residents, Amarillo is the most populous city in a region known as the heart of cattle country. The city is home to the Texas Cattle Feeders Association. Aside from food production, the Amarillo area also features a Boeing manufacturing plant. Situated 124 miles south of Amarillo is Lubbock, a major producer of oil and cotton. One of the largest universities in the state, Texas Tech, is located within Lubbock. Among the western Texas and eastern New Mexico region, Lubbock boasts the highest metropolitan population at 327,000 residents. The city is also known as the birthplace of rock’ n’ roll legend Buddy Holly. The Buddy Holly Center celebrates his life and music with artifacts and mementos.

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. © 2022 Marcus & Millichap. All rights reserved. (Activity ID: ZAD0060783)