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Dallas, TX

2632 Chalk Hill Road

2632 Chalk Hill Road, Dallas, TX 75212
Property Type:
Single Tenant
Cap Rate:
9.73% cap
Square Feet:
31,160 sqft
Lot Size:
1.97 acres
Year Built:
* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

• 31,160-Square-Foot Industrial Warehouse Situated on 1.97 Acres with Ample Outside Storage
• Highly Functional Asset: 2 Dock-High Doors, 3 Grade-Level Doors (12’x12’)
• Located West of Dallas, Close to Irving, with Ease of Access to Interstate I-30 and South Walton Walker Boulevard
• Located in Eastern Lonestar/Tpke Submarket with a Market Vacancy Rate of 6.8%
• Arcadia Roofing: Superior Quality Roofing for Commercial, Industrial, Retail, and Multi-Family Buildings, in Business Since 1979
• Attractive Current Cap Rate (9.73%) with Ability to Increase Rents due to Month-to-Month Lease in Place ($2.89/SF vs. $6.05/SF via CoStar)
• Low Sale Price per SF Comparing to Submarket Price per Foot $70 (Costar)

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 2632 Chalk Hill Road in Dallas, Texas, leased to Arcadia Roofing. The subject property consists of approximately 31,160 square feet of space and is situated on 1.97 acres of land. The asset is a highly functional with two dock-high doors, three-grade level doors (12’x12’), and ample outside storage. Since 1979, Arcadia Roofing has provided roofing services for commercial, industrial, retail, and multi-family buildings. The tenant has occupied the property since 2012 with the original lease expiration in 2023. The tenant amended their lease in September to be month-to-month due to the onset of coronavirus. The subject property is listed at a very low sale price per square foot ($29.69) when compared to the submarket average of $70 per square foot (CoStar). At an attractive cap rate (9.73 percent), an investor has the ability to increase rents for the current tenant to market value with a long-term lease, or bring in a new tenant due to the current month-to-month lease in place. Located west of Dallas and close to Irving, there is ease of access to Interstate I-30 and South Walton Walker Boulevard.

Eastern Lonestar/Turnpike is an older industrial submarket with most existing inventory built before 1970. Close proximity to the major population center of Dallas and major highway access provided by I-30 running east/west still makes the submarket quite desirable for small tenants and last-mile distribution operations. After years of no development, a few projects have delivered in recent quarters. The economic turmoil from the coronavirus pandemic is expected to weigh on the local market, though the industrial segment is more insulated from disruption relative to others. Though vacancies have improved in recent quarters, hovering at about 6.7 percent, it could take some time before fundamentals improve to where they were in 2016, especially considering 3.4 million square feet of supply has hit the market in the last 12 months. (CoStar)

The Dallas/Fort Worth metroplex is the fourth-most populous metro in the nation with an aggregate of more than 7.1 million residents. It is composed of 13 counties stretching nearly 10,000 square miles. The city of Dallas houses 1.3 million people, followed by Fort Worth with 800,000 residents. Strong job growth continually draws new residents to the region. To accommodate the additional traffic, the region’s transportation network is evolving. Traffic flow is improved as freeways are expanded and miles are being added to tollways and turnpikes. The growth of the transportation network is vital to supporting commuters to the metros numerous corporations and growing industries. Dallas/Fort Worth’s population growth in recent years ranks among the highest in the U.S. for a major metro. The Metroplex is home to 21 Fortune 500 companies and many regional headquarters, drawing workers and residents. The area’s extensive network of rail and highways, along with the International Inland Port of Dallas, ensure its status as a distribution hub.

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. © 2020 Marcus & Millichap. All rights reserved. (Activity ID: ZAB0060808)