Marcus & Millichap is pleased to present the opportunity to acquire the property located at 377 Savage Lane in Aledo, Texas, anchored by WeatherShield Roofing. The subject property consists of approximately 19,000 square feet of warehouse and manufacturing space and is situated on 4.0 acres of land. Delivered in 2017, the multi-tenant asset features a clear height of 16’ to 20’, eight grade-level doors, 3,500 square feet of modern office space, metal roofing, three HVAC units, and three-phase power. With a building-to-land ratio of 11 percent, the property has roughly 3.3 acres of industrial outdoor storage space. Located within a 10-minute drive to Interstate 20, the property has proximate access to a major thoroughfare that runs through the Dallas-Fort Worth metroplex.
This sale offers investors an opportunity to acquire a fully leased asset at an above-market cap rate of 8.8 percent. The two tenants, WeatherShield Roofing and M3 Disposal, are signed to leases expiring in November 2027 that can be renewed for five years with 3.0 percent annual rent escalations. WeatherShield Roofing, which occupies about 95 percent of the property, is signed to a triple-net lease and is responsible for total property operating expenses, minimizing landlord responsibilities. In business for 20 years, WeatherShield Roofing provides roofing products, installation services, and maintenance to residential and commercial properties in the metro area.
The subject property is located in Parker County, a relatively small submarket containing 6 million square feet of industrial space. During the second quarter of 2024, the vacancy rate rose to 6.8 percent, up 2.5 percentage points year-over-year. After posting a strong year in 2023, net absorption in Parker County has trended in negative territory in 2024 as new deliveries slow. Rent growth has slowed to 6.9 percent but remains well ahead of the annual increase in the Consumer Price Index. With an average asking rent of $12.50, landlords in Parker County enjoy a 28 percent premium over the market average (CoStar).
The Dallas-Fort Worth metroplex is the fourth-most populous metro in the nation, with an aggregate of more than 7.7 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 919 thousand 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 metro’s 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 24 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. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0060296)
