Marcus & Millichap is pleased to present the opportunity to acquire the property located at 435 West Fork Drive in Arlington, Texas, leased to Electro Freeze Distributors of Texas, Inc. The subject property consists of approximately 9,665 square feet of warehouse space and is situated on 0.46 acres of land. The single-tenant asset features masonry construction, a clear height of 18’, one grade-level door, one dock-high door set in a truck well, three-phase power, and 11 parking spaces. With easy access to Interstate 820 via West Division Street, the property is about 13 miles from Downtown Fort Worth and 24 miles from Downtown Dallas.
Electro Freeze is signed to a triple-net lease that runs through February 2026 at $8.00 per square foot with a 6.25 percent annual rent increase. Priced below the average market rent, this sale offers buyers a value-add renewal opportunity with a tenant that has a long rich history. Electro Freeze pioneered the first-ever soft-serve ice cream machine in 1946 and continues to be a leader today in the frozen-treat industry.
The subject property is housed in the Arlington submarket containing a sizeable 29.1 million square feet of industrial space. In 2023, the vacancy rate ticked up 90 basis points to 4.9 percent, significantly outperforming the Dallas-Fort Worth metroplex average of 8.4 percent. The additional availability helped to slow down rent growth by 320 basis points but asking rents continued to outpace the Consumer Price Index, rising by 8.3 percent to $9.30 per square foot. During the first quarter of 2024, about 390,000 square feet were under construction, representing just 1.3 percent of current inventory levels. For the foreseeable future, vacancies and rent growth will largely be impacted by demand over new supply (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. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0060163)
