5121 & 5117 April Lane
- 5121 & 5117 April Lane, Houston, TX 77092
- Property Type:
- Multi Tenant
- Cap Rate:
- Square Feet:
- 22,900 sqft
- Lot Size:
- 0.89 acres
- Price Per Square Foot:
- Year Built:
- Property Strategically Located at Pinemont and Antoine Drive, with Accessibility to Highway 290
- Buildings Can be Used as Either Single or Multi-Tenant Property
- Northwest Near Submarket Contains Roughly 20.4 Million Square Feet of Industrial Space
- Industrial Properties in Submarket Have Traded with Regularity in Recent Years, Despite Pandemic
- Buildings Remain in Good Condition, with New Lighting and Electrical at 5121 April Lane
- Below-Market Rents in Place, Excellent Value-Add Opportunity
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5121 & 5117 April Lane, in Houston, Texas, fully leased to Texan Millwork, Inc. and Metal Kitchen Fabricators. The subject property consists of approximately 22,900 square feet of space and is situated on 0.89 acres of land. The asset features new lighting and electrical work. Built in 1970 and expanded in 1975, the property remains in good condition and can be used for single or multi-tenant occupancy. With current rents priced below the market rate, the property offers investors an excellent value-add opportunity. Upon sale of the property, the owner-occupant, Metal Kitchen Fabricators, will leaseback space for six months. The sale-leaseback gives investors a full income stream while releasing the property. Since 1997, Texan Millwork, Inc. has manufactured custom commercial and residential cabinetry for contractors and homeowners. With state-of-the-art equipment and highly skilled craftsmen, Texan Millwork is able to design and produce anything from classic to unique and modern styles. Some of their clients include nationally recognized brands such as Fuddruckers, Buffalo Wild Wings, and Burlington (Texan Millwork).
The subject property is strategically located within the Northwest Near submarket near Pinemont Drive and Antoine Drive, with accessibility to U.S. Route 290. With about 20.4 million square feet of industrial space, Northwest Near is a very large submarket largely consisting of logistics facilities making up near 80 percent of the inventory. The remaining inventory pool includes 2.5 million square feet of specialized space and 1.6 million square feet of flex space. Despite the pandemic related lockdowns, the vacancy rate is essentially unchanged at 4 percent compared to Q2 2020. Over the past year, net absorption climbed to about 170,000 square feet, 162 percent higher than the five-year average. While rents are only up 1.9 percent since last year, rent growth is projected to quickly pick up pace with high demand and no new industrial properties under construction. At $7.15 per square foot, the average rent in Northwest Near is 6 percent below the market average, giving the submarket a slight advantage in pricing. Even with the pandemic, industrial properties traded with regularity in 2020, in line with the previous three years (CoStar).
As the fifth most populous metro area in the U.S., Houston houses nearly 6.9 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.