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Houston, TX

9130 Wayfarer Lane

Address:
9130 Wayfarer Lane, Houston, TX 77075
Property Type:
Single Tenant
Price:
$4,500,000
Cap Rate:
8.00% cap
NOI:
$360,000
Square Feet:
32,482 sqft
Lot Size:
~2.21 acres
Price Per Square Foot:
$138.54
Year Built:
1980s/2011
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* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

  • Upon Sale, NPN Machine Tools Will Execute Three-Year Leaseback
  • Property Sits in Close Proximity to the Sam Houston Tollway and Interstate 45
  • Tough Barrier-to-Entry Market with Vacancy Rates at 2.6% (Costar)
  • Concrete Laydown Yard for Future Outside Storage Capabilities or Deliveries
  • Eight Grade-Level Doors (14’x14’, 16’x14’)
  • Ability to Convert to Multi-Tenant in the Future for Increased Rental Rates
  • 20’ Clear Height with 26’ Ceiling Heights at the Peak for Inside Storage

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 9130 Wayfarer Lane in Houston, Texas, occupied by the owner, NPN Machine Tools. Upon sale of the property, NPN Machine Tools plans to execute a three-year triple net leaseback. The subject property consists of approximately 32,482 square feet of warehouse space and is situated on about 2.21 acres of land. The asset features eight grade-level doors, measuring 14’ by 14’ and 16’ by 14’, and a concrete laydown yard, suitable for outside storage or deliveries. With a clear height of 20’ and a maximum ceiling height of 26’, the property can easily accommodate inside storage. While the asset is currently for single-tenant use, the property can be converted into multi-tenancy for future increased rental rates.

Located in the South Highway 35 submarket, the property sits in close proximity to the Sam Houston Tollway and Interstate 45. South Highway 35 is a tough barrier-to-entry submarket containing a massive 43.7 million square feet of industrial space. Wholesale trade tenants serving the oil and gas industry make up a large portion of the tenant base. Over the last decade, the population growth in Suburban South Houston has boosted demand for e-commerce and distribution facilities. During this time, 5.3 million square feet of industrial space was delivered in South Highway 35, representing a 13.8 percent expansion in inventory. Thanks to an annual net absorption of 1.27 million square feet, the vacancy rate has dropped 210 basis points to a decade’s low of 2.6 percent by the end of Q2 2022. As a result, market rent growth jumped to a fresh 20-year high of 6.5 percent annually during this time. At 6.5 percent, the average market cap rate has remained in record low territory below 7 percent since 2015 (CoStar).

As the fifth most populous metro area in the U.S., Houston houses over seven 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.

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: ZAD0060864)