Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5821 East Harrison Avenue in Harlingen, Texas, occupied by the current owner, Aloe Laboratories. The subject property consists of approximately 68,900 square feet of warehouse space and is situated on 11.73 acres of land, six of which can be used for additional parking, building expansion, or development. The asset features three dock-high doors, two grade-level doors, a clear height of 20’, and 1,288 square feet of cold storage space.
Upon the sale of the property, Aloe Laboratories plans to execute a two-year triple-net leaseback at market rate with a 3.0 percent annual rent escalation. At 8.4 percent, investors have an opportunity to acquire an asset with an above-market cap rate. With over 30 years of experience, Aloe Laboratories is a vertically integrated provider of a variety of aloe vera products such as juices and manufactured personal care cosmetics.
With frontage along East Harrison Avenue (Highway 106) and Farm to Market Road 509, the property is primely situated in Outlying Cameron County, a relatively small submarket containing 5.3 million square feet of industrial space. At the close of Q2 2023, the vacancy rate stood at 5.3 percent. Limited availability has helped keep market rents high with the growth rate up 7.4 percent year-over-year. Thanks to the absence of any industrial construction, rent growth and vacancies will go unaffected by new supply for the foreseeable future (CoStar).
Located at the southernmost tip of Texas, the Brownsville-Harlingen metro area is home to about 434,000 residents. Its strategic position along the Gulf Coast and the Texas-Mexico border fosters a thriving trade sector. Manufacturing firms, including Keppel AmFELS and ESCO Marine, contribute to the area’s diverse economy. The region also boasts a growing aerospace industry, supported by SpaceX’s Boca Chica launch site. Education and healthcare are strong sectors, with institutions like the University of Texas Rio Grande Valley and major medical centers providing employment opportunities. The Port of Brownsville serves as a vital deep-water seaport and Foreign Trade Zone, employing over 8,500 individuals. With a mix of cultures, outdoor activities, and affordability, Brownsville-Harlingen offers unique experiences to residents and visitors alike.
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: ZAE0060251)
