Marcus & Millichap is pleased to present the opportunity to acquire the property located at 25645 Farm to Market 106 in Harlingen, Texas, occupied by the owner Bulk-Pack Incorporated. The subject property consists of approximately 105,000 square feet of warehouse space and is situated on 9.15 acres of land. The single-tenant asset features a clear height of 22’ to 26’, 10 dock-high doors, one grade-level door, tilt-wall construction with metal roofing, concrete paved yard space, and three-phase power. With a building coverage ratio of 26 percent, the property can accommodate additional development and industrial outdoor storage space.
Upon the sale of the property, Bulk-Pack plans to execute a 10-year absolute triple-net leaseback at an 8.0 percent cap rate with 3.0 percent annual rent escalations. Established in 1980, Bulk-Pack is a leading innovative manufacturer and supplier of packaging supplies for commercial shipments. With its state-of-the-art manufacturing facility in Mexico, Bulk-Pack manufactures bulk bags, airbags, and container liners (Bulk-Pack).
The subject property is primely situated in Outlying Cameron County, a relatively small submarket containing 5.6 million square feet of industrial space. The submarket is home to NextDecade’s 984-acre Rio Grande LNG project near Port Isabel. The natural gas facility is the largest privately funded infrastructure project in Texas, and at full scale will provide enough energy to heat and cool the equivalent of nearly 34 million U.S. households annually. In 2023, the vacancy rate in Outlying Cameron County increased 170 basis points to 6.2 percent as supply outpaced demand, causing asking rent growth to slow to 5.2 percent annually. However, at the start of 2024, there were no standard industrial properties under construction, which will help alleviate stress on rent growth and vacancies (CoStar).
McAllen-Harlingen-Brownsville Metroplex is composed of two metropolitan statistical areas, McAllen-Edinburg-Mission metro and Brownsville-Harlingen metro. Positioned along the Texas-Mexico border and Gulf Coast, the metroplex is home to a combined 1.3 million residents. The area’s strategic location fosters a thriving trade sector, making logistics important drivers of the local economy. The region maintains the largest land port for fresh produce imports from Mexico, with 160,000 loads of produce transported in a typical year. 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. The Port of Brownsville serves as a vital deep-water seaport and Foreign Trade Zone, employing over 8,500 individuals. Education and healthcare are strong sectors, with institutions like the University of Texas Rio Grande Valley and major medical centers providing employment opportunities. The Rio Grande River also runs through the area, providing recreational opportunities for locals and visitors.
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: ZAF0490038)
