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Wylie, TX

CJB Construction, Inc.

31 Steel Road, Wylie, TX 75098
Property Type:
Single Tenant
Cap Rate:
7.01% cap
Square Feet:
9,903 sqft
Lot Size:
2 acres
Price Per Square Foot:
Year Built:
* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

  • Single-Tenant Triple-Net Investment Opportunity
  • Value-Add Opportunity for an Investor to Renew a Long-Term Lease at Market with Attractive Annual Increases
  • Market Rent Growth Up Over 13% Year-Over-Year
  • Subject Property Sits on Two Acres of Land. Property Features Rare Amount of Outdoor Storage Space Among Plano Comps
  • Four Dock-High Doors, One Drive-In Door, and 17’ Clear Height
  • Recent Renovations to Office Space and Office Roof
  • Subject Property Has Quick Access to Farm to Market 544 and South State Highway 78

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 31 Steel Road in Wylie, Texas, fully leased to CJB Construction, Inc. The subject property consists of approximately 9,903 square feet of warehouse space and is situated on 2.0 acres of land. The single-tenant asset features four dock-high doors, one drive-in door, and a clear height of 17’. In early 2022, the property’s office space and associated rooftop were remodeled and replaced. The asset contains a significant amount of outdoor storage space with a low coverage ratio of 11 percent. Such a feature is in limited supply among industrial properties in the Plano area. This sale offers investors a value-add opportunity by renewing a long-term lease at market rates with attractive rental escalations. Situated within the Plano submarket, the property has quick access to East Farm to Market Road 544 and South State Highway 78.

While Plano is often overlooked as an industrial hub in the Dallas-Fort Worth market, the submarket contains a sizeable 26.2 million square feet of industrial space. Home to many affluent suburbs, the Plano submarket maintains some of the highest rents in the Metroplex, averaging just over $13.00 per square foot by the third quarter of 2022. Compared to the average rental rate in DFW, tenants in Plano pay a 51 percent premium to landlords. Despite the pricey rental rates, vacancy rates in the Plano submarket sat 60 basis points lower than the overall market, at 4.9 percent in Q3. During which time, market rent growth soared to a record high of 13.2 percent year-over-year. Nearly 1.3 million square feet of industrial space is currently under construction in the Plano area. While this represents a 5.0 percent expansion to inventory, about 95 percent of the new space is concentrated in properties over 50,000 square feet (CoStar). As a result, properties comparable to the subject asset will largely be unaffected by new supply for the foreseeable future.

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 metros 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. © 2022 Marcus & Millichap. All rights reserved. (Activity ID: ZAD0060996)