Crystal Clear Sound
- 4902 Don Drive, Dallas, TX 75247
- Property Type:
- Single Tenant
- Cap Rate:
- 7.77% cap
- Square Feet:
- 5,219 sqft
- Lot Size:
- 0.17 Acres
- Price Per Square Foot:
- Year Built:
- 5,219-Square-Foot Flex Space Situated on 0.17 Acres, Masonry Construction
- Located in Highly Desirable West Brookhollow Submarket with Values Projected to Increase Allowing for Potential Exit Strategy
- Crystal Clear Sound Has Occupied the Space Since 2017 and Executed a New Two-Year Lease Starting January 1, 2023
- Specialized Space Utilized as a Recording Studio Increasing Probability of Tenant Extending Lease
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 4902 Don Drive in Dallas, Texas leased to Crystal Clear Sound. The subject property consists of approximately 5,219 square feet of flex space and is situated on 0.17 acres of land. The single-tenant asset features masonry construction, a clear height of 14’, and seven parking spaces. Crystal Clear Sound has fully occupied the property for five years and recently renewed their lease for an additional two years, starting January 1, 2023. Tenant improvements include a specialized space utilized as a recording studio, which increases the probability that the tenant may continue to extend their lease. Since 1978, Crystal Clear Sound has been one of the premier studios in Texas, providing the highest level of recording and mixing with a first-class tracking room, gear, and engineers (Crystal Clear Sound).
The subject property is located in the highly desirable West Brookhollow submarket, containing a sizeable 43.1 million square feet of industrial space. With shallow-bay properties measuring less than 100,000 square feet making up about 71 percent of the inventory, local manufacturers, suppliers, and distributors anchor the tenant base. After a string of quarters with negative net absorption, West Brookhollow’s vacancy rate hit a decade’s high of 6.5 percent in the third quarter of 2021. Since then, annual net absorption has significantly rebounded, posting just over 1 million square feet through Q3 2022. As a result, the vacancy rate dropped to 4.1 percent during this time, sitting 150 basis points lower than the overall Dallas-Fort Worth market. Soaring demand helped push market rent growth in Q3 to a new record high of 13.6 percent. The market sale price per square foot in West Brookhollow has risen by over 17 percent year-over-year in Q3 (CoStar). As market rents continue to rise rapidly, property valuations are expected to elevate further, providing the potential for acquisition and disposition investment strategies.
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.