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Edinburg, TX

Goodman Distribution, Inc.

Address:
301 West Owassa Road, Edinburg, TX 78577
Property Type:
Single Tenant
Price:
$8,360,000
Cap Rate:
5.50% cap
NOI:
$459,831
Square Feet:
41,875 sqft
Lot Size:
3.60 acres
Year Built:
2021
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Investment Highlights

Investment Highlights

Investment Highlights

• 41,875 Square-Foot Industrial Warehouse Situated on 3.60 Acres
• Brand New Tilt-Wall Construction Featuring Five Dock-High Doors and Two Grade-Level Doors
• New 10-Year Lease Guaranteed by Goodman Global, Inc. Founded in 1975
• Triple-Net Lease, Minimizing Landlord Expenses
• Corporate Guarantee by Goodman Global Group, Inc. – Well Over 9-Figure Annual EBITDA
• Goodman® Brand Products Predominantly Sold Through Company-Operated and Independent Distribution Networks; More Than 1,000 Total Distribution Points Throughout North America
• Tough Barrier to Entry Market: 4 Percent Overall Vacancy and 1.5 Percent Annual Rent Growth (CoStar)
• Strategically Located Industrial Warehouse with Proximate Access to Major Freeways

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 301 West Owassa Road in Edinburg, Texas, leased to Goodman Distribution, Inc. The subject property consists of approximately 41,875 square feet of space and is situated on 3.60 acres of land. The asset features new tilt-wall construction, five dock-high doors, and two grade-level doors. The new 10-year, triple-net lease is guaranteed by Goodman Global, Inc. and minimizes landlord expenses. Goodman Global Group, Inc. has an annual EBITDA well over nine figures. Goodman® brand products are predominantly sold through company-operated and independent distribution networks, with more than 1,000 total distribution points throughout North America. Goodman Global Group, Inc. was founded in 1975. This strategically located industrial warehouse with proximate access to major freeways lies within a tough barrier to entry submarket (4 percent overall vacancy and 1.5 percent annual rent growth). (CoStar)

Edinburg is a midsized submarket containing around 2.9 million square feet of industrial space. The recent instability has not made a huge impact on the vacancy rate, although vacancies (6.3 percent) have ticked up slightly over the past 12 months. Over the past five years, the submarket has posted net absorption of about 69,000 square feet per year, on average. Rents posted a gain of 3.1 percent over the past 12 months. There are no supply-side pressures on vacancy or rent in the nearterm, as nothing is underway. Though the pipeline is empty, the submarket has seen recent development. (CoStar)

Edinburg, Texas is a place with a business-friendly environment, large labor force, strong infrastructure, resources, and room for growth. The City of Edinburg is one of the fastest-growing and developing cities in the Rio Grande Valley. Edinburg is the county seat of Hidalgo, the seventh largest county in Texas, and home to the University of Texas-Rio Grande Valley, the state’s tenth largest public university. Centrally located within one of the largest trade corridors in the world, Edinburg is the gateway to Interstate 69 or the NAFTA Highway. In 1999, more than 54 percent of all trade between Mexico and the United States made its way through the South Texas port of entry. Edinburg is a pro-business community with an excellent quality of life, educational facilities, and strong civic pride. It has been recognized as an All-American City three times by the National Civic League, placing it among a handful of outstanding communities in the nation. (cityofedinburg.com)

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. © 2021 Marcus & Millichap. All rights reserved. (Activity ID: ZAB0061082)