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Midland, TX

North Midland Industrial Portfolio

Address:
11002, 10800 and 10616 West County Road 77, Midland, TX 79707
Property Type:
Multi Tenant
Price:
$8,130,000
Cap Rate:
8.50% cap
NOI:
$690,942
Square Feet:
41,125 sqft
Lot Size:
12.98 acres
Price Per Square Foot:
$197.69
Year Built:
2017/2018/2019
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* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

  • Three-Building Industrial Portfolio Totaling 41,125 Square Feet, Situated on 12.98 Acres
  • Absolute Net Leases with Full Reimbursement and an Average of Over Three Years Remaining
  • New Construction Built Between 2017 to 2019 with Fenced Tenant Outside Storage Space
  • Three-Tenant Portfolio Offering a Diverse Range of Services to the Oil and Gas Industry
  • Opportunity to Acquire Industrial Real Estate in the Quickly Appreciating Permian Basin
  • Central Location Between Midland and Odessa, Just North of TX 191

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the portfolio located at 11002 West County Road 77, 10800 West County Road 77, and 10616 West County Road 75 in Midland, Texas. The subject portfolio consists of approximately 41,125 square feet of warehouse space and is situated on a total of 12.98 acres of land. The four-building asset features new construction built between 2017 and 2019, with fenced-in outside storage space. Centrally located between Midland and Odessa, the portfolio sits just north of State Highway 191. Each property is fully occupied on reimbursable absolute net leases with an average of over three years remaining. The three tenants offer a diverse range of services to the oil and gas industry. Thanks to rising oil prices, the portfolio sale gives investors an opportunity to own industrial real estate in the quickly appreciating Permian Basin.

As the second quarter concludes, market rents on industrial properties in the Midland Market are rising at a rate of 5.1 percent year-over-year. The current growth rate in rents is 60 basis points higher than the five-year average. After recording a new high of 8.4 percent at the start of the year, the vacancy rate in Midland has quickly fallen to 7.3 percent as quarterly net absorption hits a two-year high. With only 50,980 square feet of industrial space under construction, the 16.2-million-square-foot inventory base is expanding at the lowest level in at least 15 years. With little pressure coming from new supply, vacancies in Midland should continue to fall as rent growth remains strong (CoStar). Nonfarm payrolls in Midland reached their highest level since the start of the Pandemic in April and are up 8.1 percent annually (Bureau of Labor Statistics). At $120 a barrel, oil prices are in record territory, and are projected to increase as the global energy shortage worsens. With the stars aligning for a new cyclical bull market in oil, Midland presents a prime opportunity for industrial investors.

Located in West Texas, the Midland-Odessa metro is considered to be an energy capital as the Permian Basin is one of the biggest oil fields in the world and is home to some of the largest petroleum-producing companies. The metro consists of Martin, Midland, and Ector counties. The public sector is a top job provider, but the private sector is driving the economic growth. The two largest cities are Midland, with over 131,000 residents, and Odessa, with roughly 112,000 residents.

Midland is the center of America’s oil and gas production. Petroleum production and everything in between is prevalent in the area, but Midland is making great efforts and success in diversifying into additional industries such as aerospace. Interstate 20 runs through Midland, making it easy to transport goods and raw materials throughout the country. Rated the No. 1 state for business by U.S. corporate executives, this is an excellent place to start or grow a business in Texas. (midlandtxedc.com). Major employers include Halliburton, Hilliard, Legacy Reserves, Midland College, Midland Health, Patterson-UTI, Pioneer Natural Resources, Schlumberger, Weatherford, Baker Hughes, Chevron, ConocoPhillips, Bloomberg, and more.

As the largest single source of oil and gas deposits in the United States, Odessa has long been known for its rich resources. New businesses have come to the city that have helped diversify the economy as well as reinforce the quality-of-life standards. Odessa proudly boasts world-class cultural and recreational facilities as well as healthcare and transportation often associated with larger cities. It also serves as the crucial midpoint between Fort Worth and El Paso. Lucrative financial incentives, site selection, logistics, qualified workforce, easy access to foreign markets, and low cost of living make it easy to do business (odessatex.com). Major industries include medical, energy, distribution, manufacturing, and technology.

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: ZAD0060686)