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Houston, TX

Progressive Autosports

Address:
14037 Stuebner Airline Road, Houston, TX 77069
Property Type:
Single Tenant
Price:
$3,900,000
Cap Rate:
7.00% cap
NOI:
$273,000
Square Feet:
26,750 sqft
Lot Size:
1.52 Acres
Price Per Square Foot:
$145.79
Year Built:
1999/2004/2009
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Investment Highlights

Investment Highlights

Investment Highlights

  • One-Year Sale-Leaseback in Place for Immediate Cash Flow
  • Area Has Experienced a Boom in Industrial Growth
  • Submarket Has Been One of the Main Beneficiaries of Outward Population Growth
  • The Tenant, Progressive Autosports, Individualizes and Personalizes Automobiles
  • Tenant Has Been in Business Since 1996
  • Building Located in Close Proximity to Beltway 8, Highway 249 and Highway 6

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 14037 Stuebner Airline Road in Houston, Texas, owned by the tenant, Progressive Autosports. The subject property consists of approximately 26,750 square feet of flex space and is situated on 1.52 acres of land. The two-building asset features four grade-level doors, cinder block fencing, and a showroom. Upon sale of the property, the tenant will enter into a one-year leaseback, offering investors immediate cash flow. Since 1996, Progressive Autosports has provided a variety of automobile personalization products and services such as wheels and exterior wrapping. Progressive Autosports also conducts sales and auctions of used luxury vehicles. With close proximity to Beltway 8, State Highway 249, and State Highway 6, the property is primely situated in the North Fwy/Tomball Parkway submarket.

Metro Houston’s outward population growth has helped ignite an industrial boom in the North Fwy/Tomball Parkway submarket. The submarket recently experienced one of the largest inventory expansions in the Houston area with 4.8 million square feet being delivered in 2020. With the help of Coca-Cola’s one-million-square-foot build-to-suit manufacturing and distribution facility (making it the submarket’s largest tenant), inventory increased by 15.0 percent last year. Despite the vacancy rate rising to 12.7 percent in 2020, vacancies have already fallen back to 7 percent in Q4 2021. Annual market rent growth is expected to
top 4.3 percent by the end of the quarter, making this year’s increase the highest in more than a decade. With only 185,700 square feet of industrial space under construction, new supply will have minimal impact on vacancies and rent growth for the foreseeable future (CoStar).

As the fifth most populous metro area in the U.S., Houston houses nearly 6.9 million people in southeastern Texas. The market is composed of nine counties: Harris, Galveston, Brazoria, Fort Bend, Chambers, Montgomery, Austin, Liberty and Waller. The Gulf of Mexico, which borders the metro to the southeast, provides access to markets around the world via the Port of Houston, making it a prime location for import/export. Houston’s economy has diversified in recent years, with the healthcare and technology sectors showing strong growth. As Houston’s population continues to grow, primarily to the northwest, many companies are expanding to the region to provide goods and services to the increasing population.

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: ZAC0060748)