- 16958 North Freeway, Houston, TX 77090
- Property Type:
- Single Tenant
- Cap Rate:
- 7.03% cap
- Square Feet:
- 6,000 sqft
- Lot Size:
- 0.45 Acres
- Price Per Square Foot:
- Year Built:
- 6,000-Square-Foot Flex Warehouse Headquartered by Swedish Clog Maker Sandgrens Clogs
- Triple-Net Sale-Leaseback Offering Hands-Off Investment Opportunity
- World-Class Custom Build-Out Completed in 2022
- Features 25’ Clear Height, Steel Fireproof Construction, and Two-Unit HVAC
- 200-Square-Foot Mezzanine Floor Containing All-Glass Executive Suite
- High Growth, Diverse Submarket with Strong Fundamentals
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 16958 North Freeway in Houston, Texas, occupied by the current owner, Sandgrens Clogs. Upon the sale of the property, Sandgrens Clogs plans to execute a three-year leaseback with 3.0 percent annual rent escalations. As a triple-net lease, investors have the opportunity to acquire a hands-off investment with minimum landlord duties. Established in 1846, the Swedish clog maker utilizes the property as its headquarters in addition to warehousing and distribution.
The subject property consists of approximately 6,000 square feet of flex warehouse space and is situated on 0.45 acres of land. Delivered in 2019, the world-class custom build-out was completed in 2022. The single-tenant asset features 2,500 square feet of office space, including a glassed-in executive suite atop the 200-square-foot mezzanine floor. The property is equipped with LED lighting, a clear height of 25’, two centralized HVAC systems covering the entire building, and two grade-level doors, measuring 12’ by 14’. Constructed of metal, the roof comes with a 20-year warranty and the steel exterior is fireproof.
Located alongside Interstate 45, the property sits within the North Hardy Toll Road submarket. Anchored by a diverse set of tenants in oil and gas, manufacturing, and logistics, the large submarket contains 46.3 million square feet of industrial space. The 3.4 million square feet under construction make up 9 percent of the Houston market’s entire pipeline. However, nearly all of this new supply is concentrated in properties over 10,000 square feet, leaving small industrial properties in this submarket in relatively short supply. Despite the inventory buildup, the vacancy rate during Q2 2023 sat 90 basis points below the 10-year average at 7.7 percent and market rents were up 4.7 percent annually (CoStar). Given North Houston’s rising population, the future looks promising for the North Hardy Toll Road submarket.
As the fifth most populous metro area in the U.S., Houston houses over seven 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.