- 10475 Southwest Freeway, Houston, TX 77074
- Property Type:
- Single Tenant
- Cap Rate:
- 5.50% cap
- Square Feet:
- 32,173 sqft
- Lot Size:
- 5.85 acres
- Price Per Square Foot:
- Year Built:
- Long-Term Lease in Place with Strong National Tenant, Service King
- Tenant Has Been in the Current Building Since 2009, Triple-Net Lease in Place
- 10 Years Remain on the Current Lease with One, 10-Year Option
- Service King Services 24 States and D.C., Including 96 Locations in Texas
- 32,173-Square-Foot Service Center Situated on 5.85 Acres
- Features 18 Grade-Level Doors and 277 Parking Spaces
- Strategically Located in Highway 59/Highway 90 Submarket with 5.3% Rent Growth (CoStar)
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 10475 Southwest Freeway in Houston, Texas, leased to Service King Collision. The subject property consists of approximately 32,173 square feet of industrial space and is situated on 5.85 acres of land. The asset features 18 grade-level doors and 277 parking spaces. Situated in close proximity to major highways, including Interstate 69, the property is located within Houston’s Highway 59/Highway 90 industrial submarket. In the third quarter of 2022, market rents were up 5.3 percent year-over-year in the submarket, topping the overall Houston market by 60 basis points (CoStar).
Since 2009, Service King Collision has occupied the property under a triple net lease. The current lease expires in 2032 and the tenant has the option to renew for another 10 years. With 335 locations across 24 states and the District of Columbia, Service King is one of the largest auto collision repair companies in the nation. Founded in Dallas, Texas in 1976, Service King operates 96 locations in Texas alone (Service King). In July of 2022, Service King Collision merged with Crash Champions Collision Repair Team, based in Crestwood, Illinois. Together, the companies represent the third largest collision repair shop in the U.S. (Autobody News).
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.