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Houston, TX

Service King

Address:
7924 Highway 6 North, Houston, TX 77095
Property Type:
Single Tenant
Price:
$5,500,000
Cap Rate:
6.55% cap
NOI:
$360,000
Square Feet:
26,019 sqft
Lot Size:
3.38 acres
Price Per Square Foot:
$211.38
Year Built:
2007
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Investment Highlights

Investment Highlights

Investment Highlights

  • 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
  • 12 Years Remain on the Current Lease with One, Five-Year Option
  • Metal Construction, 3-Phase Power, 17 Grade-Level Doors
  • Houston Market Vacancy Slowly Trickling Down from 8.6% to 6.9% Throughout 2021
  • Highway Access Offers Short Drive to Central Houston Areas as Well as IAH Airport
  • Property in Close Proximity to Highway 6 and US 290
  • Service King Services 24 Different States Across the United States, Including 96 Locations in Texas

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 7924 Highway 6 North in Houston, Texas, leased to Service King Collision. The subject property consists of approximately 26,019 square feet of space and is situated on 3.38 acres of land. The asset features metal construction, 3-phase power, and 17 grade-level doors. With close proximity to State Highway 6 and U.S. Route 290, the property is just a short drive to Central Houston and the George Bush Intercontinental Airport. Since 2009, Service King Collision has occupied the subject property, and is currently signed to a triple net lease with 12-years remaining, consisting of one 5-year renewal option. With 335 locations across 24 states and the District of Columbia, Service King is one of the largest auto collision repair companies in the country. Founded in Dallas, Texas in 1976, Service King operates 96 locations in Texas alone (Service King).

The subject property resides within West Outer Loop, one of Houston’s largest submarkets with an inventory base of 30.6 million square feet. Thanks to the Houston area’s rapid household growth, expansion has been pushed outwards, increasing industrial demand in the West Outer Loop submarket. Despite over 882,000 square feet of industrial space being delivered during 2020 (a 14-year high), the vacancy rate declined over the last year to 4.5 percent in Q4 2021. This compares to the 6.9 percent vacancy rate for the overall Houston market, which is down from 8.6 percent in Q1. At 4.3 percent, the annual growth rate on market rents is rising at the highest pace in over 5 years. With the average square foot marketed at $8.24 for lease, landlords in West Outer Loop enjoy a slight 4 percent premium over the Houston market average (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: ZAC0040533)