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Edinburg, TX

Wylie Spray Center, Edinburg

Address:
1718 South 28th Avenue, Edinburg, TX 78542
Property Type:
Single Tenant
Price:
$875,000
Cap Rate:
7.89% cap
NOI:
$69,020
Square Feet:
11,900 sqft
Lot Size:
2.40 Acres
Price Per Square Foot:
$73.53
Year Built:
1998/2014 Renov
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Investment Highlights

Investment Highlights

Investment Highlights

  • Owner-Occupied 11,900-Square-Foot Flex Asset Situated on 2.4 Acres
  • Featuring Concrete/Asphalt Paved Yard, Three Grade-Level Doors, and 9’-13’ Clear Height
  • Short-Term Sale-Leaseback Opportunity with Wylie Spray Center | 60 Years in Business with 14 Locations
  • Attractive Space for Owner-Users Looking for Outside Storage or On-Site Expansion
  • Tough Barrier-to-Entry Edinburg Submarket with Low 1.4% Vacancy Rates and 5.8% Rent Growth

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1718 South 28th Avenue in Edinburg, occupied by the owner, Wylie Spray Center. The subject property consists of approximately 11,900 square feet of flex space and is situated on 2.4 acres of land. The single-tenant asset features two buildings, 7,551 square feet of office space, a clear height ranging between 9’ and 13’, three grade-level doors, five HVAC units, concrete and asphalt paving, and ample outdoor storage space. Originally delivered in 1998, the metal and roof-constructed property underwent renovations in 2014. The property is situated in close walking distance to Interstate 69C, which feeds directly into Mexico.

Upon the sale of the asset, Wylie Spray Center plans to execute a one-year triple-net lease at $5.80 per square foot with two six-month renewal options at an escalation of 3.0 percent. Given the short-term leaseback, the property can also be acquired for owner-use with the option for on-site expansion. Wylie Spray Center is a subsidiary of Wylie and Son, Inc., a family-owned business that manufactures and distributes herbicide spraying systems, and now also serves as a dealer of popular brands such as Case IH and New Holland. With the help of its 14 Wylie Spray Center locations across Texas and Oklahoma, the company has grown to become a worldwide leader in agriculture equipment manufacturing (Wylie).

The subject property is located in the Edinburg submarket, containing 3.1 million square feet of industrial space. Unlike most market areas, availability has remained relatively stable and tight in the Edinburg submarket in 2023 with a record-low 1.4 percent vacancy rate in the fourth quarter. Despite this, market rent growth slowed down in 2023, up 5.8 percent annually during this time. Edinburg’s inventory has remained relatively flat for several years and with no properties under construction, rents and vacancies will be unaffected by new supply for the foreseeable future (CoStar). With its close proximity to the border, the Edinburg submarket stands to benefit from the undergoing nearshoring movement in which domestic companies have shifted production from China to Mexico. In early 2023, Mexico surpassed China as America’s top importer, making Texas the top beneficiary with cross-border imports increasing by 24 percent over the previous year. As imports continue to rise, industrial activity will also pick up along border cities, increasing property values.

McAllen-Harlingen-Brownsville Metroplex is composed of two metropolitan statistical areas, McAllen-Edinburg-Mission metro and Brownsville-Harlingen metro. Positioned along the Texas-Mexico border and Gulf Coast, the metroplex is home to a combined 1.3 million residents. The area’s strategic location fosters a thriving trade sector, making logistics important drivers of the local economy. The region maintains the largest land port for fresh produce imports from Mexico, with 160,000 loads of produce transported in a typical year. Manufacturing firms, including Keppel AmFELS and ESCO Marine, contribute to the area’s diverse economy. The region also boasts a growing aerospace industry, supported by SpaceX’s Boca Chica launch site. The Port of Brownsville serves as a vital deep-water seaport and Foreign Trade Zone, employing over 8,500 individuals. Education and healthcare are strong sectors, with institutions like the University of Texas Rio Grande Valley and major medical centers providing employment opportunities. The Rio Grande River also runs through the area, providing recreational opportunities for locals and visitors.

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. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0060174)