PRECISION CATALYST (ODESSA, TX)
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• Industrial Asset Totaling 14,080 Square Feet, Situated on 3.10 Acres
• Metal Construction Featuring Six Grade-Level Doors and 4,000 Square-Foot Addition in 2018
• Ten-Year Leaseback with Precision Catalyst with 15% Rental Increase in Year Six
• Precision Catalyst is One of the Only Full-Service Catalyst Fabricators in the Nation and Has Seen Exceptional Growth Since its Inception
• Precision Catalyst Manufactures High Quality Emission Control Catalysts In-House to Meet Today’s Demanding Regulatory Environment Standards
• Fully Fenced Lot with Electronic Gate, Offering Ample Outside Storage Space
• Located in South Odessa, with Easy Access to Interstate 20 and Loop 338
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 2690 South County Road West in Odessa, Texas, leased to Precision Catalyst. The subject property consists of approximately 14,080 square feet of space and is situated on 3.10 acres of land. The property features metal construction, six grade-level doors, and a 4,000-square foot addition in 2018. The asset includes a fenced lot with electronic gate, offering ample outside storage space and is located in South Odessa with easy access to Interstate 20 and Loop 338. Located in West Texas, the Midland-Odessa metro is considered to be an energy capital as the Permian Basin is one of the biggest oil fields in the world and is home to some of the largest petroleum-producing companies. The oil market has historically been volatile. When supply and demand pressures level out, prices will rebound and real estate values will follow.
Precision Catalyst manufactures high-quality emission control catalysts in-house to meet today’s demanding regulatory environment standards. The company is one of the only full-service catalyst fabricators in the nation and has seen exceptional growth since its inception. Precision Catalyst is committed to a 10-year leaseback with a 15 percent rental increase in year six, giving a buyer an exit strategy and upside or an option to hold and renew at lease expiration. While supply and demand are pushing oil prices down, a buyer can be confident the lease term should outlast current oil price depression, resulting in long-term income stream. In the midst of oil volatility, Precision Catalyst has grown since their 2015 inception, and additional capital from their sale-leaseback will allow them further expansion and revenue growth.
As the largest single source of oil and gas deposits in the United States, Odessa has long been known for its rich resources. New businesses have come to the city that have helped diversify the economy as well as reinforce the quality of life standards. Odessa proudly boasts world-class cultural and recreational facilities as well as healthcare and transportation often associated with larger cities. It also serves as the crucial midpoint between Fort Worth and El Paso. Lucrative financial incentives, site selection, logistics, qualified workforce, easy access to foreign markets, and low cost-of-living make it easy to do business (odessatex.com). Major industries include: medical, energy, distribution, manufacturing, and technology.