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Small Bay Industrial Opportunity

Investing in small bay industrial space in Northwest Houston offers an attractive opportunity for investors seeking strong returns with manageable risk. The region's favorable economic conditions and the characteristics of small industrial properties create an ideal environment for steady income, potential capital appreciation, and tenant diversification. Stable Demand & High Occupancy: Demand from various industries like logistics and manufacturing ensures high occupancy, reducing vacancy risks and providing reliable income streams. Attractive Yields: Small industrial spaces often offer higher rental yields than larger properties or other real estate sectors due to strong demand and low operating costs. Tenant Diversification: Multi-tenant properties spread risk across several industries, mitigating losses from individual tenant vacancies or defaults. Value-Add Potential: Investors can increase property value through upgrades, improving tenant retention and rental rates. Economic Resilience: Smaller spaces are more affordable and tend to maintain occupancy during downturns, supported by critical roles in supply chains. Capital Appreciation: Northwest Houston’s growth and strategic location drive long-term property value increases.

Below Market Rents

This multi-tenant, small-bay property presents a compelling investment opportunity due to its current under-market rents, providing significant upside potential. With many of the leases below market averages, there is room for rental rate growth either through natural tenant turnover. This gap allows an investor to increase cash flow over time, creating a value-add opportunity with minimal upfront capital expenditure. Additionally, the demand for small-bay industrial space remains strong, positioning this asset for continued high occupancy and future rent escalations. By acquiring this property, an investor can capitalize on both stable income and long-term appreciation potential.

Lack of New Supply

The limited supply of new small-bay industrial properties, combined with the unique size of this asset, increases the value further. Properties of this size rarely come to market, particularly in an area with such strong demand and restricted development. This scarcity not only increases tenant demand but also positions the property as a rare opportunity for investors seeking assets with stable income and significant upside potential. The property's manageable size offers flexibility for leasing and re-tenanting, while the lack of new comparable spaces ensures its long-term attractiveness, driving both rental growth and value appreciation over time.

Assumable Debt

The property offers the opportunity to assume attractive existing financing at below-market rates. Assumable Debt Terms: - 3.74% Interest Rate - 25 Year Amortization - Outstanding Balance: +/- $9,600,000 - Maturity: 1/1/2027 with a balloon due of $8,779,513.54 - Pre-payable

West Belt Houston Market

The Northwest Houston West Sam Houston Parkway Industrial Market is a significant and well-developed industrial area located along the Sam Houston Parkway (Beltway 8) in the Northwest sub-market of Houston, Texas. This market is known for its strategic positioning, providing excellent access to major transportation routes, including U.S. Highway 290, Interstate 10, and State Highway 249, making it ideal for logistics, distribution, and manufacturing operations. The area is characterized by a mix of industrial properties, including large distribution centers, warehouses, manufacturing facilities, and flex space. Many buildings in this market are modern and equipped with state-of-the-art amenities to accommodate the needs of various industries. The availability of large parcels of land also supports the development of build-to-suit facilities. Given its proximity to major roadways, the Northwest Houston West Sam Houston Parkway Industrial Market is a hub for companies involved in logistics, transportation, and supply chain management. Additionally, the area benefits from Houston's diverse economy, with industries ranging from oil and gas to technology and consumer goods having a presence here. The market's location also provides relatively easy access to the Port of Houston, one of the busiest ports in the United States, further enhancing its appeal for businesses reliant on imports and exports. Overall, this industrial market is a crucial part of Houston's industrial landscape, offering excellent infrastructure, accessibility, and opportunities for businesses across various sectors.

Why Spring Branch

As one of the most culturally diverse sections of town with a prime location near Houston’s expressways, Spring Branch is an appealing area for new residents and new businesses. Located in the heart of Houston, Spring Branch offers significant advantages for energy sector businesses. As part of the Energy Capital of the World, it provides access to $43.4 billion in private equity assets, over 4,650 energy-related firms, and major companies like Chevron and Shell. With Houston controlling 34.2% of the U.S. oil pipeline capacity and 68.2% of natural gas, Spring Branch is a hub for both traditional and renewable energy industries. Additionally, it's a growing center for clean energy innovation, having attracted $1.8 billion in venture funding, and supports over 235,000 tech workers and numerous energy-related startups. Spring Branch is a prime location for manufacturing businesses due to its extensive industrial base, housing over 6,570 manufacturing establishments and generating $84+ billion in goods annually. With 234,000+ employed in the sector and 576 million square feet of industrial space, it provides a skilled workforce and ample room for growth. Its strategic location offers unparalleled global access through the Port of Houston, four sea ports, two international airports, and a vast network of highways and railroads, making it an ideal hub for logistics, trade, and distribution.