Industrial Facility -Heavy Power, Rail, Yard 2002 N Avenue N 181,800 SF 20% Leased Industrial Building Lubbock, TX 79403 $5,250,000 ($28.88/SF)

This sale offers the opportunity to purchase an industrial facility in Lubbock, Texas, that is suitable for owner/users, for a multi-tenant conversion and for uses requiring a large supply of electricity. The property has attributes that provide for functionality and long-term value and is situated in a desirable area for business development. The property is to be delivered vacant at the close of escrow.
The subject property, located at 2002 North Avenue N, consists of two parcels for a total of 30 acres of land. This site has been improved with an industrial facility that has 181,800 SF of rentable building area. Constructed as a manufacturing facility, the property offers numerous functional attributes: the 3-building layout provides the ability to separate manufacturing processes; a multi megawatt power supply has been configured with six dual-action transformers providing well distributed power to each wing of the facility; a 5-acre yard area that is paved, fenced and lit offers numerous outdoor storage options; access to a rail spur provides for cost-effective transportation of raw materials and finished products. The facility is well-built and features metal construction with concrete stem walls, 14-16’ clear heights, clearspan production space (steel I-beam trusses with no supporting posts in the middle of the production area), a high-volume city gas line, fire sprinklers throughout, evaporative cooling, a dust collection system, abundant parking and excess land providing room to expand, for truck and trailer parking and/or for installation of new equipment. The property is currently supplied with 5.2 MW of electricity and is within the Ercot grid, which is a deregulated power grid that provides cheaper energy rates than regulated grids. West Texas is the primary electricity generation area in the state and contains the nodes with the cheapest cost. Options for further electrical expansion are available.
Located in the city of Lubbock, also known as “Hub City” for its central location to numerous points of commerce in the region, the subject property is situated in a mid-sized metro that is high on the list of US cities experiencing economic growth. Lubbock offers an economic base rooted in numerous industries including manufacturing, retail, farming, distribution, education and health care. The city provides numerous attributes that promote economic growth: a skilled labor force, low cost of utilities, desirable location for families, affordability in housing and living costs, a growing population and per capita income, top ranked schools, proximity to major markets. Lubbock has been ranked as having one of the best mid-size city business climates, one of the best cities for raising a family and one of the best cities for work-life balance. For owner-users who are looking to expand their operation or to start a new venture, Lubbock offers a desirable place to do so.
The subject property is also suitable for investors. Like owner-users, investors will appreciate the favorable attributes of the location and property’s functionality, increasing the odds of dependable long-term tenancy. Additionally, the configuration of the building provides the ability to convert the property to a multi-tenant facility, providing investors with the ability to mitigate risk and add value to the property. At current market rates of $3-$3.50/SF/yr NNN, the property will deliver a 10+% cap rate and offers attractive long-term value and appreciation potential.
2002 North Avenue N offers the opportunity to purchase an industrial facility in a desirable location. The property has attributes that provide functionality and attractive long-term value, and is suitable for owner/users and investors alike.