For Sale
$3,366,396

2146 5Th AvePort Arthur, TX 77642

8.5% Cap Rate, 20-Year Lease

Overview

Added:
Dec 11, 2024
Days on market:
116
This exceptional investment opportunity presents a 45,062-square-foot warehouse in Port Arthur, Texas, situated on an 8.14-acre lot at 2146 5th Ave, 77642. The property boasts 10 dock-high doors and 30 parking spaces. Currently 100% occupied by a single tenant under a 20-year absolute triple net (NNN) lease, this sale-leaseback offers a compelling 8.50% capitalization rate with a strong NOI of $286,144. The lease includes a 2.5% annual rent increase, providing consistent income growth. Lease options include four 5-year terms or two 10-year terms. The tenant, specializing in above-ground storage tank construction, repair, and maintenance, serves key industries including petroleum, agriculture, power generation, and chemicals. The property, built in 1978, is zoned for Special Use Permit (SUP) and benefits from its strategic location between Houston and Lafayette, directly off Highway 10, with potential for future expansion. The tenant's financial profile is strong, and the property is mission-critical to their operations. Significant investment has been made in the facility's machinery and equipment. This is a rare opportunity to acquire a stable, high-yielding industrial asset with a long-term, secure lease.

Highlights

  • 20-year absolute triple-net lease with 2.5% annual rent escalations.
  • Sole-source tenant providing comprehensive tank repair services (engineering, design, fabrication, coating).
  • Tenant exhibits strong financials and positive performance trends.
  • Mission-critical facility generating 100% of tenant's revenue.
  • Strategic location on Highway 10 between Houston, TX and Lafayette, LA.
  • Expansion potential on-site.

Property Details for 2146 5Th Ave

Property type
Warehouses, Industrial properties
Year Built
1978
Lot Size (sq. ft)
354,578 SF

Location Insight

City
Port Arthur
County
Jefferson
State
Texas
Latitude
29.9066269
Longitude
-93.9288323
2146 5Th Ave, Port Arthur, Texas

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2146 5Th Ave
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