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4028 Daley Ave

4028 Daley Ave, North Richland Hills, TX 76180

Listing Price: $1,325,000

Cap Rate
7.04%
Gross SF
16,142
Rentable SF
16,142
Price/Gross SF
$82.08
Lot Size
0.53 acres
Year Built
1966

Investment Overview

Marcus & Millichap Real Estate Investment Services is pleased to offer for sale 4028 Daley Avenue located in North Richland Hills, Texas 76180. The property’s major tenant is Priority Environmental Services LLC. The subject flex property was built in 1966 and has been well maintained with multiple capital improvements over the years. The current tenants have occupied the property as owner/users since 2018 and are utilizing the majority of the space for their own use leaving the property with 2,377 square feet of vacancy for a second tenant on the premise. An incoming investor should look to capitalize on the longer-term NN lease in place for the primary tenant while boosting the rental revenue at fair market rent of $11.30/sf for the vacant space. The lease for the primary tenant provides 3% annual rent bumps with minimal responsibility from the landlord as the tenant is responsible for utilities, improvements, and maintenance of the majority of the property. The exit strategy for an investor should target a 5-6 year hold period to reap the benefits of a estimated double digit levered IRR of 17.07% or the unlevered IRR of 12.63% and a terminal CAP rate of 7.5%. The location and layout of the property is unique to the direct surrounding area providing a detached warehouse with overhead garage door access and a gated yard including covered parking and storage space for tenant equipment. Additional parking wraps around the front of the property. In addition to the longer-term lease in place, flex assets are boasting a DFW metroplex vacancy rate of roughly 3% with an estimated 3-6 months leasing timeline to fill the vacant space at fair market rate. The single-tenant, medical office building contains a total of 16,142 square feet of rentable area and is conveniently located less than a mile and a half from Interstate 183, allowing for easy access to the property. The Flex building is located on the intersection of Grapevine Highway and Glenview Drive and sees a high estimated annual average daily traffic count of 27,417 vehicles. The property benefits from strong demographics, serving a five-mile population of approximately 269,446 residents with a one-mile average household income exceeding $85,237.

Investment Highlights

  • Value-Add Opportunity
  • Substantially Below-Market Rents
  • Upside Through Bringing Rents Equal to Market Rates
  • Located on Grapevine Highway
  • Ideally Accessible from I-183
  • Great Asset for Investor or Owner/User

Exclusively Listed By

Financing By

Listing Price: $1,325,000

Cap Rate
7.04%
Gross SF
16,142
Rentable SF
16,142
Price/Gross SF
$82.08
Lot Size
0.53 acres
Year Built
1966

Investment Highlights

  • Value-Add Opportunity
  • Substantially Below-Market Rents
  • Upside Through Bringing Rents Equal to Market Rates
  • Located on Grapevine Highway
  • Ideally Accessible from I-183
  • Great Asset for Investor or Owner/User

Investment Overview

Marcus & Millichap Real Estate Investment Services is pleased to offer for sale 4028 Daley Avenue located in North Richland Hills, Texas 76180. The property’s major tenant is Priority Environmental Services LLC. The subject flex property was built in 1966 and has been well maintained with multiple capital improvements over the years. The current tenants have occupied the property as owner/users since 2018 and are utilizing the majority of the space for their own use leaving the property with 2,377 square feet of vacancy for a second tenant on the premise. An incoming investor should look to capitalize on the longer-term NN lease in place for the primary tenant while boosting the rental revenue at fair market rent of $11.30/sf for the vacant space. The lease for the primary tenant provides 3% annual rent bumps with minimal responsibility from the landlord as the tenant is responsible for utilities, improvements, and maintenance of the majority of the property. The exit strategy for an investor should target a 5-6 year hold period to reap the benefits of a estimated double digit levered IRR of 17.07% or the unlevered IRR of 12.63% and a terminal CAP rate of 7.5%. The location and layout of the property is unique to the direct surrounding area providing a detached warehouse with overhead garage door access and a gated yard including covered parking and storage space for tenant equipment. Additional parking wraps around the front of the property. In addition to the longer-term lease in place, flex assets are boasting a DFW metroplex vacancy rate of roughly 3% with an estimated 3-6 months leasing timeline to fill the vacant space at fair market rate. The single-tenant, medical office building contains a total of 16,142 square feet of rentable area and is conveniently located less than a mile and a half from Interstate 183, allowing for easy access to the property. The Flex building is located on the intersection of Grapevine Highway and Glenview Drive and sees a high estimated annual average daily traffic count of 27,417 vehicles. The property benefits from strong demographics, serving a five-mile population of approximately 269,446 residents with a one-mile average household income exceeding $85,237.

Exclusively Listed By

Financing By

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