Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 135 Sioux Road, in Alamo, Texas. The subject property consists of approximately 6,161 square feet of industrial space and is situated on 12.77 acres of land. The single-tenant asset features a 14’ clear height, three grade-level doors, 320 square feet of office space, 5,841 square feet of insulated warehouse space, and a separate 5,643-square-foot covered canopy for outside storage use. With 10 acres of leveled land, the property can easily accommodate industrial outdoor storage, or support further development. Additionally, the property is offered well below replacement cost. Conveniently located less than two miles from Interstate 2, the subject property is situated within the Outlying Hidalgo County submarket. The submarket contains 9 million square feet of industrial space, featuring a vacancy rate of just 3.5 percent at the end of the third quarter of 2023. While annual rent growth has slowed to 6.3 percent, the pace remains above the ten-year average of 5.8 percent. For the first time in at least 15 years, no deliveries are expected to hit the market in 2023. With only about 253,000 square feet of industrial space under construction in Q4 (representing less than 3.0 percent of inventory), new supply will have a minimum impact on rent growth and vacancies for the foreseeable future (CoStar). The McAllen-Edinburg-Mission metro is located 250 miles south of San Antonio near the Texas-Mexico border and encompasses Hidalgo County. The metro’s proximity to Mexico makes trade and logistics important drivers of the local economy. The University of Texas, Rio Grande Valley has facilities in Edinburg, McAllen and Weslaco. The Rio Grande River also runs through the area, providing recreational opportunities for locals and visitors. The metro is growing at a rapid pace and is expected to add 90,200 residents over the next five years. The metro’s location on the Texas-Mexico border has turned the area into a trade hub. As a result, several logistics companies are located there. The metro has a strong healthcare sector, encompassing roughly one-third of the local employment base. The region maintains the largest land port for fresh produce imports from Mexico, with 160,000 loads of produce transported in a typical year.