Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 14131 Farm to Market Road 490 in Raymondville, Texas. The subject property consists of approximately 42,340 square feet of warehouse space and is situated on 7.84 acres of land. The single-tenant asset features a clear height of 16’, metal construction, three-phase power with 120 volts and 440 amps, six dock-high doors, one grade-level door, and two acres of asphalt parking space. For sale as vacant, buyers have an owner-user or lease-up opportunity. With 3.5 acres of undeveloped land and a building coverage ratio of just 12.4 percent, the property can accommodate industrial outdoor storage (IOS) space or additional development. Situated on the corner of Farm to Market Road 490 and Frontage Road South (service road to Interstate 69/U.S. Route 77) the property sits 21 miles north of Harlingen, Texas. The subject property sits just outside of the Brownsville-Harlingen market, a relatively small market with 18.8 million square feet of industrial space. During the third quarter of 2023, the vacancy rate crept upwards to 5.6 percent but remains below the five-year average of 6.2 percent. While annual rent growth slowed to 6.5 percent, rents remain in line with the long-term growth trend and continue to outpace the consumer price index. The average market rent in Brownsville-Harlingen stands at about $7.00 per square foot, up 68 percent since 2013. As Q3 concluded, no industrial properties were under construction, which means that vacancies and rents will be unaffected by new supply for the foreseeable future (CoStar). Over the last year, Mexico has overtaken China as America’s top importer, helping to boost economic activity along Texas border cities. The impact of “nearshoring” (in which companies move operations from East Asia to Mexico to facilitate trade with the U.S.) will help support industrial markets like Brownsville-Harlingen for years to come. McAllen-Harlingen-Brownsville Metroplex is composed of two metropolitan statistical areas, McAllen-Edinburg-Mission metro and Brownsville-Harlingen metro. Positioned along the Texas-Mexico border and Gulf Coast, the metroplex is home to a combined 1.3 million residents. The area’s strategic location fosters a thriving trade sector, making logistics important drivers of the local economy. The region maintains the largest land port for fresh produce imports from Mexico, with 160,000 loads of produce transported in a typical year. Manufacturing firms, including Keppel AmFELS and ESCO Marine, contribute to the area’s diverse economy. The region also boasts a growing aerospace industry, supported by SpaceX’s Boca Chica launch site. The Port of Brownsville serves as a vital deep-water seaport and Foreign Trade Zone, employing over 8,500 individuals. Education and healthcare are strong sectors, with institutions like the University of Texas Rio Grande Valley and major medical centers providing employment opportunities. The Rio Grande River also runs through the area, providing recreational opportunities for locals and visitors.