Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5036 Roosevelt Avenue in San Antonio, Texas, leased to Disruptive Construction. The subject property consists of approximately 21,488 square feet of warehouse space and is situated on 4.23 acres of land. The two-building asset features metal construction, two dock-high doors, 16 grade-level doors, and ample outdoor storage space. The property sits in close proximity to Interstate 410 and Stinson-Mission Municipal Airport. With the current lease set to expire in August 2023, the sale offers either an owner-user or value-add investment opportunity. At about $56.00 per square foot, the property can be acquired below replacement costs and less than the market average. The subject property is located in South San Antonio, a large submarket containing 39.6 million square feet of industrial space. The submarket has experienced a significant amount of growth in recent years with net deliveries setting a new record of 6.7 million square feet in 2022. Last year, industrial demand kept pace with new deliveries and the vacancy rate sat at just 2.8 percent going into 2023. However, new deliveries outpaced demand during the first quarter with the completion of large speculative warehouses, pushing the vacancy rate up to 7.9 percent. Despite the influx in new supply, annual market rent growth in South San Antonio bucked the national trend and hit a record high of 10.4 percent in Q1, outpacing the overall market by 110 basis points. With construction activity dropping to nearly a three-year low at 2.1 million square feet (representing 5.3 percent of inventory), new supply will have less of an impact on rents and vacancies going forward (CoStar). Home to the Alamo and famous River Walk, San Antonio metro is the primary residence of 2.5 million people. San Antonio is the second most populous city in Texas behind Houston, housing more than 1.5 million residents. Between 2020 and 2021, San Antonio experienced the highest population growth in the U.S., adding 13,626 new residents (U.S. Census Bureau). The local economy is anchored by the industries of healthcare, tourism, and national defense. An extensive transportation network provides shipping options to domestic and international markets. Additionally, the formation of the Eagle Ford Shale that runs through Atascosa and Wilson counties has cultivated a thriving energy sector. Valero Energy, one of the largest oil companies in the U.S., is headquartered in San Antonio. Major private employers include AT&T, Wells Fargo, USAA, and Toyota. San Antonio offers a high quality of life with a variety of entertainment including the NBA’s San Antonio Spurs, SeaWorld, and Six Flags (Marcus & Millichap).