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Single-Tenant Industrial

Beacon Roofing Supply - Montgomery

1295 N McDonough St, Montgomery, AL 36104

Listing Price: $2,650,000

Cap Rate
7.99%
Gross SF
107,609
Price/Gross SF
$24.63
Lot Size
27.20 acres
Year Built
1971
Rentable SF
107,609

Investment Overview

Located in the heart of Downtown Montgomery, 1295 S McDonough St is a 27.2 acre industrial site with several buildings and yard space devoted to supporting three tenants in the building materials business. This property is home to Beacon Roofing Supply, a publicly-traded roofing company with over 400 locations in North America, Southern Steel & Pipe Inc, a metal recycling company, and Maddox Stone & Gravel, a gravel distributor.

Each of the tenants leasing this property have long tenure at the property: Beacon Roofing Supply has been in the buildings for 17 years, operating as Alabama Roofing Supply before joining the Beacon umbrella, Southern Steel & Pipe has been a tenant in the property for over 11 years and has maintained the bulk of the property at their own expense. Maddox Stone & Gravel has leased the property for thirty years, using the active rail spur (non-exclusively) for the distribution of gravel.

There are eight buildings totaling 107,609 square feet. They are metal buildings built between 1960 to 1995, all grade-level. Three buildings have an open canopy design and the others have generous oversized doors. The area around the buildings is graded and paved, but the excess yard space is open. Beacon is paying approximately $2.49 NN per foot, and Southern Steel and Pipe is paying $1.59 ABS Net (reconciled), giving a new owner room to push rents slightly higher in line with the market.

This property is an investor's dream to find security in an industrial outside storage (IOS) use property located in the heart of town. Montgomery is a city of 381,000 people in Alabama with an above average population growth rate of 1.9% annually. This market is home to the Maxwell-Gunter Air Force Base, which employs 12,500 Airman and Civilians and many departments for the State of Alabama, which is responsible for another 12,000 jobs. In addition to this stable employment base is a well grounded manufacturing community with significant concentrations of automotive manufacturing and food production.

Investment Highlights

  • Industrial Outside Storage Site will three stable Tenants
  • Beacon Roofing Supply and Southern Steel & Pipe have signed recent Lease Extensions
  • Located in Growing Alabama near Downtown Montgomery

Broker of Record

  • Eddie Greenhalgh

    Senior Vice President Investments

    (205) 510-9200

    License(s) AL: 0000882980

    Alabama

Financing By

Single-Tenant Industrial

Beacon Roofing Supply - Montgomery

Listing Price: $2,650,000

Cap Rate
7.99%
Gross SF
107,609
Price/Gross SF
$24.63
Lot Size
27.20 acres
Year Built
1971
Rentable SF
107,609

Investment Highlights

  • Industrial Outside Storage Site will three stable Tenants
  • Beacon Roofing Supply and Southern Steel & Pipe have signed recent Lease Extensions
  • Located in Growing Alabama near Downtown Montgomery

Investment Overview

Located in the heart of Downtown Montgomery, 1295 S McDonough St is a 27.2 acre industrial site with several buildings and yard space devoted to supporting three tenants in the building materials business. This property is home to Beacon Roofing Supply, a publicly-traded roofing company with over 400 locations in North America, Southern Steel & Pipe Inc, a metal recycling company, and Maddox Stone & Gravel, a gravel distributor. Each of the tenants leasing this property have long tenure at the property: Beacon Roofing Supply has been in the buildings for 17 years, operating as Alabama Roofing Supply before joining the Beacon umbrella, Southern Steel & Pipe has been a tenant in the property for over 11 years and has maintained the bulk of the property at their own expense. Maddox Stone & Gravel has leased the property for thirty years, using the active rail spur (non-exclusively) for the distribution of gravel. There are eight buildings totaling 107,609 square feet. They are metal buildings built between 1960 to 1995, all grade-level. Three buildings have an open canopy design and the others have generous oversized doors. The area around the buildings is graded and paved, but the excess yard space is open. Beacon is paying approximately $2.49 NN per foot, and Southern Steel and Pipe is paying $1.59 ABS Net (reconciled), giving a new owner room to push rents slightly higher in line with the market. This property is an investor's dream to find security in an industrial outside storage (IOS) use property located in the heart of town. Montgomery is a city of 381,000 people in Alabama with an above average population growth rate of 1.9% annually. This market is home to the Maxwell-Gunter Air Force Base, which employs 12,500 Airman and Civilians and many departments for the State of Alabama, which is responsible for another 12,000 jobs. In addition to this stable employment base is a well grounded manufacturing community with significant concentrations of automotive manufacturing and food production.

Broker of Record

  • Eddie Greenhalgh

    Senior Vice President Investments

    (205) 510-9200

    License(s): AL: 0000882980

    Alabama

Financing By

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