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Single-Tenant Industrial

First Place Foods LLC

515 Mills Rd, Garland, TX 75040

Listing Price: $3,000,000

Cap Rate
6.95%
Gross SF
20,840
Price/Gross SF
$143.95
Lot Size
4.00 acres
Year Built
1993
Rentable SF
20,840

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 515 Mills Road in Garland, Texas, leased to First Place Foods LLC. The subject property consists of approximately 20,840 square feet of specialized space and is situated on 4.0 acres of land. The asset features a clear height of 23.1’, five dock-high doors, and three grade-level doors. Contained in the two-building property are manufacturing space, dry warehouse space, and 8,130 square feet of cold storage space. About half of the property is undeveloped, creating an opportunity for future expansion and/or additional outdoor storage space. In April 2023, the tenant renewed their lease for five years with 3.0 percent annual rent escalations. Positioned just off State Highway 66, the property sits about two miles from South State Highway 78 in the Northeast Dallas/Garland submarket.

The Northeast Dallas/Garland submarket is one of Dallas’ original and largest industrial hubs, containing 55.7 million square feet of space. While there is a significant stock of newer large warehouses, 43 percent of the inventory is concentrated among properties under 100,000 square feet delivered prior to 2000. Thanks to demolitions outpacing new deliveries, the vacancy rate dropped to a record low of 1.9 percent to close out 2022. So far in 2023, net absorption has contracted into negative territory, but vacancies remain near record lows at 2.0 percent during the second quarter. Tight supply has kept rent growth high with market rents up 9.5 percent year-over-year in Q2. While the local inventory has experienced significant growth over the last decade, there were only 634,000 square feet underway in June, representing just 1.1 percent of supply. Consequently, existing landlords will continue to benefit as rent growth and vacancies largely go unaffected by new developments for the foreseeable future (CoStar).

The Dallas-Fort Worth metroplex is the fourth-most populous metro in the nation, with an aggregate of more than 7.7 million residents. It is composed of 13 counties stretching nearly 10,000 square miles. The city of Dallas houses 1.3 million people, followed by Fort Worth with 919 thousand residents. Strong job growth continually draws new residents to the region. To accommodate the additional traffic, the region’s transportation network is evolving. Traffic flow is improved as freeways are expanded and miles are being added to tollways and turnpikes. The growth of the transportation network is vital to supporting commuters to the metro’s numerous corporations and growing industries. Dallas/Fort Worth’s population growth in recent years ranks among the highest in the U.S. for a major metro. The Metroplex is home to 24 Fortune 500 companies and many regional headquarters, drawing workers and residents. The area’s extensive network of rail and highways, along with the International Inland Port of Dallas, ensure its status as a distribution hub.

Investment Highlights

  • Two Buildings Totaling 20,840 Square Feet, 23.1' Clear Height, Five Dock-High, and Three Grade-Level Doors
  • Buildings Feature Manufacturing Space, Dry Warehouse Space, and 8,130 Square Feet of Cold Storage Space
  • New Five-Year Triple-Net Lease with Three Percent Annual Increases
  • Four Acres of Land Creates Opportunity for Future Expansion or Outside Storage
  • Subject Property Has Quick Access to Highway 66 and State Highway 78
  • Single-Tenant Industrial Asset in Tight Barrier-to-Entry Market

Exclusively Listed By

Single-Tenant Industrial

First Place Foods LLC

Listing Price: $3,000,000

Cap Rate
6.95%
Gross SF
20,840
Price/Gross SF
$143.95
Lot Size
4.00 acres
Year Built
1993
Rentable SF
20,840

Investment Highlights

  • Two Buildings Totaling 20,840 Square Feet, 23.1' Clear Height, Five Dock-High, and Three Grade-Level Doors
  • Buildings Feature Manufacturing Space, Dry Warehouse Space, and 8,130 Square Feet of Cold Storage Space
  • New Five-Year Triple-Net Lease with Three Percent Annual Increases
  • Four Acres of Land Creates Opportunity for Future Expansion or Outside Storage
  • Subject Property Has Quick Access to Highway 66 and State Highway 78
  • Single-Tenant Industrial Asset in Tight Barrier-to-Entry Market

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 515 Mills Road in Garland, Texas, leased to First Place Foods LLC. The subject property consists of approximately 20,840 square feet of specialized space and is situated on 4.0 acres of land. The asset features a clear height of 23.1’, five dock-high doors, and three grade-level doors. Contained in the two-building property are manufacturing space, dry warehouse space, and 8,130 square feet of cold storage space. About half of the property is undeveloped, creating an opportunity for future expansion and/or additional outdoor storage space. In April 2023, the tenant renewed their lease for five years with 3.0 percent annual rent escalations. Positioned just off State Highway 66, the property sits about two miles from South State Highway 78 in the Northeast Dallas/Garland submarket. The Northeast Dallas/Garland submarket is one of Dallas’ original and largest industrial hubs, containing 55.7 million square feet of space. While there is a significant stock of newer large warehouses, 43 percent of the inventory is concentrated among properties under 100,000 square feet delivered prior to 2000. Thanks to demolitions outpacing new deliveries, the vacancy rate dropped to a record low of 1.9 percent to close out 2022. So far in 2023, net absorption has contracted into negative territory, but vacancies remain near record lows at 2.0 percent during the second quarter. Tight supply has kept rent growth high with market rents up 9.5 percent year-over-year in Q2. While the local inventory has experienced significant growth over the last decade, there were only 634,000 square feet underway in June, representing just 1.1 percent of supply. Consequently, existing landlords will continue to benefit as rent growth and vacancies largely go unaffected by new developments for the foreseeable future (CoStar). The Dallas-Fort Worth metroplex is the fourth-most populous metro in the nation, with an aggregate of more than 7.7 million residents. It is composed of 13 counties stretching nearly 10,000 square miles. The city of Dallas houses 1.3 million people, followed by Fort Worth with 919 thousand residents. Strong job growth continually draws new residents to the region. To accommodate the additional traffic, the region’s transportation network is evolving. Traffic flow is improved as freeways are expanded and miles are being added to tollways and turnpikes. The growth of the transportation network is vital to supporting commuters to the metro’s numerous corporations and growing industries. Dallas/Fort Worth’s population growth in recent years ranks among the highest in the U.S. for a major metro. The Metroplex is home to 24 Fortune 500 companies and many regional headquarters, drawing workers and residents. The area’s extensive network of rail and highways, along with the International Inland Port of Dallas, ensure its status as a distribution hub.

Exclusively Listed By

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