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Single-Tenant Industrial

Ferguson

101 W Mockingbird Ln, Victoria, TX 77904

Listing Price: $3,244,500

Cap Rate
6.00%
Lot Size
3.11 acres
Year Built
1974
Rentable SF
30,416

Investment Overview

Marcus & Millichap is pleased to present to the market a highly desirable asset occupied by Ferguson Enterprises, Inc., a BBB+ credit tenant (NYSE: FERG) located in Victoria, Texas. The property consists of a main concrete building totaling 26,116-square feet and a 10-garage door building consisting of 4,300-square feet on a 3.11-acre lot.
Ferguson executed a 65-month lease in 2016 and requested major capital improvements to the building to be able to conduct their daily operations. The improvements were in excess of $650,000 and included high-grade concrete to be laid in the storage yard, paved areas and drive-in ramps that needed to be redesigned and improved to be able to allow over 25,000 pounds of operations. The property was also completely fenced off in designated areas with 8-foot cedar fencing on the side and 6-foot in the back of the property allowing the tenant to have a secure and private yard.
In 2022, Ferguson converted their 1st lease option to extend to a 5-year extension showing commitment to the site. There are 2 (3-year) extensions remaining at the end of their lease on August 31st, 2027. The tenant is paying only $6.40 annual rent per square foot, which is below the market rental rate of over $9.00 annual rent. The tenant is also benefiting from the 3.11-acre lot that they utilize and has extensive benefits to their daily operations.
This offering is ideal for an investor who is seeking to acquire a very desirable asset occupied by a BBB+ credit tenant in a location that has a proven track record for a tenant who exercised they option to extend with a modification to extend the option showing commitment to the location. The property is being offered at a very attractive 6.00% capitalization rate and includes 90% CPI increases at each extension period.

Investment Highlights

  • Highly Desirable BBB+ Credit Tenant - Ferguson Enterprises, Inc. (NYSE: FERG)
  • Strategically Located in the Heart of Golden Crest which is the Key Economic and Industrial Hub in Texas
  • Over $650,000 of Capital Improvements Invested for Ferguson to Perform Daily Operations
  • Ferguson Recently Exercised their Option and Converted the 3-Year Extension to a 5-Year
  • Nearest Ferguson is 98 Miles away from Subject Property
  • Tax-Free, Business-Friendly State of Texas

Exclusively Listed By

  • Alex Mobin

    First Vice President Investments

    (949) 419-3276

    Email Alex

    License(s): CA: 01845973, NV: S.0199954

    Orange County

Broker of Record

  • Tim Speck

    Senior Vice President / Division Manager

    (972) 755-5200

    License(s) TX: 9002994

    Texas

Financing By

Single-Tenant Industrial

Ferguson

Listing Price: $3,244,500

Cap Rate
6.00%
Lot Size
3.11 acres
Year Built
1974
Rentable SF
30,416

Investment Highlights

  • Highly Desirable BBB+ Credit Tenant - Ferguson Enterprises, Inc. (NYSE: FERG)
  • Strategically Located in the Heart of Golden Crest which is the Key Economic and Industrial Hub in Texas
  • Over $650,000 of Capital Improvements Invested for Ferguson to Perform Daily Operations
  • Ferguson Recently Exercised their Option and Converted the 3-Year Extension to a 5-Year
  • Nearest Ferguson is 98 Miles away from Subject Property
  • Tax-Free, Business-Friendly State of Texas

Investment Overview

Marcus & Millichap is pleased to present to the market a highly desirable asset occupied by Ferguson Enterprises, Inc., a BBB+ credit tenant (NYSE: FERG) located in Victoria, Texas. The property consists of a main concrete building totaling 26,116-square feet and a 10-garage door building consisting of 4,300-square feet on a 3.11-acre lot. Ferguson executed a 65-month lease in 2016 and requested major capital improvements to the building to be able to conduct their daily operations. The improvements were in excess of $650,000 and included high-grade concrete to be laid in the storage yard, paved areas and drive-in ramps that needed to be redesigned and improved to be able to allow over 25,000 pounds of operations. The property was also completely fenced off in designated areas with 8-foot cedar fencing on the side and 6-foot in the back of the property allowing the tenant to have a secure and private yard. In 2022, Ferguson converted their 1st lease option to extend to a 5-year extension showing commitment to the site. There are 2 (3-year) extensions remaining at the end of their lease on August 31st, 2027. The tenant is paying only $6.40 annual rent per square foot, which is below the market rental rate of over $9.00 annual rent. The tenant is also benefiting from the 3.11-acre lot that they utilize and has extensive benefits to their daily operations. This offering is ideal for an investor who is seeking to acquire a very desirable asset occupied by a BBB+ credit tenant in a location that has a proven track record for a tenant who exercised they option to extend with a modification to extend the option showing commitment to the location. The property is being offered at a very attractive 6.00% capitalization rate and includes 90% CPI increases at each extension period.

Exclusively Listed By

  • Alex Mobin

    First Vice President Investments

    (949) 419-3276

    Email Alex

    License(s): CA: 01845973, NV: S.0199954

    Orange County

Broker of Record

  • Tim Speck

    Senior Vice President / Division Manager

    (972) 755-5200

    License(s): TX: 9002994

    Texas

Financing By

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