Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 3280 North Freeway in Fort Worth, Texas, leased to Commercial Metals Company (CMC). The subject property consists of approximately 9,042 square feet of warehouse space and is situated on 2.01 acres of land. The two-building asset features masonry and metal construction, four grade-level doors, a clear height ranging between 16’ to 18’, a fully fenced-in lot, and paved outside storage space. Sitting adjacent to Interstate 35 West, the property has quick access to other major thoroughfares such as Interstates 820 and 30. CMC is signed to a new five-year absolute net lease that runs through July 2028 with $0.50/ft annual increases. In business for more than 100 years, CMC is a leading manufacturer of recycled steel products used in a variety of infrastructures from roads to commercial buildings. As a publicly traded Fortune 500 company, CMC is coming off one of its best years with $9.2 billion in revenue in 2022, including a record $1.6 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA). The subject property is located in Meacham Field/Fossil Creek, a large submarket containing 49.8 million square feet of industrial space. Situated just north of downtown Fort Worth, the submarket largely consists of modern big-box warehouses. During the third quarter of 2023, the vacancy rate rose to 9.5 percent as new deliveries outpaced net absorption. However, among comparable properties between 5,000 and 50,000 square feet, availability remains tight with a vacancy rate of just 4.0 percent. Overall, market rents in Meacham Field/Fossil Creek continued to grow at a high pace, up 9.2 percent year-over-year. Going into the final quarter of the year, 2.1 million square feet of industrial space was under construction, representing 4.2 percent of inventory. However, there were less than 100,000 square feet of space in the pipeline among comparables, which means that vacancies and rent growth for small industrial properties will not be heavily impacted by new supply (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.