Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 19 2nd Street Southeast in Dunseith, North Dakota, occupied by the owner, Hoefer Group, LLC. The subject property consists of approximately 97,464 square feet of manufacturing space and is situated on 10.66 acres of land. The two-building asset features three dock-high doors, metal construction, a clear height ranging between 11’ to 14’, 12 HVAC systems, and 520 parking spaces. Renovated in 2022-2023, the property is energy efficient with annual utilities averaging less than $1.00 per square foot. Located approximately 13 miles south of the Canadian border, the property is positioned in an Opportunity Zone that provides tax benefits to qualified landlords. Upon the sale of the property, Hoefer Group plans to execute a 10-year absolute triple-net leaseback. With a rent of $6.50 per square foot, the asset will generate a 9.5 percent cap rate with 2.0 percent annual escalations. Established in 2016 starting with an overseas R&D facility and supplier, Hoefer Group manufactures the world’s strongest and lightest luxury recreational vehicles designed for extremely rugged environments, and compatible with electric vehicles. The brand is launching in Q1 2024 under the Hoefer name. The company acquired the subject property in the spring of 2022, and extensively renovated the site through 2023 to repurpose it for RVs. Incorporated in 1908, Dunseith, named after the mother of the town’s founder, William Eaton, is home to 631 residents. Dunseith is located in North Central North Dakota at the base of the scenic Turtle Mountains, which is considered a “four seasons playground”. The area is well known for its recreational activities such as hunting, fishing, water sports, snowmobiling, and cross-country skiing with trails and ski slopes in the Lake Metigoshe area. The International Peace Garden is located 14 miles north of Dunseith, giving the city the name “Gateway to the Peace Gardens.” Adjacent to the Peace Garden is a 24-hour customs and immigration station along U.S. Route 281 that accommodates travelers and international commerce (City of Dunseith).