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Single-Tenant Industrial

1923 Kolfahl Street

1923 Kolfahl St, Houston, TX 77023

Listing Price: $1,225,000

Cap Rate
9.14%
Gross SF
14,000
Price/Gross SF
$87.50
Lot Size
0.48 acres
Year Built
1965
Rentable SF
14,000

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1923 Kolfahl Street in Houston, Texas. The subject property consists of approximately 14,000 square feet of warehouse space and is situated on 0.48 of an acre of land. The single-tenant asset features two buildings, metal construction, and seven grade-level doors. Positioned along Interstate 45, the property sits less than five miles Southeast of Houston’s central business district. For sale as vacant, the property can be acquired for owner use or as a lease-up with a multi-tenant redevelopment opportunity.

The subject property is located in the Downtown Houston submarket, which contains a sizeable 31.8 million square feet of industrial space. Since the turn of the century, Downtown Houston has experienced significant gentrification, resulting in a 9 percent contraction in its industrial stock as many properties have been demolished or redeveloped for mixed uses such as bars, breweries, restaurants, and art galleries. As one of the market’s original industrial hubs, the average industrial property in Downtown Houston was built more than 60 years ago. Given the age of its inventory, the average asking rent was about $6.70 per square foot in the first quarter of 2024, offering tenants a 25 percent discount to the Houston market average. During Q1, annual rent growth slowed by 160 basis points to 3.0 percent, coinciding with the recent fall in demand. After contacting by a record -1.2 million square feet last year, net absorption in Downtown Houston bounced slightly back into positive territory in Q1. Vacancies walked back 10 basis points in Q1 but still maintained a historically high rate of 8.3 percent. With no industrial properties under construction in Downtown Houston, rents and vacancies will be unaffected by new supply for the foreseeable future (CoStar).

As the fifth most populous metro area in the U.S., Houston houses over seven million people in southeastern Texas. The market is composed of nine counties: Harris, Galveston, Brazoria, Fort Bend, Chambers, Montgomery, Austin, Liberty and Waller. The Gulf of Mexico, which borders the metro
to the southeast, provides access to markets around the world via the Port of Houston, making it a prime location for import/export. Houston’s economy has diversified in recent years, with the healthcare and technology sectors showing strong growth. As Houston’s population continues to grow, primarily to the northwest, many companies are expanding to the region to provide goods and services to the increasing population.

Investment Highlights

  • Two-Building, 14,000-Square-Foot, Single-Tenant Warehouse Situated on 0.48 Acres
  • Vacancy Offers Owner Use or Lease-Up/Multi-Tenant Redevelopment Opportunity
  • Close Proximity to I-45, Five Miles from Houston's CBD
  • Infill Real Estate in a Developing Urban Area Highlighted by Industrial Conversions

Exclusively Listed By

Financing By

Single-Tenant Industrial

1923 Kolfahl Street

Listing Price: $1,225,000

Cap Rate
9.14%
Gross SF
14,000
Price/Gross SF
$87.50
Lot Size
0.48 acres
Year Built
1965
Rentable SF
14,000

Investment Highlights

  • Two-Building, 14,000-Square-Foot, Single-Tenant Warehouse Situated on 0.48 Acres
  • Vacancy Offers Owner Use or Lease-Up/Multi-Tenant Redevelopment Opportunity
  • Close Proximity to I-45, Five Miles from Houston's CBD
  • Infill Real Estate in a Developing Urban Area Highlighted by Industrial Conversions

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1923 Kolfahl Street in Houston, Texas. The subject property consists of approximately 14,000 square feet of warehouse space and is situated on 0.48 of an acre of land. The single-tenant asset features two buildings, metal construction, and seven grade-level doors. Positioned along Interstate 45, the property sits less than five miles Southeast of Houston’s central business district. For sale as vacant, the property can be acquired for owner use or as a lease-up with a multi-tenant redevelopment opportunity. The subject property is located in the Downtown Houston submarket, which contains a sizeable 31.8 million square feet of industrial space. Since the turn of the century, Downtown Houston has experienced significant gentrification, resulting in a 9 percent contraction in its industrial stock as many properties have been demolished or redeveloped for mixed uses such as bars, breweries, restaurants, and art galleries. As one of the market’s original industrial hubs, the average industrial property in Downtown Houston was built more than 60 years ago. Given the age of its inventory, the average asking rent was about $6.70 per square foot in the first quarter of 2024, offering tenants a 25 percent discount to the Houston market average. During Q1, annual rent growth slowed by 160 basis points to 3.0 percent, coinciding with the recent fall in demand. After contacting by a record -1.2 million square feet last year, net absorption in Downtown Houston bounced slightly back into positive territory in Q1. Vacancies walked back 10 basis points in Q1 but still maintained a historically high rate of 8.3 percent. With no industrial properties under construction in Downtown Houston, rents and vacancies will be unaffected by new supply for the foreseeable future (CoStar). As the fifth most populous metro area in the U.S., Houston houses over seven million people in southeastern Texas. The market is composed of nine counties: Harris, Galveston, Brazoria, Fort Bend, Chambers, Montgomery, Austin, Liberty and Waller. The Gulf of Mexico, which borders the metro to the southeast, provides access to markets around the world via the Port of Houston, making it a prime location for import/export. Houston’s economy has diversified in recent years, with the healthcare and technology sectors showing strong growth. As Houston’s population continues to grow, primarily to the northwest, many companies are expanding to the region to provide goods and services to the increasing population.

Exclusively Listed By

Financing By

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