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Warehouse

Ozzie's Inc

7102 W Sherman St, Phoenix, AZ 85043

Listing Price: $6,608,235

Cap Rate
4.75%
Gross SF
29,064
Price/Gross SF
$227.37
Lot Size
4.95 acres
Year Built
2000
Rentable SF
29,064

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire a single tenant absolute NNN leased mission-critical industrial property located in West Phoenix, Arizona. The asset is located at 7102 West Sherman Street (“Property” or “Ozzie's”), the current owner is willing sign a 5-year sale lease back at market rent with annual increases. The Property has been owned and occupied by Ozzie’s Pipeline Padder since 2005 and serves as the company’s main manufacturing and service operations. The asset is unique for the area featuring 4.95 acres and a fenced in yard space. The location is used for office, outside storage, warehousing, equipment manufacturing, and repair in addition to other essential operations for the business. The subject Property consists of an ±29,064 square foot warehouse situated on 4.95 acres of land including an extra-large storage yard. The free-standing building was built in 2000 and includes a ±4,439 SF office and ±24,625 SF warehouse with clear height 16’, 800amp power, 8 grade level drive in loading doors, and steel construction. The building is surrounded by an unpaved yard area allowing for storage and staging areas. Ozzie's overall coverage is 14.2%. The site is secured by a sliding fence at the entrance from Sherman Street and the entire perimeter of the site is protected by a concrete wall. Ozzie’s Pipeline Padder, Inc built the first mechanical backfill separation machine in 1989 and pioneered the concept of mechanical backfill separation. 33 years later, Ozzie's continues to be the industry leader. Ozzie’s Padding Machines have worked worldwide, including North America, Mexico, South America, Algeria, Europe, Australia, New Zealand, and the Middle East. The Ozzie’s Padding Machine is the global standard for mainline pipeline backfill separation. Ozzie’s is prepared to execute an absolute NNN lease upon sale requiring the tenant, at its own expense, to maintain all parts of the premises in good repair, appearance, and condition. Tenants’ responsibilities include concrete foundation, exterior walls, roof, structure, and plumbing. Additionally, the Tenant will pay all utilities, insurance policies and operating expenses directly, while payments for property taxes will be paid monthly with the rental payment. The asset is in a very desirable infill location, just south of the I-10, in the Tolleson submarket of West Phoenix. The asset has very minimal drive times to major highways including Interstate-10, Interstate-17, Loop 202, and Loop 101. The ease of transportation via the I-10 provides an entry to the ports of Los Angeles and Long Beach within a six-hour drive. Leasing activity has increased in recent quarters, which has motivated developers. Despite a growing supply pipeline, construction as a share of inventory is substantially lower than Goodyear and Glendale, presenting limited supply-side risk in this high-demand submarket. Transportation options expanded recently with the extension of the Loop 202 freeway, which provides a connection to the East and West parts of the Valley.

Investment Highlights

  • Phoenix's West Valley is one of the most desired industrial markets nationally based on low operational cost, market migration growth, supply chain distribution functionality, and proximity to Mexico.
  • ±29,064 square foot warehouse situated on 4.95 acres of land including an extra-large storage yard. Ozzie's overall coverage is 14.2 %, this asset type has seen a surge in investor demand.
  • Low coverage industrial properties command higher residual values than traditional industrial assets. This asset type has seen very little new development in recent years due to zoning restrictions.

Exclusively Listed By

Financing By

Warehouse

Ozzie's Inc

Listing Price: $6,608,235

Cap Rate
4.75%
Gross SF
29,064
Price/Gross SF
$227.37
Lot Size
4.95 acres
Year Built
2000
Rentable SF
29,064

Investment Highlights

  • Phoenix's West Valley is one of the most desired industrial markets nationally based on low operational cost, market migration growth, supply chain distribution functionality, and proximity to Mexico.
  • ±29,064 square foot warehouse situated on 4.95 acres of land including an extra-large storage yard. Ozzie's overall coverage is 14.2 %, this asset type has seen a surge in investor demand.
  • Low coverage industrial properties command higher residual values than traditional industrial assets. This asset type has seen very little new development in recent years due to zoning restrictions.

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire a single tenant absolute NNN leased mission-critical industrial property located in West Phoenix, Arizona. The asset is located at 7102 West Sherman Street (“Property” or “Ozzie's”), the current owner is willing sign a 5-year sale lease back at market rent with annual increases. The Property has been owned and occupied by Ozzie’s Pipeline Padder since 2005 and serves as the company’s main manufacturing and service operations. The asset is unique for the area featuring 4.95 acres and a fenced in yard space. The location is used for office, outside storage, warehousing, equipment manufacturing, and repair in addition to other essential operations for the business. The subject Property consists of an ±29,064 square foot warehouse situated on 4.95 acres of land including an extra-large storage yard. The free-standing building was built in 2000 and includes a ±4,439 SF office and ±24,625 SF warehouse with clear height 16’, 800amp power, 8 grade level drive in loading doors, and steel construction. The building is surrounded by an unpaved yard area allowing for storage and staging areas. Ozzie's overall coverage is 14.2%. The site is secured by a sliding fence at the entrance from Sherman Street and the entire perimeter of the site is protected by a concrete wall. Ozzie’s Pipeline Padder, Inc built the first mechanical backfill separation machine in 1989 and pioneered the concept of mechanical backfill separation. 33 years later, Ozzie's continues to be the industry leader. Ozzie’s Padding Machines have worked worldwide, including North America, Mexico, South America, Algeria, Europe, Australia, New Zealand, and the Middle East. The Ozzie’s Padding Machine is the global standard for mainline pipeline backfill separation. Ozzie’s is prepared to execute an absolute NNN lease upon sale requiring the tenant, at its own expense, to maintain all parts of the premises in good repair, appearance, and condition. Tenants’ responsibilities include concrete foundation, exterior walls, roof, structure, and plumbing. Additionally, the Tenant will pay all utilities, insurance policies and operating expenses directly, while payments for property taxes will be paid monthly with the rental payment. The asset is in a very desirable infill location, just south of the I-10, in the Tolleson submarket of West Phoenix. The asset has very minimal drive times to major highways including Interstate-10, Interstate-17, Loop 202, and Loop 101. The ease of transportation via the I-10 provides an entry to the ports of Los Angeles and Long Beach within a six-hour drive. Leasing activity has increased in recent quarters, which has motivated developers. Despite a growing supply pipeline, construction as a share of inventory is substantially lower than Goodyear and Glendale, presenting limited supply-side risk in this high-demand submarket. Transportation options expanded recently with the extension of the Loop 202 freeway, which provides a connection to the East and West parts of the Valley.

Exclusively Listed By

Financing By

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