Office Warehouse

Kayvon Plaza III

Listing Price: $9,000,000

Cap Rate
8.90%
Gross SF
97,010
Price/Gross SF
$92.77
Lot Size
5.19 acres
Year Built
1980
Rentable SF
97,010

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire Kayvon Plaza III, consisting of five buildings located at: 6134 Airline Drive, 6144 Airline Drive, 6210 Airline Drive, and 10301 Fulton Street in Houston, Texas. Kayvon Plaza III is a unique asset offering small industrial warehouse units with office space, averaging 1,515 square feet per unit at an affordable base rent averaging $9.82 per square foot on Gross Leases. Its excellent access from Airline Drive, Fulton Street, and Bangs Road allows for the ability to accommodate delivery trucks. The Property’s unique offering insulates it from competition in its submarket. There is no industrial office warehouse property offering small square foot units with affordable rental rates from Downtown Houston to George Bush Intercontinental Airport. There are also no vacant lots for sale of one or more acres on major thoroughfares in the Property’s submarket (Airline / Northside / Northline). Along with base rent, landlord may earn additional income streams by buying “bulk” electricity at a discount, and selling the power to tenants who wish to purchase power from the landlord instead of CenterPoint Energy. Tenants pay the landlord approximately double the landlord’s cost for electricity that is independently measured by house meters for each unit. Landlord also earns revenue from forfeiture of security deposits should a tenant move out and be replaced by a new tenant from the waiting list. Given the nature of operating a property with sixty-four units comprised of small business tenants, collecting late fees from a couple of tenants is another expected income stream.

Investment Highlights

  • 97,010 Square Feet of Gross Leasable Area on 5.19 Acres
  • Eight Ingress/Egress Access Points on Airline Drive (22,269 Vehicles Per Day), Fulton Street (6,720 Vehicles Per Day), and Bangs Road
  • Consistently Averaged Near-100% Occupancy Since 2017, Typically with a Waiting List
  • Room to Increase Base Rent, to Increase Value and Cashflow
  • Economic Resiliency: Recession-Resistant Tenant Mix Evidenced By 72% Occupancy During Peak of 2008 Great Recession. Over 75% of Rent Collected in April and May 2020 (Covid-19 Shelter In Place)
  • High Quality Construction

Exclusively Listed By

Listing Price: $9,000,000

Cap Rate
8.90%
Gross SF
97,010
Price/Gross SF
$92.77
Lot Size
5.19 acres
Year Built
1980
Rentable SF
97,010

Investment Highlights

  • 97,010 Square Feet of Gross Leasable Area on 5.19 Acres
  • Eight Ingress/Egress Access Points on Airline Drive (22,269 Vehicles Per Day), Fulton Street (6,720 Vehicles Per Day), and Bangs Road
  • Consistently Averaged Near-100% Occupancy Since 2017, Typically with a Waiting List
  • Room to Increase Base Rent, to Increase Value and Cashflow
  • Economic Resiliency: Recession-Resistant Tenant Mix Evidenced By 72% Occupancy During Peak of 2008 Great Recession. Over 75% of Rent Collected in April and May 2020 (Covid-19 Shelter In Place)
  • High Quality Construction

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire Kayvon Plaza III, consisting of five buildings located at: 6134 Airline Drive, 6144 Airline Drive, 6210 Airline Drive, and 10301 Fulton Street in Houston, Texas. Kayvon Plaza III is a unique asset offering small industrial warehouse units with office space, averaging 1,515 square feet per unit at an affordable base rent averaging $9.82 per square foot on Gross Leases. Its excellent access from Airline Drive, Fulton Street, and Bangs Road allows for the ability to accommodate delivery trucks. The Property’s unique offering insulates it from competition in its submarket. There is no industrial office warehouse property offering small square foot units with affordable rental rates from Downtown Houston to George Bush Intercontinental Airport. There are also no vacant lots for sale of one or more acres on major thoroughfares in the Property’s submarket (Airline / Northside / Northline). Along with base rent, landlord may earn additional income streams by buying “bulk” electricity at a discount, and selling the power to tenants who wish to purchase power from the landlord instead of CenterPoint Energy. Tenants pay the landlord approximately double the landlord’s cost for electricity that is independently measured by house meters for each unit. Landlord also earns revenue from forfeiture of security deposits should a tenant move out and be replaced by a new tenant from the waiting list. Given the nature of operating a property with sixty-four units comprised of small business tenants, collecting late fees from a couple of tenants is another expected income stream.

Exclusively Listed By

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