Net Lease

National Oilwell Varco Facility

Listing Price: $56,791,000

Cap Rate
5.50%
Gross SF
383,750
Price/Gross SF
$147.99
Lot Size
26.37 acres
Year Built
2015
Rentable SF
383,750

Investment Overview

Marcus & Millichap has been selected to exclusively represent the sale of the zero cash flow National Oilwell Varco (Standard & Poors BBB+ Rated) Facility located in Houston, Texas. National Oilwell Varco is operating on an absolute net lease with over 21 years remaining on the base term that includes two 10-year options. In each of the two 10-year renewal options, Guarantor must be BBB or stronger rating and have a tangible net worth in excess of $800 Million. If they satisfy the above, the Tenant must renew for a minimum of 10 years and will substantially remain the same. The 383,750-square foot property was built-to-specification for the tenant in 2015 and is located on a 26.37-acre parcel. Future plans (see agent) allow for the expansion of 72,000 +/- square feet to the rear of the property. The investment features an attractive assumable loan with minimal equity needed and is required to be assumed. An incoming investor has the ability to utilize the paydown/readvance feature on the loan which provides the owner an option to refinance a substantial portion of equity.

The investment grade offering is strategically situated with high visibility and exposure in the industrial zone of Breen Road. The Class-A Industrial property consists of 293,750-square feet of industrial space and 90,000-square feet of office space and includes several overhead cranes which allows for depreciation for an incoming investor. National Oilwell Varco (NYSE: NOV) is a leading worldwide provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The company conducts operations in more than 600 locations across six continents and has revenues of over $8.47 billion.

The property features excellent demographics that include over 299,540 people in a five-mile radius and 96,747 households in a five-mile radius. Average household income is above the national average at $68,977 in five-mile radius. The subject site is located in Houston, the most populous city in the U.S. state of Texas, fourth most populous city in the United States, most populous city in the Southern United States, as well as the sixth most populous in North America, with an estimated 2019 population of 2,320,268. It is the principal city of the Greater Houston metropolitan area, which is the fifth most populous metropolitan statistical area in the United States and the second most populous in Texas. Houstons economy since the late 19th century has a broad industrial base in energy, manufacturing, aeronautics, and transportation. Leading in healthcare sectors and building oilfield equipment, Houston has the second most Fortune 500 headquarters of any U.S. municipality within its city limits (after New York City).

Investment Highlights

  • National Oilwell Varco (Standard & Poors BBB+) Facility
  • Built in 2015 | Fee Simple | Land and Improvements (Depreciation)
  • Loan Must be Assumed | Minimal Equity | 16 Percent Over Debt
  • Absolute Net Lease | 21 Years Remaining | Two 10-Year Options
  • Standard and Poors BBB+ Rated | Publicly Traded (NYSE: NOV)
  • 383,750-Square Feet on 26.37-Acre Parcel | Light Industrial

Exclusively Listed By

Net Lease

National Oilwell Varco Facility

Listing Price: $56,791,000

Cap Rate
5.50%
Gross SF
383,750
Price/Gross SF
$147.99
Lot Size
26.37 acres
Year Built
2015
Rentable SF
383,750

Investment Highlights

  • National Oilwell Varco (Standard & Poors BBB+) Facility
  • Built in 2015 | Fee Simple | Land and Improvements (Depreciation)
  • Loan Must be Assumed | Minimal Equity | 16 Percent Over Debt
  • Absolute Net Lease | 21 Years Remaining | Two 10-Year Options
  • Standard and Poors BBB+ Rated | Publicly Traded (NYSE: NOV)
  • 383,750-Square Feet on 26.37-Acre Parcel | Light Industrial

Investment Overview

Marcus & Millichap has been selected to exclusively represent the sale of the zero cash flow National Oilwell Varco (Standard & Poors BBB+ Rated) Facility located in Houston, Texas. National Oilwell Varco is operating on an absolute net lease with over 21 years remaining on the base term that includes two 10-year options. In each of the two 10-year renewal options, Guarantor must be BBB or stronger rating and have a tangible net worth in excess of $800 Million. If they satisfy the above, the Tenant must renew for a minimum of 10 years and will substantially remain the same. The 383,750-square foot property was built-to-specification for the tenant in 2015 and is located on a 26.37-acre parcel. Future plans (see agent) allow for the expansion of 72,000 +/- square feet to the rear of the property. The investment features an attractive assumable loan with minimal equity needed and is required to be assumed. An incoming investor has the ability to utilize the paydown/readvance feature on the loan which provides the owner an option to refinance a substantial portion of equity.

The investment grade offering is strategically situated with high visibility and exposure in the industrial zone of Breen Road. The Class-A Industrial property consists of 293,750-square feet of industrial space and 90,000-square feet of office space and includes several overhead cranes which allows for depreciation for an incoming investor. National Oilwell Varco (NYSE: NOV) is a leading worldwide provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The company conducts operations in more than 600 locations across six continents and has revenues of over $8.47 billion.

The property features excellent demographics that include over 299,540 people in a five-mile radius and 96,747 households in a five-mile radius. Average household income is above the national average at $68,977 in five-mile radius. The subject site is located in Houston, the most populous city in the U.S. state of Texas, fourth most populous city in the United States, most populous city in the Southern United States, as well as the sixth most populous in North America, with an estimated 2019 population of 2,320,268. It is the principal city of the Greater Houston metropolitan area, which is the fifth most populous metropolitan statistical area in the United States and the second most populous in Texas. Houstons economy since the late 19th century has a broad industrial base in energy, manufacturing, aeronautics, and transportation. Leading in healthcare sectors and building oilfield equipment, Houston has the second most Fortune 500 headquarters of any U.S. municipality within its city limits (after New York City).

Exclusively Listed By

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