Buildings A & B 1261 Butler Rd 15,300 SF Industrial Building League City, TX 77573 $3,495,000 ($228.43/SF) 6.01% Cap Rate

Fully Leased, Two-Tenant NNN Investment Property For Sale
100% occupied by a marine towing company (Building A) and a restoration and storage franchise (Building B).
Both leases are structured on a triple-net (NNN) basis—tenants reimburse taxes, insurance, CAM, and MEP systems.
Attractive Yield with Growth
Ownership DCF indicates a value approximately equal to the offering price using a 10 year 6.50% discount rate and an 8.50% exit capitalization rate (Year-11 NOI).
Projected NOI Growth & Exit Flexibility
Ten-year cash flow projects average annual NOI of approximately $231,000+ (about $15.12/SF).
Year-11 NOI is projected just under $300,000, creating upside at refinance or sale.
Deed-Restricted Business Park Setting
Modern, Functional Small-Bay Industrial
Two buildings totaling approximately 15,300 SF on ±0.8187 acres.
Approximate 25% office / 75% warehouse configuration with 14'–16' clear heights and grade-level loading.
Building B warehouse is fully climate-controlled; Building A warehouse is non-conditioned, providing flexibility for different user profiles.
Low Capex Profile with Clean Third-Party Reports
2019 Property Condition Report: no immediate repairs; estimated 12-year reserves of approximately $14,800 (~$0.08/SF/yr uninflated; ~$0.10/SF/yr inflated).
2019 Phase I ESA: no RECs, HRECs, or CRECs; no further investigation recommended.
Strong Suburban Industrial Micro-Market
Situated in the League City / Webster / Clear Lake corridor—population-dense, supply-constrained, and service-oriented.
Benefits from proximity to I-45, NASA/JSC, the regional medical and aerospace clusters, and a wide base of contractor and service-industrial demand.
Unlike pure port-oriented bulk distribution corridors, this micro-market is dominated by smaller-bay industrial product—often in the 5,000–20,000 SF range—serving local contractors, trades, restoration/remediation firms, and other service providers. New supply of comparable small-bay space has been limited, while demand from local and regional businesses has remained steady, supporting healthy occupancy and measured rent growth.
For 1261 Butler Road, the combination of a deed-restricted business park setting, nearby high-quality housing, and convenient access to I-45 and major employment centers creates a compelling location for tenants who value proximity to both workforce and customers. This dynamic supports the stability of the existing rent roll and the long-term durability of income for an incoming investor.
Given its 100% leased status, modern construction (2013 & 2015), climate-controlled warehouse improvements in Building B, and balanced 25% office build-out, 1261 Butler is well positioned within this micro-market and compares favorably to typical competing product in terms of quality, functionality, and long-term durability.