Well Suited for Multi Tenant Conversion 2002 N Avenue N 181,800 SF 20% Leased Industrial Building Lubbock, TX 79403 $4,325,000 ($23.79/SF) 15.97% Cap Rate

This sale offers the opportunity to purchase a 181,000 square foot industrial facility on 30 acres in Lubbock, Texas. The site is well suited for a multi-tenant conversion, offering in-place infrastructure, a low price per square foot and a stabilized pro forma cap rate (taking into account a $1.4M conversion cost and using conservative rent forecasts) of over 15%. Lubbock offers a desirable area for business development, family life and appreciation.
The subject property, located at 2002 North Avenue N, consists of two parcels for a total of 30 acres of land. This site has been improved with an industrial facility that has 181,800 SF of rentable building area. Constructed as a manufacturing facility, the property offers numerous functional attributes: the 3-building layout provides the ability to separate manufacturing processes; a multi megawatt power supply has been configured with six dual-action transformers providing well distributed power to each wing of the facility; a 5-acre yard area that is paved, fenced and lit offers numerous outdoor storage options; access to a rail spur provides for cost-effective transportation of raw materials and finished products. The facility is well-built and features metal construction with concrete stem walls, 14-16’ clear heights, clearspan production space (steel I-beam trusses with no supporting posts in the middle of the production area), a high-volume city gas line, fire sprinklers throughout, evaporative cooling, a dust collection system, abundant parking and excess land providing room to expand, for truck and trailer parking and/or for installation of new equipment. The property is currently supplied with 5.2 MW of electricity and is within the Ercot grid, which is a deregulated power grid that provides cheaper energy rates than regulated grids. West Texas is the primary electricity generation area in the state and contains the nodes with the cheapest cost. Options for further electrical expansion are available.
Located in the city of Lubbock, also known as “Hub City” due to it being a hub for economic, healthcare and educational facilities, the subject property is situated in a mid-sized metro that is high on the list of US cities experiencing economic growth. Lubbock offers an economic base rooted in numerous industries including manufacturing, retail, farming, distribution, education and health care. The city provides numerous attributes that promote economic growth: a skilled labor force, low cost of utilities, desirable location for families, affordability in housing and living costs, a growing population and per capita income, top ranked schools (including Texas Tech University), and proximity to major markets. Lubbock has been ranked as having one of the best mid-size city business climates, one of the best cities for raising a family and one of the best cities for work-life balance.
For investors willing to take on a multi-tenant conversion, the subject property offers an attractive opportunity to do so. The current configuration and in-place utilities provide a functional and cost-effective layout for conversion. At current market rates of $4-5/SF/yr NNN, and assuming a conversion cost of $1.4M, the property will deliver a 15+% cap rate. Lubbock has established itself as the hub of the region and offers attractive long-term value, dependability and appreciation potential.
2002 North Avenue N offers the opportunity to purchase an industrial facility in a desirable location. The property has attributes that provide functionality and attractive long-term value, and is suitable for owner/users and investors alike.