Interstate Business Park 1942 S Interstate 35 124,032 SF 81% Leased Industrial Building San Marcos, TX 78666 $15,313,163 CAD ($123.46 CAD/SF) 5.70% Cap Rate

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1942 South Interstate 35 in San Marcos, Texas, anchored by Arlington Recycle Warehouse. The subject property consists of approximately 124,032 square feet of shallow-bay industrial space and is situated on 10.83 acres of land. The multi-tenant asset features five units, a clear height of 16’, 11 dock-high doors, seven grade-level doors, a wet sprinkler system, metal construction and roofing, and three-phase heavy power with 400 amps. Situated behind the neighboring Holiday Inn is 2.61-acre-lot (included in the property) that can be used for future development. Strategically positioned along the major thoroughfare connecting two of the state’s largest cities, the property sits 33 miles southwest of Downtown Austin and 46 miles northeast of Downtown San Antonio. On average, over 100,000 cars pass by the property each day along Interstate 35 (Texas Department of Transportation). With an occupancy rate of 81.4 percent at a below-market average of $7.20 per square foot, this sale offers buyers a significant value-add opportunity.
Due to its recent population growth to 84,678 residents, San Marcos has earned the ranking as the eighth-fastest-growing city in America, according to U.S. News. Together with the cities of Buda, Kyle, and New Braunfels, San Marcos forms the I-35 Corridor, a submarket containing over 30 million square feet of industrial space. Over the last decade, the I-35 Corridor has benefited heavily from the nearby economic growth of San Antonio and Austin as the area’s industrial inventory doubled in size. While the increase in supply has increased availability and weighed on rents, the I-35 Corridor is emerging as a great long-term buying opportunity.
Home to the Alamo and famous River Walk, San Antonio metro is the primary residence of 2.7 million people. San Antonio is the second most populous city in Texas behind Houston, housing more than 1.5 million residents. The local economy is anchored by the industries of healthcare, tourism, and national defense. An extensive transportation network provides shipping options to domestic and international markets. Additionally, the formation of the Eagle Ford Shale that runs through Atascosa and Wilson counties has cultivated a thriving energy sector. Valero Energy, one of the largest oil companies in the U.S., is headquartered in San Antonio. Major private employers include AT&T, Wells Fargo, USAA, and Toyota. San Antonio offers a high quality of life with a variety of entertainment including the NBA’s San Antonio Spurs, SeaWorld, and Six Flags.
With a population of over 2.47 million residents, the population of Metro Austin has grown significantly in recent decades along with economic growth. Known as the home of South by Southwest, the Austin-Round Rock metro covers about 4,225 square miles and consists of five counties in central Texas: Travis, Williamson, Hays, Caldwell, and Bastrop. Austin’s population of nearly 980,000 people makes Travis the most populous county in the metro. Employment gains in the tech sector have contributed significantly to the metro’s recent population and median household income growth. Tesla’s newly constructed Gigafactory is expected to generate at least 5,000 jobs, supporting future relocations and increased demand for housing. The government is a significant driver in the local economy as Austin is the state capital and home to an IRS regional processing center as well as military bases. Located within a border state, the metro benefits significantly from international trade agreements with Mexico.