Investment Offering in Artesia, NM 11351 Lovington Hwy 14 500 pi² Industriel Immeuble Artesia, NM 88210 1 292 385 $ CAD (89,13 $ CAD/pi²) 10,25% Taux de capitalisation

NRG Realty Group is pleased to have been retained exclusively to market 11351 & 11353 Lovington Hwy, Artesia, NM, along with its future associated lease via sale-leaseback and eventual tenant, Q2 Artificial Lift Systems, LLC (the "Property"). Q2 Artificial Lift Systems was founded in 2016 and specializes in the sales, service, engineering, and manufacturing of downhole reciprocating pumps. They operate over 40 repair and service locations across Western Canada and the United States, with a state-of-the-art 118,000 sq. ft. manufacturing facility in Red Deer, Alberta where its headquarters are located. Q2 Artificial Lift Services is backed by Pelican Energy Partners, a private equity firm specializing in energy investments.
This acquisition includes the subject property consisting of four buildings totaling 14,500 square feet and situated on 1.71 acres of land. The Property is located on the east side of Artesia off a major thoroughfare with valuable frontage.
This investment presents a compelling opportunity to acquire an industrial property occupied by Q2 Lift Systems through a sale-leaseback transaction, ensuring long-term stability with a well-established tenant. The lease structure offers strong financial returns, beginning with a double-digit cap rate of 10.25% and averaging 10.87% throughout the primary term. The key highlights include a low-basis investment with high yield potential, providing significant upside. Secondly, it'd be a 60-month primary lease term with 3% annual rent escalations, ensuring consistent income growth. Additionally, there are two (2) 36-month renewal options, offering long-term tenancy security. Lastly, it's an industrial asset backed by a strong operating business, reducing investment risk.
In conclusion, with a favorable entry price and stable cash flow, this asset delivers an attractive risk-adjusted return for investors seeking high-yield real estate opportunities with built-in growth potential.