Stable Tenant 9.75% Cap Rate Investment 801 NW 9th St 12 500 pi² Industriel Immeuble Andrews, TX 79714 1 371 400 $ CAD (109,71 $ CAD/pi²) 9,75% Taux de capitalisation

This offering by NRG Realty Group presents the opportunity to acquire a single-tenant industrial investment located at 801 SW 9th Street in Andrews, Texas, within the core of the Permian Basin. The property consists of a 12,500 square foot industrial facility situated on approximately 5 acres, providing both operational functionality and long-term land value. The asset is being offered at a purchase price of $1,000,000 and will be sold subject to a 5-year sale-leaseback with the current owner and occupant, Q2 Artificial Lift Systems.
Q2 Artificial Lift Systems is a specialized oilfield services company focused on artificial lift solutions and equipment supporting energy production across the Permian Basin and surrounding markets. As part of this transaction, the tenant will execute a leaseback with a Year 1 base rent of $8,125 per month ($97,500 annually) and 3% annual rental escalations throughout the initial term. This structure provides investors with an attractive going-in capitalization rate of approximately 9.75%, offering immediate, cash flow with contractual income growth.
The investment is particularly compelling given the combination of a strong tenant profile and favorable lease economics. The sale-leaseback structure aligns tenant and ownership interests, as Q2 remains committed to the location as a core operational facility. Annual rent increases provide built-in income growth, enhancing yield over the holding period while offering protection against inflation. The industrial nature of the asset, paired with its large land component, further supports long-term value retention and adaptability for future uses.
Strategically located in Andrews County, the property benefits from its proximity to ongoing energy activity in the Permian Basin, one of the most active oil-producing regions in the United States. Industrial assets supporting energy services, logistics, and equipment maintenance remain in steady demand in this market, underpinning tenant stability and replacement cost support. The expansive 5-acre site also provides excess land coverage relative to the building footprint, enhancing future redevelopment or expansion potential.
In conclusion, this offering represents a rare opportunity to acquire a high-yield, single-tenant industrial asset with a committed tenant, strong initial returns, and embedded rent growth in a supply-constrained energy services market. The combination of attractive pricing, a stable leaseback structure, and long-term market fundamentals makes this an ideal acquisition for investors seeking durable income and downside protection.