Austin Industrial for Sale - East
DWG Capital Group is selling the two-building 10,500SF property for the price of $2,506,400 at an attractive land basis of$55.90 PSF and the building for $238 PSF. The site is located just 10miles from Downtown Austin, Texas and is in a thriving industrial market.Building A was constructed in 1984 and totals 7,500 SF; Building B wasbuilt in 1992 and totals 3,000 SF.THE LOCATION: Austin Iron is ally located in a highly trafficked business park right off Highway 290, providing easy access throughout the metro. It is situated in East Austin in the Dafffin/University Hills/Manor areas in thriving Travis County. Austin has recently exploded into the fastest-growing major metro in the United States over the last decade, per the U.S. Census Bureau. As major companies like Tesla continue relocating from California to Central Texas, Austin's rapid population growth shows no signs of stopping. Not only is Austin the number one job market, but it is also one of the hottest industrial markets in Texas and nationwide.
INVESTMENT SUMMARY
Purchase Price: $2,506,400 (6% Cap) NOI: $150,384 Base Rental Rate PSF: $13.90 PSF Purchase Price PSF: $238 Approximate Bldg SF: 10,500 SF Land Acres: Approx. 1.0 AC Rent Escalations: 3% Lease Terms: 5 years (3 yrs + two 1 yr extensions) Initial Lease Term: Start: 06/01/2024 End: 05/31/2029 Tenant: Austin Iron
Property Type: Industrial
"The Austin industrial market continues to break records and attract major players, with
net absorption reaching 2.5 million sq. ft. in Q1 2024, led by industry giants SpaceX and
Tesla occupying state-of-the-art build-to-suit facilities, alongside strong demand from
Tesla suppliers leasing speculative space. New construction surged, delivering 3.1 million
sq. ft., with nearly 50% pre-leased – a testament to the market's strength. Asking rents
climbed steadily, hitting $13.29 PSF market-wide, while in premium new buildings, rents
surged to as high as $20 PSF, reflecting the value placed on Austin’s modern,
strategically located industrial facilities. With robust leasing, record-breaking deliveries,
and unwavering tenant demand, Austin solidifies its position as one of the fastest-
growing and most dynamic industrial markets in the nation.
”
(Sources: CBRE, JLL)
NEW LEASE RENTAL RATE: The new 5-year lease features a 3-year primary term and two 1-year options, with attractive 3% annual rent increases. The annual rent is $150,384, or
$13.90 per square foot (PSF). The strength of the lease, tenant, and location makes the Austin Iron sale-leaseback an ideal acquisition opportunity, offering hands-off, stabilized revenue streams in a top 5 U.S. growth market. STABILIZED INCOME WITH SUPERIOR RENT GROWTH AND EXCALATIONS: This strategic opportunity provides a simple path
to success and profit. A new purchaser can acquire the cash flow from the current location and benefit from strong future profits in a market with trending rental rates of
approximately $15-$20 PSF NNN in this rapidly growing, best-in-Texas industrial market.
TENANCY: DESIGN. DRAW. FABRICATE AND INSTALL. Austin Iron, a strong, high-growth tenant, is an ironworks design, fabrication, and installation company benefiting from high demand in Austin's booming construction economy. The tenant has occupied the location since 2014, experiencing consistent year-over-year growth and maintaining many
months of backlogged demand. This seasoned tenant recently executed a 5-year NNN lease, structured as a 3-year base term with two 1-year extensions. Annual sales remain robust, and the new lease, while slightly below market, includes attractive 3% annual escalations, aligning well with the thriving, high-demand East Austin industrial market.
