2121 2Nd StOdessa, TX 79761

For Sale
$5,700,000

44,000 SF Warehouse, Strong Tenant

Overview

Added:
Dec 11, 2024
Days on market:
92
This exceptional investment opportunity presents a 44,000-square-foot industrial property in Odessa, Texas, currently leased to SunSource, a major player in industrial fluid power distribution with a long operational history and extensive North American presence. The property, situated on a 5.15-acre lot at 2121 E 2nd St, benefits from high visibility on a major thoroughfare with over 22,500 vehicles daily. The building is comprised of three structures, totaling 44,000 square feet, and has undergone significant renovations in recent years, including a new 11,900-square-foot warehouse addition in 2016, a complete roof replacement in 2019, and a new 3,200-square-foot hydraulic shop building in 2023. The property's low building coverage ratio (19.61%) offers potential for future expansion. The current lease is a triple-net (NNN) lease with a corporate guarantee, providing a passive income stream. The lease term is 10.1 years, with a remaining term of 2.6 years and two 5-year options, including rent bumps of 8.10% at the first option and 5.10% at the second. The asking price is $5,700,000, representing a compelling 8.05% cap rate and a price per square foot of $130. The property's strong tenant, strategic location, and recent improvements make it an attractive investment opportunity. Built in 1950, with renovations in 1976, 1980, 2001, 2009, 2016, and 2023, this Class B property offers a 100% occupancy rate and a net operating income (NOI) of $459,000. The property is ideally suited for a 1031 exchange.

Highlights

  • 44,000 SF industrial property in Odessa, TX, leased to SunSource, a major industrial fluid power distributor with a long history and extensive North American presence.
  • High-visibility location on a major thoroughfare with over 22,500 vehicles daily.
  • Triple-net (NNN) lease with corporate guarantee, providing passive income. 2.6 years remaining on a 10.1-year lease with two 5-year options including rent bumps.
  • Low building coverage ratio (19.61%) allows for future expansion on the 5.15-acre lot.
  • Recent improvements include a new 11,900 SF warehouse (2016), complete roof replacement (2019), and a new 3,200 SF hydraulic shop (2023).

Property Details for 2121 2Nd St

Property type
Other warehouses, Other industrial properties
Square Feet
44,000 SF
Class
B
Year Built
1950
Buildings
3
Lot Size (sq. ft)
224,334 SF

Location Insight

City
Odessa
County
Ector
State
Texas
Latitude
31.8582346
Longitude
-102.3420002
2121 2Nd St, Odessa, Texas

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2121 2Nd St
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