11351 Lovington Hwy - Warehouse FOR SALE


Artesia, NM 88210
$938,340 USD
214-534-7976
11351 Lovington Hwy, Artesia, NM for Sale
$938,340 USD
Warehouse - FOR SALE
1/6
null | 10.25% Cap Rate

11351 Lovington Hwy
Artesia, NM 88210


HIGHLIGHTS

  • 10.25% Cap rate | $96,179.85 NOI
  • 5-year term with 3% annual escalations
  • Stable and reliable tenant

OVERVIEW

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 20,852 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.

FOR SALE DETAILS

PRICE

$938,340 USD

PRICE/SF

$45 USD /SF

CAP RATE

10.25%

% LEASED

-

TENANCY

-

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY NAME

Investment Offering in Artesia, NM

PROPERTY TYPE

Industrial

PROPERTY SUBTYPE

Warehouse

TOTAL BUILDING SIZE

-

STORIES

1

YEAR BUILT

1999

UTILITIES

-

CLEAR CEILING HT

-

DOCKS

-

DRIVE INS

-

PARKING SPACES

-

LAND DETAILS

LAND ACRES

1.71

LAND SF

74,488

ZONING

-

APN/PARCEL ID

4-158-099-349-373

ASK ABOUT THIS PROPERTY

Justin DoddNRG Realty Group, LLCMore Info
214-534-7976

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Justin DoddNRG Realty Group, LLCMore Info
214-534-7976

By clicking the button, you agree to Showcase's Terms of Use and Privacy Policy.