3311 Industrial Dr - Manufacturing FOR SALE


Hobbs, NM 88240
$1,296,000 USD
214-534-7976
3311 Industrial Dr, Hobbs, NM for Sale
$1,296,000 USD
Manufacturing - FOR SALE
1/9
null | 10.25% Cap Rate

3311 Industrial Dr
Hobbs, NM 88240


HIGHLIGHTS

  • 5-year term with 3% annual escalations
  • 10.25% Cap rate | $132,840 NOI
  • Prime industrial area of Hobbs, NM

OVERVIEW

NRG Realty Group is pleased to have been retained exclusively to market 3311 N Industrial Dr, Hobbs, 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 32,400 square feet and situated on 3.01 acres of land. The Property is located in the heart of Hobbs 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

$1,296,000 USD

PRICE/SF

$78 USD /SF

CAP RATE

10.25%

% LEASED

-

TENANCY

Single

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY NAME

Investment Sale in Hobbs, NM

PROPERTY TYPE

Industrial

PROPERTY SUBTYPE

Manufacturing

TOTAL BUILDING SIZE

-

STORIES

1

YEAR BUILT

1979

UTILITIES

-

CLEAR CEILING HT

-

DOCKS

2

DRIVE INS

8

PARKING SPACES

13

LAND DETAILS

LAND ACRES

3.01

LAND SF

131,116

ZONING

Commercial

APN/PARCEL ID

-

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.