Call for Offers - November 21st
Newmark Zimmer Midwest Capital Markets is pleased to present the opportunity to acquire 4655 E Liberty Street, Mexico, Missouri (the “Property”), a Home Depot anchored industrial asset with 8.5 years of WALT including a new tenant investing $60M into the building for food grade production. The Property is 100% leased to two tenants, Home Depot and Western Smokehouse Partners, on a passive triple net lease structure. The opportunity offers attractive low risk double digit cash on cash returns immediately with existing assumable 2.98% CMBS financing in place.
This facility serves as the distribution center for Home Decorators Collection for Home Depot throughout the Central Region, and is the only non-coastal distribution center for Home Decorators Collection. Home Depot has been a strong community partner with a 25+ year history in the Mexico market. Western Smokehouse Partners is co-investing $60M into the state-of-the-art facility with Chomps, one of the fastest-growing snack and food brands in the US. The facility is expected to create approximately 250 full-time jobs initially, with potential for future expansion. The Western Smokehouse Partners portion of the building is also tax abated through 2037.
The Central Missouri Industrial Market is a desirable location for various industrial uses because of the low cost of operations and reliable and dense workforce. This established market is healthy with a low vacancy rate of just 3.0%. The subject leases offer a compelling rental rate discount of nearly $2.50/SF relative to St. Louis and Kansas City, and other peer Central Missouri markets.