NRG Realty Group is excited to offer a prime investment opportunity: a 15,000 SF industrial facility in Midland, TX, leased for 5 years to S&R Compression under a low-basis, NNN lease. This opportunity offers 60 months of steady cash flow with annual increases and minimal landlord responsibilities. Located in the Permian Basin, a key hub for U.S. oil and gas, this asset benefits from the region’s energy infrastructure. S&R Compression, a leading fabricator of vapor recovery units, provides strong financials and growth potential.
Low Basis: This low-cost entry point enhances potential ROI while reducing downside risk.
Tenant Strength: S&R Compression is a growing and financially stable company in the energy sector, particularly relevant in the Permian Basin's oilfield service industry. This makes them a strong tenant with low risk of default.
Lease Structure: The lease is a 5-year NNN lease, which limits landlord responsibilities and provides a passive income stream. The tenant covers expenses related to taxes, insurance, and maintenance, minimizing the financial burden on the investor.
Rent Escalations: The lease includes annual rent increases starting from $19,000 in year one and progressively increasing to $21,384.67 by year five. These escalations provide inflation protection and growth in cash flow over the lease term.
Tenant Maintenance Responsibilities: S&R Compression is responsible for maintaining major systems such as HVAC, plumbing, and structural components, with capped costs for certain repairs. This reduces risk and ensures the property is well-maintained.
New spec building in the highly sought-after TX-191 and FM 1788 area between Midland & Odessa! This property is a 15,000 SF industrial building on 4.25 acres. The building includes 3,750 SF of office space with 7 offices, a conference room, a break area, and 2 restrooms. The 9,750 SF fully-insulated shop has (9) 14’x16’ overhead doors that form (4) drive-through bays and (1) drive-in bay from the 1,500 SF covered wash-bay. There is an additional office, breakroom, and restroom in the shop. Site is serviced with 3-Phase/480V power, water well, and septic.