Under Contract $1,195,000 Asking Price - Multi-Tenant
Marcus & Millichap is proud to present for sale a two tenant 4,500 square foot building at 1212 Eldridge Road in Sugar Land, Texas. The property was built in 2005. It has a dry cleaner plant which has always employed eco friendly equipment using non perc oxy-chem solvent, with a drive through. It also has a iTecWireless Store. Located in eastern Fort Bend County, Sugar Land is approximately 20 miles from the Houston CBD and in the southwest quadrant of the Houston MSA. Estimated January 2018 population is 117,869 people, making it the third largest city in the Houston area.
The property is located just north of Highway 90-A with frontage on Eldridge Road that provides excellent storefront visibility. Eldridge Road at its southern most point intersects with Highway 90-A and is the major North/South thoroughfare in Sugar Land. The immediate area includes retail centers, single tenant retail buildings, industrial, the 1,000-acre Sugar Land Business Park, and various residential communities. The Johnson Development is Imperial Sugar Land, a 720-acre master planned mixed use residential community located approximately two miles from the property at the site of the former Imperial Sugar Company, which was the oldest continuously operating business in Texas when it closed in 2003.
The 1,000-acre Sugar Land Business Park is located North of the intersection of U.S. Highway 59 and Highway 90-A. Sugar Land Business Park is a deed-restricted, architecturally controlled development. Its inception was in 1977 and it sold out in 2005. Tenants in the Sugar Land Business Park include Tramontina, Schlumberger, and Boise Cascade.
The dry cleaners’ lease expires at the end of 2020 and the iTecWireless, a store that specializes in the repair of cell phones, tablets, and computers, lease expires in July of 2022. The dry cleaning plant equipment is owned by the seller and goes with the sale to a buyer. Both tenants are on NNN leases and each have 2-Five Year Options with 10 percent increases at each renewal.
The 2017 demographics in the area show a population of 7,910 people in a one-mile radius and 106,252 people in a three-mile radius. The average household income is $118,978 and $98,074 in a one and three-mile radius respectively.
We have a proposed loan quote for this property that an investor can achieve a cash return of 7.87 percent on a down payment of $298,750.
Offered at $1,195,000 this building produced a CAP Rate of approximately 7.25 percent, a great opportunity for the small investor to own a well located, stable property with minimal management on a prime street in one of Houston’s most important suburban communities.
- CAP Rate: 7.27%