Industrial Property with Credit
For Sale
Contact for pricing
2730 FM523, Freeport, TX 77541
Industrial property leased to Ferguson, a BBB+ rated tenant.
Property Size22,000 SF
Lot Size4.30 Acres
Price / SF$128
Days on Market193
Property Features for 2730 FM523
General Information
Standard status
Active
Size
22,000 SF
Lot size
4.30 Acres
Property subtype
Industrial
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$190,080
Building Details
Year Built
1980
Tenancy
Single
Listing Agency:
Marcus & Millichap - Orange County
(805) 459-8951
Listed By:
Ron Duong · License #CA 01438643
Source:
Crexi
Added: Jan 28
Changed: Aug 8
Last Checked: Aug 8 at 6:31AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Marcus & Millichap - Orange County
Investment Insights
Based on property information with market context.
The property is an industrial site occupied by Ferguson (NYSE: FERG), a BBB+ rated industrial tenant with over 1,750 locations across the U.S. and Canada. Ferguson has operated at this location for over 9 years and recently committed to a 3-year lease extension. The property is situated on a 4.3-acre lot, providing ample space for outdoor storage. The tenant is backed by a corporation with over $30 billion in annual revenue. Ferguson is the largest U.S. distributor of plumbing supplies, PVF, waterworks, and fire and fabrication products. The tenant is listed on the NYSE (FERG) with a market capitalization exceeding $49 billion. The property contains 22,000 square feet. The roof was replaced in 2025. Ferguson's business model is suited to thrive in various economic conditions.
Key Highlights
- High Credit Tenant: Ferguson, BBB+ rated with over $30 billion in annual revenue.
- Mission‑Critical Location: Operated by Ferguson for over 9 years with recent 3‑year lease extension.
- Large 4.3‑Acre Lot: Offers ample space for highly desirable outdoor storage.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$137,568
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.89%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,751,360
$2.8M
Cap Rate 7%
$1,965,257
$2.0M
Cap Rate 9%
$1,528,533
$1.5M
Market Conditions
NOI Build-Up for 22,000 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$176.9K $8.04/SF
− Vacancy
−$15.0K −$0.68/SF
EGI
$161.8K $7.36/SF
− OpEx
−$24.3K −$1.10/SF
NOI
$137.6K $6.25/SF
Area
Brazoria County, TX
Vacancy
8.50%
Lease Rate
$8.04 /SF/Yr
Expense Ratio
15.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,751,360
Cap Rate 7%
$1,965,257
Cap Rate 9%
$1,528,533
Alternative Uses
Best Use
Warehouse
$1.97M
$1.72M – $2.29M
NOI $137,568 @ 7.0% cap · market cap 4.89%
Second Best
Industrial
$1.62M
$1.42M – $1.89M
NOI $113,292 @ 7.0% cap · market cap 4.02%
Theoretical Best
Multifamily LT 5
$274.07M
$239.81M – $319.74M
NOI $19,184,636 @ 7.0% cap · market cap 681.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
108
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 77541, TX
16,441
Population
9,292
Households
1.8
Avg Household Size
38
Median Age
10%
College-Educated
82%
High-School Grad
141.7 sq mi
ZIP Area
116
Density / Sq Mi
$59,513
Median Household Income
$36,661
Median Earnings
$1,102
Median Rent
$162,800
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- CubeSmart Self Storage — 1932 FM523, Freeport, TX 77541
Frequently Asked Questions
What type of property is this?
Warehouse - Industrial property leased to Ferguson, a BBB+ rated tenant.
Where is this warehouse located?
The property is located at 2730 FM523 Freeport, TX.
What is the asking price?
The asking price for this property is $2,816,000.
What are key features of this property?
This property features: High Credit Tenant: Ferguson, BBB+ rated with over $30 billion in annual revenue.; Mission‑Critical Location: Operated by Ferguson for over 9 years with recent 3‑year lease extension.; Large 4.3‑Acre Lot: Offers ample space for highly desirable outdoor storage.
