Building Details

Year Built 1990

Buildings 1

Listing Agency: Legend Commercial Show Phone

Listed By: Skyler Peterson SIOR · License #UT 6991009-SA00

Source: Crexi

Added: Apr 22, 2024 Changed: Aug 19 Last Checked: Aug 20 at 8:22PM

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Investment Insights

Based on property information with market context.

The former Purple Mattress Headquarters is available for sale, presenting an opportunity to acquire an advanced manufacturing and office site in Alpine, Utah. The specialized manufacturing facility, constructed in 1990, comprises 90,581 square feet on a 4.12-acre lot. The building features substantial power, high flow water lines, and other manufacturing infrastructure. It includes two 9'x10' dock doors with seals and levelers, one 5'x8' box height loading door, and one 14'x18' grade level door. The clear height is 20 feet. The layout includes over 17 production rooms, multiple break rooms and bullpens, and ample bathrooms. It is equipped with a wet and dry suppression system, ample heavy power, exhaust vents, floor drains, power drops, a trash compactor, water recyclers, and a water cooling system. Multiple water lines run the length of the warehouse. Additional features include gas forced heaters, swamp coolers, compressed airlines, water hookups on both levels, a three-compartment sink, eye washing stations, a powder room, and skylights throughout. The building is of masonry construction and offers ample parking. The property is located in a convenient infill location in the heart of Alpine, with access off of Timpanogos Highway. The zoning is Business Commercial.

Key Highlights

• Specialized 90,581 SF manufacturing facility with substantial power and high flow water lines.
• Convenient infill location in the heart of Alpine, with access off Timpanogos Highway.
• Ample heavy power, exhaust vents, floor drains, power drops, water recyclers, and water cooling system.

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

$721,315

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

8.10%

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%

$14,426,300 $14.4M

Cap Rate 7%

$10,304,500 $10.3M

Cap Rate 9%

$8,014,611 $8.0M

Market Conditions

NOI Build-Up for 90,581 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

$1.09M $12.00/SF

− Vacancy

−$56.5K −$0.62/SF

EGI

$1.03M $11.38/SF

− OpEx

−$309.1K −$3.41/SF

NOI

$721.3K $7.96/SF

Area

Utah County, UT

Vacancy

5.20%

Lease Rate

$12.00 /SF/Yr

Expense Ratio

30.00%

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%

$14,426,300

Cap Rate 7%

$10,304,500

Cap Rate 9%

$8,014,611

Alternative Uses

Best Use

Industrial

$10.30M

$9.02M – $12.02M (±1% cap)

NOI $721,315 @ 7.0% cap · market cap 8.10%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$24.97M

$21.85M – $29.13M (±1% cap)

NOI $1,747,851 @ 7.0% cap · market cap 19.64%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Manufacturing properties

Suggested Use

Top Pick Restaurant Hair Salon Law Firm Nail Salon Auto Repair Shop Big Box & Wholesale Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

410

Businesses Nearby

Explore this area Business Placement

Demographics for 84004, UT

10,259

Population

3,133

Households

3.3

Avg Household Size

32

Median Age

57%

College-Educated

99%

High-School Grad

31.0 sq mi

ZIP Area

331

Density / Sq Mi

$156,786

Median Household Income

$52,765

Median Earnings

$2,786

Median Rent

$893,400

Median Home Value

Market

Vacancy Rate% for Industrial in West region

3.7% 2019

4.3% 2020

2.6% 2021

2.5% 2022

4.8% 2023

6.9% 2024

7.9% 2025

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Frequently Asked Questions

What type of property is this?

Manufacturing property - 90,581 SF manufacturing and office facility in Alpine, Utah.

Where is this manufacturing property located?

The property is located at 119 E 200 N Alpine, UT.

What is the asking price?

The asking price for this property is $8,900,000.

What are key features of this property?

This property features: Specialized 90,581 SF manufacturing facility with substantial power and high flow water lines.; Convenient infill location in the heart of Alpine, with access off Timpanogos Highway.; Ample heavy power, exhaust vents, floor drains, power drops, water recyclers, and water cooling system.