2121 2Nd St Odessa, TX 79761

Property Details for 2121 2Nd St

Year built

1950

Lot size

5.15 lot acres

Property size

44,000 SF

Property type

Warehouses

Property subtype

Industrial properties

Description

This exceptional investment opportunity presents a 44,000-square-foot industrial property in Odessa, Texas, currently leased to SunSource, a major player in industrial fluid power distribution with a long operational history and extensive North American presence. The property, situated on a 5.15-acre lot at 2121 E 2nd St, benefits from high visibility on a major thoroughfare with over 22,500 vehicles daily. The building is comprised of three structures, totaling 44,000 square feet, and has undergone significant renovations in recent years, including a new 11,900-square-foot warehouse addition in 2016, a complete roof replacement in 2019, and a new 3,200-square-foot hydraulic shop building in 2023. The property's low building coverage ratio (19.61%) offers potential for future expansion. The current lease is a triple-net (NNN) lease with a corporate guarantee, providing a passive income stream. The lease term is 10.1 years, with a remaining term of 2.6 years and two 5-year options, including rent bumps of 8.10% at the first option and 5.10% at the second. The asking price is $5,700,000, representing a compelling 8.05% cap rate and a price per square foot of $130. The property's strong tenant, strategic location, and recent improvements make it an attractive investment opportunity. Built in 1950, with renovations in 1976, 1980, 2001, 2009, 2016, and 2023, this Class B property offers a 100% occupancy rate and a net operating income (NOI) of $459,000. The property is ideally suited for a 1031 exchange.