1283 Mcdonough St Montgomery, AL 36104

This Montgomery, Alabama industrial property, located at 1283 N McDonough St, 36104, offers a compelling investment opportunity. The 40,148 square foot building, constructed in 1971, sits on a 3.65-acre lot and is currently leased to Beacon Roofing Supply under a Net Lease agreement. The lease commenced January 17, 2006, and expires January 31, 2028, with two five-year renewal options, each including a 3% rent increase. The current asking price is $1,545,000, representing a price per square foot of $38.48 and a 7.65% cap rate, based on a Net Operating Income (NOI) of $118,200. The property is zoned M-3 (General Industry) and includes outside storage. The tenant, a publicly traded Fortune 500 company, boasts a strong credit rating (S&P: BB-), providing reliable income. The property's strategic location near I-65 and I-85, Maxwell Air Force Base, and downtown Montgomery enhances its value. The current rent of $2.94 per square foot is significantly below market rates, presenting substantial upside potential for future growth. The property's 18-year operating history and location within a growing MSA with a strong local demographic (88,000 residents within 5 miles) further solidify its investment appeal. This single-story building represents a strong, stable investment in a desirable location.