STRATEGIC INDUSTRIAL INVESTMENT OPPORTUNITY
GADSDEN, ALABAMA
INVESTOR HIGHLIGHTS
• Large-Scale Industrial FacilityApproximately 408,000 square feet of warehouse and logistics space.
• Attractive Acquisition Price
Asking price $19,990,000.
(approximately $49 per square foot)
• Strong Income Yield
Current rental structure reflects an approximate 8.6% Cap Rate.
• Seller Financing Available
Owner is willing to provide seller financing at preferential interest rates, offering flexible acquisition terms for qualified investors.
• Below Replacement Cost
Insurance underwriting estimates the replacement value at over $27.8 million.
• Significant Recent Improvements
More than $3 million invested between 2024 and 2026 in structural and operational upgrades.
PROPERTY OVERVIEW
The property represents a rare opportunity to acquire a large-scale industrial logistics facility at a price level significantly below current replacement cost.
With approximately 408,000 square feet of warehouse space and strong transportation access, the facility is well suited for regional distribution, industrial operations, and logistics supply chain activities.
Large industrial facilities of this scale remain limited in many secondary markets, which enhances the long-term value potential of the asset.
INVESTMENT PRICING
ASKING PRICE
$19,990,000.
Approximately $49 per square foot, which compares favorably with many industrial properties currently available in the U.S. market.
Based on the current rental structure of approximately $4.20 per square foot annually, the investment reflects an approximate 8.6% capitalization rate.
This pricing allows investors to acquire a stabilized industrial asset with strong income potential while maintaining a substantial margin relative to replacement value.
SELLER FINANCING ADVANTAGE
To facilitate a smooth transaction and enhance investor returns, the owner is willing to provide seller financing at a preferential interest rate, subject to mutually agreed terms.
Seller financing can significantly reduce transaction timelines while providing qualified buyers with flexible financing conditions that may be more favorable than traditional bank lending.
RENTAL INCOME PROFILE
Building Size
Approx. 408,000 Square Feet
Rental Rate
$0.35 per square foot per month
($4.20 per square foot annually)
Estimated Annual Rental Income
$1,713,600.
Estimated Monthly Income
$142,800.
ILLUSTRATIVE FINANCIAL SCENARIO
Example financing structure for investor evaluation:
Purchase Price
$19,990,000
Equity Investment (30%)
$5,997,000.
Financing (70%)
$13,993,000.
Assumed Interest Rate
6.5%
Loan Term
25 Years
Estimated Monthly Debt Service
Approx. $94,700.
CASH FLOW POTENTIAL
Monthly Rental Income
$142,800.
Estimated Monthly Debt Service
$94,700.
Estimated Monthly Positive Cash Flow
Approx. $48,100.
Estimated Annual Cash Flow
Approx. $577,200.
INVESTOR RETURN
Investor Equity Investment
$5,997,000.
Estimated Annual Cash Flow
$577,200.
Approximate Cash-on-Cash Return
About 9.6% annually
Additional investment benefits include:
• Annual principal reduction through loan amortization
• Long-term industrial property appreciation
• Strategic logistics location value
WHY THIS CAP RATE IS SECURE
Several factors support the long-term stability of this income profile:
• Established Industrial Use History
The facility supported operations for over 40 years under a major global manufacturer.
• Strategic Transportation Location
Located less than two miles from Interstate 59, providing efficient regional logistics access.
• Proven Corporate Interest
Multiple international companies have evaluated the facility for operational use, demonstrating strong industrial relevance.
STRATEGIC MARKET ADVANTAGE
The property benefits from access to a large regional market within a practical logistics distribution radius.
Within approximately a 350-mile transportation range, the facility can serve major population centers throughout the southeastern United States.
This regional coverage allows logistics operators to efficiently distribute goods across multiple states while operating from a centralized facility.
CORPORATE VALIDATION
The property’s industrial capability has been validated through historical operations or evaluation by major international companies, including:
• Goodyear Tire & Rubber Company – Long-term industrial operations for over 40 years
• TS Tech Co., Ltd. – Automotive supply chain supplier within the Honda network
• DHL – Global logistics company that conducted detailed due diligence
• Thyssenkrupp – International industrial manufacturing group
• Lockheed Martin – Aerospace and defense technology company
• Takkion – Renewable energy logistics operator currently utilizing the facility
FACILITY FEATURES
Loading Infrastructure
• 31 Dock-High Loading Docks
• 1 Drive-In Door
Building Structure
• Column spacing approximately 40 × 60 feet
• Suitable for modern warehouse and logistics layouts
• Supports high-density storage operations
LAND AREA AND EXPANSION POTENTIAL
The facility sits on approximately 17 acres, offering operational flexibility and potential expansion opportunities.
The north side of the property also includes 16 rail dock positions (subject to approval by relevant rail authorities).
SAFETY AND BUILDING MAINTENANCE
The building’s fire protection systems are professionally maintained by Total Fire Protection of Alabama, a recognized regional fire safety service provider.
Regular inspections ensure that the fire protection systems remain fully operational.
1031 EXCHANGE OPPORTUNITY
This property may qualify as a replacement asset for investors seeking to complete a Section 1031 Exchange, offering both tax deferral opportunities and long-term income potential.
CONFIDENTIAL DISCUSSIONS
Qualified investors and operating companies are welcome to explore this opportunity through confidential discussions.