601 Tuscaloosa Ave - Warehouse FOR SALE


Gadsden, AL 35901
$21,990,000 USD
714-618-3223
601 Tuscaloosa Ave, Gadsden, AL for Sale
$21,990,000 USD
Warehouse - FOR SALE
1/25
null | 7.79% Cap Rate

Jan '27


601 Tuscaloosa Ave
Gadsden, AL 35901


HIGHLIGHTS

  • Borders Tennessee (North) & Georgia (East) • 5.5 hrs / 365 miles to Port of Savannah | 3.5 hrs / / 295 miles to Port of Mobile
  • The facility recently upgraded for using storage by big logistics company.
  • Strategic buyers already showing interest, including Thyssenkrupp and TAKKION
  • Active Solar logistics, $0.35/monthly($4.20/sf/year), Cap rate 8.33%
  • Owner to provide flexible owner-financed purchase options, 30% down payment with remaining financed 70% at 4.5% fixed annual interest, for 25 years
  • Qualified buyers may access pre-arranged with up to 75% LTV , fixed rates in the mid-6% range, no balloon payment, and targeted 45–60 day closing

OVERVIEW

EXECUTIVE SUMMARY Property: 601 Tuscaloosa Ave, Gadsden, AL Property Type: Industrial / Warehouse Building Size: ±408,000 SF Offering Price: $21,990,000 Cap Rate: ~8.0% In-Place Investment Profile: High Yield + Below-Market Financing + Significant Upside Potential ____ INVESTMENT HIGHLIGHTS • Strong In-Place Cash Flow Current annual NOI of approximately $1.75M provides immediate stable income from day one. • Exceptional IRR Potential Combination of below-market acquisition basis, rental upside, and attractive seller financing creates a highly leveraged return profile for investors. • Below-Market Rental Rates Current rents are estimated to be 25%–30% below prevailing market rates, offering meaningful mark-to-market upside upon lease renewal or repositioning. • Short-Term Lease Creates Value-Add Opportunity Current lease structure of 3 years plus renewal option provides flexibility to significantly increase rental income and asset value over the near term. • Attractive SELLER Financing Available Rare opportunity to secure financing substantially below current market interest rates: — 30% Down Payment — 4.5% Interest Rate — 25-Year Amortization — Flexible Structure This financing structure dramatically improves cash-on-cash returns and overall investor IRR. • Institutional-Scale Industrial Asset ±408,000 SF facility offers scale highly attractive to institutional investors, private equity groups, REITs, and 1031 exchange buyers. • Strategic Industrial Location Located within Northeast Alabama’s expanding industrial and logistics corridor, benefiting from ongoing manufacturing and distribution growth throughout the Southeast. ——- FINANCIAL OVERVIEW Current Rental Rate: Approximately $4.20 / SF / Year Annual Gross Income: Approximately $1,713,600 Lease Structure: 3 Years Remaining + Renewal Option Potential extension flexibility up to 5 years. Current NOI: Approximately $1.75M Cap Rate (As-Is): ~8.0% —— PRO FORMA UPSIDE POTENTIAL Estimated Market Rent: $5.50 – $6.00 / SF Projected NOI: Approximately $2.2M – $2.4M Potential Future Cap Rate on Cost: 10%+ Potential Estimated Value Creation: Substantial upside through future lease restructuring and rental rate normalization. ___ WHY THIS DEAL STANDS OUT In today’s higher interest rate environment, opportunities combining: • Immediate 8% cash yield • Below-market seller financing • Institutional-scale industrial product • Short-term value-add potential • Future NOI growth • Strong leveraged IRR profile are increasingly difficult to find. This offering presents a rare opportunity to acquire a large-scale industrial asset with stable current income, future rental upside, and financing terms that materially enhance investor returns. Ideal for: • 1031 Exchange Buyers • Private Equity Investors • Family Offices • Industrial Owner-Users • Yield-Oriented Investors Seeking Inflation Protection Confidentiality Agreement Required For Additional Financial & Property Information. —— 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. A large industrial facilities of this scale remain limited in many secondary markets, which enhances the long-term value potential of the asset. This pricing allows investors to acquire a stabilized industrial asset with strong income potential while maintaining a substantial margin relative to replacement value. Insurance underwriting estimates the replacement value at over $27.8 million. Significant Recent Improvements More than $4-5 million invested between 2024 and 2026 in structural and operational upgrades. 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. 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 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. STRATEGIC LOGISTICS AND DISTRIBUTION LOCATION Positioned to support regional transportation and logistics networks. IDEAL FOR RENEWABLE ENERGY LOGISTICS OPERATIONS Suitable for companies supporting solar field, wind energy, renewable infrastructure, and technical service operations. LARGE EQUIPMENT STORAGE AND STAGING CAPACITY Ample space for storing specialized equipment, maintenance tools, and operational assets. SUPPORT FOR FIELD TECHNICIAN NETWORKS Infrastructure capable of supporting field technicians, training coordination, and equipment preparation. SUITABLE FOR O&M AND INDUSTRIAL SERVICE OPERATIONS, REGIONAL DISTRIBUTION AND SERVICE HUB POTENTIAL Capable of functioning as a central hub for regional logistics.CONFIDENTIAL DISCUSSIONS Qualified investors and operating companies are welcome to explore this opportunity through confidential discussions.

FOR SALE DETAILS

PRICE

$21,990,000 USD

PRICE/SF

$54 USD /SF

CAP RATE

7.79%

% LEASED

-

TENANCY

Multiple

SALE TYPE

Investment Or Owner User

BUILDING DETAILS

PROPERTY TYPE

Industrial

PROPERTY SUBTYPE

Warehouse

TOTAL BUILDING SIZE

-

STORIES

1

YEAR BUILT

1952

UTILITIES

Gas - Natural, Water - City, Sewer - City, Heating - Gas

CLEAR CEILING HT

14 Ft

DOCKS

31

DRIVE INS

1

PARKING SPACES

70

LAND DETAILS

LAND ACRES

17

LAND SF

740,520

ZONING

Industrial

APN/PARCEL ID

15-02-04-1-000-007.000

ASK ABOUT THIS PROPERTY

Shu LiSiares Property LLCMore Info
714-618-3223

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.

Shu LiSiares Property LLCMore Info
714-618-3223

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.