Executive SummEXECUTIVE 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
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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.
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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%
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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.
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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.
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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.
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We continue to looking forward to find a long-term rental companies willing to sign contracts for 5 to 10 years.