The offering at 6229 & 6365 Hwy 59 presents a rare opportunity to acquire a mission-critical industrial asset leased to two established energy and environmental service providers on long-term, triple-net leases. The property encompasses 31,360 SF of improvements on 19.024 acres, strategically located along Highway 59 with excellent regional access for heavy equipment, pipeline logistics, and environmental transportation operations. Although operated as one integrated facility, the property benefits from two separate addresses and demised premises, creating natural diversification within a single investment.
Tenancy consists of Baywater Pipeline at 6229 Hwy 59 (9,560 SF on 4.12 acres) and Louisiana Environmental Transportation (LET) at 6365 Hwy 59 (21,800 SF on 14.9 acres). Both companies are well-established operators serving the Gulf Coast energy sector with specialized infrastructure requirements that are difficult to replicate. Their commitment is evidenced by new lease terms extending to September 2028 and January 2031, respectively, each structured on a NNN basis with 3% annual rent escalations, providing predictable income growth and an inflation hedge.
Current in-place income totals $319,710 NOI, producing an attractive 8.30% cap rate on the $3,850,000 purchase price with embedded upside as escalations take effect. The improvements include four primary buildings with extensive office and shop areas, two covered wash bays, a 10-ton crane, and a fully fenced, stabilized yard capable of heavy laydown and truck circulation—features that are highly functional for the existing tenants and valuable for future users.
The combination of durable industrial infrastructure, creditworthy tenancy tied to essential energy and environmental services, long weighted average lease term, and contractual rent growth positions this asset as a stable, cash-flowing investment with strong residual value and limited management responsibility.