SOUTHEAST AUSTIN PRIME NNN 1031 INDUSTRIAL
DWG Capital Group presents a SIGNIFICANTLY REPRICED industrial investment opportunity in East Austin, Texas. The two-building, 10,500 SF property is offered at $2,313,578, representing a 6.50% CAP RATE on current NOI of $150,383.
Austin Iron is a SEASONED TENANT that has operated at this location for approximately 10 years. The tenant has recently invested significant infrastructure and equipment into the site, reinforcing a STICKY TENANCY profile with meaningful relocation friction.
The property sits in a strong East Austin redevelopment corridor, directly across from a NEW INDUSTRIAL PARK and near recently delivered CLASS A MULTIFAMILY, with direct access to Highway 290 and the broader Austin metro.
Austin Iron has experienced STRONG TENANT GROWTH, with sales more than doubling and a strong backlog and forward pipeline.
Current rent remains SIGNIFICANTLY BELOW MARKET, with comparable industrial rents in the area exceeding $15.50/SF NNN, creating meaningful EMBEDDED RENTAL UPSIDE over time.
INVESTMENT HIGHLIGHTS
Purchase Price: $2,313,578
Cap Rate: 6.50%
NOI: $150,383
Building Size: 10,500 SF
Purchase Price/SF: $220.34/SF
Current Rent: $12,531.88/month
Annual Rent: $150,382.58
Rent Escalations: 3% annually
SEASONED TENANT: Approximately 10 years at the location
HEAVY INFRASTRUCTURE: Significant tenant investment in equipment and site-specific improvements
STICKY TENANCY: Specialized infrastructure, established operations and long tenure create meaningful relocation friction
SIGNIFICANT PRICE IMPROVEMENT: Repriced from a 6.00% cap to a 6.50% cap
BELOW-MARKET RENT: Current rent remains materially below prevailing East Austin industrial rents
REDEVELOPMENT CORRIDOR: Across from new industrial development and near Class A multifamily growth
SUPERIOR 1031 OPPORTUNITY: Attractive sub-$2.5 million transaction size with contractual income, annual rent growth and embedded upside in one of Texas’ strongest industrial markets
OPPORTUNITY
A SUPERIOR 1031 EXCHANGE OPPORTUNITY combining a long-standing tenant, below-market rent, 3% annual escalations, heavy infrastructure, sticky tenancy and meaningful future rental upside.
The current pricing creates a compelling entry basis for investors seeking CURRENT INCOME, CONTRACTUAL RENT GROWTH and LONG-TERM APPRECIATION POTENTIAL.