Custom Assembly, Huntsville AL

  • Custom Assembly
  • Custom Assembly
  • Custom Assembly
  • Custom Assembly
  • Custom Assembly

Available $19,643,000 - Industrial
Cap Rate:  6.3%Size:  275,000 SFTerm:  10 Print

Investment Offering & Highlights

  • ​Rent below market
  • ​Price below replacement cost
  • ​Tenant responsible for roof & structure maintenance
  • ​Building & parking expansion potential onsite
  • ​Mazda/Toyota JV constructing a $2.3 billion auto assembly plant in Huntsville
  • ​Huntsville has the 3rd highest pro-rata concentration of engineers in the U.S. behind Silicon Valley and Framingham, MA
  • ​This pool of engineering talent has attracted the following industries, institutes, government agencies and schools and companies to Huntsville
  • ​Industries: Automobile manufacturing, aviation, defense, and biotech
  • ​Companies: Toyota, Mazda / Toyota JV, Polaris, Lockheed Martin, Northrop Grumman, GE Aviation, Boeing, Redstone Arsenal, NASA, and HudsonAlpha Institute
  • ​Universities: The University of Alabama at Huntsville and the Auburn University Huntsville Research Center

Property Description

Cushman & Wakefield’s Net Lease Group have been exclusively retained to offer for sale the 275,000 sq.​ ft.​ Custom Assembly, Inc.​ Warehouse Building on a 26.0+/- acre site in Huntsville, Alabama.​ The property is fully leased long term to Custom Assembly, Inc.​ a subsidiary of Power 3PL.​ The Custom Assembly lease features a new 10-year lease upon the closing of the sale, with 2% annual increases throughout the primary term and at the start of each of the two 5-year renewal options.​ The tenant is responsible for all operating expenses including utilities, property taxes, insurance and maintenance – roof, building, structure, building interior and exterior, HVAC, paving and landscaping.​ This offering is a rare opportunity to acquire a well located warehouse/distribution building at below market rent and price below replacement cost.​

Custom Assembly uses the 237 Laracy building to store new Polaris ATV vehicles manufactured by Polaris at its Huntsville assembly plant, which is located 7 miles west of the subject property.​ The ATVs stored at the subject property are eventually distributed to dealers.​ Approximately 40,000 sq.​ ft.​ of office and warehouse space in the subject property is used to add accessories to new Polaris Ranger vehicles per a government contract.​

Please use the following link to access the full OM: https://www.crexi.com/properties/524357/alabama-custom-assembly

  • Offering Memorandum

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