Still Meadow Industrial Park

Investment Overview

Still Meadow Industrial Park (the “Property”) is a ±114,440-square-foot, multi-tenant small-bay industrial asset strategically located along I-35E in Lancaster, Texas, offering investors a compelling near-term value-add opportunity paired with attractive seller financing. The Property is currently leased at average in-place rents of $5.45/SF (on NNN basis), approximately 45% below verified market comps of $10–$11/SF NNN. With a WALT of less than 12 months, investors have the ability to quickly mark rents to market and drive meaningful NOI growth. This value-add business plan supports a projected 9.16% Year-5 pro forma cap rate and 18.76% cash-on-cash return with the proposed seller financing. Still Meadow is offered at an attractive basis of $117.97/SF, well below replacement cost, and is further enhanced by favorable seller financing at 80% LTV, 5.0% interest, a 10-year term, and 3 years of interest-only payments which significantly improves cash flow and overall returns. The Property benefits from excellent visibility and access with frontage along I-35E, which sees over 98,500 vehicles per day. The surrounding small-bay industrial submarket remains highly constrained, with 1.6% flex vacancy and no new supply expected through 2030, positioning the asset for continued rent growth. Constructed between 1973 and 2013, the Property features a functional small-bay layout with an average suite size of ±4,976 SF, 36 grade-level and 3 dock-high doors, 14’–18’ clear heights, and a concrete parking lot. The 10% office / 90% warehouse finish-out supports a wide range of service-oriented and light industrial tenants. Additionally, the Property is located within a strong and growing demographic corridor, with average household incomes exceeding $98,000 and median home values above $281,000 within a three-mile radius. Overall, Still Meadow Industrial Park offers investors the ability to acquire a well-located asset at a below replacement cost basis with immediate mark-to-market upside, supported by strong submarket fundamentals and seller financing that enhances near-term cash flow and overall returns.

Investment Highlights

• Mark-to-Market Upside: In-place rents of $5.45/SF (on NNN basis) are 45% below market comps of $10–$11/SF NNN, creating a clear path to drive revenue.
• Favorable Seller Financing: 80% LTV, 5.0% interest, 10-year term, 3 years interest-only, and 30-year amortization
• Short-Term Existing Leases: WALT of less than 12 months allows investors to quickly push rents and execute the value-add business plan.
• Strong Returns Profile: 9.16% Year-5 pro forma cap rate and 18.76% cash-on-cash return driven by rental upside.
• Attractive Basis: Priced at $117.97/SF, well below replacement cost and sales comps of similar product.
• Highway Location: Frontage on I-35E with 98,500+ vehicles per day provides strong visibility and access.
• Tight Supply Dynamics: 1.6% flex vacancy with no new supply expected through 2030 supports continued rent growth.
• Functional Small-Bay Layout: ±114,440 SF with ±4,976 SF average suite size, catering to the most active tenant segment.
• Flexible Loading & Access: 36 grade-level and 3 dock-high doors, 14’–18’ clear heights, and a concrete parking lot.
• Low Finish-Out: 10% office / 90% warehouse configuration supports a wide range of users.
• Solid Demographics: $98K+ average household income and $281K+ median home values within 3 miles (CoStar).