Longview Industrial with Credit Tenants Receives Significant Interest

The two-building industrial facility at 812 and 814 South Eastman Rd. in Longview, TX totals 28,907 square feet and is leased to ADB Companies and S&B Engineers. The property was recently acquired by a private 1031 exchange buyer based in California at a 9.3 percent cap rate. The sale price was not disclosed.

Evan Altemus, associate director of Stan Johnson Company’s Dallas office, represented the private seller out of Tyler, TX.

“It’s becoming increasingly more difficult to find industrial properties with yield in today’s market, so this investment property received significant interest,” said Altemus. “It was a unique situation where the seller wanted to shift more toward single-tenant investments, while the buyer was targeting higher cap rate, value-add industrial assets. The property has two strong credit tenants in place and the ability to generate additional income through value-add possibilities.”

The properties were originally built in 1972 and 1978, but had numerous improvements in recent years. The assets are located on 2.82 acres near U.S. Highway 259 in an industrial and supply area with other tenants including Howard Supply, Daily Electric Motor, Baxter Packaging and Tracker Boats. The site is two hours east of Dallas and one hour west of Shreveport, LA.