Description

Jones Lang LaSalle America, Inc. (“JLL”) has been exclusively retained by ownership as the sales representative for 6450 Trippel Road, also known as “the Property” – a Class A, cross-dock, multi-tenant distribution facility totaling 342,160 square feet located in Mobile, Alabama. The Property features institutional-quality specifications including 36′ minimum clear height, 150′ truck court with 75’ concrete aprons, 60 dock-high doors, and is partially HVAC’d. The Property, excluding the master lease, is 91% leased to three tenants – Metalrays, Diakon, and Havertys Furniture –with a 4.2-year WALT and average annual escalations of 3.1%. The Offering further presents a dual-upside opportunity via meaningful mark-to-market upside of 24.1%, complemented by a master lease covering the 31,950 SF vacant suite through August 2027, providing immediate income stability during lease-up. The facility is strategically positioned along Interstate 10, one of Mobile’s major logistical thoroughfares, offering direct access to the Port of Mobile, located only 13 miles away, and the broader Gulf Coast region.

The Property provides investors with the unique opportunity to acquire an asset with strong upside via vacant lease-up potential with stabilized asset economics in one of the most well-positioned distribution locations in the market. The Port of Mobile is one of the most efficient and accessible ports in the nation and the deepest port in the Gulf. Highlighted by 93% TEU growth over the last decade, the Port of Mobile is the 2nd fastest growing terminal in the country and requires significant expansion of the industrial base to service the Port. The Mobile industrial market boasts a healthy vacancy rate of 7.3%, which is even further compressed to 3.9% for comparable Class A buildings, and remains a historically tight market with zero new spec development underway and substantial tenant demand driven primarily by port-related users.

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Attributes

Building area net

31,788 sm

Year built

2008

Occupancy

91%

WALT

4.2

MTM

24.1%

Media

Investment highlights

Strategic Location:

The Property is strategically located directly off I-10, one of the busiest east-west highways in the country, offering premier connectivity to the Port of Mobile with convenient access to I-65 and, by extension, the broader Southeast United States
Located in a high demand industrial corridor on the west side of Mobile, the Property is surrounded by investment grade tenants such as Amazon, FedEx, Airbus, and Walmart (2.5M SF distribution center) along with other nationally-recognized tenants such as Office Depot (dba Veyer LLC) underscoring the institutional quality and desirability of the submarket

Master Lease Credit:

$353,045 master lease credit covering the 31,950 SF vacant suite at $9.25 PSF for 12 months
Delivers full NNN economics on the vacant suite, ensuring no NOI erosion attributable to the vacancy
Achieves full economic occupancy from day one, providing a guaranteed income backstop and de-risking the lease-up process
Enhances debt terms by improving loan sizing, reducing debt costs, and maximizing buyer leverage at origination
Preserves Year 1 distributable income by delivering uninterrupted cash flow without dependence on new tenant execution

Institutional Quality Class A Building:

The Property was constructed in 2008 as a spec development targeting high-quality users heavily reliant on port activity. As such, the facility features institutional-grade specifications including an ESFR sprinkler system, 800 amps/277V 3-phase power, an expansive 150' truck court, 36' clear height, and a cross-dock loading configuration with 62’ speed bays
Class A buildings remain in high demand among users in the Mobile market with 3.9% Class A market vacancy and 217k SF absorbed over the past 12 months with only two quarters of negative net absorption since 2023

Stabilized Cash Flow with Additional Upside Potential:

91% occupied by three tenants with 4.2 years of WALT, the Property offers reliable cash flow to a prospective owner with 3.1% weighted average annual escalations while NNN leases limit landlord responsibilities
Single vacant unit (31,950 SF) offers upside potential while 12-month master lease provides cash flow stability through lease-up
The Property’s 24.1% mark-to-market spread, expanding to 27.2% at lease expiration, represents significant embedded upside

Strong Market with Demand Tailwinds:

The broader Mobile market boasts a healthy vacancy rate of 7.3% with most of this vacancy concentrated in older, functionally obsolete Class C product
Demand is anchored by the Port of Mobile, the second fastest growing terminal in the country with 93% TEU growth over the last decade. Following the completion of a $366 million deepening and widening project, it is also the deepest port on the Gulf Coast. An ongoing $131 million berth expansion plus construction of a new CSX-served inland intermodal terminal in Montgomery are expected to drive further growth at the Port, which will further strengthen tenant demand
Additional demand driven by the manufacturing sector with firms such as Airbus, ArcelorMittal, Austal and Novelis all operating large facilities in the market
Approximately 25% of Mobile’s industrial market is located east of the Mobile Bay, making it suboptimal for tenants utilizing the port, intermodal terminal, or airport due to frequent traffic congestion on the bridge and causeway