Sale IndustrialInvestment
2700 Girard Blvd NE, 2704-2708 Girard Blvd NE, Albuquerque, NM 87107
- $6.3M
- 54,000 SF building
- 2 ac
This offering presents an opportunity to acquire a 54,000-square-foot, two-building industrial portfolio combining durable in-place income with value creation and owner-user flexibility. Offered at $6,250,000, the property provides investors with an established income-producing asset alongside a second building positioned for lease-up, occupancy, or future repositioning.2700 GirardThe cornerstone of the investment is 2700 Girard Blvd NE, a 40,000-square-foot industrial facility leased to Johnstone Supply, The Balsan Group, dba Johnstone Supply, an established HVAC/R distributor affiliated with the nationally recognized brand. The initial lease extends through February 2036 and includes two additional five- year extension options, providing long-term income and the potential for continued occupancy. At the offering price allocation, the Johnstone Supply building is valued at a 7.0% capitalization rate.2704 - 2708 GirardThe adjacent 2704–2708 Girard Blvd NE consists of one to four suites, totaling approximately 14,000 square feet and will delivered vacant. Valued at approximately $130 per square foot, this building creates a compelling value-add component within the offering. A new owner can pursue lease-up to generate additional NOI and enhance overall investment returns, or an owner-user can occupy the building while benefiting from the income generated by the adjacent Johnstone Supply tenancy. Property HighlightsSTABLE NATIONALLY KNOWN TENANTJohnstone Supply, The Baslan Group is a privately held, family-owned HVAC/R distribution company headquartered in Downingtown, Pennsylvania. Founded in 1995 with a single Johnstone Supply location in Pennsylvania, the company has expanded through organic growth and acquisitions to 22 locations across seven states, including Pennsylvania, Maryland, New York, Massachusetts, Maine, New Hampshire and Vermont.PREDICTABLE INCOME. MINIMAL MANAGEMENT.NNN lease structure designed to provide predictable cash flow with minimal ownership responsibilities. Under the lease, the tenant is responsible for the majority of property operating expenses and maintenance obligations, with the landlord retaining responsibility for roof maintenance and very limited parking lot maintenance.BUILT-IN INCOME GROWTHThe lease provides 3% annual rent escalations throughout the remaining initial term, creating consistent contractual NOI growth without requiring additional capital investment or lease negotiations. These annual increases compound to help offset inflation while allowing ownership to benefit from steadily increasing cash flow through February 2036.INCOME TODAY, UPSIDE TOMORROWThe offering combines the security of immediate, long-term income from 2700 Girard Blvd NE with a clear path to additional value creation. With 2704–2708 Girard Blvd NE vacant, a new owner has the opportunity to lease the 14,000 SF building to one or up to four tenants and capture additional NOI, potentially increasing both portfolio cash flow and overall asset value.LONG-TERM EXTENSION POTENTIALThe tenant holds two additional five-year extension options, providing the potential to extend occupancy for up to 10 years beyond the initial lease term. Importantly, the lease maintains 3% annual rent escalations during the option periods, allowing rental income to continue growing throughout an extended tenancy and providing ownership with additional long-term income potential.DUE DILIGENCE THAT INSPIRES CONFIDENCESignificant environmental and structural due diligence has already been completed, providing prospective purchasers with greater clarity regarding two common areas of concern for industrial properties of this vintage. A Phase II Environmental Site Assessment completed in 2024 resulted in no actionable recommendations. Additionally, given the potential for settlement among buildings of similar age in the surrounding area, the property has undergone a structural evaluation in 2021 which reported no foundation movement, providing additional confidence in the building’s structural performance and potentially reducing uncertainty during purchaser due diligence.
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