Phase One: Industrial Warehouse Acquisition + NNN Lease Strategy (Southeast Texas)

[Kris Marmol]

We just kicked off Phase One of a long-term industrial real estate play in Southeast Texas and wanted to share some details with the community here.

We’re acquiring a 10.6-acre site that includes an existing industrial warehouse, office, and laydown yard. The property is strategically positioned near major refineries and industrial operations, making it ideal for triple-net leasing.

Phase One Highlights:

• Purchase Price: $2.05M
• Structure: Existing improvements + stabilized land
• Strategy: Lease to regional operator on a NNN basis
• Immediate Cash Flow: Rent begins Day One
• 5-Year Refinance Target: $3M
• Location: Nederland, TX (industrial corridor with strong tenant demand)

We’ve structured the acquisition with a clear 5-year exit, conservative underwriting, and a focus on strong fundamentals over speculation.

I’m open to connecting with others doing similar value-focused industrial deals or structuring lease-first acquisitions before development. Always looking to learn from others in this space — and happy to share what we’re seeing on the ground in Southeast Texas.

Has anyone here worked on similar triple-net lease structures on industrial assets? I’d love to compare notes.

[Don Konipol]

Quote from @Kris Marmol:

We just kicked off Phase One of a long-term industrial real estate play in Southeast Texas and wanted to share some details with the community here.

We’re acquiring a 10.6-acre site that includes an existing industrial warehouse, office, and laydown yard. The property is strategically positioned near major refineries and industrial operations, making it ideal for triple-net leasing.

Phase One Highlights:

• Purchase Price: $2.05M
• Structure: Existing improvements + stabilized land
• Strategy: Lease to regional operator on a NNN basis
• Immediate Cash Flow: Rent begins Day One
• 5-Year Refinance Target: $3M
• Location: Nederland, TX (industrial corridor with strong tenant demand)

We’ve structured the acquisition with a clear 5-year exit, conservative underwriting, and a focus on strong fundamentals over speculation.

I’m open to connecting with others doing similar value-focused industrial deals or structuring lease-first acquisitions before development. Always looking to learn from others in this space — and happy to share what we’re seeing on the ground in Southeast Texas.

Has anyone here worked on similar triple-net lease structures on industrial assets? I’d love to compare notes.

Congratulations -  are you experienced in this type of development or in development in general?  

I’ve always been admiring of people who spend years putting together the numerous aspects of development deals - tying up the land, negotiating financing, selling investors on investing equity, filling the gap with subordinated debt with “equity” kicker, signing letter of intent with tenants, bargaining with contractors, etc.  Some projects take years, bigger ones can take a decade or more.  

I did a couple of smallish development deals about 30 years ago to (1) see if I “liked” doing it and (2) analyze the risk/reward first hand.  My conclusion was that the risk/reward was fine; but I lacked the “temperament” to be happy/successful as a developer.  

My conclusion is that to be successful as a developer one needs a lot more knowledge and ability in more diverse areas than what is needed to be successful as a lender or investor.  That’s why I admire you development guys so much!