Phase One: Industrial Warehouse Acquisition + NNN Lease Strategy (Southeast Texas)
Kris MarmolPro Member
Developer · Concord, CA · Member since 2019 · 89 posts · 19 votesPhase One: Industrial Warehouse Acquisition + NNN Lease Strategy (Southeast Texas)
Most Popular Reply
Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesQuote 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.
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!
3 Replies
- 1yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
that sounds like a great plan. That area still has cheap land!
What types of buildings? dock or grade load? Any yard paved?
I own industrial net leased assets in DFW.
- 1yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesCongratulations - are you experienced in this type of development or in development in general?
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.
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! - 1yMichael K GallagherBusiness MemberReal Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
@Kris Marmol very cool project, sounds like a great way to go about it. I've had experience doing tenant rep in the industrial and warehouse space. not sure if its helpful for your planning/designs......
We generally need a mix of grade and dock doors, need 18'clears, must have fire suppression (doing flooring and carpet distribution usually) and generally need little to no office. this is obviously just one example of something a tenant could be looking for but this tenant is a national warehouse user so its likely a decent representation for that "flooring distribution" model.
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