Pt NE12-39-3-W4 Provost Alberta T0B 3S0, $2,300,000
Excellent low-management investment with quick financial upside. Quality land and building, a reputed publicly traded long-term tenant, and the steady growth fundamentals of Alberta industrial real estate have created long-term security for this opportunity.
While selling for an astounding 24% below the professionally appraised value, triple net lease rate of $176,857 with the ability to escalate to $270,000-300,000 annually starting January 2011, this property has huge cash potential. Supporting research available upon request, please contact Dean Drysdale or Jeff Sutherland at RE/MAX Commercial (A. Bhanji & Associates) now for further information at 780-429-1200.
Excellent low-management investment with quick financial upside. Quality land and building, a reputed publicly traded long-term tenant, and the steady growth fundamentals of Alberta industrial real estate have created long-term security for this opportunity.
The Upside:
While selling for an astounding 24% below the professionally appraised value, triple net lease rate of $176,857 with the ability to escalate to $270,000-300,000 annually starting January 2011, this property has huge cash potential. Supporting research available upon request, please contact Dean Drysdale or Jeff Sutherland at RE/MAX Commercial (A. Bhanji & Associates) now for further information at 780-429-1200.
Excellent low-management investment with quick financial upside. Quality land and building, a reputed publicly traded long-term tenant, and the steady growth fundamentals of Alberta industrial real estate have created long-term security for this opportunity.
While selling for an astounding 24% below the professionally appraised value, triple net lease rate of $176,857 with the ability to escalate to $270,000-300,000 annually starting January 2011, this property has huge cash potential. Supporting research available upon request, please contact Dean Drysdale or Jeff Sutherland at RE/MAX Commercial (A. Bhanji & Associates) now for further information at 780-429-1200.
The Upside:
While selling for an astounding 24% below the professionally appraised value, triple net lease rate of $176,857 with the ability to escalate to $270,000-300,000 annually starting January 2011, this property has huge cash potential. Supporting research available upon request, please contact Dean Drysdale or Jeff Sutherland at RE/MAX Commercial (A. Bhanji & Associates) now for further information at 780-429-1200.
Property Highlights
- Quick upside based on market fundamentals.
- Completely armchair investment - very low management.
- 17,674 SF on 62.8 Acres
- Strategic location with over 3900 gas & oil wells in the vicinity.
- Publicly traded tenant with strong covenant.
- Potential to be used for a user owner as of Feb. 2011.
Property Description
The Property:
Situated on two parcels of land 37.5 and 25.2 acres respectively is a 15,874 sq. ft. metal and wood frame industrial building developed as an industrial oilfield servicing shop with offices and service areas plus an 1,800 sq. ft. wood frame industrial shop. Gravelled parking and fenced rear compound, approximately 40 acres of spacious improved pipe yard available for use.
The main building was constructed in 2001, with an addition in 2006. The second building was built in 2003. This newer building with low maintenance is just waiting for an investor to scoop it up.
The Tenant:
Mullen is a stable public company who is recognized as the largest provider of specialized transportation and related services to the oil and natural gas industry in western Canada with the reputation as one of the leading suppliers of trucking and logistics services in Canada. Mullen has been a secure long-term tenant in this property since 2004.
The Trucking/Logistics segment offers a diversified range of truckload and less-than-truckload general freight services to customers in Canada, the United States and Mexico. Transporting a wide range of goods including: general freight, specialized commodities such as cable, pipe and steel, over-dimensional loads such as heavy equipment, compressors and over-sized goods, dry bulk commodities such as cement and other dry bulk goods. In addition, the Trucking/Logistics segment also provides logistics, trainload and inter modal services in western Canada.
5,200 employees nationwide, owner operators and dedicated subcontractors are currently employed with Mullen as of December 31, 2008.
Visit www.mullen-group.com for detailed investor information and financial performance.
The Municipality:
Provost is a healthy community of approximately 1,800 people that services a large surrounding rural area. It has all the facilities to serve the community’s needs; including government services, support services for the oil and gas industry, support services for the agricultural industry, multi-levels of education, and quality health care. Provost is located in the Municipal District of Provost No. 52 approximately 290 km southeast of Edmonton and approximately 127 km south of Lloydminster.
The economic base of Provost remains stable and sustainable with agriculture and oil as major industries. The agricultural community of ranching and grain farming surrounding Provost is in one of the exceptional areas of Alberta; major crops grown are wheat, barley and canola with specialty crops showing a steady increase in acreage each year. The oil and gas sector around Provost has been and still is extremely active resulting in all existing industrial serviced lots being developed. The town is presently developing an additional 60 acres of industrial land for planned municipal growth and sustainability.
Provost is an active community with superb long-term potential.
For Sale
$2,300,000
NOI: $176,875
CAP: 7.69
Improvements:
17,674 SF
Land Size:
62.8 Acres on two titles.
Utilities:
Parcel A serviced with electricity, natural gas, telephone, and well water and septic sewer.
2008 Taxes:
$17,074
Zoning:
M - Industrial
Legal for Parcel A:
Plan 0525426, Block 2, Lot 3
Legal for Parcel B:
Pt NE12-39-3-W4
