2930 9 Avenue North

Opportunity

This investment property features a single, long-term tenant with a strong covenant. The current net income for the property is $687,225, reflecting a capitalization (cap) rate of 7.47% based on the asking price. This net income includes a 5% administration fee. The internal rate of return (IRR) on the asking price is projected at 12.43%, incorporating a $12,000 annual management fee, a 5% vacancy allowance starting in year three, and a 3% capital expense reserve. The financial projections also assume a rental rate increase from $8.50 to $9.50 per square foot in year three, followed by annual increases of 2% for the remainder of the 10-year forecast period. The projected sale price at the end of year ten is calculated using the forecasted income at that time and a 7.5% cap rate.

The building itself features open warehouse space with 14’-18’ ceiling heights, overhead heaters, 600-amp electrical service, and new LED lighting throughout. There are six ground level doors, and five dock loading doors, four of which have levelers. Sections of the yard space are fenced and gated.

Location

Centrally located in the Lethbridge Industrial Park, this investment property has excellent access and exposure to North Lethbridge as well as highways AB-3 and AB-4. This 3.3 acre industrial property boasts multiple access points and excellent connectivity to Alberta’s Export Highway with US Interstate 15 and the future CANAMEX corridor. The subject property is easily accessible for large vehicles and seamlessly accommodates logistical needs. The site is just over an hour drive to the Canada / US Border.