FOR SALE
INVESTMENT OPPORTUNITY6430 SOUTH 39TH WEST AVENUETULSA, OKLAHOMA 74132
www.cbre.us/tulsa
PROPERTY FEATURES
+ 31,312± SF, which includes 7,496± SF Office*
+ 3.35 Acres
+ 11’ to 19’6 Clear Height
+ Three Overhead Doors
− 2 - 12’ x 10’
− 1 - 14’ x 12’
+ Two 8’ x 8’ Dock Doors
+ Fully Climate Controlled
+ Nice Office Finishes
*Source: Owner
SITE
THE SUMMARY
THE OFFERING
CBRE is pleased to present this investment opportunity for consideration. Clock Springs lease expires January 31, 2025 allowing an investor to realize monthly cash flow.
PROPERTY OVERVIEW
This 31,312± square foot single tenant property is situated on 3.35 acres. The property is fully climate controlled and features 600 AMP/480 Volt/3 Phase Power. The shop area has up to 19’6 clear height, new LED Lighting, 2 dock and 3 drive in doors. The building is well constructed and features nice office finishes, ample parking and room to expand. In 2017, the office area was expanded and a warehouse addition was added, providing more space for the occupier.
FOR SALEINVESTMENT OPPORTUNITY
NOI
Year 1 $162,000
Year 2 Year 1 Rate + CPI
Year 3 Year 2 Rate + CPI
Year 4 Year 3 Rate + CPI
Year 5 Year 4 Rate + CPI
Year 6 Year 5 Rate + CPI
Year 7 Year 6 Rate + CPI
LOCATION OVERVIEW
Located in the West Tulsa Submarket, the property is in a strong industrial market and is surrounded by a variety of light manufacturing and other industrial uses. The building is well suited for a range of users that want to be close to a solid workforce and close to amenities. The property sits in close proximity to both Interstate 44 and Highway 75 and is just moments away from Downtown Tulsa.
SALE PRICE
ESTIMATED NOI
$1,700,000
$102,000
9.5% CAP
6430 S 39TH W AVETULSA, OKLAHOMA 74132
PROPERTY LOCATION
W 61st St S
S 41st W
Ave
S 39th
W A
ve
W 63rd St S
SITE
FOR SALEINVESTMENT OPPORTUNITY
They are the industry leader in the development, manufacturing and marketing of state-of-the-art pipe repair, com-posite pipe repair, corrosion protection, and reinforcement technologies. Their quality engineered solutions have been used by major companies, engineers, distributors, contractors, municipalities, and the military worldwide. The extensive product portfolio serves a broad range of markets including construction, industrial, marine, military, min-ing, municipalities, offshore, oil and gas distribution and transmission, and refining and petrochemical.
The products are designed to provide structural reinforcement, leak repair, and corrosion prevention for pipelines and industrial pipe-works. Clock Spring Company, Inc.’s products are endorsed by peer review and third party testing.
When a pipe is in need of repair or reinforcement, choose a Clock Spring® product to achieve the best fit. Clock Spring® repairs are stronger than the original pipe, allowing you to perform at your original Maximum Allowable Operating Pressure (MAOP).
Clock Spring® products are easy to intall, cost effective to deply, and durable for decades.
Their installations provide no risk to the environment and no costly downtime because no cutting or welding is re-quired for the install of any of our products and pipeline operations continue while we make the needed reinforce-ments or repairs. A typical install takes about 30 minutes, with full cure after two hours, allowing overwrapping and backfilling in the same day. This dramatically reduces open-ditch time, providing added safety benefits for people and assets.
ABOUT CLOCK SPRINGS
6430 S 39TH W AVETULSA, OKLAHOMA 74132
BOOST IN INDUSTRIAL SECTOR, TOTAL EMPLOYMENT
Industrial employment continues to experience sustained growth. According to the Bureau of Labor Statistics, Tulsa accounted for 4,300 of the 13,000 jobs added September year-over-year to Oklahoma industrial employment. Mining and logging em-ployment registered year-over-year growth of 9.1%, the largest growth among both industrial and service sectors employment. The manufacturing sector also saw gains with a year-over-year increase of 5.2%. Tulsa month-over-month total nonfarm em-ployment growth was only slightly higher than state-wide growth. With a year-over-year increase of 3.1%, Tulsa nonfarm employ-ment outpaced state-wide growth by 110 basis points (bps).
ABSORPTION IN THE RED, MARKET REMAINS ACTIVE
Compared to the previous quarter, the Q3 2018 market-wide vacancy rate increased by 40 bps. The East, North, and West submarkets also saw vacancy rate increases. The West submar-ket posted the largest increase, 150 bps, due to a handful of new vacancies, one of which was nearly 190,000 sq. ft. Activity during Q3 2018 was driven mainly by the East submarket, reg-istering 45 transactions and 222,000 sq. ft. of gross absorption. While the North submarket had only eight transaction during the
quarter, they were among the markets largest and totaled just over 212,000 sq. ft. The Tulsa industrial market saw 58 transac-tions and 614,000 sq. ft. of gross absorption.
MAJOR CONSTRUCTION PROJECT STARTS
Space under construction rose significantly quarter over quarter with the start of a four-story distribution building totaling 2.56 million sq. ft. in the East submarket. The project is expected to be completed by Q3 2019. The quarter saw one project delivery, avacant 35,000 sq. ft. flex building. The majority of space cur-rently under construction will likely be delivered in late 2018 or early 2019. Six other projects, five speculative (spec) totaling 261,648 sq. ft. and a 170,500 sq. ft. build-to-suit, remained under construction at the close of Q3 2018. Two of the under construction specs, one of which is a fully pre-leased 28,000 sq. ft. warehouse, are near completion and expected to be delivered in Q4 2018.
TULSA INDUSTRIAL OVERVIEW
TULSA MARKET OVERVIEWTulsa has a colorful and prominent history, starting with the oil boom in the early 1900s that brought
oil barons to the city, being the birthplace of Route 66 and its now deep roots in aerospace. Oil was
discovered just south of Tulsa in 1905 at the Glenn Pool. At one time, Tulsa was the largest oil-producing
center globally with more than 400 oil companies calling Tulsa home and the moniker of “Oil Capital of
the World” was given to the city.
Since that time, many other industries have found success in Tulsa: manufacturing, aerospace and
transportation, to name a few. Because of the area’s low cost of doing business (12% below national
average) and skilled workforce, Tulsa is an ideal location for business growth with many diverse, profitable
industries and an ever-expanding array of living and entertainment opportunities.
TULSA’S EMPLOYMENT/EMPLOYER OVERVIEW
The Tulsa MSA comprises seven counties: Creek, Okmulgee, Osage, Pawnee, Rogers, Tulsa and
Wagoner, whose aggregate population is estimated to be 981,005 and the CMSA (includes the addition
of Washington county) is estimated to be 1,151,172 as of 2015. The gross product or value of all goods
and services produced in the seven-county MSA is estimated to be $45.8 billion as of 2017. Tulsa is
centrally located in the United States with a transportation system that makes it remarkably connected to
the rest of the world. Some of the nation’s largest companies in key industry sectors including aerospace,
energy, healthcare, technology, manufacturing and transportation make their home in Tulsa because of
its location, pro-business environment and insulation from many effects of the recent national recession.
FOR SALEINVESTMENT OPPORTUNITY
INDUSTRY DIVERSIFICATIONTULSA EMPLOYMENT CHART
20%
16%
13.7%12.2%
10.4%
10%
5.4%
5.2%
1.2%4.1%
1.7%
Trade, Transportation and Utilities
Education and Health Services
Professional and Business Services
Government
Manufacturing
Leisure and Hospitality
Construction
Financial Activities
Other Services
Information
Mining and Logging
In 2017 Tulsa was ranked 29th in the nation among all large
cities for having the highest employment diversity. (WalletHub)
6430 S 39TH W AVETULSA, OKLAHOMA 74132
TULSA’S EMPLOYMENT/EMPLOYER OVERVIEW (CONTINUED)
The Tulsa MSA comprises seven counties: Creek, Okmulgee, Osage, Pawnee, Rogers, Tulsa and Wagoner,
whose aggregate population is estimated to be 981,005 and the CMSA (includes the addition of Washington
county) is estimated to be 1,151,172 as of 2015. The gross product or value of all goods and services produced
in the seven-county MSA is estimated to be $45.8 billion as of 2017. Tulsa is centrally located in the United States
with a transportation system that makes it remarkably connected to the rest of the world. Some of the nation’s
largest companies in key industry sectors including aerospace, energy, healthcare, technology, manufacturing
and transportation make their home in Tulsa because of its location, pro-business environment and insulation
from many effects of the recent national recession.
Tulsa’s major industries include aerospace, healthcare, energy, machinery and electrical equipment manufacturing
and transportation. Over 70 aerospace companies employ more than 14,000 in Tulsa, making the region a
leader in North America. The American Airlines Maintenance Repair and Overhaul Division has called Tulsa
home for over 70 years and is Tulsa’s largest employer. American Airlines’ 3.3 million square-foot Maintenance
& Engineering Center is the largest of its kind in the world. Besides maintaining its own fleet, American solicits
third-party aircraft maintenance and recently completed construction on a new $9.8 million, 81,400 square-foot,
wide-body aircraft hangar at Tulsa International Airport. NORDAM is another major aerospace employer that
has been headquartered in Tulsa since 1969. NORDAM is a leader in aircraft component manufacturing and
repair services for clients worldwide with facilities also in Singapore and the United Kingdom.
The energy industry continues to be a major employment sector in Tulsa as well with three Fortune 500 companies
and an additional four on the Fortune 1000 list call Tulsa their headquarters. ONEOK, a Fortune 500 company
headquartered in Tulsa, is a leader in gathering, processing, storage and transportation of natural gas in the
U.S. They are also one of the nation’s largest distributors of natural gas serving more than two million customers
in the Midwest. Highlights of recent growth in Tulsa/Northeast Oklahoma include the establishment of Word
Industries and Borets-Weatherford’s North American headquarters, plus expansions of MidStates Petroleum,
Baker Hughes and Cimarex. Other major energy companies in Tulsa include Williams Cos., Helmerich & Payne,
Magellan Midstream, NGL Energy and HollyFrontier Corporation. Examples of Tulsa’s growing alternative
energy sector include Blue Energy Fuels, a designer/builder of CNG fueling stations. Over 400 large and small
companies in the Tulsa area adds an additional 10,000 plus jobs to the regional economy.
Healthcare has become one of Tulsa’s major growth sectors with more than nine major medical facilities providing
state-of-the-art services for northeast Oklahoma as well as portions of surrounding states. Tulsa is also home
to two medical schools – The University of Oklahoma’s College of Medicine and The Oklahoma State University
College of Osteopathic Medicine. Tulsa is also home to one of five locations for the Cancer Treatment Centers of
America and local St. John’s Medical system was awarded partnerships with MD Anderson Cancer Center and
St. Francis with St. Jude’s Children’s hospital for cancer treatment, making the region a growing destination for
medical treatment.
www.cbre.us/tulsa
© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.
CONTACT US
DWAYNE FLYNN, SIOR, CCIMFirst Vice President+1 918 392 [email protected]
RYAN SHAFFER, CCIMFirst Vice President+1 918 392 [email protected]
FOR SALE
INVESTMENT OPPORTUNITY6430 S 39THE W AVETULSA, OKLAHOMA 74132
CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
