Property Overview
Building Size
14,170 SF
Lot Size
1.20 AC · Fully Fenced
Asking Price
$4,150,000
Year Built / Roof
1989 / New 2024
Construction
Masonry / CBS
Power Supply
3-Phase ✓
Zoning
IL — Limited Industrial ✓
Clear Height
16 Ft — Clear Span
Drive-In Bays
8 Roll-Up Doors
Parking
24 Paved Spaces
Parcel ID
56-43-42-32-24-000-0070
Subdivision
Futura Industrial Sub
Investment Thesis
Freestanding, clear-span 8-bay industrial building on a fully fenced 1.2-acre site in Riviera Beach's supply-constrained industrial corridor — steps from the Port of Palm Beach. The seller will execute a full-building NNN leaseback at $18.00/SF for up to 12 months, providing immediate cash flow from Day 1. Upon vacancy, the asset transitions to a stabilized multi-tenant NNN strategy: 8 individual bays on 3–5-year leases at $21.00/SF with 3% annual bumps — a conservative rate well below the $23.44/SF submarket average. Three-phase power, 16-ft clear span, brand-new polymer roof, and 24 parking spaces make every bay broadly leaseable across a deep tenant pool.
Lease Rate Market Comparables — Riviera Beach / WPB Industrial
| Property | Size | Rate NNN | Notes | Source |
|---|---|---|---|---|
| 859 W 13th Ct — Subject Property Leaseback $18.00 · Multi-tenant $21.00+ |
14,170 SF | $18–$22/SF/yr | 8-bay, 16-ft, fenced, new roof, 3Ø | Subject |
| Bay 4 — Subject (Active Listing) 859 W 13th Ct, Riviera Beach |
6,000 SF | $18.00/SF/yr | 2 roll-ups, office, fenced yard | LoopNet |
| 3750 Prospect Ave Riviera Beach, FL 33404 |
21,590 SF | $17.00/SF/yr | Larger block; lower rate per SF | LoopNet |
| 3825 Investment Ln West Palm Beach, FL 33404 |
1,300–3,400 SF | $19.00/SF/yr | Small-bay flex/industrial, 1985 build | CityFeet |
| 1335 Old Dixie Hwy Lake Park, FL 33403 |
1,400–2,800 SF | $20–$22/SF/yr | 2007 build, small bay, premium rate | CityFeet |
| Riviera Beach Market Average 93 active listings (LoopNet, current) |
Avg 8,615 SF | $21.00/SF/yr | All industrial classes, avg asking rate | Market |
| Riviera Beach CommercialCafe Average All classes, current listings |
Various sizes | $23.44/SF/yr | All sizes & classes combined | Market |
| Port Access Zone Range PalmBeachWarehouses.com, Feb 2026 |
All sizes | $18–$24/SF/yr | NNN, Class B–C, full range | Market |
Comp Conclusion
NNN rents in Riviera Beach range $18–$24/SF. Small-bay industrial (<2,000 SF) commands a premium of $20–$22/SF due to chronic undersupply of this product type. Our underwriting uses $18.00/SF for the Year 1 seller leaseback and $21.00/SF as the Year 2 multi-tenant base rate escalating 3% annually — a conservative posture well below the $23.44 submarket average.
5-Year Pro Forma — NNN Rent Roll & Cash Flow
NNN lease structure: tenants pay real estate taxes, property insurance, and CAM directly. Ownership costs (property management 7%, leasing commissions 6%, project management) are shown as owner-side OpEx below gross revenue. NOI is pre-debt-service. All figures annual.
| Line Item | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Phase | Leaseback | Transition | Stabilized | Stabilized | Stabilized |
| Avg Lease Rate / SF (NNN) | $18.00 | $21.00 | $21.63 | $22.28 | $22.95 |
| Effective Occupancy | 100% | 72% | 93% | 95% | 95% |
| Gross Revenue | |||||
| Full-Building NNN Base Rent (Leaseback) | $255,060 | — | — | — | — |
| Multi-Tenant Bay Rents (8 bays) | — | $213,624 | $284,825 | $299,783 | $308,777 |
| Effective Gross Income (EGI) | $255,060 | $213,624 | $284,825 | $299,783 | $308,777 |
| Ownership OpEx (owner-side — not tenant NNN passthroughs) | |||||
| Property Management — 7% of EGI | ($17,854) | ($14,954) | ($19,938) | ($20,985) | ($21,614) |
| Leasing Commission — 6% of Full Lease Term | — | ($53,563) | — | — | ($58,499) |
| Project Mgmt / TI Coordination (est.) | — | ($35,000) | — | — | — |
| Admin / Reserve — 0.5% of EGI | ($1,275) | ($1,068) | ($1,424) | ($1,499) | ($1,544) |
| Total Ownership OpEx | ($19,129) | ($104,585) | ($21,362) | ($22,484) | ($81,657) |
| Net Operating Income (NOI) | $235,931 | $109,039 | $263,463 | $277,299 | $227,120 |
| Cap Rate — $4.15M Asking / $3.70M LOI | 5.7% / 6.4% | 2.6% / 2.9% | 6.3% / 7.1% | 6.7% / 7.5% | 5.5% / 6.1% |
5-Yr Cumulative NOI
$1,112,852
After all ownership costs incl. 6% leasing
Avg Annual NOI (Yr 3–5)
$255,961
Stabilized run rate
Peak Cap Rate @ $3.7M LOI
7.5%
Year 4 · $22.28/SF · 95% occ.
Year 2 Transition Note — Leasing Commission
Year 2 NOI is reduced by the lease-up cost structure: leasing commissions of $53,563 (6% of total 3-year lease term value for all 8 bays) plus project management / TI coordination of $35,000 are recognized in Year 2 at signing. Commission is calculated on the full contracted lease term value — 14,170 SF × $21.00/SF × 3 years × 6% — consistent with standard commercial leasing practice in Florida. Year 5 shows a renewal commission of $58,499 as 3-year leases expire and new terms are executed at prevailing market rates. Years 3 and 4 carry only recurring property management and reserve costs, generating the highest unencumbered NOI in the hold period.
Bay Rent Escalation Schedule — 3% Annual Bumps
Recommended lease term: 3–5 years NNN with 3% fixed annual rent escalations. Per-bay rates based on average bay size of ±1,771 SF (14,170 SF ÷ 8). All rents NNN — tenants pay taxes, insurance, and CAM. Rates shown are starting base rents; 3% applies each lease anniversary.
| Bay | ±SF | Start Rate | Mo. Yr 1 | Mo. Yr 2 +3% | Mo. Yr 3 +3% | Mo. Yr 4 +3% | Mo. Yr 5 +3% |
|---|---|---|---|---|---|---|---|
| YEAR 1 — FULL BUILDING · SELLER LEASEBACK · $18.00/SF NNN · SINGLE TENANT | |||||||
| Bays 1–8 | 14,170 SF | $18.00/SF | $21,255/mo | Leaseback period — full building, single tenant NNN obligation | |||
| YEAR 2+ — MULTI-TENANT BAY LEASING · $21.00/SF START · 3% ANNUAL ESCALATIONS | |||||||
| Bay 1 | ±1,771 SF | $21.00/SF | $3,099 | $3,192 | $3,288 | $3,386 | $3,488 |
| Bay 2 | ±1,771 SF | $21.00/SF | $3,099 | $3,192 | $3,288 | $3,386 | $3,488 |
| Bay 3 | ±1,771 SF | $21.00/SF | $3,099 | $3,192 | $3,288 | $3,386 | $3,488 |
| Bay 4 | ±1,771 SF | $21.00/SF | $3,099 | $3,192 | $3,288 | $3,386 | $3,488 |
| Bay 5 | ±1,771 SF | $21.00/SF | $3,099 | $3,192 | $3,288 | $3,386 | $3,488 |
| Bay 6 | ±1,771 SF | $21.00/SF | $3,099 | $3,192 | $3,288 | $3,386 | $3,488 |
| Bay 7 | ±1,771 SF | $21.00/SF | $3,099 | $3,192 | $3,288 | $3,386 | $3,488 |
| Bay 8 | ±1,771 SF | $21.00/SF | $3,099 | $3,192 | $3,288 | $3,386 | $3,488 |
| 8-Bay Total (100% occ.) | 14,168 SF | $21.00/SF | $24,792/mo | $25,536/mo | $26,304/mo | $27,088/mo | $27,904/mo |
| Annual · Full Occupancy | $297,504/yr | $306,432/yr | $315,648/yr | $325,056/yr | $334,848/yr | ||
IL Zoning — Permitted Tenant Uses
City of Riviera Beach IL (Limited Industrial) supports a broad range of uses. Confirmed existing tenant types on the property marked ✓. Verify all uses with City of Riviera Beach P&Z: (561) 845-4040.
Light Manufacturing — fabrication, printing, millwork, custom builds ✓
Warehouse & Distribution — storage, 3PL, import/export, fulfillment
Automotive Services — glass repair, detailing, parts, light repair ✓
Stone / Tile / Surface — marble, granite, tile fabrication & staging ✓
Trade Contractor Shops — plumbing, HVAC, electrical, roofing tools & storage
Property Mgmt / Office-Hybrid — fleet staging, maintenance ops ✓
Marine & Boat — repair, supply, equipment storage (Port of PB proximity)
Equipment Rental & Service — machinery, power tools, rentals
Last-Mile Logistics — courier hubs, delivery staging, van fleet storage
Custom Fabrication — welding studios, sign shops, screen printing
Landscape / Nursery Ops — equipment storage, supply staging
E-Commerce / Light Assembly — product staging, kitting, returns processing
Value-Add Execution Strategy
|
Phase 0
Pre-Close
|
Due Diligence & Leaseback Structuring
Months −2 to 0
Survey review, Phase I ESA, zoning confirmation, title commitment, electrical metering audit. Negotiate and execute seller NNN leaseback lease at $18.00/SF (12-month term) to close simultaneously with purchase. Structure financing and ownership entity.
|
$18.00/SF
Target Leaseback Rate
|
|
Phase 1
Leaseback
|
Seller Occupancy — Immediate Income
Months 1–12
Full-building NNN leaseback active. Collect $21,255/mo gross rent. Begin active marketing of all 8 bays to qualified tenants. Prepare TI packages, solicit electrical metering separation quotes, and pre-qualify tenant pipeline. Zero vacancy risk during this period.
|
$21,255/mo
Gross Day-1 Income
|
|
Phase 2
Transition
|
Seller Vacates — Lease-Up & Bay TI Work
Months 10–18
Seller vacates; execute TI work bay-by-bay as leases are signed. Budget: ~$35,000 for demising walls, electrical separation, signage, and striping. Leasing commission of 6% of first-year base rent due at each lease execution (~$17,852 for full building).
|
$35,000
TI / Project Mgmt Budget
|
|
Phase 3
Stabilized
|
Full Stabilization — Maximum Income
Months 18–60+
All 8 bays on 3–5-year NNN leases at $21.00/SF base with 3% annual escalations. Full property management active at 7%. At Year 4 stabilization, NOI of $277,299 implies an asset value of $4.1M–$4.8M at 5.8–6.8% cap rates — representing meaningful appreciation on the $4.15M basis.
|
6.3–6.7%
Stabilized Cap Rate
|