BGI Broken Arrow Business Park

BGI Broken Arrow Business Park2021-08-10T09:43:58-04:00

Project Description

The Self-Storage Advisory Group of Cushman & Wakefield has been selected to exclusively market for sale BGI Broken Arrow Business Park.

Price: $5,310,000
NRSF – 88,707

BGI Broken Arrow Business Park offers a well-located, income-producing investment opportunity in the growing city of Broken Arrow, Oklahoma. Broken Arrow is the fourth largest city in the state of Oklahoma and is part of the Tulsa Metropolitan Area boasting just under 1 million residents. The property is a one-minute drive (0.25mi) from the heavily trafficked Highway 169 (106,209 vehicles per day) with high visibility and frontage on Albany St. (aka 61st St.). The immediate intersection continues to improve with new construction to include the latest generation QuikTrip built on the northwest corner and a new Class A medical/retail center directly to the north of the adjacent McDonald’s. The total net rentable square footage of the property is 88,707 on a 6.08 AC parcel of land. The unit mix is divided into uses such as 42,870 NRSF of Retail/Retail Warehouse, 20,600 NRSF of Office/Office Warehouse, and 25,237 NRSF of Storage.

The Business Park, built in 1986, due to its proximity to Tulsa, is in the Southeast Tulsa Submarket. In 2021, rental rates for flex space in this submarket have hit their highest number within the last 12 years and analysts are projecting those numbers to continue to rise with an average rental increase above 3% over the next five years (per CoStar Southeast Tulsa Industrial Market Report). Occupancy of similar properties in the area is 97.3% which provides an opportunity for the subject property to continue to boost tenancy beyond its current economic occupancy of 64.79% with a more focused leasing approach. As a result, the Net  Operating Income of $285,209 is projected to rise to $492,571 by Year 5 with a conservative estimate of an increased economic occupancy rate of 83%.

The property represents an excellent opportunity to acquire an asset with considerable upside. By enhancing the leasing marketability and maximizing the management efficiencies, it’s projected that Cash-On-Cash Returns currently at 9.2% in Year 1 would nearly double by Year 5 at 17.4% and continue to increase to 24.4% at Year 10.

INVESTMENT HIGHLIGHTS

  • Well located, hard corner 6.08 AC property
  • Only a one minute drive from heavily trafficked HW-169 (106,209 cpd)
  • Recently improved intersection with newly constructed QuikTrip to the west and McDonald’s adjacent to the north
  • Attractive mixed-use property includes office, retail, warehouse and self-storage uses.
  • Sign CA to View Offering Memorandum

  • Confidentiality and Buyer Registration Agreement

    Cushman & Wakefield U.S., Inc. ("Broker") has been retained as the exclusive advisor and broker regarding the sale of the property known as BGI Broken Arrow Business Park located in Broken Arrow, OK.

    To receive an Offering Memorandum ("Offering Memorandum") please read, sign and return this completed Confidentiality Agreement to Broker. The Offering Memorandum has been prepared by Broker for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective Buyers may need or desire. All projections have been developed by Broker and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Seller and therefore are subject to variation. No representation is made by Broker or the Seller as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, the Seller and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Broker, the Seller and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the Buyer. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or the Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum are solely the responsibility of the prospective Buyer. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective Buyers.

    By accepting the Offering Memorandum, you agree to indemnify, defend, protect and hold Seller and Broker and any affiliate of Seller or Broker harmless from and against any and all claims, damages, demands, liabilities, losses, costs or expenses (including reasonable attorney's fees, collectively "Claims") arising, directly or indirectly from any actions or omissions of Buyer, its employees, officers, directors or agents.

    By accepting the Offering Memorandum, you acknowledge that you are a principal and not an agent of or acting on behalf of any other party in connection with the acquisition. Buyer acknowledges that it is aware that any Agent/Broker other than Cushman & Wakefield, must be compensated by Buyer as Cushman & Wakefield is not cooperating on fees. Furthermore, Buyer acknowledges that it has not had any discussion regarding this Property's Sale with any other broker or agent other than Broker or an agent/broker properly identified through this registration process, including but not limited to, resolutions of incomplete, conflicting or duplicate registrations. Buyer shall indemnify and hold Seller and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney's fees and court costs which may be incurred with respect to any claims for other real estate commissions, broker's fees or finder's fees in relation to or in connection with the Property to the extent claimed, through or under Seller.

    The Seller and Broker each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller and its legal counsel, and any conditions to the Seller's obligation thereunder have been satisfied or waived.

    The Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make an offer and from whom you have obtained an agreement of confidentiality) without prior written authorization of the Seller or Broker, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of the Seller or Broker.

    No employee of seller or at the subject property is to be contacted without the written approval of the listing agents and doing so would be a violation of this confidentiality agreement.