Goodman Distribution Inc.
Industrial | 6.50% CAP | 24,970 SqFt
Marketing description
Northmarq Commercial, on behalf of ownership, is pleased to present the exclusive opportunity to acquire a 100% fee simple interest in the Goodman Distribution, Inc. Property located at 735 E. Heil Ave, El Centro, California 92243 (the “Property”).
Constructed in 2019, the Property totals 24,970 square feet on 2.30 acres and is leased to Goodman Distribution, Inc. under a NN lease with approximately 3.5 years of remaining term. Landlord responsibilities are limited to roof, structure, HVAC, and parking, providing a favorable balance of stability and limited management obligations. The lease features annual rent escalations, providing steady income growth and generates a Net Operating Income of $276,668 effective 3/1/2026.
Investment highlights
SUBSIDIARY OF INVESTMENT-GRADE, BEST-IN-CLASS PARENT - Daikin Industries, Ltd. (DKILY), the parent company of Goodman, holds a A2 investment-grade credit rating from Moody’s and has a market capitalization of approximately $40 billion. As a global leader in HVAC (heating, ventilation, and air conditioning) systems, Daikin is strategically positioned to benefit from the growing demand for energy efficient and environmentally friendly climate control solutions.
ANNUAL INCREASES - As part of the lease, Goodman’s annual rent will increase annually. This increases the average cap rate over the remaining primary term to 6.63% and offers further upside potential to buyers while providing a strong hedge against inflation.
PASSIVE NN LEASE WITH MINIMAL LANDLORD RESPONSIBILITY - The tenant is operating under a double-net (NN) lease structure in which Goodman is directly responsible for any operating expenses relating to the Property including taxes, insurance, and common area maintenance.
RECENT BUILD-TO-SUIT - The Property was recently constructed in 2019 as a build-to-suit for Daikin/ Goodman, shielding investors from most capital expenditures in the near future.
STRONG LOGISTICS LOCATION - The Property is strategically located near several major highways. It is accessible via Interstate 8 (I-8), which provides a direct route to both Arizona and San Diego. Additionally, the site is close to State Route 86 (SR 86), which connects to the broader network of highways in the Imperial Valley region, facilitating convenient transportation and connectivity to neighboring cities and industries.
HEALTHY DEMOGRAPHICS - The population and average household income within a 10-mile radius of the Property are 127,587 and $88,586 respectively with growth projected over the next 5 years.
15 MINUTES FROM MAJOR MILITARY INSTALLATION - The Property is roughly 10 miles east of Naval Air Facility El Centro where in any given month, seven to twelve squadrons and up to 1,600 personnel train. U.S. Air Force parachutists, U.S. Navy SEALs, Army Green Berets and British, French, German and Italian aviators visit for various phases of their training. It is home to the British Joint Helicopter Force and the winter home to the Blue Angels. The base has a total annual economic impact in the area of more than $110 million.
IDEAL 1031 EXCHANGE OPPORTUNITY - Industry-leading tenant with strong historical occupancy, passive investment with Landlord-favorable lease structure, contractual rent growth and strategic positioning in attractive and strategic Southern California market along Interstate 8 near the U.S.–Mexico border.
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