Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1175 Central Avenue in University Park, Illinois. The subject property consists of approximately 76,500 square feet of warehouse space and is situated on 3.55 acres of land. The four-building asset features a clear height between 14’ and 18’, six dock-high doors (including four interior), seven grade-level doors, three-phase heavy power, and 35 parking spaces. Located less than one mile from Interstate 57, the property sits 36 miles southwest of Downtown Chicago. The property is fully occupied by four national and local tenants on modified gross leases. About 84 percent of the property is on leases that expire from March 2027 to April 2028, with the remaining 12,000 square feet occupied on a month-to-month agreement, creating a value-add opportunity. At $76.41 per square foot, investors can acquire an asset well below replacement costs.
The subject property is positioned within Far South Cook, a relatively large submarket containing 36.4 million square feet of industrial space. In the first quarter of 2024, the vacancy rate declined 130 basis points from its decade’s high at 8.8 percent thanks to a rebound in net absorption. Among comparable industrial properties between 50,000 and 100,000 square feet, availability remained tight at just 2.3 percent in Q1. Across Far South Cook, annual rent growth slowed to 6.4 percent during this time but was nearly twice the level as the increase in the Consumer Price Index. Going into Q2, only 258,000 square feet of industrial space was under construction in Far South Cook, representing less than 1.0 percent of inventory. Given the lack of new supply, vacancies and rents will largely be dependent upon demand for the foreseeable future (CoStar).
Known as the Greater Chicagoland area, Chicago-Naperville-Elgin is the third largest metro in the nation. The metro houses 9.5 million people, including 2.7 million residents within the city of Chicago. The number of corporate headquarters in Chicago is second only to New York City and is home to 33 Fortune 500 companies. Thanks to eight commercial and passenger rail lines, the Port of Chicago, three international airports, and a vast network of freeways, Chicago is a major distribution and logistics hub. The local economy and workforce are highly diverse, supported largely by distribution, finance, manufacturing, and high-tech industries. As a multicultural city that thrives on the harmony and diversity of its neighborhoods, Chicago boasts 100 neighborhoods, 77 community areas, 50 wards, and eight major league sports teams, including two MLB teams. Chicago is a leader in reforming public schools, enhancing public safety and security initiatives, providing affordable housing in attractive and economically sound communities, ensuring accessibility for all, and fostering, social, economic, and environmental sustainability (Chicago.gov).
BROKER OF RECORD
STEVEN WEINSTOCK
Illinois Broker of Record
One Mid America Plaza, Suite 200
Oakbrook Terrace, IL 60181
Tel: (630) 570-2200
Steven.Weinstock@MarcusMillichap.com
License: 471.011175
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0370220)
