Marcus & Millichap is pleased to present the opportunity to acquire the property located at 138 Pierce Street in Aurora, Illinois, occupied by the owner, W.E. Hoban Company. The subject property consists of approximately 61,951 square feet of manufacturing space and is situated on 3.59 acres of land. The asset features two buildings, a clear height of 16’-30’, two dock-high doors, seven grade-level doors, metal construction, and heavy power. Located along the Fox River adjacent to the BNSF Railway Hill Yard just off North Broadway, the asset has proximity to Interstate 88 in Illinois’ second-largest city. Upon the sale of the property, W.E. Hoban Company plans to sign a seven-year lease at $6.52 per square foot with 2.0 percent annual escalations. Generating a cap rate of 9.3 percent, this sale offers buyers an opportunity to acquire a specialized asset (reducing tenant loss risks) with above-market returns. Originally developed in 1940 to produce war-related components, the Fox Valley Forge now manufactures a variety of metal parts for the automotive, agricultural, and energy industries.
The subject property is located in the massive Interstate-88 West Chicago submarket, containing 85.7 million square feet of industrial space. In the first quarter of 2025, new industrial supply (600,000 square feet) outgained demand (272,000 square feet), causing the vacancy rate to rise by 40 basis points. However, the submarket’s 3.5 percent vacancy rate is half the 7.1 national vacancy rate (based on the top 50 metros, minimum 10,000 square feet, classes A, B, & C). Despite availability remaining tight in Interstate-88 West, annual rent growth continued to decelerate by 20 basis points to 4.1 percent but remains ahead of the 2.6 percent national rate. The average market cap rate in Interstate-88 West stood at 8.0 percent in Q1. During Q2, 1.4 million square feet of industrial space were under construction in the submarket, representing the lowest level since pre-pandemic (CoStar).
Known as the Greater Chicagoland area, Chicago-Naperville-Elgin is the third-largest metro in the nation. The metro houses 9.3 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 30 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: IL 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. © 2025 Marcus & Millichap. All rights reserved. (Activity ID: ZAG0370359)
