Marcus & Millichap is pleased to present the opportunity to acquire the property located at 14300 De La Tour Drive in South Beloit, occupied by American Control Electronics (ACE). The subject property consists of approximately 35,000 square feet of R&D and manufacturing space and is situated on 5.93 acres of land. The single-tenant asset features a clear height between 16’ and 24’, metal construction, a recently restored metal roof, two grade-level doors, one dock-high door (accessible via truck well), and about 50 parking spaces. Located 21 miles north of the Chicago Rockford International Airport, the property has proximity to multiple thoroughfares, including Illinois Route 2 and Interstates 90 and 43.
The lease that runs through September 2025 with annual rent escalations tied to the Consumer Price Index (CPI) is held by HTI Technology and Industries, Inc., the parent company of ACE. HTI Technology is one of the world’s leading designers and manufacturers of mechatronic assemblies for businesses around the world. ACE is an electronics manufacturer that designs and produces a wide variety of electronic motor control systems and power products used in industrial, commercial, vehicle, medical, and home automation markets. Given the tenant improvements made to the subject property, HTI Technology has an incentive to renew its lease at the five-year option that escalates annually based on the CPI.
The subject property is positioned within the Interstate 39/Winnebago County submarket, containing a sizeable 39.2 million square feet of industrial space. In 2023, there were no new deliveries, however, the vacancy rate rose 310 basis points to 9.1 percent as net absorption contracted to a 15-year low as -1.2 million square feet were vacated. However, among comparable properties under 100,000 square feet, vacancies remained historically tight at 2.8 percent last year. Across the submarket, asking rents remained ahead of the Consumer Price Index in 2023, rising by 5.7 percent. At the start of 2024, only 230,000 square feet of industrial space was under construction in the Interstate 39/Winnebago County submarket, representing less than 1.0 percent of inventory (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. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0370159)
