Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1507 South Olive Street in South Bend, Indiana, occupied by the owner, K.A.K. LLC Warehousing. The subject property consists of approximately 351,095 square feet of warehouse space and is situated on 20.74 acres of land. The single-tenant asset features a clear height between 13’ and 28’, 29 dock-high doors, three grade-level doors, heavy lifts up to 15,000 pounds, and 19 HVAC units. Positioned between the Conrail and Norfolk Southern rail lines with direct access, the property is located in a Foreign Trade Zone with proximity to the interchange of U.S. Route 31/20 and State Road 23. Upon the sale of the property, K.A.K. LLC plans to enter into a one-year triple net sale-leaseback at $3.00 per square foot. Established in 1994, K.A.K. LLC provides public and contract warehousing and distribution services. As a short-term leaseback, this sale offers buyers a lease-up or owner-user opportunity.
The subject property sits within Greater South Bend, a mid-sized submarket containing 21.7 million square feet of industrial space. In 2023, the vacancy rate in Greater South Bend jumped by 5.2 percentage points to 7.5 percent as demand for industrial space contracted by nearly -840,000 square feet, representing the largest downturn since records began in 2007. As a result, the growth rate on asking rents slowed 180 basis points to 5.8 percent but remained solidly higher than the Consumer Price Index. During the first quarter of 2024, 250,000 square feet of industrial space was under construction, making up just 1.2 percent of current inventory levels. Despite weakening demand, the lack of new supply will help keep vacancies in check for the near term (CoStar).
Located along the southernmost bend of the St. Joseph River, hence the name, South Bend is the fourth largest city in Indiana with a population of 103,453 residents. Established as a fur trading post, South Bend grew quickly with the rise of the now defunct automobile maker, Studebaker Corporation. Today, South Bend’s economy is anchored by the famed University of Notre Dame. With nearly 6,000 workers, Notre Dame is the single largest employer in South Bend. Both residents and businesses benefit from a low cost of living and business-friendly environment, which has spawned growth in the logistics and high-tech manufacturing industries (Marcus & Millichap).
BROKER OF RECORD
JOSH CARUANA
Indiana Broker of Record
600 East 96th Street, Suite. 500
Indianapolis, IN 46240
Tel: (317) 218-5300
License #: RB14034355
Josh.Caruana@MarcusMillichap.com
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: ZAE0370369)
