Marcus & Millichap is pleased to present the opportunity to acquire the property located at 2401 17th Street in Elkhart, Indiana, anchored by Sid Tool Co., Inc. since 2012. The subject property consists of approximately 79,568 square feet of warehouse space and is situated on 4.7 acres of land with an adjacent 1.09-acre parking lot. The multi-tenant asset features two units, eight dock-high doors, one grade-level door, heavy power, a clear height between 13’ to 16’, and a 30-space parking lot repaved nine years ago. Delivered in 1960, the property was renovated in 2006 and recent improvements include a new office HVAC and roof repairs. Offered well below replacement costs at $22.62 per square foot, the fully leased asset offers investors a value-add opportunity to increase rent with both leases expiring within the next three years. Located near the corner of Lusher Avenue and South Nappanee Street, the property is primely positioned in the Outlying Elkhart County submarket.
Known as the RV Capital of the World with 80 percent of global production of recreational vehicles, the Outlying Elkhart County submarket contains a massive 82.8 million square feet of industrial space. As RV sales slowed down, industrial demand noticeably cooled off in 2023 with only 24,000 square feet of space being absorbed on net. Meanwhile, supply hit the second-highest level on record with about 1.1 million square feet of net deliveries. As a result, the vacancy rate in Outlying Elkhart County nearly doubled but remains low at just 2.7 percent. While rent growth slowed down in 2023, the average asking rent finished the year up 4.7 percent, which outpaced the consumer price index. Although new deliveries were a major driver of rising vacancy rates, there were no industrial projects under construction at the start of 2024. In addition to vacancies, the lack of new supply in the Outlying Elkhart County submarket will also help support rent growth for the foreseeable future (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: ZAD0370406)
