244 South River Street
- 244 South River Street, Aurora, IL 60506
- Property Type:
- Multi Tenant
- Cap Rate:
- 6.85% cap
- Square Feet:
- 20,143 sqft
- Lot Size:
- 1.52 acres
- Price Per Square Foot:
- Year Built:
- Prime Location on the Fox River in Downtown Aurora
- Aurora’s Economic Development Master Plan is Heavily Focused on Enhanced Riverfront Infrastructure
- Replaceable and Increasable Rents on Month-to-Month Leases Present Either Cash-Flow or Redevelopment Opportunity
- Features Three Buildings, Six Grade-Level Doors and Metal Construction
- Eligible for Tax Credits as a Part of River Edge Redevelopment Zone
- 1.5-Acre Lot Provides Significant Lot Space Relative to Surrounding Properties
- Industrial Submarket Rent Growth is Up Over 8% Year-Over-Year
- Ownership Leasing Back Suites A and D Through Premium Exteriors on Month-to-Month Basis
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 244 South River Street in Aurora, Illinois. The subject property consists of approximately 20,143 square feet of warehouse space and is situated on 1.52 acres of land. The fully leased multi-tenant asset features three buildings, six grade-level doors, and metal construction. Compared to other properties in the area, the asset provides a significant amount of lot space that can be utilized for outdoor storage. With month-to-month leases in place, the property provides a value-add opportunity with positive cash flow. Investors also have the opportunity to redevelop the property into retail. Primely situated along the Fox River in downtown Aurora, the property is eligible for tax credits as part of the River Edge Redevelopment Zone. In the coming years, the property also stands to benefit from the master plan improvements to the Riverfront’s infrastructure, spearheaded by the Aurora Economic Development office.
The subject property is located in the I-88 West submarket, containing a massive 77.8 million square feet of industrial space. In 2018 and 2019, the submarket experienced a historic decline in net absorption, pushing the vacancy rate from 4.0 percent in Q2 2018 to a record 12.7 percent in Q1 2020. However, demand rebounded in I-88 West starting in 2020, sending absorption rates up to the highest level in over 20 years. As a result, the vacancy rate has steadily dropped to 8.9 percent by the close of Q2 2022. Despite the relatively high vacancy rate, market rent growth has been undeterred, setting an annual record high of 9.0 percent during the second quarter. In recent years, I-88 West has attracted a sizable amount of new development, with 3.5 million square feet of industrial space underway at the start of the third quarter, representing 4.5 percent of inventory. Among the notable projects is Meta’s (Formerly Facebook) 2.4 million-square-foot DeKalb Data Center, scheduled to be delivered in August. Despite the stream of new developments, the vacancy rate is forecast to remain stable in the near future as demand keeps pace with new supply (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).