Marcus & Millichap is pleased to present the opportunity to acquire the property located at 3019 East End Avenue in Chicago Heights, Illinois, leased to the Traffic Control Company. The subject property consists of approximately 22,364 square feet of warehouse space and is situated on 2.38 acres of land. The single-tenant asset features brick and metal construction, a clear height between 12.6’ to 18.5’, 11 grade-level doors, heavy three-phase power with 400 amps, trench drains, and a fully fenced-in lot. Consisting of two office spaces and a weight-bearing mezzanine floor, the property is also equipped with a locker room and shower. Zoned for heavy industrial, the property is permitted for all outdoor storage and trucking uses. Leased through January 2026 on triple-net terms, this sale offers investors a renewal opportunity with a tenant that’s been in place since February 2021. Established in 1962, the Traffic Control Company specializes in the manufacturing and distribution of traffic control devices and safety equipment, along with offering contracting and pavement marking services.
Located about seven miles East of Interstate 57, the property is well positioned in the Far South Cook submarket, containing a sizeable 35.6 million square feet of industrial space. Going into 2024, the vacancy rate in Far South Cook started at 10.0 percent after experiencing a record amount of supply (2.1 million square feet of net deliveries) and the weakest level of demand since 2009 (-605,000 square feet of net absorption). However, this year, the submarket has bucked the national trend with a historic rebound. With less than three quarters in the book, demand has posted the highest level on record with nearly 2.4 million square feet of space absorbed on net. As a result, the vacancy rate has dropped back to 4.0 percent in Q3. Despite the turnaround in demand, annual rent growth continued to slow to 4.7 percent during this time, comparable to the pre-pandemic trendline. Market asking rents averaged about $7.20 per square foot in Q3. With only 11,790 square feet of space under construction in Far South Cook, supply pressures will essentially be nonexistent on vacancies and rents for the foreseeable future (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. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0370533)
