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South Roxana, IL

500 Broadway Avenue

Address:
500 Broadway Avenue, South Roxana, IL 62087
Property Type:
Single Tenant
Price:
$1,830,000
Cap Rate:
9.01% cap
NOI:
$164,796
Square Feet:
17,254 sqft
Lot Size:
1.15 Acres
Price Per Square Foot:
$106.06
Year Built:
2002
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Investment Highlights

Investment Highlights

Investment Highlights

  • Located in a High Barrier-to-Enter Submarket with a Market Vacancy of 4.2%
  • This Property is Certified for X-Raying of Piping Equipment and Has a Concrete Vault for X-Raying
  • Given the Low Market Vacancy the Market Rent has Increased 11.3% Year-Over-Year
  • Versa was Started in 2012 After the Merger of Three NDE Inspection Companies
  • Since 2012, Versa Has Acquired Five Companies Throughout the United States
  • The X-Ray Vault Would be the Responsibility of the Tenant to Remove
  • NNN Lease that Minimizes Landlord Responsibilities

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 500 Broadway Avenue in South Roxana, Illinois leased to Versa Integrity Group, Inc. The subject property consists of approximately 17,254 square feet of warehouse space and is situated on 1.15 acres of land. The asset features a vault for x-raying and is certified for the x-raying of piping equipment. Signed to a triple net lease, minimizing landlord responsibilities, Versa Integrity Group offers a variety of services to the oil and gas industry including inspection, advanced NDE (nondestructive evaluation), asset integrity, heat treatment, and rope access. The company is the result of the merger of three NDE inspection companies in 2012. Since the merger, Versa Integrity Group has expanded its national footprint through five acquisitions (Versa Integrity Group). Given that the company is responsible for the removal of the vault upon vacating the property, the Versa Integrity Group has a strong incentive to continue occupying the property.

The subject property is situated within the Illinois submarket, containing a massive 52.1 million square feet of industrial space. Logistics facilities, such as warehouses, dominate the inventory, making up nearly 74 percent, followed by specialized space (including manufacturing space) and flex properties at about 24 percent and 2 percent, respectively. Over the last four quarters, the vacancy rate in the submarket has dropped by 350 basis points to 4.2 percent in the third quarter of 2022. The high barrier-to-entry has helped push market rent growth in the Illinois submarket to a record 11.3 percent annually during Q3. While the submarket has a sizable 2.8 million square feet of industrial space under construction, representing 5.4 percent of inventory, all but 62,000 square feet is concentrated in properties over 100,000 square feet (CoStar). As a result, rent growth and vacancies among smaller properties will not be directly impacted by new supply for the foreseeable future.

The Saint Louis metro is near the geographic center of the United States, within 500 miles of one-third of the U.S. population. About 2.8 million people call the metro area home, with Saint Louis hosting over 319,000 residents. Located at the confluence of the Mississippi and Missouri rivers, the metro area encompasses counties in both Missouri and Illinois. The economy of Saint Louis is anchored by the logistics industry, with trade, transportation, and utilities accounting for the largest share of employment. As Saint Louis continues to be a desirable industrial market for investors, a recent report ranked Saint Louis as the tenth industrial market to watch in 2019. The Gateway Arch continues to serve as a major tourist attraction and residents enjoy a high quality of life with a variety of entertainment options.

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. © 2022 Marcus & Millichap. All rights reserved. (Activity ID: ZAD0370718)