602 State Street
- 602 State Street, Calumet City, IL 60409
- Property Type:
- Single Tenant
- Cap Rate:
- 2.25% cap
- Square Feet:
- 95,300 sqft
- Lot Size:
- 5.77 Acres
- Price Per Square Foot:
- Year Built:
- 95,300-Square-Foot Manufacturing Asset Situated on 5.77 Acres
- Features 14’-23’ Clear Height, Two Dock-High Doors, Seven Grade-Level Doors, and Capital Improvements to Roof, HVAC, and Lighting
- Located Within Tax Increment Finance (TIF), Opportunity Zone, and Enterprise Zone with Proximate Access to I-90 and I-94
- Tough Barrier-to-Entry Submarket: 5.0% Vacancy, 7.7% Rent Growth, Above-Average Absorption (CoStar)
- Lower Vacancy Rate Among Comparable Properties
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 602 State Street in Calumet City, Illinois. The subject property consists of approximately 95,300 square feet of manufacturing space and is situated on 5.77 acres of land. The vacant asset features a clear height of 14’-23’, two dock-high doors, four recessed dock doors, seven grade-level doors, and seller reports capital improvements to the roof made in 2014. Located along the border of Illinois and Indiana, the property sits within a Tax Increment Finance (TIF) District, Opportunity Zone, and Enterprise Zone. Situated in Chicago’s Near South Cook submarket, the property is positioned between Interstates 90 and 94, giving tenants direct access to downtown Chicago.
Near South Cook is a massive submarket, containing 52.5 million square feet of industrial space. The submarket consists mostly of logistics space, accounting for 66 percent of the inventory. Yet, specialized properties, including manufacturing facilities, make up a sizeable 30 percent of the submarket, followed by flex space at 4 percent. During Q4 2022, the vacancy rate settled at 5.0 percent, but the barriers to entry get tougher among comparable properties. For properties under 150,000 square feet, the vacancy rate sat at just 2.0 percent. Limited space has pushed market rents up 7.7 percent annually among all properties in Near South Cook. Market rents averaged about $8.70 at the conclusion of 2022. Over the past year, net absorption expanded to over 816,000 square feet, 21 percent higher than the five-year average. With construction activity representing just 1.3 percent of current inventory levels, new supply will likely have minimal impact on rents and vacancies 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).