Marcus & Millichap is pleased to present the opportunity to acquire the property located at 655 Sundown Road in South Elgin, Illinois, leased to Lane Tool & Manufacturing. The subject property consists of approximately 18,935 square feet of warehouse and manufacturing space and is situated on 1.16 acres of land. The single-tenant asset features a clear height of 15’ to 22’, three dock-high doors, and one grade-level door. Recent renovations include a new TPO roof that was installed in 2021. With proximate access to Interstate 90 via Illinois Route 31, the property is strategically located in the North Kane/Interstate 90 submarket.
North Kane/Interstate 90 is a large submarket containing 45.6 million square feet of industrial space. The submarket is largely anchored by manufacturers, distributors, and wholesalers. Like the overall Chicago market, logistics facilities account for the largest proportion of local supply making up 70 percent, followed by specialized and flex space at 22 percent and 8 percent, respectively. Annual net absorption in North Kane/Interstate 90 clocked in at 1.6 million square feet by the midway point of 2023. Strong demand has kept vacancies low, sitting at just 3.7 percent in Q2 2023. As a result, market rents were up 8.2 percent year-over-year, trending near record highs. With 4.4 million square feet of industrial space under construction (equaled to 9.6 percent of inventory), rent growth is expected to slow as vacancies rise in the second half of 2023. However, 95 percent of the new inventory is concentrated in properties over 100,000 square feet, providing a buffer to small industrial properties (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: IL 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: ZAD0370363)
