Marcus and Millichap is pleased to present the opportunity to acquire the property located at 266 Eastgate Drive in Danville, Illinois, leased to AutoZone and Mervis Industries. The subject property consists of approximately 85,534 square feet of warehouse space and is situated on 10.39 acres of land. Anchored as an AutoZone returns facility since 1998, the property benefits from over 26 years of previous occupancy. The lease offers approximately 1.75 years of remaining term, with rents significantly below market at $3.88 per square foot NNN, offering a potential value-add opportunity. Priced below replacement cost, this asset benefits from favorable market conditions, including a low vacancy rate of 5.0 percent and a steady annual rent increase of 1.8 percent, as reported by CoStar. It is located just north of Exit 220 on I-74, approximately 80 miles west of Indianapolis, which offers a convenient location with easy access to major transportation routes.
The subject property is located within the Danville market that sits northwest of Indianapolis, Indiana. Danville is a small market containing 7.8 million square feet of industrial space. Industrial demand bounced back after contracting in 2023 with over 363,000 square feet of positive net absorption through mid-December in 2024. Vacancy rates declined significantly on the year, falling by 460 basis points to 4.9 percent as no new industrial properties were delivered. Despite the drop in vacancies, annual rent growth decelerated by 440 basis points to 1.8 percent. With nothing under construction in Danville, vacancies and rents will be impacted by demand for the foreseeable future (CoStar).
The Indianapolis metropolitan area, known for the iconic Indianapolis 500, is a dynamic socio-economic hub in central Indiana. Comprising 11 counties, including Marion, Hamilton, and Johnson, it features a diverse economy with significant growth in technology and health sciences. The region’s population exceeds 2.2 million, with Indianapolis itself housing over 860,000 residents. The cost of living is notably lower than the national average, attracting businesses and families alike. Major employers include Eli Lilly and Co. and Roche Diagnostics, underpinning the area’s status as a key health sciences center. Despite a slightly lower homeownership rate of 60%, the metro is projected to add over 88,000 residents by 2028, driving housing demand and economic expansion.
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. © 2025 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0370665)
