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Elkhart, IN

NSK Industries

Address:
611 McDonald Street, Elkhart, IN 46516
Property Type:
Owner-User
Price:
$650,000
Cap Rate:
7.74% cap
NOI:
$50,340
Square Feet:
13,424 sqft
Lot Size:
0.62 acres
Price Per Square Foot:
$48.42
Year Built:
1968
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* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

  • 3-Year NNN Sale-Leaseback to NSK Industries: Machine Shop and Fastener Distributor
  • Tough Barrier-to-Entry Submarket: 0.8% Market Vacancy Rates, 8.3% Rent Growth
  • Features 18’ Clear Heights, 1 Internal Dock-High Door, and 2 Drive-In Doors
  • Capital Improvements Made to Roof, HVAC, and Garage Doors in 2015
  • Landlord Responsible for Roof, Structure, and HVAC
  • 13,424-Square-Foot Warehouse Situated on 0.62 Acres

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 611 McDonald Street in Elkhart, Indiana, occupied by the current owner NSK Industries. The subject property consists of approximately 13,424 square feet of warehouse space and is situated on 0.62 acres of land. The asset features a clear height of 18’, one internal dock-high door, and two drive-in doors. In 2015, capital improvements were made to the roof, HVAC, and garage doors. Upon sale of the property, NSK Industries will execute a triple-net leaseback with a term of three years. NSK Industries is a distributor of fasteners and special machine parts.

The subject property is situated within Outlying Elkhart County, one of the nation’s largest industrial submarkets with 77.2 million square feet. Over the last decade, the vacancy rate has trended below 5 percent, sitting in record territory so far in Q2 at just 0.8 percent. Thanks to a lack of availability, annual market rent growth has jumped to an all-time high of 8.3 percent, allowing investors to keep pace with inflation. Despite the impressive fundamentals, only about 537,000 square feet of industrial space is currently under construction, representing just 0.7 percent of inventory. With new supply largely restrained, rent growth and vacancies will be unimpeded for the foreseeable future (CoStar). Outlying Elkhart County defines what a tough barrier-to-entry submarket looks like, offering the industrial market a solid investment opportunity in today’s economic environment.

Located just East of South Bend, Indiana, along the Saint Joseph River, the Elkhart-Goshen metropolitan area is home to 205,184 residents. The city of Elkhart maintains the largest population at 53,923, although the county seat is held by Goshen. Both known as the “RV Capital of the World” and the “Band Instrument Capital of the World”, manufacturing plays a major role in the Elkhart economy. Multiple recreational vehicle (RV) manufacturers are situated in the area, including Thor Motor Coach and Forest River Inc. The local musical instrument manufacturing industry is largely dominated by the Conn-Selmer conglomerate formed in 2003. Highlighted by the Downtown Riverwalk, Elkhart offers residents 35 parks and recreational facilities.

BROKER OF RECORD
JOSH CARUANA
Indiana Broker of Record
600 East 96th Street, Ste. 500
Indianapolis, IN 46240
Tel: 317.218.5300
Lic #: RB14034355
Josh.Caruana@MarcusMillichap.com
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: ZAD0370167)