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South Bend, IN

Paladin Caseworks

1607 South Main Street, South Bend, IN 46613
Property Type:
Sale Leaseback
Cap Rate:
9.21% cap
Square Feet:
25,250 sqft
Lot Size:
0.76/0.26 acres
Price Per Square Foot:
Year Built:
* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

  • 25,250-Square-Foot Warehouse Situated on 0.76 Acres with 0.26-Acre Parking Lot
  • Two-Year Sale-Leaseback with Paladin Caseworks, a Millworker of Custom Furniture
  • Short-Term Leaseback at Below-Market Rent Creates Value-Add Opportunity
  • Property Features: One Dock, One Drive-In, 18’ Clear Height and Paint Booth
  • Tough Barrier-to-Entry Market: 6.0% Overall Vacancy and 8.9% Annual Rent Growth (CoStar)

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1607 South Main Street in South Bend, Indiana, occupied by the current owner, Paladin Caseworks. The subject property consists of approximately 25,250 square feet of warehouse space and is situated on a total of 1.02 acres of land. The asset features a separate 0.26-acre parking lot, one dock-high door, one drive-in door, a clear height of 18’, and a fully built-out paint booth. Upon sale of the property, Paladin Caseworks plans to execute a two-year leaseback at below-market rent, creating a value-add opportunity. For 15 years, Paladin Caseworks has manufactured custom millwork, specializing in school and library furniture.

The subject property is situated within Greater South Bend, a tough barrier-to-entry submarket containing roughly 20.4 million square feet of industrial space. Unlike the overall market, warehouse and distribution centers dominate the Greater South Bend submarket, making up 54 percent of inventory. Specialized space, mostly manufacturing facilities, and flex properties account for 41 percent and 5 percent, respectively. Thanks to back-to-back years of net absorption over 300,000 square feet, the vacancy rate has steadily fallen from an eight-year high of 9.1 percent in Q2 2019 to 6.0 percent towards the end of Q2 2022. Consistently high demand has also helped push market rent growth to the fastest pace on record at 8.9 percent year-over-year in Q2. With nothing currently under construction, there are no supply-side pressures on vacancy or rent for the foreseeable future. If Greater South Bend posts a third consecutive year of 300,000 square feet of absorption as forecast, the vacancy rate will drop to a record low near 4.0 percent (CoStar).

Located along the southernmost bend of the St. Joseph River, hence the name, South Bend is the fourth largest city in Indiana with a population of 103,453 residents. Established as a fur trading post, South Bend grew quickly, with the rise of the now defunct automobile maker, Studebaker Corporation. Today, South Bend’s economy is anchored by the famed University of Notre Dame. With nearly 6,000 workers, Notre Dame is the single largest employer in South Bend. Both residents and businesses benefit from a low cost of living and business-friendly environment, which has spawned growth in the logistics and high-tech manufacturing industries (Marcus & Millichap).

Josh Caruana
Indiana Broker of Record
600 East 96th Street, Ste. 500
Indianapolis, IN 46240
Tel: (317) 218-5300
Lic #: RB14034355
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: ZAD0060455)