Seal Tight Exteriors Inc.
- 3239 Loverock Avenue, Steger, IL 60457
- Property Type:
- Single Tenant
- Cap Rate:
- 6.30% cap
- Square Feet:
- 12,000 sqft
- Lot Size:
- 1.18 acres
- Price Per Square Foot:
- Year Built:
• Short-Term Lease in a Market with Minimal Available Space Provides Value-Add Opportunity
• High Barrier-to-Entry Submarket, Virtually 0% Vacancy
• 6,500-Square-Foot Outside Storage Area
• Vacant Adjacent Lot Provides Opportunity to Expand Building or Storage Area
• Property Below Replacement Cost for Comparable Property Given Material Costs
• Extremely Accessible Location Only Five Minutes to 394 Expressway
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 3239 Loverock Avenue in Steger, Illinois, occupied by the owner Seal Tight. The subject property consists of approximately 12,000 square feet of space and is situated on 1.18 acres of land. The asset features three grade-level doors, 20 parking spaces, and a 6,500-square-foot outside storage area. A vacant lot adjacent to the property provides an opportunity to expand the building or storage area. Given the recent rise in material prices, the asset is priced below replacement costs for comparable properties. The property’s location is extremely accessible, with Illinois Route 394 positioned just a five-minute drive away.
Upon sale of the property, Seal Tight will execute a short-term leaseback, creating a value-add opportunity in the Central Will submarket. With only 6.2 million square feet of industrial space in inventory, Central Will is a high barrier-to-entry submarket. Thanks to the help of no new deliveries over the last eight quarters, the vacancy rate has plummeted to just 0.1 percent in Q1 2022, representing a 20-year low. As a result of tight supply, market rent growth accelerated to an all-time high of 9.2 percent annually during this time. Given that there are no industrial projects currently underway, vacancy is expected to remain essentially non-existent and rent growth exceptionally high for the foreseeable future. At $6.43-per-square-foot, the average market rent in Central Will provides tenants a 23 percent discount to the overall Chicago market (Costar). While small in size, the Central Will submarket undoubtedly offers strong investment fundamentals.
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