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Steger, IL

Seal Tight Exteriors Inc.

Address:
3239 Loverock Avenue, Steger, IL 60457
Property Type:
Single Tenant
Price:
$1,190,000
Cap Rate:
6.30% cap
NOI:
$75,000
Square Feet:
12,000 sqft
Lot Size:
1.18 acres
Price Per Square Foot:
$99.17
Year Built:
1996
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Investment Highlights

Investment Highlights

Investment Highlights

• 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

 

Location Overview

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.

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: ZAD0060367)