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Office Medical

8300 Broadway

8300 Broadway, Merrillville, IN 46410

Listing Price: $1,900,000

Cap Rate
8.29%
Gross SF
17,412
Rentable SF
17,412
Price/Gross SF
$109.12
Occupancy
100.0%
Year Built
1980
Lot Size
1.21 acres

Investment Overview

Marcus & Millichap Evinger Group is pleased to exclusively represent 8300 Broadway, Merrillville, IN located in the Chicago, IL MSA (Ranked: 3rd Largest US MSA, Population: 9,618,502). The multi-tenant medical office building is ~17,412 SF on 1.21 acres with 15 suites. Built ~1980 and renovated in 2017 and 2021, the two-story attractive brick building benefits from 195 ft. of frontage on Broadway with a large parking lot (87 spaces including 2 ADA) and a pylon sign. The subject property is located on a main business artery on Broadway (15,757 VPD) just 1 mile away from the I-65 (90,714 VPD) and U.S. Highway 30 (49,127 VPD) interchange. The subject property has a diverse tenant mix with 54.31% leased to medical tenants. The building is also home to service related and logistics tenants. The average building rent is $11.80 FSG which is well below market rent, providing upside in rental increases with rollover and renewals. The Indiana submarket in Chicago average market rent is $19.92 SF across all classes of office buildings (Class C office market rent at $17.10 SF). Due to the short-term leases. there is an opportunity to convert the current Gross Leases to Net Leases with tenants paying pro rata share of CAMIT (current expenses $2.17 SF). Alternatively, base rent could be increased by +$2 SF to achieve an increased rent to attain double digit returns, with rental rates remaining competitively below market. The vacancy rate for the Indiana Submarket has been essentially unchanged over the past year at 5.4% and is below the 10-year average as of 2022Q2. There have been many improvements to the property including a freshly sealed & striped parking lot (2021), a pylon sign and LED lights in the parking lot (2017), updated hallway bathrooms (2017), replacement of 6 rooftop units (last few years) , and updated suites with paint and new flooring as leases rolled. This location enjoys an affluent population with average household income of $85,799 (5-mile radius) and a population of 97,048 (5-mile radius). The area is known as a health care hub and national retail corridor that attracts and retains customers, and convenient for office workers. The abundance of national retailers include Target, Home Depot, Lowes, Walmart, Costco, Walgreens, CVS, Kohls, and Macy’s. A variety of health care providers including Methodist Hospital (0.8 Miles) and Pinnacle Hospital (1.6 Miles) are just minutes away. It is estimated that during any given weekday, the daytime workforce of Merrillville (population: 34,930) grows 285% to over 100,000 due to shoppers and workers throughout the town (Merrillville.in.gov).  Merrillville has become the crossroads of the county as it has the popular I-65 that runs through most of the town as well as the U.S. Route 30. Merrillville is just 43 miles from Chicago, IL and 142 miles from Indianapolis, IN. The Indiana Submarket in Chicago is a very large submarket that contains roughly 13.1 million SF of office space. The region features many higher education institutions including Ivy Tech Community College, Hyles-Anderson College, Denmark College, DeVry University, and University of Phoenix Merrillville. Large employers in the area include NiSource, Whiteco Industries, NIPSCO, and St. Mary’s Medical Center.

Investment Highlights

  • 100% Occupied | Multi-Tenant Office Building | 54.31% Leased to Medical Tenants |17,412 SF | 1.21 Acres
  • Below Market Rents for Immediate Upside | Avg. Building Rent: $11.80 FSG |IN Submarket Office Rent (All Classes): $19.92 | IN Submarket Office Rent (Class C): $17.10
  • 50% MTM Leases | Opportunity to Sign New Leases & Raise Rents or Negotiate Pro Rata Reimbursements Providing Attractive Double-Digit Returns
  • Recent CapEx: Sealed & Striped Parking Lot | Pylon Sign & LED Lights in Parking Lot | Updated Hallway Bathrooms | Replaced 6 Rooftop Units | Updated Suites With New Flooring & Paint
  • Located on a Main Business Artery Broadway (15,757 VPD) & U.S. 30 (49,127 VPD) | Ease of Access I-65 (90,714 VPD) | Merrillville, IN Known as a Regional Retail & Health Care Hub
  • Chicago, IL MSA (Rank: 3rd Largest ; Population: 9,618,502) | AHHI (5-Miles): $85,799 | Population (5-Miles): 97,048

Exclusively Listed By

Financing By

Office Medical

8300 Broadway

Listing Price: $1,900,000

Cap Rate
8.29%
Gross SF
17,412
Rentable SF
17,412
Price/Gross SF
$109.12
Occupancy
100.0%
Year Built
1980
Lot Size
1.21 acres

Investment Highlights

  • 100% Occupied | Multi-Tenant Office Building | 54.31% Leased to Medical Tenants |17,412 SF | 1.21 Acres
  • Below Market Rents for Immediate Upside | Avg. Building Rent: $11.80 FSG |IN Submarket Office Rent (All Classes): $19.92 | IN Submarket Office Rent (Class C): $17.10
  • 50% MTM Leases | Opportunity to Sign New Leases & Raise Rents or Negotiate Pro Rata Reimbursements Providing Attractive Double-Digit Returns
  • Recent CapEx: Sealed & Striped Parking Lot | Pylon Sign & LED Lights in Parking Lot | Updated Hallway Bathrooms | Replaced 6 Rooftop Units | Updated Suites With New Flooring & Paint
  • Located on a Main Business Artery Broadway (15,757 VPD) & U.S. 30 (49,127 VPD) | Ease of Access I-65 (90,714 VPD) | Merrillville, IN Known as a Regional Retail & Health Care Hub
  • Chicago, IL MSA (Rank: 3rd Largest ; Population: 9,618,502) | AHHI (5-Miles): $85,799 | Population (5-Miles): 97,048

Investment Overview

Marcus & Millichap Evinger Group is pleased to exclusively represent 8300 Broadway, Merrillville, IN located in the Chicago, IL MSA (Ranked: 3rd Largest US MSA, Population: 9,618,502). The multi-tenant medical office building is ~17,412 SF on 1.21 acres with 15 suites. Built ~1980 and renovated in 2017 and 2021, the two-story attractive brick building benefits from 195 ft. of frontage on Broadway with a large parking lot (87 spaces including 2 ADA) and a pylon sign. The subject property is located on a main business artery on Broadway (15,757 VPD) just 1 mile away from the I-65 (90,714 VPD) and U.S. Highway 30 (49,127 VPD) interchange. The subject property has a diverse tenant mix with 54.31% leased to medical tenants. The building is also home to service related and logistics tenants. The average building rent is $11.80 FSG which is well below market rent, providing upside in rental increases with rollover and renewals. The Indiana submarket in Chicago average market rent is $19.92 SF across all classes of office buildings (Class C office market rent at $17.10 SF). Due to the short-term leases. there is an opportunity to convert the current Gross Leases to Net Leases with tenants paying pro rata share of CAMIT (current expenses $2.17 SF). Alternatively, base rent could be increased by +$2 SF to achieve an increased rent to attain double digit returns, with rental rates remaining competitively below market. The vacancy rate for the Indiana Submarket has been essentially unchanged over the past year at 5.4% and is below the 10-year average as of 2022Q2. There have been many improvements to the property including a freshly sealed & striped parking lot (2021), a pylon sign and LED lights in the parking lot (2017), updated hallway bathrooms (2017), replacement of 6 rooftop units (last few years) , and updated suites with paint and new flooring as leases rolled. This location enjoys an affluent population with average household income of $85,799 (5-mile radius) and a population of 97,048 (5-mile radius). The area is known as a health care hub and national retail corridor that attracts and retains customers, and convenient for office workers. The abundance of national retailers include Target, Home Depot, Lowes, Walmart, Costco, Walgreens, CVS, Kohls, and Macy’s. A variety of health care providers including Methodist Hospital (0.8 Miles) and Pinnacle Hospital (1.6 Miles) are just minutes away. It is estimated that during any given weekday, the daytime workforce of Merrillville (population: 34,930) grows 285% to over 100,000 due to shoppers and workers throughout the town (Merrillville.in.gov).  Merrillville has become the crossroads of the county as it has the popular I-65 that runs through most of the town as well as the U.S. Route 30. Merrillville is just 43 miles from Chicago, IL and 142 miles from Indianapolis, IN. The Indiana Submarket in Chicago is a very large submarket that contains roughly 13.1 million SF of office space. The region features many higher education institutions including Ivy Tech Community College, Hyles-Anderson College, Denmark College, DeVry University, and University of Phoenix Merrillville. Large employers in the area include NiSource, Whiteco Industries, NIPSCO, and St. Mary’s Medical Center.

Exclusively Listed By

Financing By

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