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Office

New 10 Year Single Tenant Re/Max | Above Market Annual Rent Increases

441 Taft Ave, Glen Ellyn, IL 60137

Listing Price: $969,000

Cap Rate
7.00%
Gross SF
6,132
Rentable SF
6,132
Price/Gross SF
$158.02
Lot Size
0.68 acres
Year Built
1978

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a single tenant office building, leased to Re/Max Suburban, the #1 Re/Max franchisee in Illinois. The tenant just extended for an additional 10YR term, until August 30th, 2032. Re/Max Suburban is in the top 50 most productive residential brokerages in the United States, and they have operated out of this location since 1978. Their lease features well above market annual rent increases which will dramatically increase a new owner’s return over the term of the lease. Although the lease is technically modified gross in structure, it features uniquely landlord favorable expense stops, so that any increases in CAM, real estate taxes, and insurance, over the base year (2021) expenses, are reimbursed by the tenant. The lease also allows for the landlord to recoup a 3rd party management fee, meaning this opportunity is ideal for investors seeking minimal landlord responsibilities. With average annual rent increases of 4.34%, the cash flow is likely to build steadily over time. The asking cap rate is 7%, and with the rent increases taken into account the average cap rate over the term of the lease is 8.56%. Glen Ellyn is a wealthy suburb west of the city of Chicago. Average household incomes exceed $139,000 per year and there are 106,099 people residing within a 3-mile radius of this Re/Max Suburban office

Investment Highlights

  • Re/Max just extended their lease 10 years
  • With 3% annual increases to the base rent, the NOI is scheduled to grow an average of 4.34% annually over the term of the lease
  • Average cap rate over the term of the lease is 8.65%
  • Excellent location just off Roosevelt Road, near several new retail developments
  • Re/Max Suburban is the #1 Re/Max Franchise in Illinois by revenue
  • Exceptional demographics – average household incomes exceed $139,000 per year | 106,099 people live within a 3-mile radius

Exclusively Listed By

Office

New 10 Year Single Tenant Re/Max | Above Market Annual Rent Increases

Listing Price: $969,000

Cap Rate
7.00%
Gross SF
6,132
Rentable SF
6,132
Price/Gross SF
$158.02
Lot Size
0.68 acres
Year Built
1978

Investment Highlights

  • Re/Max just extended their lease 10 years
  • With 3% annual increases to the base rent, the NOI is scheduled to grow an average of 4.34% annually over the term of the lease
  • Average cap rate over the term of the lease is 8.65%
  • Excellent location just off Roosevelt Road, near several new retail developments
  • Re/Max Suburban is the #1 Re/Max Franchise in Illinois by revenue
  • Exceptional demographics – average household incomes exceed $139,000 per year | 106,099 people live within a 3-mile radius

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a single tenant office building, leased to Re/Max Suburban, the #1 Re/Max franchisee in Illinois. The tenant just extended for an additional 10YR term, until August 30th, 2032. Re/Max Suburban is in the top 50 most productive residential brokerages in the United States, and they have operated out of this location since 1978. Their lease features well above market annual rent increases which will dramatically increase a new owner’s return over the term of the lease. Although the lease is technically modified gross in structure, it features uniquely landlord favorable expense stops, so that any increases in CAM, real estate taxes, and insurance, over the base year (2021) expenses, are reimbursed by the tenant. The lease also allows for the landlord to recoup a 3rd party management fee, meaning this opportunity is ideal for investors seeking minimal landlord responsibilities. With average annual rent increases of 4.34%, the cash flow is likely to build steadily over time. The asking cap rate is 7%, and with the rent increases taken into account the average cap rate over the term of the lease is 8.56%. Glen Ellyn is a wealthy suburb west of the city of Chicago. Average household incomes exceed $139,000 per year and there are 106,099 people residing within a 3-mile radius of this Re/Max Suburban office

Exclusively Listed By

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