Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 520 Eggebrecht Road in La Porte, Indiana. The subject property consists of approximately 70,520 square feet of warehouse space and is situated on 6.58 acres of land. The multi-tenant asset features three buildings, five dock-high doors, four drive-in doors, and clear heights ranging from 10’ to 30’. Along with recent repairs to the roof, the water lines for the boiler heater were repaired in 2022. With rents priced 40 percent below the market rate, the fully leased asset offers a value-add opportunity to investors. Situated 27 miles west of South Bend, Indiana, and southeast of Pine Lake, the property has proximate access to U.S. Route 35 (Indiana Avenue) and State Road 2 (18th Street). The subject property is well-positioned in Michigan City – La Porte, a relatively small market containing 13.7 million square feet of industrial space. For much of the last decade, the vacancy rate has remained at elevated levels, recently rising to 12.2 percent during Q3 2023 due to net absorption dropping into negative territory this year. Despite demand slowing, market rents were up 5.9 percent year-over-year in Q3, outpacing the increase in the Consumer Price Index. There were no industrial properties under construction in Michigan City – La Porte during this time, which means that vacancies and rent growth will be unaffected by new supply for the foreseeable future (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).