Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 3232 Calumet Avenue in Hammond, Indiana, leased to BP Products North America, Inc. The subject property consists of approximately 66,000 square feet of space and is situated on 6.3 acres of land. The single-tenant asset features an under hook clear height of 24’, a maximum clear height of 34’, four dock-high doors, 10 drive-in doors, and a 25-ton interior crane. Adjacent to the property sits BP’s 1,400-acre Whiting Refinery, the company’s largest processing facility in the world. As a wholly-owned indirect subsidiary of BP p.l.c, the tenant’s triple-net lease, which runs through May 2028, is fully guaranteed. Situated along Interstate 90, the property sits near the Indiana and Illinois state border inside Lake County. Lake County, which serves as the territory for the Indiana submarket, contains 47.2 million square feet of industrial space. Unlike the national norm, half of the submarket consists of manufacturing facilities, followed by logistics and flex space. During the third quarter of 2023, the vacancy rate rose to 7.7 percent, yet annual rent growth remained elevated at 7.0 percent. Among comparable properties between 50,000 and 100,000 square feet, the vacancy rate remained historically tight in Q3 at just 1.1 percent. Tighter availability for comparables helped push market rent growth above the overall submarket at 8.1 percent annually. While a sizeable 2.4 million square feet of industrial space were under construction in the submarket, essentially all of the new space was concentrated in properties over 100,000 square feet. This means that vacancies and rent growth for comparables will be unchallenged by new supply for the foreseeable future (CoStar). 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 hightech 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).