Investment Overview

Marcus & Millichap is pleased to present the sale offering of 16727 Chicago Ave, a single tenant, sale leaseback industrial investment offering located in Lansing, IL. The property resides in the South Chicagoland suburbs and sits in close proximity to the I-94 and I-294 Interchange, offering interstate access to the greater Chicagoland area and Northwest Indiana. The subject property is 65,000 square feet of warehouse and office space, sits on 3.74 acres, and was constructed in 1971. The building contains 3 exterior docks, 2 drive-in doors, and has a clear height of 16 feet throughout the warehouse. The property is currently occupied by Zegers Inc., a specialist in steel and aluminum coil coating. Upon close of escrow, current ownership will be signing a new 5-year lease with one 3-year option to renew. The offering will operate on an absolute net lease structure, containing zero landlord responsibilities. The 5-year lease will be offered at a rent of $3.00/SF with 3% annual increases, offering a lower market rent with high replaceability. Within a 3-mile radius of the subject property, there are currently 185 industrial properties with an aggregate vacancy rate less than 1%, and 9.2% rent growth over the past year (Costar). The purchase of this offering presents an investor with the opportunity to acquire a completely passive industrial investment. At the current list price of $2,365,000, the investment generates an in-place net operating income of $195,000, which equates to an 8.25% CAP rate.