Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 702 Valentin Drive in Round Lake, Illinois. The subject property consists of approximately 19,940 square feet of industrial space situated on 0.94 acres. The property features metal construction, 16’ clear height, and two 16’ grade-level doors. Situated in Round Lake Industrial Park, the property is ideal for contractors, small businesses, and light manufacturing. The property is strategically located along Illinois Route 134, with proximity to Illinois Route 83 and U.S. Route 12, providing easy access to major transportation routes. The property is currently owner-occupied by the seller, Phillips' Boat Storage. Upon closing, the seller plans to execute a sale-leaseback agreement at $4.81 per square foot through May 2027 on modified gross terms. With short-term cash flow, the buyer has ample time to secure a long-term tenant or plan for future owner use. The property sits within the large North Lake County submarket, containing 44.1 million square feet of industrial space. Despite the size of the submarket and its strategic position between Chicago and Milwaukee, there were no industrial properties under construction at the midway point of 2026. The submarket’s inventory has experienced minimal growth since 2020, which supports landlords of older properties. North Lake County boasted a 5.8 percent vacancy rate and 4.8 percent rent growth in Q2 2026, compared to the national averages of 7.8 percent and 1.5 percent, respectively (CoStar, national averages based on top 50 metros, classes A, B, & C, and minimum 10,000 square feet). The submarket is home to a diverse range of industries, including manufacturing, logistics, and distribution, and is supported by a network of major roads and highways. The Chicago metropolitan area, where the North Lake County submarket is situated, is a large and diverse market with a population of over 9.5 million people, spanning across multiple counties and thousands of square miles. The market is experiencing positive trends in job growth, population growth, and migration, driven by its strong economy, world-class transportation infrastructure, and high quality of life. The region is home to two major international airports, O'Hare and Midway, as well as a comprehensive network of highways, rail lines, and waterways, making it an ideal location for businesses and investors. Major industries in the market include manufacturing, logistics, healthcare, and technology, with many corporate headquarters and key economic anchors, such as Boeing, Caterpillar, and United Airlines. Given its location within the larger Chicago market and the strong North Lake County submarket, the subject property offers a compelling investment opportunity, with potential for long-term growth and stability.