Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1355-1375 Wilhelm Road in Mundelein, Illinois. The subject property consists of approximately 32,900 square feet of small-bay industrial space situated on 2.10 acres. With its high-quality features, including six units, 19’ clear height, six grade-level doors, and four dock-high doors, this asset is well-suited to meet the demands of industrial users. Four tenants fully occupy the property with gross leases that carry a weighted average lease term of 3.27 years. With an average annual rent of $10.72 per square foot, the property generates a 7.31 percent cap rate. Each rental rate escalates by 3.0 percent annually, and three leases can be renewed with the rent tied to increases in the consumer price index (CPI), offering investors inflation protection. Multiple thoroughfares, including U.S. Route 45, Illinois Route 60 (Town Line Road), and Interstate 94, are located in close proximity to the subject property. Primely situated in the South Lake County submarket, the property benefits from strong industrial market fundamentals. The submarket is outperforming national averages, with a 5.4 percent vacancy rate and 4.1 percent annual rent growth during Q2 2026, making it an attractive location for investors. The lack of new industrial construction in South Lake County contributes to the submarket's tight market conditions, supporting existing landlords (CoStar). Major industries in the submarket include manufacturing, logistics, and distribution, which drive demand for high-quality industrial space like the subject property. The Chicago metropolitan area, where the South Lake County submarket is situated, is a large and diverse market with a population of over 9.5 million people. Metro Chicago 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 a critical hub for trade and commerce. Major industries in the market include manufacturing, technology, healthcare, and finance, with numerous corporate headquarters and key economic anchors, such as Boeing, United Airlines, and Walgreens. With its strong market fundamentals, limited new construction, and growing demand for industrial space, the subject property presents a solid investment opportunity in the current market conditions, offering a compelling case for investors seeking stable cash flow and long-term appreciation.