Office Warehouse

8231 185th St

8231 185th St, Tinley Park, IL 60487

Listing Price: $1,250,000

Cap Rate
4.01%
Gross SF
19,128
Price/Gross SF
$65.35
Rentable SF
19,128

Investment Overview

Marcus & Millichap is pleased to present the sale offering of 8231 185th St, Tinley Park, IL a multi-tenant industrial/flex investment opportunity. The subject property is located directly off I-80 in the south suburbs of Chicago allowing further access to I-57, I-294, and I-355. The immediate location benefits from low Will County real estate taxes and strong market fundamentals. Within a three-mile radius of the subject property, there are currently 203 industrial/flex properties which contain an overall vacancy rate of 2.9 percent (CoStar).

The subject property is 19,128 square feet and currently comprised of 4 tenants, and one 6,400-square foot vacant unit, bringing the occupancy to 66.54 percent. Current ownership, Illinois Collection Service, Inc. (ICS), will be offering a partial sale-leaseback for their unit which contains 2,600 square feet. ICS specializes in healthcare and commercial debt collection and has been in business for over 70 years. This unit will be comprised of a full office build-out, with no access to docks or drive-in doors.

This offering contains multiple avenues to increase current cash-flow and further stabilize the asset. By back-filling the vacant 6,400 square foot unit, a new owner will significantly increase their in-place returns and bring the property 100 percent occupancy. Additionally, two tenants are currently paying well below market rents at $6.12 per square foot and $6.29 per square foot on a modified gross reimbursement structure. Both tenants have leases that are set to expire within the next 12 months. Furthermore, an owner-user would have the capability to occupy the vacant 6,400-square foot unit while cash-flowing the remaining 12,728 square feet of the property.

The purchase of this offering presents an investor or owner-user with a multi-tenant investment opportunity to increase cash-flow and stability within a highly desirable market. At the current list price of $1,250,000 the property generates an in-place net operating income (NOI) of $43,971 which equates to a 4.01 percent cap rate at 66.54 percent occupancy. By backfilling the current vacant unit and bringing all tenants to market rents, the offering contains a proforma cap rate of 10.59 percent.

Investment Highlights

  • Multi-tenant industrial/flex investment offering
  • Value-add opportunity through back-filling vacancy and raising rents
  • Immediate Interstate Access | I-80, I-57, I-294, and I-355
  • Low Will County real estate taxes
  • Strong Leasing Market | 2.9% Vacancy Rate within Three-Mile Radius (CoStar)
  • $92,043 Median Household Income within Three-Mile Radius

Exclusively Listed By

  • Peter Doughty

    Senior Associate

    Email Peter

    License(s): IL: 475.177502

    Chicago Downtown

Listing Price: $1,250,000

Cap Rate
4.01%
Gross SF
19,128
Price/Gross SF
$65.35
Rentable SF
19,128

Investment Highlights

  • Multi-tenant industrial/flex investment offering
  • Value-add opportunity through back-filling vacancy and raising rents
  • Immediate Interstate Access | I-80, I-57, I-294, and I-355
  • Low Will County real estate taxes
  • Strong Leasing Market | 2.9% Vacancy Rate within Three-Mile Radius (CoStar)
  • $92,043 Median Household Income within Three-Mile Radius

Investment Overview

Marcus & Millichap is pleased to present the sale offering of 8231 185th St, Tinley Park, IL a multi-tenant industrial/flex investment opportunity. The subject property is located directly off I-80 in the south suburbs of Chicago allowing further access to I-57, I-294, and I-355. The immediate location benefits from low Will County real estate taxes and strong market fundamentals. Within a three-mile radius of the subject property, there are currently 203 industrial/flex properties which contain an overall vacancy rate of 2.9 percent (CoStar).

The subject property is 19,128 square feet and currently comprised of 4 tenants, and one 6,400-square foot vacant unit, bringing the occupancy to 66.54 percent. Current ownership, Illinois Collection Service, Inc. (ICS), will be offering a partial sale-leaseback for their unit which contains 2,600 square feet. ICS specializes in healthcare and commercial debt collection and has been in business for over 70 years. This unit will be comprised of a full office build-out, with no access to docks or drive-in doors.

This offering contains multiple avenues to increase current cash-flow and further stabilize the asset. By back-filling the vacant 6,400 square foot unit, a new owner will significantly increase their in-place returns and bring the property 100 percent occupancy. Additionally, two tenants are currently paying well below market rents at $6.12 per square foot and $6.29 per square foot on a modified gross reimbursement structure. Both tenants have leases that are set to expire within the next 12 months. Furthermore, an owner-user would have the capability to occupy the vacant 6,400-square foot unit while cash-flowing the remaining 12,728 square feet of the property.

The purchase of this offering presents an investor or owner-user with a multi-tenant investment opportunity to increase cash-flow and stability within a highly desirable market. At the current list price of $1,250,000 the property generates an in-place net operating income (NOI) of $43,971 which equates to a 4.01 percent cap rate at 66.54 percent occupancy. By backfilling the current vacant unit and bringing all tenants to market rents, the offering contains a proforma cap rate of 10.59 percent.

Exclusively Listed By

  • Peter Doughty

    Senior Associate

    Email Peter

    License(s): IL: 475.177502

    Chicago Downtown

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