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Warehouse

Cold Storage Portfolio

1861 S Henderson St, Galesburg, IL 61401

Listing Price: $893,183

Cap Rate
8.01%
Gross SF
16,380
Price/Gross SF
$54.53
Lot Size
4.23 acres
Year Built
1996
Rentable SF
16,380

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the four-building portfolio located at 4411 Township Road, in Findlay, Ohio, 1861 South Henderson Street, in Galesburg, Illinois, 142 Tortorice Lane, in Independence, Louisiana, and 190 Corner Stone Road, in Alexander, Arkansas. The subject portfolio consists of approximately 38,380 square feet of space and is situated on a total of 9.32 acres of land. The asset features strategically located warehouses with proximate access to major freeways, and triple net leases that minimalize landlord responsibilities. Both tenants of the Arkansas and Louisiana buildings have given indication of a potential lease buyout. The Ohio facility is leased to Armour, a subsidiary of Smithfield Foods. Armour was founded in Chicago in 1867 to provide convenient, quality meal solutions for everyday families. The company gained notoriety for becoming the first food producer to use refrigeration. Today, Armour produces a variety of prepacked foods including, frozen meatballs, LunchMakers, and deli meats. Armour continues to innovate and provide convenient meal solutions for families nationwide (Armour). Leased to Sitka Salmon Shares, the Illinois facility is located within five miles of seven grocery stores, including Aldi, Walmart, and Hy-Vee. The property provides excess land, allowing for ample parking, storage and future expansion. To meet rising demand, Sitka Salmon Shares has expressed interest in expanding the subject property. The company is a leading provider of home-delivered, premium, wild Alaskan seafood in the Midwest. Sitka Salmon Shares offers customers a monthly subscription to buy “shares” of a harvest from the company’s network of 20 small boat family-owned fishermen (Sitka Salmon Shares). Situated within the Hammond market, the Louisiana facility is located less than a mile from a Piggly Wiggly, the town’s main grocery store. As of Q3 2021, market industrial rents in Hammond are up 7.1 percent since last year, representing the fastest pace on record and easily eclipsing the ten-year annual average of 3.1 percent. After rising to 8.2 percent a year ago, the vacancy rate has since plummeted to just 2.5 percent. With no industrial properties currently under construction, there are no supply pressures on vacancies or rent growth for the foreseeable future. Furthermore, nonfarm payrolls are rising at the fastest rate in more than a decade at 7.6 percent (CoStar). Located in the Saline County submarket, the Arkansas facility has access to seven major grocery stores, including two Walmarts, within a five-mile radius. Saline County is a midsized submarket containing about 4.5 million square feet of industrial space. Annual net absorption clocked in at 270,000 square feet, the strongest reading in over five years. As the third quarter concludes, market rents are up a notable 5.9 percent year-over-year, the strongest growth rate on record. Industrial rents in Saline County trade at a premium of $7.30 per square foot, 35 percent higher than the metro average. Over the last three years, inventory has expanded by a sizeable 12.9 percent, pushing the vacancy rate up to a moderate level of 5.7 percent. However, with no properties currently underway, the vacancy rate is projected to quickly decline over the next year (CoStar).

Investment Highlights

  • Strategically Located Industrial Warehouses with Proximate Access to Major Freeways
  • Situated on Excess Land Allowing for Ample Parking and Storage, as Well as Future Expansion
  • Triple-Net Leases, Minimizing Landlord Responsibility
  • The Galesburg, IL, Facility is Located Within Five Miles of Seven Grocery Stores, Including Aldi, Walmart, and Hy-Vee
  • The Independence, LA, Facility is Located Less Than a Mile From a Piggly Wiggly the Town's Main Grocery Store
  • There Are Seven Major Grocery Stores, Including Two Walmarts, Within Five Miles in Each Direction of the Alexander, AR, Facility
  • Both Arkansas and Louisiana Buildings Have Given Indication of a Potential Lease Buyout
  • Sitka Salmon, LLC Has Insinuated a Potential Expansion Site in Illinois

Exclusively Listed By

Broker of Record

  • Steven D. Weinstock

    First Vice President / Regional Manager / Designated Managing Broker

    (630) 570-2250

    License(s) IL: 471.011175

    Illinois

Financing By

Listing Price: $893,183

Cap Rate
8.01%
Gross SF
16,380
Price/Gross SF
$54.53
Lot Size
4.23 acres
Year Built
1996
Rentable SF
16,380

Investment Highlights

  • Strategically Located Industrial Warehouses with Proximate Access to Major Freeways
  • Situated on Excess Land Allowing for Ample Parking and Storage, as Well as Future Expansion
  • Triple-Net Leases, Minimizing Landlord Responsibility
  • The Galesburg, IL, Facility is Located Within Five Miles of Seven Grocery Stores, Including Aldi, Walmart, and Hy-Vee
  • The Independence, LA, Facility is Located Less Than a Mile From a Piggly Wiggly the Town's Main Grocery Store
  • There Are Seven Major Grocery Stores, Including Two Walmarts, Within Five Miles in Each Direction of the Alexander, AR, Facility
  • Both Arkansas and Louisiana Buildings Have Given Indication of a Potential Lease Buyout
  • Sitka Salmon, LLC Has Insinuated a Potential Expansion Site in Illinois

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the four-building portfolio located at 4411 Township Road, in Findlay, Ohio, 1861 South Henderson Street, in Galesburg, Illinois, 142 Tortorice Lane, in Independence, Louisiana, and 190 Corner Stone Road, in Alexander, Arkansas. The subject portfolio consists of approximately 38,380 square feet of space and is situated on a total of 9.32 acres of land. The asset features strategically located warehouses with proximate access to major freeways, and triple net leases that minimalize landlord responsibilities. Both tenants of the Arkansas and Louisiana buildings have given indication of a potential lease buyout. The Ohio facility is leased to Armour, a subsidiary of Smithfield Foods. Armour was founded in Chicago in 1867 to provide convenient, quality meal solutions for everyday families. The company gained notoriety for becoming the first food producer to use refrigeration. Today, Armour produces a variety of prepacked foods including, frozen meatballs, LunchMakers, and deli meats. Armour continues to innovate and provide convenient meal solutions for families nationwide (Armour). Leased to Sitka Salmon Shares, the Illinois facility is located within five miles of seven grocery stores, including Aldi, Walmart, and Hy-Vee. The property provides excess land, allowing for ample parking, storage and future expansion. To meet rising demand, Sitka Salmon Shares has expressed interest in expanding the subject property. The company is a leading provider of home-delivered, premium, wild Alaskan seafood in the Midwest. Sitka Salmon Shares offers customers a monthly subscription to buy “shares” of a harvest from the company’s network of 20 small boat family-owned fishermen (Sitka Salmon Shares). Situated within the Hammond market, the Louisiana facility is located less than a mile from a Piggly Wiggly, the town’s main grocery store. As of Q3 2021, market industrial rents in Hammond are up 7.1 percent since last year, representing the fastest pace on record and easily eclipsing the ten-year annual average of 3.1 percent. After rising to 8.2 percent a year ago, the vacancy rate has since plummeted to just 2.5 percent. With no industrial properties currently under construction, there are no supply pressures on vacancies or rent growth for the foreseeable future. Furthermore, nonfarm payrolls are rising at the fastest rate in more than a decade at 7.6 percent (CoStar). Located in the Saline County submarket, the Arkansas facility has access to seven major grocery stores, including two Walmarts, within a five-mile radius. Saline County is a midsized submarket containing about 4.5 million square feet of industrial space. Annual net absorption clocked in at 270,000 square feet, the strongest reading in over five years. As the third quarter concludes, market rents are up a notable 5.9 percent year-over-year, the strongest growth rate on record. Industrial rents in Saline County trade at a premium of $7.30 per square foot, 35 percent higher than the metro average. Over the last three years, inventory has expanded by a sizeable 12.9 percent, pushing the vacancy rate up to a moderate level of 5.7 percent. However, with no properties currently underway, the vacancy rate is projected to quickly decline over the next year (CoStar).

Exclusively Listed By

Broker of Record

  • Steven D. Weinstock

    First Vice President / Regional Manager / Designated Managing Broker

    (630) 570-2250

    License(s): IL: 471.011175

    Illinois

Financing By

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