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Office Warehouse

20950 Ireland Road

20950 Ireland Rd, South Bend, IN 46614

Listing Price: $1,900,000

Cap Rate
5.79%
Gross SF
45,228
Price/Gross SF
$42.01
Lot Size
5.50 acres
Year Built
1982
Rentable SF
45,228

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 20950 Ireland Road in South Bend, Indiana. The subject property consists of approximately 45,288 square feet of warehouse space and is situated on 5.5 acres of land. The asset features a clear height between 16’ and 18’, four dock-high doors, and one drive-in door. At 83.30 percent occupancy, the multi-tenant property creates a leaseup opportunity in which investors can increase value while generating strong returns. Given that current leases are below the market rents and expiring within three years, the property also offers investors a value-add opportunity. The property sits in close proximity to the interchange between U.S. Route 31 and U.S. Route 20. The subject property is situated within Greater South Bend, a tough barrier-to-entry submarket containing roughly 20.4 million square feet of industrial space. Unlike the overall market, warehouse and distribution centers dominate the Greater South Bend submarket, making up 54 percent of inventory. Specialized space, mostly manufacturing facilities, and flex properties account for 41 percent and 5 percent, respectively. Thanks to back-to-back years of net absorption over 300,000 square feet, the vacancy rate has steadily fallen from an eight-year high of 9.1 percent in Q2 2019 to 6.0 percent at the start of Q2 2022. Consistently, high demand has also helped push market rent growth to the fastest pace on record at 8.9 percent year-over-year in Q2. With nothing currently under construction, there are no supply-side pressures on vacancy or rent for the foreseeable future. If Greater South Bend posts a third consecutive year of 300,000 square feet of absorption as forecast, the vacancy rate will drop to a record low near 4.0 percent (CoStar). Located along the southernmost bend of the St. Joseph River, hence the name, South Bend is the fourth largest city in Indiana, with a population of 103,453 residents. Established as a fur trading post, South Bend grew quickly with the rise of the now-defunct automobile maker, Studebaker Corporation. Today, South Bend’s economy is anchored by the famed University of Notre Dame. With nearly 6,000 workers, Notre Dame is the single largest employer in South Bend. Both residents and businesses benefit from a low cost of living and business-friendly environment, which has spawned growth in the logistics and high-tech manufacturing industries (Marcus & Millichap).

Investment Highlights

  • Features 16'-18' Clear Heights, Four Dock Doors, and One Drive-In Door
  • 45,288-Square-Foot Multi-Tenant Warehouse Situated on 5.5 Acres
  • 78% Occupancy Creates Lease-Up Opportunity for Investor to Add Value While Still Generating a Strong Return on Investment
  • Tough Barrier-to-Entry Market: 6.0% Overall Vacancy and 8.9% Annual Rent Growth
  • Below Market Rent Per-Square-Foot with Leases Expiring in Two Years, Creates Value-Add Opportunity
  • Proximate to U.S Route 31 and U.S. Route 20 Interchange

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s) IN: RB14034355

    Indiana

Office Warehouse

20950 Ireland Road

Listing Price: $1,900,000

Cap Rate
5.79%
Gross SF
45,228
Price/Gross SF
$42.01
Lot Size
5.50 acres
Year Built
1982
Rentable SF
45,228

Investment Highlights

  • Features 16'-18' Clear Heights, Four Dock Doors, and One Drive-In Door
  • 45,288-Square-Foot Multi-Tenant Warehouse Situated on 5.5 Acres
  • 78% Occupancy Creates Lease-Up Opportunity for Investor to Add Value While Still Generating a Strong Return on Investment
  • Tough Barrier-to-Entry Market: 6.0% Overall Vacancy and 8.9% Annual Rent Growth
  • Below Market Rent Per-Square-Foot with Leases Expiring in Two Years, Creates Value-Add Opportunity
  • Proximate to U.S Route 31 and U.S. Route 20 Interchange

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 20950 Ireland Road in South Bend, Indiana. The subject property consists of approximately 45,288 square feet of warehouse space and is situated on 5.5 acres of land. The asset features a clear height between 16’ and 18’, four dock-high doors, and one drive-in door. At 83.30 percent occupancy, the multi-tenant property creates a leaseup opportunity in which investors can increase value while generating strong returns. Given that current leases are below the market rents and expiring within three years, the property also offers investors a value-add opportunity. The property sits in close proximity to the interchange between U.S. Route 31 and U.S. Route 20. The subject property is situated within Greater South Bend, a tough barrier-to-entry submarket containing roughly 20.4 million square feet of industrial space. Unlike the overall market, warehouse and distribution centers dominate the Greater South Bend submarket, making up 54 percent of inventory. Specialized space, mostly manufacturing facilities, and flex properties account for 41 percent and 5 percent, respectively. Thanks to back-to-back years of net absorption over 300,000 square feet, the vacancy rate has steadily fallen from an eight-year high of 9.1 percent in Q2 2019 to 6.0 percent at the start of Q2 2022. Consistently, high demand has also helped push market rent growth to the fastest pace on record at 8.9 percent year-over-year in Q2. With nothing currently under construction, there are no supply-side pressures on vacancy or rent for the foreseeable future. If Greater South Bend posts a third consecutive year of 300,000 square feet of absorption as forecast, the vacancy rate will drop to a record low near 4.0 percent (CoStar). Located along the southernmost bend of the St. Joseph River, hence the name, South Bend is the fourth largest city in Indiana, with a population of 103,453 residents. Established as a fur trading post, South Bend grew quickly with the rise of the now-defunct automobile maker, Studebaker Corporation. Today, South Bend’s economy is anchored by the famed University of Notre Dame. With nearly 6,000 workers, Notre Dame is the single largest employer in South Bend. Both residents and businesses benefit from a low cost of living and business-friendly environment, which has spawned growth in the logistics and high-tech manufacturing industries (Marcus & Millichap).

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s): IN: RB14034355

    Indiana

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