U.S. Government O'Hare Int'l Airport Industrial Facility - Chicago MSA

2500 York Rd, Elk Grove Village, IL, 60007, US

Description

JLL is pleased to offer for sale 2500 York Road in Elk Grove Village, IL, a recently renovated single tenant industrial / flex facility that is strategically located adjacent to Chicago’s O’Hare International Airport (“O’Hare” or “ORD”). The asset is 100% leased to the U.S. Government (S&P: AA+) and contains 13.3 years of remaining term (8.3 years of firm term). The Property was completely retrofitted for the Tenant’s specifications with nearly $7.7 million ($159 PSF) of tenant improvements since 2022.

Housing one of the largest divisions within the Department of Homeland Security (“U.S. DHS”), the Tenant consolidated three of its local satellite offices into the Property due to its strategic location next to O’Hare, efficient access between the northeast and southwest airport cargo entrances, abundance of parking in a supply constrained submarket, secured parking lot with a high bay warehouse, and a flexible layout that allowed for the Tenant’s essential operations, training, and secured storage.

This mission-critical asset provides investors with a rare opportunity to acquire an infill industrial facility located in Chicago’s top-performing submarket with long-term cash flow backed by the U.S. Government. The Property’s significant build-out, security requirements, and proximity to critical infrastructure solidifies the Tenant’s strong desire for this location with high probability of renewal.

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Attributes

Asking price

HK$81,596,000

Cap rate

7.5%

Occupancy

100%

Tenant credit rating

WALT

13.3 years

Building area net

55,356 sf

Land area gross

3.31 acres

Media

Investment Highlights

Recently Redeveloped with Significant Capital Investment

$7.7 million (over $159 PSF) of renovations completed since 2022 to redevelop the Property for the U.S. DHS’ use.
$3.7 million allocated for U.S. DHS’ specifications including major security upgrades, secured parking for command vehicles, ammunition and evidence storage, tactical training rooms, and criminal investigation spaces.

Mission Critical Asset with Adjacency to O’Hare International Airport

Strategic consolidation of three local field offices into one highly cohesive location to support key law enforcement functions for the U.S. DHS.
Critical operations supporting one of the busiest air cargo and passenger gateways in the world.

Exceptional Tenancy from the U.S. Government (S&P: AA+)

U.S. DHS is one of the world’s largest and most important law enforcement organizations employing over 260,000 professionals.

Long-Term, Attractive Lease Structure

13.3 years of term remaining (8.3 years of Firm Term) offers growing cash flow secured by the U.S. Government.
Significant mark-to-market opportunity upon lease expiry in February 2039.