U.S. Customs & Border Protection - Elk Grove Village, IL_Property for Sale

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

U.S. Customs & Border Protection - Elk Grove Village, IL

Asset Description

Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to offer for sale the fee simple interest in 2500 York Road (the “Property” or “Asset”), a newly renovated industrial facility located in the Chicago MSA and 100% leased to the U.S. Government (S&P: AA+) for 15 years (10 years firm). The Asset is strategically located adjacent to O’Hare International Airport (“ORD”) within one of the highest performing industrial submarkets nationwide.

Housing the U.S. Customs and Border Protection Agency (“CBP”), a division of the Department of Homeland Security, the Property represents a consolidation of three proximate satellite offices into one highly cohesive location that is essential to the Agency’s local business operations.

This mission-critical asset provides investors with a rare opportunity to acquire a very infill industrial property with guaranteed and growing long-term cash flow backed by the U.S. Government. The Agency’s substantial investment into the property, combined with the immediate access to O’Hare International Airport and Downtown Chicago, accentuates the Tenant’s strong desire to occupy this asset long-term.

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Attributes

Asking Price

TRY 220,335,000

Building area Net

4,463 m²

Occupancy

100.00%

Year built

1972 / 2023

Land area net

1.34 ha (13,395 m²)

Cap Rate

6.50%

NOI

TRY 14,326,000

Media

Investment Highlights

EXCEPTIONAL TENANCY FROM THE U.S. GOVERNMENT (S&P: AA+)

15-year lease term (10 years firm) offers a growing long-term cash flow guaranteed by the U.S. Government.
Landlord responsibilities materially diminished by substantial recent renovations.

RECENTLY RENOVATED FACILITY WITH SIGNIFICANT TENANT INVESTMENT

Over $6,000,000 in recent capital improvements, including $2,280,000 specific to the Agency's standards for on-site critical operations.

MISSION-CRITICAL ASSET ADJACENT TO CHICAGO’S O’HARE INTERNATIONAL AIRPORT

Strategic consolidation of three proximate field offices into one location to support highly efficient and critical operations for the Department of Homeland Security.
Adjacent to O’Hare International Airport and is essential to Tenant's operations and time-sensitive ingress & egress.

INFILL O’HARE SUBMARKET WITH BOOMING INDUSTRIAL FUNDAMENTALS

Among the most coveted industrial submarkets nationwide that maintains record-low vacancy rates of 3.1% and accelerated rent growth of 8.6% over the prior 12 months.

SIGNIFICANT FUTURE UPSIDE TO UNLOCK CASH FLOW

The Tenant’s lease comprises 48,038 rentable SF due to the U.S. Government’s initial lease requirement. However, there is an additional ±7,000 rentable SF that the Tenant is technically not paying rent on during its lease term, which provides investors the unique opportunity to unlock substantial cash flow upon tenant rollover.