Chicago Collar Counties Light Industrial Portfolio _Property for Sale

Various locations

Chicago Collar Counties Light Industrial Portfolio

Portfolio description

Jones Lang LaSalle (“JLL”), as an exclusive advisor to ownership, has been retained to market for sale the fee-simple interest in the Chicago Collar Counties Light Industrial Portfolio (the “Offering” or the “Portfolio), a 1,070,114 square foot collection of assets in the Chicago MSA. The Portfolio offers multi-tenant and single-tenant formats with average unit sizes just under 45,000 SF, 24’ average clear heights, 12.7% average office finish, and an average vintage of 1997. With 87.7% occupancy and 4.0 years of WALT across the Portfolio, future ownership will take advantage of a consistent tenant rollover schedule and significantly below market in-place rents, providing for a 17.8% mark-to-market opportunity. The Portfolio provides investors a diversified assemblage of highly functional assets with multiple yield enhancement opportunities, offered at a significant discount to today’s replacement costs.

Positioned along major interstate highways within each of Will, Kane, DuPage, and Lake counties, the Portfolio couples access to the Chicago MSA's most desirable corridors while avoiding tax-disadvantaged Cook County. Each asset is well located with proximate access to Chicago's major highway infrastructure, along with exposure to the MSA's dense, blue-collar labor pools. The Portfolio offers attractive submarket diversity with concentrations in the MSA's tightest markets, namely North DuPage (2.5% vacancy rate), I-55 (3.9% vacancy rate), and I-88 (5.7% vacancy rate).

...

Attributes

Building area gross

1,070,114 sf

Occupancy

87.7%

Clear height

25 ft

WALT

4 years

Call for offers

01/29/2025

Chicago Collar Counties Light Industrial Portfolio (13 Properties)

Media

Investment highlights

Highly functional industrial assets in Chicago's top submarkets

The Portfolio offers investors 1.1 million square feet of functional, 1999 average vintage light industrial product in the coveted Chicago market.

With an average clear height of 25' and a 12.7% average office finish, these Asset's cater to a diverse, light industrial tenant base serving the Chicago MSA and the greater Midwest.

The Portfolio's asset concentration in Will, Kane, DuPage, and Lake counties provides investors with exposure to Chicago's tightest industrial submarkets while avoiding tax disadvantaged Cook County.

Immediate and near-term yield enhancement opportunities

Nearly 30% of the Portfolio rolls to market in the first two years of an investors hold period (inclusive of the vacant suite in Tinley Park). This offers investors an outstanding opportunity to boost going-in yields through vacancy lease-up and a 27% mark-to-market opportunity for near-term expiring tenants.

Significant discount to replacement cost

Given the Portfolio's locations in well-established industrial parks in the Chicago MSA and significant barriers to entry for future supply (specifically due to rising construction costs for average 44,000 SF suites), an investor's cost basis will be significantly below replacement cost.