Overview
Marcus & Millichap is pleased to offer the opportunity to acquire a three-building industrial manufacturing portfolio totaling +/- 127,028 SF located at 501, 505, 507, 509, 511 West Algonquin Road Arlington Heights, IL 60005 (“Assets”, “Buildings”, or “Portfolio”). The Assets are leased to Buhrke Industries, LLC (“Tenant”) with a corporate guarantee from IMS Companies, LLC.
This offering presents the rare opportunity to acquire three infill manufacturing Assets with completely passive ownership for +/- 4.0 years and outstanding security in the value of the underlying real estate. Given the well below market rental rate, there is mid-term upside for a future investor as the Tenant’s renewal option is at 95% of FMV. Additionally, the portfolio will trade well beneath replacement cost and future ownership will benefit from the acquisition basis.
Investment Highlights
HIGHLY ATTRACTIVE LEASE TERM
• Absolute NNN lease structure with no landlord responsibilities
• +/- 4.0 years of firm term remaining with one (1) five-year renewal option at 95% of FMV
• Below market rental rate of $4.64/ SF NNN. Asking rents are well above $6.000/ SF NNN in the submarket for comparable manufacturing buildings
• Annual rent escalations of 2.00% through the remaining firm lease term
DESIRABLE BUILDING AND SITE FUNDAMENTALS
• +/- 127,028 total SF across three buildings that range in size from 30,184 SF and 56,160 SF
• The Tenant has a long history at this location dating back to the construction of the original building in 1967
• In addition to serving as the company headquarters, the Tenant has significant investment into the buildings with stamping equipment that is extremely difficult and expensive to re-locate
• In the event the Tenant were to vacate, future ownership has a variety of future lease possibilities as each of the free standing buildings are individually parceled and are favorable sizes for local and regional users
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