363 bluff city boulevard - elgin, illinois ±200,920 sf ... · herein is from sources deemed...

PROPERTY FEATURES

• ±200,920 SF building• 4.87 acres• 1.1 acre parking lot• 10’ - 20’ clear heights• 11 docks• 3 drive-in doors• Industrial zoning• Heavy power• ±65,000 SF available for lease

• ±65% leased• Potential future redevelopment• Proximity to Lake Street, Route 59 &

Elgin-O’Hare Expressway• Value add investment opportunity• Over $255,000 annual gross income in

place• 2019 Fire protection/riser upgrade• Sale Price: $1,995,000

©2019 NAI Hif fman. All r ights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

ONE OAKBROOK TERRACE SUITE 400 HIFFMAN.COM OAKBROOK TERRACE IL 60181 @NAIHIFFMAN630 932 1234

Kelly Disser 630 317 0721

kdisser@hif fman.com

Michael J. Freitag 630 693 0652

mfreitag@hif fman.com

±200,920 SF Multi-Tenant Building363 BLUFF CITY BOULEVARD - ELGIN, ILLINOIS

INVESTMENT OPPORTUNITYSPACE AVAILABLE FOR LEASE FOR USER/INVESTOR

(SELLER IS USER/INVESTOR)







ADDITIONAL1.1 ACRE LOT










BUILDING LAYOUT AND AVAILABLE SPACES WITHIN BUILDING




GRADE LEVEL

GRACE STREET LEVEL

BASEMENT LEVEL







Rent RollSquare Footage

Monthy Gross Rent

Current Annualized Gross Rent

Estimated $ / SF Expiration DateProforma Gross

Rent PSFRe‐Cast Gross Rents 2024

Conveyor Solutions 30,363 5,000$ 60,000$ 1.98$ 8/31/2020 NEW TENANT 3.00$ 91,089$ Chicago Countertop Connection 3,419 1,200$ 14,400$ 4.21$ 4/30/2022 increase rent 4.00$ 13,676$ Dina's Tires 1,847 412$ 4,944$ 2.68$ 8/31/2021 increase rent 3.50$ 6,465$ Evil Intentions: Haunted House 27,387 4,242$ 50,904$ 1.86$ 10/31/2023 increase rent 3.00$ 82,161$ Hernandez Body Shop 2,728 700$ 8,400$ 11/30/2019 10,000$ J & Abe's Welding Service 4,654 ‐$ 2.90$ increase rent 4.50$ 20,943$ J & Abe's Welding Service ‐ LL South Side 515$ 6,180$ 8/31/2021 ‐$ J & Abe's Welding Service ‐ LL West Side 237$ 2,844$ 8/31/2021 ‐$ J& Abe's Welding Service ‐ Trailer Storage MTM 90$ 1,080$ ‐$ J & Abe's Welding Service ‐ LL Part 1 284$ 3,408$ 3/31/2021 ‐$ John and Jen Recycle ‐ Area 1 6,407 1,983$ 23,796$ 3.71$ 6/30/2021 increase rent 4.00$ 25,628$ John and Jen Recycle ‐ Area 2 ‐ LL 4,600 500$ 6,000$ 1.30$ 6/30/2010 increase rent 2.25$ 10,350$ LG Woodwork 686 250$ 3,000$ Johns Plastics 1,854 550$ 6,600$ 3.56$ 3/31/2020 increase rent 4.50$ 8,343$ Nevarez Pallets: Basement 9,548 766$ 9,192$ 0.96$ 9/30/2020 increase rent 1.00$ 9,548$ Nevarez Pallets: OLD MHD Space + basement 19,438 4,634$ 55,608$ 2.86$ 9/30/2020 increase rent 3.00$ 58,314$ VALUE ADD (BELOW)Vacant Unit A 16,000 LEASE VACANCY ‐$ ‐$ Vacant Unit A BASEMENT 7,000 LEASE VACANCY ‐$ ‐$ Vacant Unit B 11,000 LEASE VACANCY ‐$ ‐$ Vacant Unit C 4,600 LEASE VACANCY 4.00$ 18,400$ Vacant Unit D 561 LEASE VACANCY 5.00$ 2,805$ Vacant Unit E 2,700 LEASE VACANCY 4.00$ 10,800$ Basement Space 32,121 LEASE VACANCY 1.00$ 32,121$ Boiler Room 3,000 OUTSIDE STORAGE / RELATEDTotal Cleaning Solutions ‐ 75$ 900$ 1,200$ LG Discovery ‐ 200$ 2,400$ LEASE VACANCY 3,000$

200,920 21,638$ 259,656$ 404,843$

PSF Current Proforma PSF Proforma ValuationGross Rental Income 1.29$ 259,656$ 404,843$ 2.01$ (less) Real Estate Taxes (0.17)$ (34,000)$ (35,000)$ (0.17)$ Cap Rate Value(less) Insurance (0.15)$ (30,000)$ (30,000)$ 9.25% 2,917,216$ (less) Repairs (0.24)$ (49,000)$ (45,000)$ (0.22)$ 9.75% 2,767,615$ (less) Maintenance (0.02)$ (4,000)$ (5,000)$ (0.02)$ 10.25% 2,632,610$ (less) Snow Removal* ‐$ ‐$ ‐$ ‐$ 10.75% 2,510,163$ (less) Water (0.02)$ (3,200)$ ‐$ ‐$ 11.25% 2,398,600$ (less) Management Fee (0.10)$ (20,000)$ (20,000)$ 11.75% 2,296,532$ Total Expenses (0.70)$ (140,200)$ (135,000)$ (0.67)$ Net Operating Income 0.59$ 119,456$ 269,843$ 1.34$

Note: Tenants pay for snow removal

AREAS TO ADD VALUE• All full gross leases, opportunity to

convert to net leases - boost NOI and return

• Lease vacant units• Increase rents (see submarket report

<4% vacancy in I-90)

• Demolish part of building and create new parking area

• Sell off current parking lot• Bill back water/utilities to tenant










First Quarter 2019

DupageAirport

31

31

25

72

47

20

88

90

Crystal Lake

Batavia

South Elgin

North Aurora

St Charles

West Chicago

EastDundee

Elgin

Carpentersville

Geneva

Hampshire

Bartlett

Construction Activity

-100,000

100,000

300,000

500,000

700,000

900,000

20152014 20182016 ‘1920170%

5%

10%

15%

Vacancy Rate (%) Net Absorption (SF)

49,158SF NET ABSORPTION

4.05%VACANCY RATE

I-90 Northwest

• Two build-to-suit facilities are under construction in the I-90 Northwest submarket. A 90,000-SF warehouse facility for OTTO Engineering broke ground during the first quarter, and construction continued on a nearly 30,000-SF facility for New Haven Display International.

22%

4%

7%

8%

10%

10%

10%

29%

SF UNDERCONSTRUCTION

100% BUILD-TO-SUIT

118k

MARKET SIZE 30,324,237 SF

TOTAL VACANCY 1,228,940 SF (4.05%)

DIRECT VACANCY 1,132,878 SF (3.74%)

SUBLEASE VACANCY 96,062 SF (0.31%)

AVAILABLE SPACE 1,663,462 SF (5.49%)

1Q 2019 NEW LEASING ACTIVITY 174,064 SF

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Total Deliveries (SF) Under Construction (SF)

1Q 2019 NET ABSORPTION 49,158 SF

YTD 2019 NET ABSORPTION 49,158 SF

UNDER CONSTRUCTION 118,457 SF

1Q 2019 NEW SUPPLY 0 SF

YTD 2019 NEW SUPPLY 0 SF

WEIGHTED AVG NET ASKING RENT $5.13 PSF

Arrows indicate change from previous quarter.













17

Blocks of Available SpaceI-90 Northwest Inventory

• New leasing activity totaled 174,064 square feet during the first quarter, significantly below the 602,418 square feet recorded last year at this time. For the second consecutive quarter, positive absorption was supported by mid-size tenants taking occupancy during the quarter including Hardware Resources and TLC Industries.

• The overall vacancy rate continued to decline and measured 4.05 percent, 41 basis points lower than the 4.46 percent recorded at the end of the fourth quarter of 2018. Improved market fundamentals, including compressed vacancy, could signify a resurgence in speculative development in the area.

Signifi cant Lease Transactions

Building Address Leased (SF) Tenant Lease Type

300 N West St, Marengo 133,000 Round 2, LLC Renewal

825 Tollgate Rd, Elgin 83,122 Hydrox Chemical Company, Inc, Renewal

Signifi cant Sale Transactions

133,000SF RENEWAL

246,446SF PORTFOLIO SALE

300 N West St | Marengo, Illinois

Round 2, LLC, renewed its lease for 133,000 SF in Elgin. The building is 100% occupied and is leased through the fall of 2020.

2770 Alft Ln | Elgin, Illinois

Black Creek Group acquired three buildings totaling 541,283-SF from Molto Properties for $45.7 million, or $84 PSF. One of the buildings, 2770 Alft Ln, is located in the I-90 Northwest submarket.

Building Address Sold (SF) Sale Price | PSF Buyer Seller

2770 Alft Ct, Elgin* 246,446 $19,700,000 | $80 Black Creek Group Molto Properties

1620 Cambridge Dr, Elgin 39,900 $2,700,000 | $68 Bodycote Thermal Processing Profile Plastics

*Part of a portfolio sale

0 5 10 15 20 25

200,000+ SF

100,000-199,999 SF

50,000-99,999 SF

20,000-49,999 SF22%

4%

7%

8%

10%

10%

10%

29%

ChicagoIndustr ial

Market

2.43%(Percentage ofTotal Market)

NAI Hiffman transaction

363 bluff city boulevard - elgin, illinois ±200,920 sf ... · herein is from sources deemed...

Documents