confidential offering memorandum 2800 s 25th …...cushman & wakefield of illinois, inc has been...

Confidential Offering Memorandum

2800 S 25th Avenue Broadview, Illinois 14 Acre Development Site Located In Broadview, IL

A Cushman & Wakefield Development Opportunity

2CUSHMAN & WAKEFIELD | 2800 S 25TH AVENUE, BROADVIEW

03 Executive Summary

06 Property Description

14 Market Overview

18 Contact Information

Table Of Contents

Executive Summary


The Offer ing

Executive SummaryThe OfferingCushman & Wakefield of Illinois, Inc has been retained by Ownership as the exclusive advisors

in the sale of 2800 S 25th Avenue in Broadview. The offering consists of a ±14.00 acre

redevelopment site that currently includes 3 separate buildings totaling approximately 298,000

SF. The buildings were utilized by Bosch for distribution, research & development and a regional

headquarters but are now mostly considered functionally obsolete. 2800 S 25th Avenue is located

in the Western Cook County submarket and sits just 14 miles west of Downtown Chicago, 6 miles

from the border of Chicago, and 10 miles south of O’Hare International airport. The property is

zoned office/industrial & suitable for both industrial and office development.

PROPERTY SUMMARY

Address 2800 S 25th Avenue Broadview, IL

Site Size ± 14.00 acres

Building Sizes Building #1: 137,000 SF

Building #2: 131,000 SF

Building #3: 26,000 SF

Maintenance Building: 4,000 SF

OVERVIEW

4,000 SF MAINTENANCE

BUILDING

Building #2131,000 SF

DISTRIBUTION (partial 2 story)


HEAVY OFFICE, DISTRIBUTION

AND R&D


HEAVY OFFICE(2 story)

S 25TH A

VEN

UE

S 25TH A

VEN

UE


The Offer ing

Project HighlightsPremium Location in the heart of Chicago Market - The

dominant driver of the industrial market today is e-commerce

and the need for faster, same day deliveries. The property

features immediate access to Downtown Chicago and

neighboring affluent areas such as Burr Ridge, Elmhurst, Hinsdale

and Oak Brook.

Access to Strong Labor Pool - 2800 S 25th Avenue’s prime

location offers excellent access to a strong labor pool; over

78,000 blue-collar employees within a 5 mile radius and over

230,000 within a 25 minute drive time.

Mature Infill Submarket - The property is located in the Western

Cook County submarket with limited land availability for future

development and competitive supply. Furthermore, large blocks

of land rarely become available within the City of Broadview

making competition very limited.

Interstate Access - The site is advantageously situated near

to I-290, I-294, I-55 and I-88, just fourteen (14) miles west of

Downtown Chicago.

Strong Market and Submarket Performance - Demand for

product in the 100,000-250,000 SF range remains strong, as

well as 25,000-50,000 SF units with trailer parking that currently

aren’t offered in the market.

Property Description


Property Descr ipt ion

Existing Building Specifications (approximate)

Size

Total Building Size 137,000 SF

Warehouse 35,000 SF

1st Floor Office 83,000 SF

2nd Floor Office 11,000 SF

Showroom 8,000 SF

Building Features

Clear Height 20’6”

Column Spacing 36’0” x 35’0”

Loading 5 interior docks1 drive in door

Building 1

Size


Warehouse 73,000 SF



Building Features

Clear Height 20’6”

Column Spacing 36’0” x 37’0”

Loading 3 interior docks6 drive in doors

Building 2

Size




Building 3



Potential Development Plan



Aerial: Access Overview



Aerial: Surrounding Amenities1 Home Run Inn Pizza 22 Jimmy John's

2 Panda Express 23 Pizza Hut

3 IHOP 24 Starbucks

4 Holiday Inn Express 25 Taqueria La Penca

5 Papa John's Pizza 26 7-Eleven

6 KFC 27 Target

7 Dunkin 28 Home Depot

8 Checker's 29 Ross Dress for Less

9 Pete's Red Hots 30 Dollar Tree

10 Popeye's Louisiana Kitchen 31 Marshalls

11 White Castle 32 McDonald's

12 Burger King 33 Lou Malnati's

13 Portillo's Hot Dogs 34 Walgreen's

14 Walmart Supercenter 35 LA Fitness

15 Planet Fitness 36 Aldi

16 Taco Bell 37 Mariano’s

17 Four Points by Sheraton 38 Sears

18 Panera Bread 39 Kohl's

19 Buona 40 Chick-fil-A

20 Jewel-Osco 41 Costco

21 Giordano's 42 Raising Cane's



Aerial: Notable Corporate Neighbors

CHICAGO BULK MAIL

CENTER



DEMOGRAPHICS 1 MILE 3 MILE 5 MILE

Employees 7,606 68,343 216,431

Total Population 15,464 139,795 437,523

Housing Units

Total Housing Units 6,267 54,933 170,117

Household Income

Average Household Income $81,872 $86,910 $105,344

Median Household Income $69,368 $66,356 $70,708

Per Capita Income $31,469 $31,931 $38,259

Population Trend

2019 15,464 139,795 437,523

2024 Projected 15,376 139,744 438,758

Demographic Analysis

1 MILE

3 MILES

5 MILES

AREA DEMOGRAPHICS



Aerial: Labor Overview

Market Overview


Market Overv iew

Chicago Industrial Market

Market OverviewThe Chicago industrial market continued to report robust demand through Q3 2019.

New leasing totaled 25.9 million square feet (msf) year-to-date (YTD), up 21.1% year-

over-year (YOY). The average lease size was 71,361 square feet (sf), up from 56,904 sf

YOY, driven by substantial big-box leasing activity. Interstate 55 Corridor, Interstate 80

Corridor and Southeast Wisconsin accounted for just over half of all new leasing YTD,

recording 13.1 msf (50.8% of total leasing).

Big-box leasing activity more than doubled since this time last year. Eight new

transactions over 500,000 sf, totaling 5.6 msf, were signed through Q3 2019, up from

four deals totaling 2.7 msf through Q3 2018.

Overall net absorption remained relatively steady YOY, with 13.4 msf absorbed YTD.

Interstate 55 Corridor, Southern Fox Valley, and Lake County led the market with the

most space absorbed YTD, totaling 7.0 msf (52.7%). As tenant demand remains strong,

absorption is expected to increase.

Vacancy decreased for the sixth straight quarter, down 110 bps YOY to 4.9%, the lowest

recorded vacancy since mid-2000. Submarkets with the largest declines in vacancy

were: Northern Fox Valley fell 350 bps to 2.1%, Northwest Cook County dropped 220

bps to 4.1%, and Southern Fox Valley declined 200 bps to 3.4%.

Rent growth maintained its upward momentum: overall asking weighted average

net rental rates ticked up 1.5% YOY to $5.42 per square foot (psf). Submarkets that

reported substantial growth in leasing also recorded outsized increases in rental rates.

For example, the O’Hare and Chicago South submarkets recorded a combined 3.0 msf

in YTD new leasing which prompted their average asking rental rates to increase by

11.6% to $5.65 psf and 4.3% to $6.36 psf, respectively.

Construction activity remained strong through Q3, with 14.8 msf of new industrial

product delivered YTD, a 56.5% increase in space completed YOY. The Interstate 80

Corridor, Interstate 55 Corridor and the Southern Fox Valley submarkets recorded

the highest amount of these new deliveries, accounting for 53.2% (7.9 msf) of overall

completions.

cushmanwakefield.com

ChicagoIndustrial Q3 2019

MARKETBEAT

CHICAGO INDUSTRIAL

Economic Indicators

Market Indicators (Overall, All Property Types)

Overall Net Absorption/Asking Rent4-QTR TRAILING AVERAGE

Overall Vacancy

Q3 18 Q3 19 12-Month Forecast

Chicago Employment* 3.79M 3.83M

Chicago Unemployment* 3.7% 3.8%

U.S. Unemployment 3.8% 3.7%

Source: BLS, Moody’s Analytics *2019 Q3 data are based on the latest available data

Q3 18 Q3 19 12-Month Forecast

Vacancy 6.0% 4.9%

Net Absorption YTD (sf) 12.9M 13.4M

Under Construction (sf) 15.1M 17.8M

Average Asking Rent* $5.34 $5.42

*Rental rates reflect net asking $psf/year

EconomyThe Chicago Metropolitan Area economy continued to improve during Q3 2019. Local unemployment recorded a minimal increase of 10 basis points (bps) from Q3 2018 to 3.8%. The Trade, Transportation, and Utilities sector reported the second largest hike in job growth compared to other sectors, having added 9,300 jobs (1.0%) over the last 12 months ending August 2019. Similarly, the Manufacturing sector recorded a 1.0% (4,100 jobs) uptick over the same period. Low unemployment coupled with healthy job growth highlights a tight labor market.

Market OverviewThe Chicago industrial market continued to report robust demand through Q3 2019. New leasing totaled 25.9 million square feet (msf) year-to-date (YTD), up 21.1% year-over-year (YOY). The average lease size was 71,361 square feet (sf), up from 56,904 sf YOY, driven by substantial big-box leasing activity. Interstate 55 Corridor, Interstate 80 Corridor and Southeast Wisconsin accounted for just over half of all new leasing YTD, recording 13.1 msf (50.8% of total leasing).

Big-box leasing activity more than doubled since this time last year. Eight new transactions over 500,000 sf, totaling 5.6 msf, were signed through Q3 2019, up from four deals totaling 2.7 msfthrough Q3 2018.

The largest deal signed in Q3 was Target’s 1.2-msf lease at 3300 Channahon Road in Joliet. Top build-to-suit (BTS) transactions included: an eCommerce company (1.0 msf), Crate & Barrel (646,380 sf), PrimeSource Building Products (148,815 sf), and Forward Space (100,378 sf).

Overall net absorption remained relatively steady YOY, with 13.4 msf absorbed YTD. Interstate 55 Corridor, Southern Fox Valley, and Lake County led the market with the most space absorbed YTD, totaling 7.0 msf (52.7%). As tenant demand remains strong, absorption is expected to increase.

Vacancy decreased for the sixth straight quarter, down 110 bps YOY to 4.9%, the lowest recorded vacancy since mid-2000. Submarkets with the largest declines in vacancy were: Northern Fox Valley fell 350 bps to 2.1%, Northwest Cook County dropped 220 bps to 4.1%, and Southern Fox Valley declined 200 bps to 3.4%.

Rent growth maintained its upward momentum: overall asking weighted average net rental rates ticked up 1.5% YOY to $5.42 per square foot (psf). Submarkets that reported substantial growth in leasing also recorded outsized increases in rental rates. For example, the O’Hare and Chicago South submarkets recorded a combined 3.0 msf in YTD new leasing which prompted their average asking rental rates to increase by 11.6% to $5.65 psf and 4.3% to $6.36 psf, respectively.

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2014 2015 2016 2017 2018 2019

Net Absorption, MSF Asking Rent, $ PSF

2.0%

4.0%

6.0%

8.0%

2014 2015 2016 2017 2018 2019

Historical 5-Year Average = 6.2%


Market Overv iew

Chicago Industrial Market

OutlookThe Chicago industrial market is poised for continued growth throughout the remainder of 2019. New leasing activity will continue to increase as several large leases are expected to

close in the coming quarters. Construction activity will remain active, especially in infill submarkets close to labor and consumers.

SUBMARKETINVENTORY

(SF)YTD LEASING ACTIVITY (SF)

YTD USER SALES

ACTIVITY (SF)

OVERALL VACANCY

(SF)

YTD NET OVERALL

ABSORPTION (SF)

UNDER CNSTR (SF)

YTD CNSTR COMPLETIONS

(SF)

OVERALL WTD AVG NET RENT

(MF)


(FLEX)


(W/D)

Chicago North 104,556,360 238,723 334,152 3.0% -195,651 0 0 $6.78 $10.00 $8.62

Chicago South 136,992,523 705,226 1,757,955 3.0% 214,947 2,059,819 174,536 $6.59 N/A $6.21

Western Cook County 108,668,511 1,797,559 312,567 5.8% 1,307,846 847,135 1,377,469 $3.59 N/A $4.63

South Suburbs 89,423,394 734,904 919,745 2.7% 20,357 219,267 0 $3.66 $5.12 $3.84

Northern Cook County 54,646,248 720,201 425,184 3.9% 104,146 653,062 0 $5.55 $7.54 $5.62

Northwest Cook County 35,202,786 191,381 321,655 4.1% 270,242 1,350,695 624,771 $4.56 $9.61 $5.32

Northern Fox Valley 36,341,554 567,658 245,156 2.1% 530,916 925,880 0 $6.95 $10.90 $5.80

Northeast DuPage 31,650,709 500,892 102,002 2.8% -40,066 0 0 $6.56 $10.64 $6.40

Southern Du,253,923 413,230 15,000 6.8% 570,491 153,042 931,858 $6.66 $10.46 $6.88

Central DuPage 47,247,547 782,657 75,080 4.6% 219,015 189,100 748,846 $2.85 $5.96 $5.41

Southern Fox Valley 91,610,505 2,004,601 587,856 3.4% 1,755,054 2,454,492 1,372,687 $4.31 $19.58 $4.85

Lake County 84,490,851 1,544,707 1,231,245 4.3% 1,418,424 703,683 1,187,327 $4.67 $8.52 $5.62

McHenry County 22,746,313 76,666 437,596 6.9% 29,019 0 0 $5.99 N/A $5.09

Western Kane County 7,640,101 9,500 0 4.7% 9,500 0 0 $3.20 N/A $3.04

Interstate 55 Corridor 92,101,889 5,992,832 597,358 9.0% 3,887,021 3,477,098 2,759,759 $4.23 N/A $4.80

Interstate 80 Corridor 99,108,827 4,718,078 88,512 11.8% 1,390,884 1,615,602 3,792,144 $2.55 $6.75 $3.87

Interstate 39 Corridor 18,213,570 206,479 0 5.3% 113,000 0 183,000 $2.69 N/A $3.24

Southeast Wisconsin 46,668,990 2,445,253 0 5.3% 681,887 2,242,566 956,348 $5.07 $5.63 $4.84

O’Hare 102,352,173 2,253,500 366,752 3.9% 1,103,964 869,773 787,277 $4.60 $8.15 $5.63

CHICAGO TOTALS 1,225,916,774 25,904,047 7,817,815 4.9% 13,390,996 17,761,214 14,896,022 $4.98 $10.63 $5.07


Market Overv iew

2019 Significant Transactions � DHL Express renewed their 156,235 SF space at 2407 - 2457 West North Avenue. This was the

largest lease signed within the submarket in the 2nd quarter.

� The Custom Companies signed a 15 year lease with CenterPoint Properties for a 224,135 SF

build to suit at 300 N Wolf Road in Northlake.

� Moss, Inc leased 183,648 SF at 10501 Seymour Avenue in Franklin Park.

� Construction is underway at Chariot Logistics Center in Melrose Park. The three-building

industrial park is being developed by Ridgeline Property Group. The park is being built on a

speculative basis and will total 623,000 SF.

OutlookThe Western Cook County submarket will continue to see a diverse range of tenants looking for

space in the coming quarters. Vacancy will decline while rental rates increase as eager infill tenants

lease up new speculative deliveries. New construction deliveries will help generate steady leasing

activity and positive absorption throughout the remainder of 2019 and into 2020.

Major Owners in Western Cook County:Owner

Aetna Realty Advisors

AEW Capital

Bridge Development Partners

Cabot Properties

CenterPoint

Digital Realty Trust

Duke Realty

Heitman

IAC Properties

James Campbell Company

LBA Realty

Midwest Industrial Funds

ML Realty

Morgan Stanley

Navistar

Pritzker Realty Group

Prologis

Ridgeline Property Group

The Blackstone Group

UBS Realty Advisors

Westmount Realty Capital

Western Cook County Industrial Submarket

AVERAGE NET RENT FOR NEW

CONSTRUCTION*

$7.65/PSF

VACANCY RATE

5.8% 1.3M SF

YTD NET ABSORPTION

*based on 100,000 - 250,000 SF deals in past 2 years

Contact Information

Cushman & Wakefield of Illinois, Inc 225 W Wacker Drive, Suite 3000Chicago, IL 60606

Larry Goldwasser, SIORExecutive [email protected]+1 312 470 2323

Colin GreenSenior [email protected]+1 312 470 2322

Matt [email protected]+1 312 470 1872

John [email protected]+1 312 229 1016

Contacts:

mailto:larry.goldwasser%40cushwake.com?subject=

mailto:colin.green%40cushwake.com?subject=

mailto:matt.cowie%40cushwake.com?subject=

mailto:john.marks1%40cushwake.com?subject=

confidential offering memorandum 2800 s 25th …...cushman & wakefield of illinois, inc has been...

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