Exp Commercial is proud to present to market an excellent opportunity to acquire an absolute NNN-leased state-of-the-art industrial manufacturing facility with zero landlord responsibilities at a below-market price with future upside in market rents and potential tenant expansion.

This property is a class A high-end semiconductor production facility of 18,504 SF with 2,880 square feet of ground-floor office space and an additional 2,938 square feet of newly built-out office and conference room mezzanine space. Recent capital improvements include a recently installed state-of-the-art clean room valued at over $2 million and a new roof. The property is expandable to a total of 35,000 sf, and the tenant has expressed near-term interest in expanding the building to house a second clean room for their growing business. There are three drive-in truck docks and one drive-in door. The clear heights are 21′.

There are a little over two years of term remaining on the original ten-year lease at $8.50/SF NNN. This rate does include a $3.96/SF tenant improvement repayment that will end at the end of the initial lease term in November 2025. There are two 5-year renewal options, each at a fixed below-market rate of $4.54/SF NNN in a current $9/SF+ market. There is a much higher than average probability of tenant renewal after having invested nearly $3 million in recent capital improvements, and substantial improvements or expansion of the facility will provide an owner with the opportunity to renegotiate market-rate lease terms with the tenant. The tenant is Akhan Semiconductor, a leading manufacturer of diamond solutions for glass, optical, and electronic applications.

The Gurnee, IL, commercial industrial real estate submarket is located north of Chicago in the Grand Tri-State Business Park near I-94. This submarket is home to a wide variety of businesses, including manufacturing, distribution, and logistics. The submarket is well-served by transportation infrastructure, including I-94, I-294, and the Tri-State Tollway.

This is an attractive, stable 1031 exchange opportunity with substantial accelerated depreciation tax benefits.

Price / SF: $83.77

Cap Rate:10.14%

NOI: $157,213