Channahon, IL - Valvoline

Description:

SRS Real Estate Partners-Midwest, LLC is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute, franchisee guaranteed, Valvoline investment property located in Channahon, Illinois (Chicago MSA). The tenant, A.D. Kenwood Company, has 19 years remaining on its lease with 3 (5-year) options to extend, demonstrating their commitment to the site. The lease features annual 2% rental increases during the first five years of the term, followed by 10% rental increases every 5 years throughout the remainder of the initial term and at the beginning of each option period, growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor. The tenant, A.D. Kenwood Company, is a top-performing Valvoline Instant Oil Change franchisee with exclusive development rights across the south Chicago suburbs and northwest Indiana, operating seven locations with additional sites in the pipeline. Additionally, qualifying oil change equipment and site improvements are eligible for 100% bonus depreciation, allowing investors to accelerate deductions and maximize tax benefits.

The subject property benefits from high visibility and access along Eames Street (15,700 VPD) positioned just east of Interstate 55 (60,000 VPD), a primary highway utilized by commuters throughout the Chicago MSA. The site is situated within a sub-1% vacancy industrial submarket that encompasses over 4 million square feet of industrial space within one mile, occupied by national tenants including a 1.1M+ SF Amazon fulfillment center, providing a substantial daytime workforce. The Chicago submarket is anchored by heavy industrial and logistics infrastructure, drawing national retailers, logistics companies, and manufacturers seeking strategic location near regional distribution hubs including I-55 (60K VPD) and I-80 (50K VPD), and the BNSF Logistics Park Chicago and UP Joliet Intermodal terminals.
Channahon continues to attract new commercial and industrial investment, with recent and ongoing developments including O’Reilly Auto Parts, Penske Truck Leasing, a new 34,200 SF Penske collision repair facility, and the expansion of ATS trucking operations, reinforcing the area’s growing employment base and service demand. The submarket is projected to absorb nearly 1 million square feet of new industrial inventory over the next year, while maintaining strong 4.2% year-over-year rent growth in line with the broader Chicago market. The 5-mile trade area is supported by a population of over 44,400 residents and 19,300 employees with an affluent average household income of $164,024 within 1-mile.

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Listing ID: a28TP000001s8rFYAQ