Newmark Knight Frank (NKF) facilitated the sale-leaseback of 1175 S. Frontenac Street, an 120,000-square-foot industrial property in Aurora, Illinois. NKF senior managing directors Elise Couston, SIOR and Adam Marshall, SIOR, CCIM represented the seller, design studio Embossed Graphics, Inc. who will be leasing the property from the buyer, Exeter Property Group, a real estate investment manager.
Located in the upscale Meadow Lakes Corporate Park, the asset was constructed in 1999 as a build-to-suit for Embossed Graphics, which Couston brokered after two previous relocations for the firm. This transaction enables Embossed Graphics to achieve a beneficial sale price as the result of lower cap rates driven by investors’ demand for this type of industrial transaction, as well as providing long-term strategic planning for their business overall.
“There have been multiple new spec buildings delivered during 2019 in the I-88 corridor,” said Couston, “and more are planned for 2020. Absorption is down in this submarket overall year-to-date and the current vacancy rate is approximately 7.5 percent making the move to sell and leaseback the property one that will benefit the seller in both the short and long term.”
The 120,000-square-foot industrial property in Meadow Lakes Corporate Park features, 24-foot clear height ceilings, 10,000-square-feet of office space, heavy power, parking for 135 vehicles and light manufacturing space.
