Tollway Center Industrial/Flex Portfolio
Stabilized Industrial Portfolio with 7.36% Cap Rate and Below-Market Assumable Financing
Investment highlights
• Attractive going-in cap rate of approximately 7.36% on a current NOI of $610,877, providing strong risk-adjusted cash flow from day one
• 94.54% occupied portfolio — 27 of 30 units leased representing 70,533 SF of income-producing space — delivering immediate, in-place income with minimal downside exposure
• With over 50% of leases structured as NNN and the remaining on Modified Gross terms, the majority of operating expenses — including real estate taxes, property insurance, and common area maintenance — transfer directly to tenants, minimizing landlord risk and delivering a stable, predictable net income stream.
• Priced at $111.25 per square foot, the portfolio represents a compelling basis for an industrial/flex asset in a high-barrier, supply-constrained northwest suburban Chicago submarket
• Three vacant units — 4,074 SF total — provide a clear and executable path to NOI growth through lease-up at prevailing market rents, pushing stabilized NOI and yield on cost higher
• Short portfolio WALT of approximately one year creates near-term opportunity to mark leases to current market, capitalizing on sustained rental rate growth across the northwest Chicago industrial/flex corridor
• Diverse, 30-unit tenant mix insulates the portfolio against single-tenant concentration risk and ensures a robust pipeline of renewal and re-leasing activity with minimal downtime historically associated with this tenant profile
• Qualified buyers have the opportunity to assume an existing loan at a fixed interest rate of 3.19% — substantially below current market rates of 6.50%–7.50% — providing a meaningful reduction in the blended cost of capital and a significant competitive financing advantage
• The 10-year loan term (originated 03/11/2021; matures 03/01/2031) with 30-year amortization results in a low annual debt service that allows the majority of the portfolio's NOI to flow through to the investor as net cash
• Thirty-unit roster spans a wide range of trades, services, light industrial, distribution, and flex users — no single tenant dominates the rent roll, providing natural diversification and protection against revenue disruption
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