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266 Eastgate Dr 85,534 SF 100% Leased Industrial Building Danville, IL 61834 $2,893,000 ($33.82/SF) 8% Cap Rate



INVESTMENT HIGHLIGHTS
- ANCHORED BY HIGHLY SECURED AUTOZONE NNN LEASE | INVESTMENT GRADE CREDIT TENANT
- TREMENDOUS VALUE ADD OPPORTUNITY | MULTIPLE PATHS TO VALUE ENHANCEMENT
- LOCATION WITHIN THRIVING DANVILLE SUBMARKET LOW VACANCY, SCARCE SUPPLY, STRONG RENT GROWTH
- STICKY TENANT | 26 + YEARS OF HISTORICAL OCCUPANCY | RECENT EARLY RENEWAL | MISSION CRITICAL LOCATION
- HIGH CONNECTIVITY STRATEGIC MIDWEST LOCATION | SOLID INDUSTRIAL BUILDING FUNDAMENTALS
EXECUTIVE SUMMARY
ANCHORED BY HIGHLY SECURED AUTOZONE NNN LEASE | INVESTMENT GRADE CREDIT TENANT
— AutoZone is a publicly traded (NYSE : AZO) Fortune 500 leading retailer and leading distributor of automotive replacements parts and accessories in the United States.
— In 2024, AutoZone boasted Annual Revenues of over $18.5 Billion and features an investment grade “BBB” credit rating (S&P) creating a highly stable / secured income stream.
— AutoZone’s NNN lease structure calls for extremely limited landlord responsibilities. The lease has three (3) options remaining of three (3) years each with fixed increases at the start of each period.
STICKY TENANT | 26 + YEARS OF HISTORICAL OCCUPANCY | RECENT EARLY RENEWAL | MISSION CRITICAL LOCATION
— AutoZone has been operating the subject site as a centralized product returns facility since 1998 (26 + years of successful historical occupancy). During that time frame, AutoZone has renewed the lease eleven (11) times including a recent early five (5) year extension pushing their expiration out to September 2031 = 5.50 Years Remaining (as of 3/1/26 Analysis Start Date).
— The subject facility processes returns of products, handles inventory for returns, and manages the logistics for shipping those products back to stores. It serves as a key part of AutoZone’s supply chain.
— In addition, the returns facility directly supports / is symbiotic with the ±450,000 square foot AutoZone owned hub distribution center located at 800 Lynch Road, Danville, IL (less than 2 miles directly north of the subject property).
TREMENDOUS VALUE ADD OPPORTUNITY | MULTIPLE PATHS TO VALUE ENHANCEMENT
— In addition to the stable income stream from AutoZone, the investment offers an attractive upside opportunity with various paths to property value enhancement.
— 17,250 SF (20% of GLA) is leased to Mervis Industries, a regional recycling company and former owner of the subject property. Mervis will vacate their space in October 2026, and Seller will guarantee the space for an additional twelve (12) months to October 2027 presenting a new investor with a tremendous opportunity / ample time to:
— Enhance overall asset credit / value by leasing the additional space to AutoZone (expansion).
— Enhance asset value by leasing the space at substantially higher market rents within the thriving / tight Danville industrial market.
HIGH CONNECTIVITY STRATEGIC MIDWEST LOCATION | SOLID INDUSTRIAL BUILDING FUNDAMENTALS
— Located directly North of Exit 220 on I-74 (80 Miles West of Indianapolis), a major NW/SE interstate which connects the site to the greater Midwest region that it serves.
— Danville is centrally located between several major Midwest hubs, such as Chicago, Indianapolis, and St. Louis, providing distribution centers with efficient access to a large customer base.
LOCATION WITHIN THRIVING DANVILLE SUBMARKET LOW VACANCY, SCARCE SUPPLY, STRONG RENT GROWTH
— The property is located within the Danville Industrial Submarket of Northern Illinois. The Danville industrial market contains approximately 7.9 million SF of total industrial inventory.
— As of Q4 2025, Danville’s vacancy rate was a mere 5.6% with ZERO (0) SF currently Under Construction and robust 5.9% average annual rent growth over the past 5 years.
— AutoZone is a publicly traded (NYSE : AZO) Fortune 500 leading retailer and leading distributor of automotive replacements parts and accessories in the United States.
— In 2024, AutoZone boasted Annual Revenues of over $18.5 Billion and features an investment grade “BBB” credit rating (S&P) creating a highly stable / secured income stream.
— AutoZone’s NNN lease structure calls for extremely limited landlord responsibilities. The lease has three (3) options remaining of three (3) years each with fixed increases at the start of each period.
STICKY TENANT | 26 + YEARS OF HISTORICAL OCCUPANCY | RECENT EARLY RENEWAL | MISSION CRITICAL LOCATION
— AutoZone has been operating the subject site as a centralized product returns facility since 1998 (26 + years of successful historical occupancy). During that time frame, AutoZone has renewed the lease eleven (11) times including a recent early five (5) year extension pushing their expiration out to September 2031 = 5.50 Years Remaining (as of 3/1/26 Analysis Start Date).
— The subject facility processes returns of products, handles inventory for returns, and manages the logistics for shipping those products back to stores. It serves as a key part of AutoZone’s supply chain.
— In addition, the returns facility directly supports / is symbiotic with the ±450,000 square foot AutoZone owned hub distribution center located at 800 Lynch Road, Danville, IL (less than 2 miles directly north of the subject property).
TREMENDOUS VALUE ADD OPPORTUNITY | MULTIPLE PATHS TO VALUE ENHANCEMENT
— In addition to the stable income stream from AutoZone, the investment offers an attractive upside opportunity with various paths to property value enhancement.
— 17,250 SF (20% of GLA) is leased to Mervis Industries, a regional recycling company and former owner of the subject property. Mervis will vacate their space in October 2026, and Seller will guarantee the space for an additional twelve (12) months to October 2027 presenting a new investor with a tremendous opportunity / ample time to:
— Enhance overall asset credit / value by leasing the additional space to AutoZone (expansion).
— Enhance asset value by leasing the space at substantially higher market rents within the thriving / tight Danville industrial market.
HIGH CONNECTIVITY STRATEGIC MIDWEST LOCATION | SOLID INDUSTRIAL BUILDING FUNDAMENTALS
— Located directly North of Exit 220 on I-74 (80 Miles West of Indianapolis), a major NW/SE interstate which connects the site to the greater Midwest region that it serves.
— Danville is centrally located between several major Midwest hubs, such as Chicago, Indianapolis, and St. Louis, providing distribution centers with efficient access to a large customer base.
LOCATION WITHIN THRIVING DANVILLE SUBMARKET LOW VACANCY, SCARCE SUPPLY, STRONG RENT GROWTH
— The property is located within the Danville Industrial Submarket of Northern Illinois. The Danville industrial market contains approximately 7.9 million SF of total industrial inventory.
— As of Q4 2025, Danville’s vacancy rate was a mere 5.6% with ZERO (0) SF currently Under Construction and robust 5.9% average annual rent growth over the past 5 years.
PROPERTY FACTS
| Price | $2,893,000 | Rentable Building Area | 85,534 SF |
| Price Per SF | $33.82 | No. Stories | 1 |
| Sale Type | Investment NNN | Year Built | 1985 |
| Cap Rate | 8% | Parking Ratio | 1.16/1,000 SF |
| Property Type | Industrial | Clear Ceiling Height | 26’ |
| Property Subtype | Warehouse | No. Dock-High Doors/Loading | 3 |
| Building Class | C | No. Drive In / Grade-Level Doors | 1 |
| Lot Size | 10.39 AC | Opportunity Zone |
Yes
|
| Zoning | I-2 - General Industrial | ||
| Price | $2,893,000 |
| Price Per SF | $33.82 |
| Sale Type | Investment NNN |
| Cap Rate | 8% |
| Property Type | Industrial |
| Property Subtype | Warehouse |
| Building Class | C |
| Lot Size | 10.39 AC |
| Rentable Building Area | 85,534 SF |
| No. Stories | 1 |
| Year Built | 1985 |
| Parking Ratio | 1.16/1,000 SF |
| Clear Ceiling Height | 26’ |
| No. Dock-High Doors/Loading | 3 |
| No. Drive In / Grade-Level Doors | 1 |
| Opportunity Zone |
Yes |
| Zoning | I-2 - General Industrial |
AMENITIES
- Bus Line
1 1
PROPERTY TAXES
| Parcel Number | 23-12-451-016 | Improvements Assessment | $465,761 |
| Land Assessment | $344,589 | Total Assessment | $810,350 |
PROPERTY TAXES
Parcel Number
23-12-451-016
Land Assessment
$344,589
Improvements Assessment
$465,761
Total Assessment
$810,350
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