BC Stern: A Value-Add Acquisition in St. Charles
The Acquisition: On December 9, 2025, Brit Properties sponsored the acquisition of 3750 Stern Ave in St. Charles, Illinois, a 22,026 square-foot industrial building situated on 1.23 acres. The property was purchased debt-free for $1.9 million at a discounted basis due to its need for significant interior and exterior improvements. Our plan was to make the necessary improvements, for about $350,000. These improvements are nearly complete, and we are in discussions with several prospective tenants.
Why We Like This Investment: Located within one of Chicagoland's most established industrial corridors, the property also benefits from Kane County's favorable real estate tax environment. The building offers features that appeal to a broad range of industrial users, including 18-foot clear heights, two interior loading docks, and three drive-in doors. These characteristics provide flexibility for a variety of manufacturing, warehousing, and distribution tenants.
Recent Lease Nearby: One of the reasons we acquired this building is because Brit Properties has managed another similar building. 3940 Swenson, just one block away, has been leased consistently. Last year, the tenant signed a five-year lease at $9.40 per square foot, demonstrating the market rental rate in the area. We believe 3750 Stern will be leased at a similar market rental rate, which would result in a 7.33% annual yield to our investors.
The Opportunity Ahead: The property is marketed for lease by NAI Hiffman, one of the most active industrial brokerage firms in St. Charles. In addition, members of the Brit Properties team are dedicated to canvassing the area, connecting with brokers, business owners, and property owners to identify the perfect tenant. We believe the combination of an improved asset, strong local demand, and an established industrial location positions this property well for long-term value creation and cash flow growth.
Financial Summary of the Acquisition of Stern
Purchase Price $1,900,000
Acquisition Fee 75,000
Fix Up Improvements 350,000
Lease-up & Finders Fee 92,000
Legal & Filing Fees 20,000
Due Diligence 5,000
Cost Segregation 7,000
Cash Reserves 151,000
Total Cost $2,600,000
Investor Opportunity: To learn about investments like this one or if you are interested in expanding your current holdings with Brit Properties, please reach out to Joel to discuss.
