Preferred Equity in Waukegan, IL

Waukegan anchors the Lake County, IL industrial corridor as the only deep-draft port on the Illinois shore of Lake Michigan, a genuine freight differentiator that separates it from every other Chicago suburban submarket. The Port of Waukegan handles bulk cargo and provides direct water access that supports heavy manufacturing and distribution tenants who cannot replicate that logistics stack in DuPage or Kane counties. Abbott Laboratories, headquartered in nearby North Chicago with a massive pharmaceutical manufacturing and research campus, is the dominant private employer in the county and creates concentrated demand for medical office, life sciences flex space, and multifamily housing serving a well-paid scientific workforce. Baxter International, also headquartered in the county in Deerfield, reinforces that healthcare and biopharma employment base. The Naval Station Great Lakes in North Chicago, the Navy's sole enlisted boot camp, adds a steady population of military personnel, civilian contractors, and support-sector retail and housing demand that is essentially recession-proof. Industrial assets in Waukegan proper and Gurnee trade at meaningful yield premiums over the I-55 and I-80 Chicago industrial corridors, reflecting older vintage product and some environmental remediation legacy on former manufacturing sites, but that discount creates acquisition spreads that disciplined buyers find attractive. Multifamily fundamentals in the Libertyville and Vernon Hills corridors are supported by the Abbott and Baxter workforce and relatively limited Class A apartment supply given the suburban single-family character of northern Lake County. Illinois property tax exposure is the defining underwriting variable across all asset classes here, with effective tax rates that can compress net operating income in ways that require careful proforma discipline.