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The Shops at Lily Cache Creek

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  • 1. Investment Property Offering $5,400,000 THE SHOPS AT LILY CACHE CREEK 741-769 E. Boughton Rd., Bolingbrook, IL 60440 Presented By: Thomas Vincent, Offering Highlights CCIM Offered at 8.8% Cap Rate- 11.3% 1803 Hicks Rd., Suite D Rolling Meadows, IL 60008 Leveraged Return (847)963-1031 vincentt@svn.com Shadow Anchors-Meijer's, Macy's & IKEA Excellent visibility and signage 17%+ IRR for 5 year Holding Period 04/19/2010 All Sperry Van Ness® Offices Independently Owned and Operated.
  • 2. All materials and information received or derived from Sperry Van Ness/Sentinel Realty Advisors, Inc. (Thomas S. Vincent)(hereinafter collectively “Sperry Van Ness”), its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty by Sperry Van Ness its directors, officers, agents, advisors, or affiliates as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither Sperry Van Ness its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. Sperry Van Ness will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Sperry Van Ness makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Sperry Van Ness does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Sperry Van Ness in compliance with all applicable fair housing and equal opportunity laws. Sperry Van Ness/Sentinel Realty Advisors, Inc. (Thomas S. Vincent) is independently owned and operated.
  • 3. Table of Contents 1 Financial Analysis Executive Summary Investment Information Financial Summary Rent Roll Summary 2 Sales Comparables Sales Comparables Summary Sales Comp Map Sales Comps Sales Comps 3 Additional Information Location Map 4 Advisor Profile The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 4. 1 . Financial Analysis All Sperry Van Ness® Offices Independently Owned and Operated.
  • 5. THE SHOPS AT LILY CACHE CREEK Executive Summary List Price $5,400,000 Price Per GLA $300.67 Price Per Sq.Ft. $300.67 NOI $475,844 CAP 8.81 % Building Sq.Ft. 17,960 Land Acres 3.01 Occupancy. 100 % PROPERTY DESCRIPTION 741-769 E. Boughton Rd., Bolingbrook, IL 60440 Construction Two separate buildings built in 2003, attractive masonry and steel construction. Divided into 12 spaces. Roof warranty until HIGHLIGHTS 2013. Renovation Offered at 8.8% Cap Rate- 11.3% Leveraged Return Spaces have been retrofitted as needed for new tenants. Shadow Anchors-Meijer's, Macy's & IKEA Parking 134 spaces plus cross easements. Excellent visibility and signage Traffic Counts 17%+ IRR for 5 year Holding Period 30,700 on E. Boughton Rd. west of I-355 directly in front of the property and almost 92,000 on I-355 north of E. Boughton Rd. Ingress/Egress Cross Street I-355 Full access at signalized intersection of E. Boughton & Janes Ave.; secondary access-right in-right out only at west boundary Tax Parcel No. 0000000000 of property. Market Chicago Major Tenants Sub Market Southwest Suburbs Five Guys Burgers, U. S. Cellular, Great Clips Year Built 2003 Area The intersection of I-355 and E. Boughton Rd. is a "Main and Building Class A Main" intersection in Chicago's southwest suburbs. Upon Location Class A completion of the Costco's new store in the northeast quadrant of the intersection there will be more than 1.5MM square feet Zoning Type Commercial of upscale shopping available. Signalized Corner No Property Street Frontage 120 The Shops at Lily Cache Creek are class A construction in a class A location. The numerous anchors in the area- Meijer's, Macy's, No. of Buildings 2 IKEA and Costco should provide substantial shopping traffic in No. of Stories 1 the area for many years to come. Exclusively Listed By: No. of Tenants 12 No. of Parking Spaces 134 Thomas Vincent, CCIM Parking Ratio 7.4:1 (847)963-1031 vincentt@svn.com 04/19/2010 All Sperry Van Ness® Offices Independently Owned and Operated.
  • 6. Close Aerial View View Northeast- The Shops at Lily Cache Creek lower section of photo, E. Boughton Rd. upper section of photo. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 7. Investment Information THE SHOPS AT LILY CACHE CREEK 741-769 E. Boughton Rd. Bolingbrook, IL 60440 Listing Price $5,400,000 GLA 17,960 FYE 6/30/2011 CAP 8.81 % Building S.F. 17,960 FYE 6/30/2012 CAP 8.95 % Percent Occupied 100.00 % Price Per S.F. $300.67 Land Acres 3.01 Price Per GLA $300.67 Loan Amount $3,780,000 Expenses Per S.F. $8.98 Down Payment $1,620,000 Loan Description 70% LTV, 6% fixed for 5 years, adjusted for 2nd 5 years with 25 year amortization schedule. Estimated Annualized Operating Data FYE FYE 6/30/2012 FYE 6/30/2013 FYE 6/30/2014 6/30/2011 Scheduled Income $521,169 $529,588 $539,563 $553,658 Recapture / CAM $149,576 $153,215 $157,148 $161,077 Less Vacancy $33,537 $34,145 $34,386 $35,737 Gross Operating Income $637,208 $648,658 $662,325 $678,998 Less Expenses $161,364 $165,242 $169,255 $173,479 Net Operating Income $475,844 $483,416 $493,070 $505,519 Less Loan Payment $292,255 $292,255 $292,255 $292,255 Pre-Tax Cash Flow $183,589 $191,161 $200,815 $213,264 Cash on Cash Return 11.33 % 11.80 % 12.40 % 13.16 % Estimated Annualized Expenses Highlights FYE 6/30/2011 FYE 6/30/2012 Projected Taxes $88,942 $91,166 Offered at 8.8% Cap Rate- 11.3% Insurance $5,031 $5,157 Leveraged Return On-Site Management $14,853 $15,093 Shadow Anchors-Meijer's, Macy's & IKEA Common Area $52,538 $53,826 Maintenance Excellent visibility and signage 17%+ IRR for 5 year Holding Period Total Expenses $161,364 $165,242 Expenses Per S.F. $8.98 $9.20 The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 8. Financial Summary Estimated Annualized Operating Data FYE FYE 6/30/2012 FYE 6/30/2013 FYE 6/30/2014 6/30/2011 Scheduled Income $521,169 $529,588 $539,563 $553,658 Recapture / CAM $149,576 $153,215 $157,148 $161,077 Less Vacancy $33,537 $34,145 $34,386 $35,737 Gross Operating Income $637,208 $648,658 $662,325 $678,998 Less Expenses $161,364 $165,242 $169,255 $173,479 Net Operating Income $475,844 $483,416 $493,070 $505,519 Less Loan Payment $292,255 $292,255 $292,255 $292,255 Pre-Tax Cash Flow $183,589 $191,161 $200,815 $213,264 Cash on Cash Return 11.33 % 11.80 % 12.40 % 13.16 % Estimated Expense Summary FYE 6/30/2011 FYE 6/30/2012 FYE 6/30/2013 FYE 6/30/2014 Total Estimated Expense $161,364 $165,242 $169,255 $173,479 Proposed Financial Summary First Mortgage Loan Amount $3,780,000 Interest Rate 6.00% Annual Payment $292,255 Annual Principal Reduction $67,285 Loan Type Fixed Terms and Description 70% LTV, 6% fixed for 5 years, adjusted for 2nd 5 years with 25 year amortization schedule. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 9. www.s vn .co m Rent Roll Summary Space Tenant Name Occupied Annual Occupied % of Escalations / Options / Comments Number S.F. Rent S.F. Rent Total 741 Five Guys Burgers 2,360 $30.50 $71,980 13.1 % 12% in Yr.6 Two for 5 Years each with 12% increases-each period May cancel if sales of less than $1MM in 2 consecutive semi-annual periods in first 5 years. Occupancy 9/2010. 741 B Wireless Now dba T 1,500 $27.25 $40,875 8.4 % 12% in each option period. Mobile Two for five years each with 12% increases in each period. Occupancy 10/2010. 747 The UPS Store 1,200 $27.50 $33,000 6.7 % None One 5 year option at market rent. Exercised first option in 2008. 749 Elegant Nails 1,200 $31.04 $37,248 6.7 % Annual escalations of 3%. None Exercised option in 2008. 751 Baskin Robbins 1,200 $30.00 $36,000 6.7 % 10% in Year 6. Two for 5 years each at 10% increase each period. $25,000 Letter of Credit for Security Deposit. 753 LA Tan 1,500 $25.34 $38,010 8.4 % 3% annual escalations. None Exercised option in 2008. 757 Dean's Grill 2,100 $28.15 $59,115 11.7 % 2% Annually. Two for five years each with annual increases of 2%. $9 PSF cap on Taxes and CAM excluding snow removal until 2014. 761 Lily Cache Dental 1,800 $28.98 $52,164 10.0 % 3% in 2012 for remaining lease term. Three of 5 years each. 3% increase every other year. Exercised option in 2009. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 10. www.s vn .co m Space Tenant Name Occupied Annual Occupied % of Escalations / Options / Comments Number S.F. Rent S.F. Rent Total 763 U S Cellular 1,200 $35.00 $42,000 6.7 % 5.7% increase in 2011 for remaining lease term. None Exercised option in 2008. 765 Bella's Grooming & Spa 1,200 $28.40 $34,080 6.7 % 2.5% annual escalations. One for 5 years with 3% annual increases 767 Great Clips 1,200 $29.50 $35,400 6.7 % None None Exercised option in 2008. 769 Quizno's 1,500 $26.00 $39,000 8.4 % 3.8% if one year option exercised. One for one year at 3.8% increase. 17,960 $518,872 100.0 % The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 11. 2 . Sales Comparables All Sperry Van Ness® Offices Independently Owned and Operated.
  • 12. www.s vn .co m Sales Comparables Summary Sales Comparables - Closed Property Location Sale Price Year Built Bldg S.F. Price/S.F. CAP Parking Spaces Close Photo Woodgrove Festival Outlot $2,000,000 2002 6,262 $319.39 4.50 % 2/10/2010 1001 75th St. Outlot to Kohl's Store located Woodgrove Festival, a 250,000 SF center in an established shopping area only Downers Grove ,IL 60516 2.6 miles from the subject. Average rent of $18 PSF. Cap rate estimated by REIS with 9% vacancy rate. Carol Stream Shoppes II $5,100,000 2007 19,378 $263.19 8.20 % 12/02/2008 600 E. North Ave. Neighborhood center anchored by Starbucks and Aamco Transmission. Average rents $25PSF. 93% Carol Stream,IL 60188 occupancy at sale date estimated by REIS. Romeoville Commons $3,800,000 2008 14,960 $254.01 7.97 % 10/03/2008 632 Weber Rd. Neighborhood center anchored by several restaurants with rents averaging $25+ PSF. Down payment of 32%. Romeoville,IL 60446 100% occupancy estimated by REIS at sale date. Carol Plaza $4,037,500 1991 15,000 $269.17 6.80 % 06/03/2008 161 Schmale Rd. Neighborhood center. Tenants include Subway and State Farm. 90% occupancy at sale date estimated by Carol Stream,IL 60188 REIS. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 13. www.s vn .co m Property Location Sale Price Year Built Bldg S.F. Price/S.F. CAP Parking Spaces Close Photo Greenfield Commons $6,000,000 2006 20,612 $291.09 5.60 % 10/31/2007 2292-2302 Indian Trail Neighborhood center anchored by Factory Card Outlet. 94% occupied at sale date. Average rent of $20+/- Aurora,IL 60502 PSF. 38% down payment. Averages $4,187,500 2003 15,242 $279.37 6.61 % The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 14. www.s vn .co m Averages For All Sales Comparables Sale Price Year Built Bldg S.F. Price/S.F. CAP Parking Spaces Close Averages $4,187,500 2003 15,242 $279.37 6.61 % The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 15. www.s vn .co m Sales Comp Map The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 16. Sales Comps Sales Price Comparison PSF Comparable Properties 1 Woodgrove Festival Outlot 2 Carol Stream Shoppes II 3 Romeoville Commons 4 Carol Plaza 5 Greenfield Commons The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 17. Sales Comps CAP RATE Comparison Comparable Properties 1 Woodgrove Festival Outlot 2 Carol Stream Shoppes II 3 Romeoville Commons 4 Carol Plaza 5 Greenfield Commons The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 18. 3 . Additional Information All Sperry Van Ness® Offices Independently Owned and Operated.
  • 19. Aerial View Including The Promenade at Bolingbrook View West -The Shops at Lily Cache Creek at mid right, Meijer's lower center, Promenade upper left. I-355 along lower section of photo. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 20. Aerial Overview I-355 & E. Boughton Rd. The Shops at Lily Cache Creek mid-left, Staples, Bed Bath & Beyond and IKEA mid-right. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 21. www.s vn .co m Location Map Excellent visibility from Boughton Rd. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 22. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 23. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 24. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 25. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 26. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 27. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 28. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness® Offices Independently Owned and Operated.
  • 29. 4 . Advisor Profile All Sperry Van Ness® Offices Independently Owned and Operated.
  • 30. Thomas Vincent, CCIM Advisors Sp e r r y Va n N e s s Ad v is o r s Tom Vincent, CCIM serves as a Managing Director for Sperry Van Ness, specializing in the sale of shopping centers and net leased properties nationwide. He also sells industrial, office and multifamily properties in Chicago and the Midwest. With over 35 years of experience, Vincent has secured over 300 transactions with a sales volume valued at over $360 million in the last nine years including numerous 1031 exchange transactions. Prior to joining Sperry Van Ness, Vincent operated Sentinel Realty Advisors, Inc. for more than five years. He owned and operated Fidelity Mortgage & Investment Corp.for over 20 years specializing in brokerage of commercial loans for all property types. He served as president and COO of Union Realty Mortgage Company and Senior Vice President HIC of Florida, a subsidary of Chase Manhattan Bank where he was instrumental in liquidating a $250MM portfolio of distressed assets. Vincent earned the CCIM designation in 1997 and is the past president (2004) of the Illinois Chapter of CCIM and a member of the International Council of Shopping Centers. Since 1991 Vincent has served as chairman of the Plan Commission for the City of Rolling Meadows, Illinois. He earned his bachelor's degree in banking and finance from the University of North Texas. Pam Vincent, CPA assists in the operation. Thomas Vincent, CCIM Managing Director Sperry Van Ness

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