Chicago MSA Net Lease Property For Sale


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Chicago MSA Net Lease Property For Sale

  1. 1. NET LEASED INVESTMENT OFFERING Brunswick Zone XL 1515 West Aurora Avenue Naperville, IL 60540 (Chicago MSA)
  2. 2. NET LEASED INVESTMENT OFFERING 1) Confidentiality & Disclaimer 2) Executive Summary 3) Property Overview 4) Aerial 5) Site Plan 6) Maps 7) Tenant Profile 8) Demographic Comparison Report 9) Location Overview 10) Contact Information TABLE OF CONTENTS TABLE OF CONTENTS
  3. 3. NET LEASED INVESTMENT OFFERING The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. CONFIDENTIALITY & DISCLAIMER CONFIDENTITALITY & DISCLAIMER
  4. 4. NET LEASED INVESTMENT OFFERING The Boulder Group is pleased to market for sale a single tenant Brunswick Zone XL property located within the Chicago MSA. The 80,425 square foot property is located on 6.9 acres of land in the primary trade area of Naperville, Illinois. Naperville is an affluent community located approximately 30 miles west of downtown Chicago. The city of Naperville has been ranked in the top five for Money Magazine’s: Best Places to Live, three of the last eight years. Brunswick Zone XL has operated at this location since 1997 and recently extended their lease through June 2018 with two rental escalations. Additionally, Brunswick Zone XL features a below market rental rate. Brunswick Zone XL is owned and operated by Brunswick Corporation (NYSE: BC), and has over 100 locations in the United States and Canada. Brunswick Zone XL is a family fun center offering bowling, arcade games, billiards and more. The property is located along Aurora Avenue (18,100 VPD) approximately one mile east of Illinois Route 59 (50,500 VPD). Brunswick Zone XL benefits from its location in the primary retail trade area one mile from Westfield Fox Valley regional mall. Westfield Fox Valley is anchored by Macy’s, JCPenney, Kohl’s and Sears. Other retailers in the immediate area include Wal-Mart Supercenter, Sam’s Club, Super Target, Costco, Lowe’s and Home Depot. Additionally, the property is located near Springbrook Prairie Pavilion retail center which is tenanted by Dicks, Whole Foods, Nordstrom Rack and Home Goods. Residents living within one mile of the property enjoy average household income of approximately $120,000 annually. Brunswick Zone XL offers its customers 40 lanes of bowling, 16 billiards tables, event rooms, game zone arcade, lazer tag, bumper cars and a bar & grill. Brunswick Zone XL’s original fifteen year lease term commenced in 1997 and Brunswick Zone XL recently extended their lease through June 2018. The net operating income increases by 2.5% in 2016 and in 2017. The lease has one additional 2-year renewal option with annual 2.5% escalations. The lease is corporately guaranteed by Brunswick Corporation. Brunswick Corporation is a publicly traded company on the New York Stock Exchange (BC), with a market capitalization of $3 billion. INVESTMENT HIGHLIGHTS • Located within the Chicago MSA • 2.5% rental escalations in 2016 and every year thereafter • Below market rent per square foot • Tenant has been at location for over 16 years and recently extended lease through June 2018 • Positioned in the primary retail trade area • Close proximity to Westfield Fox Valley regional mall anchored by Macy’s, JCPenney, Kohl’s and Sears • Other nearby retailers include Wal-Mart Supercenter, Sam’s Club, Super Target, Costco, Lowe’s and Home Depot • Corporately guaranteed lease (NYSE: BC) • Naperville is an affluent suburb of Chicago with average household income of approximately $120,000 within one mile of the property EXECUTIVE SUMMARY EXECUTIVE SUMMARY
  5. 5. NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEW PROPERTY OVERVIEW Price: $4,400,000 Cap Rate: 9.68% Renewal Options: One 2-Year Rent Schedule: NOI Rent P/SF Escalation Date $426,098 $5.30 $436,750 $5.43 7/1/2016 $447,669 $5.57 7/1/2017 $458,860 $5.71 7/1/2018 (Option) $470,332 $5.85 7/1/2019 Lease Commencement Date: April 3, 1997 Lease Expiration Date: June 30, 2018 Tenant: Brunswick Zone XL Guarantor: Brunswick Corporation (NYSE: BC) Lease Type: Triple Net Landlord Responsibilities: Structure Only Rentable Square Feet: 80,425 Land Size: 6.9 acres
  9. 9. NET LEASED INVESTMENT OFFERING Brunswick Corporation (NYSE: BC) is a United States based corporation headquartered in Lake Forest, Illinois. Brunswick is involved in manufacturing marine boats, marine engines and fitness equipment. Brunswick Corporation also manufactures billiards and bowling equipment, bowling services, products, and accessories and operates bowling centers in the United States and Canada. Brunswick reports that in the past five years, their international sales have grown at twice the rate of domestic sales. The company has established regional headquarters in Belgium, Australia and Dubai to better serve its customers. Brunswick owns and operates over 100 “Brunswick Zone” locations throughout the United States and Canada offering food, arcade games, bowling, billiards and lazer tag, bumper cars and event rooms at select locations. Brunswick is publicly traded on the New York Stock Exchange (BC) with a market cap of $3 billion. Brunswick had revenue of approximately $3.7 billion in 2012. Corporate Website: Brunswick Zone Website: Number of Locations: 100+ Stock Symbol: BC: NYSE Market Capitalization: $3 billion TENANT PROFILE TENANT PROFILE
  10. 10. NET LEASED INVESTMENT OFFERING Population 1-mi 3-mi 5-mi Total Population 10,821 84,911 231,663 Total Households 3,934 32,603 82,544 Income Median Household Income $101,233 $83,319 $94,340 Average Household Income $119,118 $103,284 $114,070 DEMOGRAPHIC COMPARISON REPORT DEMOGRAPHIC COMPARISON REPORT
  11. 11. NET LEASED INVESTMENT OFFERING Naperville is located in DuPage and Will Counties in Illinois. The population at the 2010 census was 141,853 making it the 5th largest city in Illinois. In a 2010 study by bizjournals, Naperville was named as the wealthiest city in the Midwest and eleventh in the nation with a population over 75,000. Naperville is located 28 miles west of downtown Chicago and consistently ranks amongst the top communities in the nation to live, raise children and retire. Naperville has been ranked in the top five for Money Magazines: Best Places to Live, three of the last eight years. Naperville has a diversified employer base that features high technology firms, retailers and factories, as well as small and home-based businesses. Major area private employers of Naperville include Lucent Technologies, Nicor Gas, BP Amoco, Tellabs, Ondeo Nalco, ConAgra Foods, Laidlaw, Calamos Investments, Solar Communications and Kraft Foods. Chicago is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald’s, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O’Hare International Airport is the second busiest airport in the world in terms of traffic movement. The metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness. LOCATION OVERVIEW LOCATION OVERVIEW
  12. 12. NET LEASED INVESTMENT OFFERING 666 Dundee Road, Suite 1801 Northbrook, IL 60062 Randy Blankstein President 847.562.0003 Jimmy Goodman Partner 847.562.8500 CONTACT INFORMATION CONTACT INFORMATION