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Ground lease for sale

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Chuck E Cheeses ground lease for sale

Chuck E Cheeses ground lease for sale


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  • 1. NET LEASED INVESTMENT OFFERING Representative Image Chuck E. Cheese’s (Ground Lease) 445 Commerce Drive Woodbury, MN 55125 (Minneapolis-Saint Paul MSA) www.bouldergroup.com
  • 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS 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 www.bouldergroup.com
  • 3. CONFIDENTITALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY & DISCLAIMER 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. www.bouldergroup.com
  • 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARY The Boulder Group is pleased to exclusively market for sale a single tenant corporately guaranteed Chuck E. Cheese’s (CEC) ground leased property in the Minneapolis-Saint Paul MSA. The 15,762 square foot building is being constructed on a 2.34 acre land parcel with rent expected to commence on March 15, 2014. The CEC is located adjacent to a SuperTarget and will be the most recent addition to the Commerce Hill Shopping Center that also features a McDonald’s, Bruegger’s Bagels, European Wax, Great Clips, and CorTrust Bank. The ground lease will have 15 years remaining upon rent commencement and will feature 10% rental escalations every five years. The subject property is located along Commerce Drive in the recently developed Commerce Hill Shopping Center, which is anchored by a SuperTarget. The property is located less than one mile from an Interstate 94 interchange, which experiences traffic counts of approximately 100,000 vehicles per day. The property is positioned in a vibrant retail corridor across the street from a Sam’s Club anchored shopping center. Other retailers in the immediate area include Walmart, Wells Fargo Bank, BMO Harris Bank, Staples, Slumberland Furniture, and Ashley Furniture. The property is located within an affluent area, with the average household enjoying incomes in excess of $122,000 within one mile. Additionally, according to the 2010 US Census, the city of Woodbury had 22,594 households, of which 42.3% had children under the age of 18 living within them. The CEC ground lease is for 15 years and is estimated to commence March 15, 2014. There are 10% rental escalations every five years during the primary term and renewal options. Chuck E Cheese’s is the primary brand of CEC Entertainment, which is a publicly traded company (NYSE: CEC) with a market capitalization in excess of $830 million. There are currently 567 CEC locations in 47 states and 9 foreign countries and territories. INVESTMENT HIGHLIGHTS • Located within the Minneapolis-St. Paul MSA • Long term ground lease with 15 years remaining upon rent commencement • Zero landlord responsibilities • 10% rental escalations every 5 years during the primary term and renewal option periods • Located adjacent to a recently developed SuperTarget Representative Image • Corporately guaranteed lease by a publicly traded company (NYSE: CEC) • Less than one mile from an Interstate 94 interchange (100,000 VPD) • Located within an affluent area with average household incomes in excess of $114,000 within a three mile radius www.bouldergroup.com
  • 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEW Price: $2,280,701 Cap Rate: 5.70% Rent Schedule: NOI Escalation Date $130,000 $143,000 $157,300 $173,030 $190,333 $209,336 $230,303 3/1/2014 3/1/2019 3/1/2024 3/1/2029 (Option 1) 3/1/2034 (Option 2) 3/1/2039 (Option 3) 3/1/2044 (Option 4) Renewal Options: Four 5-Year Lease Commencement Date: March 15, 2014* Lease Expiration Date: February 28, 2029* Tenant: Chuck E Cheese’s Guarantor: CEC Entertainment Inc. (NYSE: CEC) Year Built: 2014 Lease Type: NNN Ground Lease Building Size: 15,762 SF Land Size: 2.34 acres *Estimated www.bouldergroup.com
  • 6. AERIAL NET LEASED INVESTMENT OFFERING AERIAL 94 DISTRIBUTION CENTER WOODBURY DRIVE 18,650 VPD www.bouldergroup.com 100,000 VPD N
  • 7. SITE PLAN NET LEASED INVESTMENT OFFERING SITE PLAN COMMERCE DRIVE FUTURE BLDG. FUTURE BLDG. FUTURE BLDG. FUTURE BLDG. N TAMARACK ROAD www.bouldergroup.com HUDSON PL. FUTURE BLDGS.
  • 8. MAPS NET LEASED INVESTMENT OFFERING MAPS www.bouldergroup.com
  • 9. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILE CEC Entertainment (Chuck E. Cheese’s) has served as the nationally recognized leader in family dining and entertainment for over 30 years. The company and its franchisees operate a system of 567 Chuck E. Cheese’s stores located in 47 states and nine foreign territories. Currently, 514 locations in the United States and Canada are corporately owned and operated including the subject property. Each Chuck E. Cheese’s features musical and comic robotic entertainment, games, rides and play areas, as well as a variety of dining options including pizzas, sandwiches, wings, appetizers, a salad bar and desserts. Chuck E. Cheese’s is listed on the NYSE as CEC and has a market capitalization of over $830 million. Website: Stock Symbol: Market Capitalization: Revenue (ttm) Number of Locations: Employees: www.chuckecheese.com CEC $830+ million $820.91 million 567 17,600 www.bouldergroup.com
  • 10. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORT Population Total Population Total Households 3-mi 5-mi 7-mi 46,374 17,080 112,232 42,106 204,599 76,001 $90,003 $114,846 $77,634 $100,918 $65,575 $87,361 Income Median Household Income Average Household Income www.bouldergroup.com
  • 11. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW Woodbury, Minnesota is a city in Washington County, Minnesota and a suburb of the Twin Cities metropolitan area. It is situated east of Saint Paul along Interstate 94. According to the 2010 census, the population was 61,961, making it the 10 largest city in the state. There were 22,594 households of which 42.3% had children under the age of 18 living within them. www.ci.woodbury.mn.us Minneapolis-Saint Paul, Minnesota is the most populous urban area in the state of Minnesota and serves as the state capital. It is composed of 182 cities and townships which create the 15th-largest metropolitan area in the country with a population of 3,422,264. The MSA is the second largest economy in the Midwest and is home to 18 ‘Fortune 500’ companies including UnitedHealth Group, Target, Best Buy, 3M, General Mills, and Xcel Energy. It is also home to many large private companies such as Cargil and Carlson. www.ci.minneapolis.mn.us www.bouldergroup.com
  • 12. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road, Suite 1801 Northbrook, IL 60062 Randy Blankstein President 847.562.0003 rblank@bouldergroup.com Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com www.bouldergroup.com

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