Net Lease Kroger For Sale


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Net Lease Kroger For Sale

  1. 1. NET LEASED INVESTMENT OFFERING Kroger2701 Columbus Street Ottawa, IL 61350
  2. 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Aerial5) Site Plan6) Map7) Tenant Profile8) Demographic Comparison Report9) Location Overview10) Contact Information
  3. 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from The Boulder Group and should not be made available toany other person or entity without the written consent of The Boulder Group. This Offering Memorandum has beenprepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. The Boulder Group has not made any investigation, and makes no warranty orrepresentation. The information contained in this Offering Memorandum has been obtained from sources webelieve to be reliable; however, The Boulder Group has not verified, and will not verify, any of the informationcontained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verify all of the information set forth herein.
  4. 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a single tenant net leased Kroger property located in Ottawa,Illinois. This is a proven location for Kroger since 1982 and they are committed to the area as evidenced by the recentexecution of their second renewal option. The 44,088 square foot property is located within a primary retail trade areaalong the most heavily trafficked roadway in Ottawa. The property is being offered at a low price per square foot of $78.Kroger is rated investment grade (BBB) by Standard & Poor’s and is one of the nation’s leading grocery store chains.The property is located along Columbus Street, the primary north-south traffic thoroughfare in the area. Columbus Streetexperiences traffic volumes in excess of 18,700 vehicles per day and has a full access interchange with Interstate 80 lessthan one-half mile from the property. Interstate 80 experiences traffic volumes in excess of 24,500 vehicles per day. Theproperty is located in a primary retail trade area featuring a Wal-Mart Supercenter and retail shopping centers leased tomajor retailers. This retail area is growing as Menard’s has targeted a site, for future development located north of theKroger. The Kroger property also benefits from multiple signalized points of ingress along Columbus Street. Ottawa islocated 80 miles southwest of downtown Chicago and is known as the gateway to Starved Rock Park. Starved Rock Park isan Illinois State Park and experiences more than 2 million visitors annually.The original twenty five year lease term commenced in 1982 and Kroger recently exercised their second renewal option foran additional five years through August 2017. The lease features four additional 5-year renewal options. Kroger is apublicly traded company on the New York Stock Exchange (KR) with a market capitalization of $13 billion. Kroger is aninvestment grade rated company with a Standard & Poor’s rating of BBB.INVESTMENT HIGHLIGHTS • Long standing tenant since 1982 • Proven location as tenant recently executed second renewal option for five additional years • Investment grade tenant (S&P: BBB) • No landlord responsibilities • Located on the primary north-south traffic thoroughfare • Located in the primary retail trade area with many regional draws • Low price per square foot of $78 • Positioned on a traffic light controlled intersection
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $3,450,000Cap Rate: 8.08%Net Operating Income: $278,866Renewal Options: Four 5-YearLease Commencement Date: September 1, 1982Lease Expiration Date: August 31, 2017Year Built: 1982Tenant: KrogerCredit Rating: BBB (Standard & Poor’s)Lease Type: NNNRentable Square Feet: 44,088Land Size: 3.78 Acres
  9. 9. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILEKroger (NYSE: KR) is one of the largest grocery retailers in the county. The Kroger Brand operates nearly two dozensubsidiaries and store formats include grocery and multi-department stores, discount, convenience stores andjewelry stores. In 1983, The Kroger Company acquired Dillon Companies grocery chain, along with its subsidiariesKing Supers, City Market, Fry’s, Gerbes and the convenience store chain Kwik Shop. Kroger’s largest mergeroccurred in 1999, when the company merged with Fred Meyer, Inc. As of 2010, Kroger operated, either directly orthrough its subsidiaries, 3,574 stores, of them 2,435 are supermarkets across 31 states. Kroger’s sales increasedover 10% from fiscal year 2010 to $91 billion, and the company is ranked #23 on the Fortune 500. Kroger wasfounded in 1883 and is headquartered in Cincinnati, Ohio.Website: www.thekrogerco.comNumber of Locations: 3,574Stock Symbol: KR: NYSEStandard & Poor’s Rating: BBBMarket Capitalization: $13 billionEmployees: 339,000
  10. 10. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 3-mi. 5-mi 15- 15-miTotal Population 18,085 23,150 66,270Total Households 7,497 9,535 26,340IncomeMedian Household Income $45,638 $47,512 $50,861Average Household Income $56,506 $58,123 $59,408
  11. 11. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEWOttawa is the largest city in LaSalle County, Illinois. At the time of the 2010 U.S CensusOttawa had a population of 18,786. LaSalle County is located approximately 80 milessoutheast of downtown Chicago. According to the 2010 census, LaSalle County had apopulation of 113,924. Located in LaSalle County is Starved Rock State Park. Ottawa isknown as the scenic gateway to the park which experiences more than 2 million visitorsannually.Ottawa is ideally located at the convergence of the Illinois River and the Fox River; theIllinois River connects Lake Michigan to the Mississippi River, and North America’s25,000 mile river system. The city of Ottawa plays a large role in the sand and glassindustry, and transportation of the sand is facilitated by the Illinois River. The largestemployer in Ottawa is Pilkington Glass Works; the plant underwent a $50 millionrenovation in
  12. 12. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003