Chuck E Cheeses ground lease for sale

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
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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