Chase Ground Lease Property


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Chase Ground Lease Property

  1. 1. NET LEASED INVESTMENT OFFERING Chase (Ground Lease) 4001 167th StreetCountry Club Hills, IL 60478 (Chicago MSA)
  2. 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Site Plan5) Overall 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 Chase Bank ground lease located in theChicago MSA. The Chase Bank is located on a 2.07 acre parcel and was built in 2006 with a 30 year ground lease. Theproperty is located as an out parcel to a 24-hour Wal-Mart Supercenter anchored shopping center. Additionally, there are215,631 people living within five miles of the property.The property is located along 167th Street and benefits from its strategic location on the hard corner of a signalizedintersection. 167th Street experiences traffic volumes of 17,200 vehicles per day. Constant traffic is abundant due to thedraw of Country Club Hills Plaza; a Wal-Mart Supercenter anchored shopping center. 167th Street has a full accessinterchange with Interstate 57 94,000 vehicles per day less than one-half mile from the property. Additionally the propertyis located near Interstates 80 and 294 which experience traffic volumes in excess of 100,000 vehicles per day and90,000 vehicles per day respectively.Chase’s original ground lease term was for 30 years with four 5-year renewal options and the lease expires in October2036. The net operating income increases by 10% every five years during the primary term and the option periods. Chaseis a publicly traded company on the New York Stock Exchange (JPM), with a market capitalization of $151 Billion. J.P.Morgan Chase is an investment grade rated company with a Standard & Poor’s rating of A+.INVESTMENT HIGHLIGHTS• Located as an outparcel to a Wal-Mart Supercenter• Located within the Chicago MSA• Long term ground lease with 24 years remaining• Investment grade rated company (Standard & Poor’s: A+)• No landlord responsibilities• Positioned on a hard corner of a signalized intersection• 10% rental escalations every five years• Nearby retailers include AMC Loews, Sprint Wireless, Guitar Center, and Payless Shoes• Less than one-half mile from I-57 interchange (94,000 VPD)• Close proximity to a planned 500,000 square foot outlet mall, convention center, and hotel development.
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $2,300,000Cap Rate: 5.50%Rent Schedule: NOI Escalation Date $ 126,500 $ 139,150 10/12/2016 $ 153,065 10/12/2021 $ 168,372 10/12/2026 $ 185,209 10/12/2031Renewal Options: Four 5-YearRenewal Rate: 10% increase each option periodLease Commencement Date: October 12, 2006Lease Expiration Date: October 11, 2036Tenant: ChaseCredit Rating: A+ (Standard and Poor’s)Year Built 2006Lease Type: Ground Lease - NNNRentable Square Feet: 4,342 SFLand Size: 2.07 AcresPurchase Option: Chase has the option to purchase the property at any time based on a 7% cap rate of the then current NOI. The seller will escrow the difference between the purchase price and Chase’s purchase option price at negotiated terms and release funds in the event Chase exercises their purchase option during the primary term.
  9. 9. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILEChase Bank is a national bank that constitutes the consumer and commercial banking subsidiary of financialservices firm J.P. Morgan Chase (NYSE: JPM). The bank was known as Chase Manhattan Bank until it merged withJ.P. Morgan & Co in 2004. Now, J.P. Morgan Chase, through its Chase subsidiary, is one of the Big Four Banks of theUnited States with $2.3 Trillion in assets and $183 Billion in stockholder’s equity as of December 31, 2011. Chasehas more than 5,500 branches nationwide (3rd largest nationally) and more than 17,200 ATMs (2nd largestnationally). On September 25th, 2008, J.P. Morgan Chase bought most banking operations of Washington Mutualfrom the receivership of the Federal Deposit Insurance Corporation (FDIC). In 2011, J.P. Morgan produced record netincome of $2.4 Billion and grew total deposits 21% from the prior year to $1.1 Trillion. Currently J.P. Morgan & Chase& Co. is ranked 16thth on the Fortune 500.Website: of Locations: 5,500Stock Symbol: JPM : NYSEStandard & Poor’s Rating: A+Market Capitalization: $151 Billion
  10. 10. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 3-mi. 5-mi 7-miTotal Population 81,272 215,631 461,866Total Households 27,926 76,145 161,636IncomeMedian Household Income $64,042 $63,456 $64,440Average Household Income $71,224 $72,721 $73,732
  11. 11. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW Country Club Hills is a located in Cook County, Illinois, 25 miles south of Downtown Chicago. Country Club Hills has a population of over 16,000. Country Club Hills Plaza was recently developed along 167th Street in Country Club Hills. The center is anchored by the largest Wal-Mart Supercenter in the Chicago MSA. Other retailers Mart include Guitar Center, Radio Shack, Footlocker, Payless Shoes and GNC. Adjacent to the center is an AMC Loews Cineplex and Metro Self Storage. Country Club Hills has plans for a 500,000 square foot outlet center to be developed. The center will include outlet retail stores, a 10,000 seat multi purpose convention arena, and a water park resort multi-purpose hotel. 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 populated 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, McDonalds, Motorola, Discover Financial Services and Motorola, United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and OHare International Airport is the second busiest airport in theThe metro is also a major financial center in North America, and is home to the largest futures exchange in theUnited States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks thecompetitiveness of financial centers based on people, business environment, market access, infrastructure and entersgeneral
  12. 12. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003