Net Lease Bank of America For Sale


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Net Lease Bank of America For Sale

  1. 1. NET LEASED INVESTMENT OFFERINGBank of America and Massage Envy 3718 N. Southport Avenue Chicago, Chicago, IL 60614
  2. 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Proforma Analysis5) Floor Plan6) Aerial7) Map8) Tenant Profile9) Demographic Comparison Report10) Location Overview11) 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 retail condo tenanted by Bank of America and Massage Envy.Bank of America has operated an ATM location for five years and Massage Envy recently signed a new 10 year lease.Massage Envy is a major spa facility with over 800 locations nationwide. The neighborhood is referred to as Wrigleyvillewhich is part of the Lakeview community of Chicago. Lakeview is the second most populated community in Chicago withhigh density levels and multiple barriers of entry. The property is located in a residential condo building on SouthportAvenue just north of Waveland Avenue in the Southport Corridor. The Southport Corridor is a top tier retail destination forLakeview residents.Lakeview is home to a variety of professionals that can access multiple points of public transportation to commute toDowntown Chicago. Wrigleyville is one of the most colorful and culturally vibrant neighborhoods in the city of Chicago; theproperty is more specifically located with the Southport Corridor. The Southport Corridor has become a popular shoppingdestination over the past several years, and is home to many national, regional and local retailers with new boutiques andshops. Southport is home to a recently constructed 52,000 square foot Jewel-Osco grocery store which is located just oneblock south of the subject property. The most recent addition to the Southport Corridor is a brand new Lululemon Athleticastore located on Southport Avenue and Addison Street, one block south of the subject property.Massage Envy recently signed a new 10 year lease estimated to commence October 2012, and Bank of America hasrecently exercised their first lease renewal option. Bank of America is a publicly traded company on the New York StockExchange (BAC), with a market capitalization of $99 Billion. Bank of America is an investment grade rated company with aStandard & Poor’s rating of A-. Massage Envy is a privately owned company with over 800 locations nationwide.INVESTMENT HIGHLIGHTS• Located in Chicago’s Lakeview neighborhood within the Southport Corridor• Bank of America is an investment grade tenant (S&P: A-)• Over 500,000 people living within three miles of the property• Massage Envy executed a 10 year lease• Average household income in excess of $92,000 within one mile of the property• Rental escalations in the primary term for both tenants• Bank of America recently exercised its first renewal option• Located one-half mile west from Wrigley Field, home of the Chicago Cubs• Southport Corridor has become one of the most popular shopping areas within the Lakeview community• The property is located just one block north of a 52,000 square foot Jewel-Osco grocery store
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPROPERTY OVERVIEWPrice: $1,699,290Cap Rate: 7.75%Net Operating Income: $131,695Rentable Square Feet: 2,900 SFMASSAGE ENVY OVERVIEW:Net Operating Income: $98,600Renewal Options: Two 5-YearLease Commencement Date: October 1, 2012 (Estimate)Lease Expiration Date: September 31, 2022Tenant: Massage Envy SpaLease Type: NNNRentable Square Feet: 2,585 SFRent Schedule: NOI Escalation Date $ 98,600 $ 110,925 10/1/2017 $ 124,787 10/1/2022 Option 1 $ 140,389 10/1/2027 Option 2BANK OF AMERICA OVERVIEW:Net Operating Income: $35,821Renewal Options: One 5-YearLease Commencement Date: January 1, 2007Lease Expiration Date: December 31, 2016Tenant: Bank of AmericaCredit Rating: A-Lease Type: Modified GrossRentable Square Feet: 315 SFEscalations 3% Annually
  6. 6. PROFORMA ANALYSIS NET LEASED INVESTMENT OFFERING PROFORMA ANALYSIS January 2013 - December 2013Income Bank of America $ 35,821 Massage Envy $ 98,600 Total Income $ 134,421Recoveries CAM $ 1,872 Taxes $ 17,828 Insurance $ 2,674 Total Recoveries $ 22,374Effective Gross Income $ 156,795Expenses CAM $ 2,100 Taxes $ 20,000 Insurance $ 3,000Total Expenses $ 25,100Net Operating Income $ 131,695
  10. 10. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILEBank of America Corporation (NYSE: BAC) is a multinational banking and financial services corporations. Bank ofAmerica is a financial institution, serving individual consumers, small and middle market businesses, corporationsand governments with a range of banking, investing, asset management and other financial and risk managementproducts and services. Bank of America is the fourth largest bank in the United States ranked by marketcapitalization. Bank of America, through its clients, serves more than 150 countries. In April 2011, the Companymerged its corporate and investment banking divisions. On September 29, 2011, the Company ceased to be asubstantial holder in Bow Energy Limited. In 2011 Bank of America is ranked 9th on the Fortune 500.Website: www.bankofamerica.comNumber of Locations: 2,691Stock Symbol: BAC : NYSEStandard & Poor’s Rating: A-Market Capitalization: $99 BillionMassage Envy is a national leader of affordable massage and spa services. Massage envy was launched nearly adecade ago to create a completely new category in the wellness industry. In 2009 Massage Envy opened their firstMassage Envy Spa. The Massage Envy Spa features healthy skin facials and other health spa services. Today,Massage Envy has over 700 Massage Envy and Massage Envy Spa locations nationwide. To date, Massage Envy hasbeen in business for nearly a decade servicing over one million clients monthly.Website: www.massageenvy.comNumber of Locations: 800 +
  11. 11. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 1-mi. 2-mi 3-miTotal Population 74,703 258,364 501,853Total Households 40,245 135,766 234,588IncomeMedian Household Income $67,986 $60,433 $58,205Average Household Income $92,667 $83,078 $81,059
  12. 12. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEWLakeview is a North Side neighborhood of the City of Chicago, Illinois and is bordered by West Diversey Parkway onthe south, West Irving Park Road on the north, North Ravenswood Avenue on the west, and the shore of LakeMichigan on the east. The Lakeview population is the second largest of the seventy-seven Chicago community population seventy sevenareas and has the highest population density.Lakeview is unofficially divided into smaller neighborhood enclaves: Lakeview East, West Lakeview andWrigleyville. Lakeview is most recognized nationwide as home to Wrigley Field and its Chicago Cubs. The Southport nationwideCorridor is located within the Lakeview Community. The Southport Corridor is located just oneone-half mile west ofWrigley Field. Southport has seen large retail growth over the past several years and is now home to numerous severalnational, regional and local retailers. Many of these retailers have relocated to the Southport Corridor from areassuch as Old Town and from Michigan Avenue.Wrigleyville features low-rise brick buildings and houses, some with rooftop bleachers are looking over Wrigley rise someField where people can purchase seats to watch baseball games without having to pay Major League Baseballticket prices. Wrigleyville bars and restaurants (particularly on North Clark Street) feature the s sports culture withsports-oriented themes. Wrigleyville is also home to the Metro Chicago Theater which is a concert hall at 3730 N. orientedClark Street in Chicago, Illinois that plays host to a variety of local, regional and national emerging bands andmusicians. 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, McDonalds, Motorola, Discover Financial Services and 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 centersgeneral
  13. 13. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003