single tenant triple net lease property for sale

1. PNC BANK (GROUND LEASE)
1640 W Fullerton Avenue
Chicago, IL 60614 (Lincoln Park)
NET LEASE INVESTMENT OFFERING

2. NET LEASE INVESTMENT OFFERING
TABLE OF CONTENTS
I. Executive Summary
Executive Summary
Investment Highlights
Property Overview
II. Location Overview
Site Plan
Aerial
Maps
Photos
III. Market & Tenant Overview
Tenant Profile
Location Overview
Demographics

3. NET LEASE INVESTMENT OFFERING
DISCLAIMER STATEMENT
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.
DISCLAIMER
STATEMENT:

4. NET LEASE INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant PNC Bank ground lease located in
Chicago’s Lincoln Park neighborhood. Lincoln Park is one of Chicago’s wealthiest and most expensive communities
with average single-family home prices of approximately one million dollars. The PNC Bank is strategically positioned
at a notable signalized intersection in one of the city’s primary retail destinations. The surrounding area is densely
concentrated, providing significant barriers to entry. There are over nine years remaining on the PNC Bank ground
lease which expires in December 2024. The ground lease features rare 2% annual rental escalations throughout the
primary term and 10% escalations in each renewal option period.
The PNC Bank property is strategically positioned at the heavily trafficked signalized intersection of Fullerton Avenue
and Clybourn Avenue which experiences traffic volumes in excess of 48,000 vehicles per day. Fullerton Avenue is the
primary east-west thoroughfare in the trade area. The PNC Bank property is benefitted by its proximity to Interstate
90/94 which is located one-half mile to the west. Interstate 90/94 is one of the most traveled stretches of interstate
in the United States with traffic volumes in excess of 316,000 vehicles per day. Further contributing to the strength
of the PNC Bank property is its location within one of Chicago’s primary retail destinations. Retailers located in the
immediate vicinity include Costco, Target, Home Depot, Menards, Kohl’s, Best Buy, TJ Maxx, Jewel-Osco, Mariano’s,
Treasure Island Foods, Regal Cinemas, Sports Authority and Aldi. The nearby Costco is one of only two locations in
the entire city of Chicago.
The surrounding urban infill area is densely concentrated with homes, apartments and commercial properties. The
PNC Bank property is located within an affluent area with average annual household incomes of approximately
$150,000 within a one-half mile radius. The immediate area is densely populated with over 51,000 people living
within a one mile radius. The property is benefitted by its proximity to DePaul University which is located one-half mile
east. DePaul University has a total enrollment of approximately 24,000 students.
The PNC Bank Ground lease has over nine years remaining and expires in December 2024. The ground lease
features 2% annual rental escalations throughout the primary term. The ground lease has six 5-year renewal option
periods with 10% rental escalations in each. PNC Bank is an investment grade rated company (S&P: A-) and is
publicly traded (NYSE: PNC) with a market capitalization in excess of $44 billion.
EXECUTIVE
SUMMARY:

5. NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
• Located in Chicago’s Lincoln Park neighborhood
• Investment grade rated tenant (S&P: A-)
• Rare 2% annual rental escalations in the primary term of the lease and 10% rental escalations in each
renewal option period
• No landlord responsibilities
• Vibrant retail destination that features Costco (one of only two in Chicago), Target, Home Depot, Menards,
Jewel-Osco and TJ Maxx
• Trophy location at the strategic Chicago intersection of Fullerton Avenue and Clybourn Avenue which
experiences traffic volumes in excess of 48,000 vehicles per day
• Affluent area with average annual household incomes within a one-half mile radius of approximately
$150,000
• One-half mile east of Interstate 90/94 which experiences traffic counts in excess of 316,000 vehicles per
day
• Densely populated area with over 51,000 people living within a one mile radius of the property
• One-half mile west of the University of DePaul which has total enrollment of approximately 24,000 students
INVESTMENT
HIGHLIGHTS:

6. NET LEASE INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $6,950,000
Current Cap Rate: 4.26%
Net Operating Income: NOI Escalation Date
$296,208*
$302,132 01/01/2017
$308,175 01/01/2018
$314,338 01/01/2019
$320,625 01/01/2020
$327,038 01/01/2021
$333,578 01/01/2022
$340,250 01/01/2023
$347,055 01/01/2024
$381,760 01/01/2025 (Option 1)
$419,936 01/01/2030 (Option 2)
$461,930 01/01/2035 (Option 3)
$508,123 01/01/2040 (Option 4)
$558,935 01/01/2045 (Option 5)
$614,829 01/01/2050 (Option 6)
Renewal Options: Six 5-Year
Rent Commencement Date: February 18, 2005
Lease Expiration Date: December 31, 2024
Tenant: PNC Bank
Credit Rating: Investment Grade: (S&P: A-)
Year Built: 2004
Lease Type: Ground Lease – No Landlord Responsibilities
Building Size: 5,274 SF
Land Size: 12,256 SF
*NOI is based off of the January 1, 2016 rent. The seller will credit, at closing, the difference between the current rent and the escalated rent.
PROPERTY
OVERVIEW:

7. NET LEASE INVESTMENT OFFERING
SITE PLAN
DRIVE-THRU
CLYBO
U
RN
AVEN
U
E
(16,000
VPD
)
FULLERTON AVENUE(32,000 VPD) N

8. AERIAL
NET LEASE INVESTMENT OFFERING
Clybourn
Avenue
(16,000
VPD)
N
Fullerton Avenue (32,000 VPD)
AshlandAvenue(40,000VPD)
(316,000
VPD)
90
94

9. NET LEASE INVESTMENT OFFERING
MAPS
N
CHICAGO O’HARE
INTERNATIONAL
AIRPORT

10. NET LEASE INVESTMENT OFFERING
MAPS
N
BUCKTOWN

11. NET LEASE INVESTMENT OFFERING
PHOTOS

12. NET LEASE INVESTMENT OFFERING
TENANT PROFILE
PNC Financial Services is a diversified financial services company in the United States. PNC is engaged in retail
banking, corporate and institutional banking, asset management, and residential mortgage banking. PNC provides
deposit, lending, cash management, and investment services to more than 6 million consumer and small business
customers across 19 states and the District of Columbia. PNC is the fifth largest bank in the United States (total
branches) with more than 2,700 branches and 7,400 ATM machines.
PNC is a publicly traded company (NYSE: PNC) with a market capitalization in excess of $44 billion and is an
investment grade rated company (S&P: A-)
Website: www.pnc.com
Credit Rating: Investment Grade (S&P: A-)
Stock Symbol: PNC (NYSE)
Number of Locations: 2,700+
Market Capitalization: $44 billion
TENANT
PROFILE:

13. NET LEASE INVESTMENT OFFERING
LOCATION OVERVIEW
Lincoln Park is a North Side neighborhood of the City of Chicago, Illinois and is boarded
by the communities of Lakview to the north, Logan Square to the west, West Town to the
southwest and the shore of Lake Michigan on the east. The Lincoln Park community is one of
the wealthiest and most expensive communities in Chicago and average single-family home
prices are nearly one million dollars. With its large concentration of upscale retailers, boutiques,
restaurants, bars and clubs, Lincoln Park offers its residents and visitors a unique experience.
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, McDonald’s, Motorola, Discover Financial
Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O’Hare
International Airport is the second busiest airport in the world in terms of traffic movement.
The metro is also a major financial center in North America, and is home to the largest futures exchange in the United
States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness
of financial centers based on people, business environment, market access, infrastructure and general competitiveness.
www.cityofchicago.org
LOCATION
OVERVIEW:

14. NET LEASE INVESTMENT OFFERING
DEMOGRAPHICS
DEMOGRAPHIC
REPORT: Population .5 Mile 1 Mile 1.5 Mile
Total Population 10,044 51,603 137,378
Total Households 4,342 23,105 65,971
Income 1 Mile 3 Mile 5 Mile
Median Household Income $108,374 $93,747 $81,095
Average Household Income $148,065 $133,350 $117,348

15. Randy Blankstein
President
847.562.0003
randy@bouldergroup.com
Jimmy Goodman
Partner
847.562.8500
jimmy@bouldergroup.com
666 Dundee Road, Suite 1801
Northbrook, IL 60062
www.bouldergroup.com