Triple Net Leased Culvers


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Triple Net Leased Culvers

  1. 1. NET LEASED INVESTMENT OFFERING Culver’s 510 Pingree Road 60014Crystal Lake, Chicago, IL 60014
  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 Culver’s property located in theChicago MSA. The triple net lease features 3% annual rental escalations. Store sales for this location increasedapproximately 6% from 2010 to 2011. The Culver’s franchise program is tremendously successful and has only had onefailed franchisee in 28 years of operation. This is strong performing sales location for Culver’s and this locationoutperforms an average Culver’s location by 11%. Culver’s is a privately owned and operated fast casual restaurant chainthat operates primarily in the Midwestern United States. Culver’s was founded in 1984 and has grown to over 450restaurants in 19 states.The property is located in the primary retail trade area of Crystal Lake. The retail trade area is anchored by Target, HomeDepot, Kohl’s, hhgregg, Dominick’s and Menards. Additionally, the property is located in close proximity to a sixteen screenRegal Cinema, Comfort Inn and a County Inn & Suites. The property is located just north of the signalized intersection ofPingree Road and Northwest Highway. Northwest Highway is the primary east-west thoroughfare in the area experiencingtraffic volumes in excess of 27,000 vehicles per day. There are approximately 137,000 people living within five miles ofthe property with above average household incomes in excess of $109,000 annually.Culver’s original lease term was for fifteen years with two-five year renewal options and the lease expires in February2018. The net operating income increases by 3% annually and is leased on a triple net basis. Culver’s is a privately ownedfast food chain with over 450 locations in 19 states.INVESTMENT HIGHLIGHTS• Located within the Chicago MSA• 3% annual rental escalations• In 28 years only one Culver’s franchise has failed• Sales outperform the average Culver’s location by 11%• No landlord responsibilities• Store sales increased approximately 6% from 2010-2011• Average household income in excess of $109,000 within five miles of the property• Nearby retailers include Target, Home Depot, Kohl’s, hhgregg, Dominick’s and Menards• Traffic volumes along Northwest Highway in excess of 27,000 vehicles per day
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $2,072,000Cap Rate: 10.26%Net Operating Income: $212,603Rental Escalations: 3% annuallyRenewal Options: Two 5-Year with escalationsRent Commencement Date: February 21, 2003Rent Expiration Date: February 28, 2018Year Built: 2003Tenant: Culver’sGuarantor: Dobre Lody LLCLease Type: NNNRentable Square Feet: 4,453 SFLand Size: 1.15 acres
  9. 9. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILECulver’s is a privately owned and operated fast casual restaurant chain that operates primarily in the MidwesternUnited States. Culver’s was founded in 1984 and has grown to over 450 restaurants in 19 states. Culvers servesfresh food that is cooked to order. The restaurants award-winning customer service is based on small-town,Midwestern values, genuine friendliness and an unwavering commitment to quality and cleanliness. Signature itemsinclude the ButterBurger and fresh Frozen Custard, including the famous Flavor of the Day program.The operators of the franchise have approximately 10 years of restaurant owning business. This location has strongsales performance and is a top performer in its region. The Culver’s franchise program is tremendously successfuland has only had one failed franchisee in 28 years of operation. This is strong performing sales location for Culver’sand this location outperforms an average Culver’s by 11%. Additionally, this location has entered into a leaseagreement with the city of Crystal Lake to provide restaurant quality food to the Three Oaks Recreation Area throughits concession stand.Website: www.culvers.comNumber of Locations: 454Credit: Private
  10. 10. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 3-mi. 5-mi 7-miTotal Population 51,713 136,654 216,786Total Households 18,184 45,799 71,803IncomeMedian Household Income $84,757 $92,177 $90,579Average Household Income $100,437 $109,150 $108,863
  11. 11. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW Crystal Lake is a city located in McHenry County, Illinois. Crystal Lake is about 45 miles northwest of Chicago. At the time of the 2010 U.S. Census the population of Crystal Lake was 40,743. Crystal Lake is the largest city in McHenry County and part of the Chicago metropolitan area. At the time of the 2010 U.S. Census McHenry metropolitan County had a population of 308,760. 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 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 Airlin Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and OHare 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 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 andgeneral
  12. 12. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003