7-ELEVEN (DARK) 1740 Dempster Street Mt. Prospect, Illinois (Chicago MSA) - NET LEASE INVESTMENT OFFERING - The Boulder Group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
NET LEASE INVESTMENT OFFERING 7-ELEVEN (DARK) 1740 Dempster Street Mt. Prospect, Illinois (Chicago MSA)
TABLE OF CONTENTS
TABLE OF CONTENTS
I. Executive Profile II. Market Overview III. Location Overview IV. Location & Tenant Overview
Executive Summary Market Report Photographs Demographic Report
Investment Highlights Rent Comparables Aerial Location Overview
Property Overview Site Plan Tenant Overview
Map
NET LEASE INVESTMENT OFFERING
DISCLAIMER STATEMENT
DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential.
STATEMENT: 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.
NET LEASE INVESTMENT OFFERING
EXECUTIVE SUMMARY
EXECUTIVE The Boulder Group is pleased to exclusively market for sale a single tenant net leased 7-Eleven property located
SUMMARY: within the Chicago MSA, in Mount Prospect, Illinois. 7-Eleven ceased operations in 2018, however the tenant is
obligated to fulfill the terms of the lease for the remaining three years. The 7-Eleven lease expires December 31,
2021, which allows the incoming investor to receive cash flow from the property prior to re-tenanting or re-
developing the property.
Mount Prospect is a northwestern suburb of Chicago. The property is located at the signalized corner of Dempster
Street and Algonquin Road (19,500 VPD). Additionally, the property is immediately off of Interstate 90 (127,300
VPD). Retailers in the immediate area include Walmart Neighborhood Market, Walgreens, CVS, Jewel-Osco,
Kohl’s, Chase and Bank of America. The 7-Eleven property is also located within close proximity to Robert Morris
University of Arlington Heights (3,233 students). Mount Prospect is located approximately four miles north of
O’Hare International Airport. There are 240,230 people living within five miles of the property and have an average
household income $96,688.
7-Eleven has three years remaining on their lease that expires December 31, 2021 allowing a future investor ample
time to re-tenant the property. The income stream is guaranteed by 7-Eleven, an investment grade rated tenant with
a Standard & Poor’s rating of “AA-”.
Chicago’s local economy is healthy and a multitude of retailers’ sales numbers continue to climb in the face
of continual store closure announcements. Vacancies are below their historical average aided by minimal new
development, though the closure of numerous big-box stores throughout the Chicago area will likely pressure
metro-wide retail occupancy and will certainly push-up vacancies in power and neighborhood centers. Rents have
increased over the past year, albeit modestly, though rental performance is highly bifurcated based upon property
type and location. While fundamentals are healthy and rents are growing, sales activity has pulled back significantly,
with 18Q2 on pace to be the lowest quarter for sales volume on record.
NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
INVESTMENT • Located in the Chicago MSA
HIGHLIGHTS:
• Value add opportunity
• Three years remaining allowing ample time to re-tenant or re-develop
• Income stream is guaranteed by an investment grade rated tenant (S&P: AA-)
• Located at the signalized corner of Dempster Street and Algonquin Road (19,500 VPD)
• Excellent visibility and curb appeal
• Immediately off of Interstate 90 (127,300 VPD)
• Retailers in the immediate area include Walmart Neighborhood Market, Walgreens, CVS, Jewel-Osco,
Kohl’s, Chase and Bank of America
• Located in close proximity to Robert Morris University of Arlington Heights (3,233 students)
• 240,230 people living within five miles of the property and have an average household income $96,688
NET LEASE INVESTMENT OFFERING
PROPERTY OVERVIEW
PROPERTY
OVERVIEW: Price: $1,214,292
Cap Rate: 18.07%
Net Operating Income: $219,422
Lease Expiration Date: December 31, 2021
Tenant: 7-Eleven
Year Built 2001
Building Size: 3,000 SF
Land Size: 0.57 AC
NET LEASE INVESTMENT OFFERING
MARKET REPORT
MARKET Chicago’s local economy is healthy and a multitude of retailers’ sales numbers continue to climb in the face
REPORT: of continual store closure announcements. Vacancies are below their historical average aided by minimal new
development, though the closure of numerous big-box stores throughout the Chicago area will likely pressure
metro-wide retail occupancy and will certainly push-up vacancies in power and neighborhood centers. For example,
the recent bankruptcy by Bon-Ton will result in nearly 2.4 million SF of added vacancy across 32 properties in the
Chicago area, while the Toys/Babies R’ Us bankruptcy will result in an additional 1 million SF of available space
across 42 spaces. Rents have increased over the past year, albeit modestly, though rental performance is highly
bifurcated based upon property type and location. While fundamentals are healthy and rents are growing, sales activity
has pulled back significantly, with 18Q2 on pace to be the lowest quarter for sales volume on record. Sales activity
in 2018 has been primarily focused on single-tenant net lease properties to credit tenants and grocery-anchored
shopping centers that appeal to investors due to their better insulated from e-commerce.
Submarket Statistics (Co-Star)
Schaumburg Area Retail
Market Rent/SF $17.87
Vacancy Rate 8.70%
Market Sales Price/SF $217
NET LEASE INVESTMENT OFFERING
RENT COMPARABLES
RENT
COMPARABLES:
Rent comparables within 3 miles of subject property:
Address City State Building Size (SF) Year Built Rent PSF Status
5540 New Wilke Rd Rolling Meadows IL 2,450 1983 $22.63 Asking
41 Dunton Ave Arlington Heights IL 4,141 1957 $21.00 Asking
2088 Elmhurst RD Mount Prospect IL 5,942 1970 $20.15 In Place
11 Arlington Hts Arlington Heights IL 3,600 1931 $20.00 Asking
1669 Algonquin Rd Rolling Meadows IL 1,282 1999 $19.91 In Place
1655 Algonquin Rd Rolling Meadows IL 11,964 1999 $19.91 In Place
2058 S Elmhurst Rd Mount Prospect IL 5,470 N/A $19.46 In Place
58 E Northwest Hwy Des Plaines IL 6,068 2005 $18.00 Asking
1051 S Elmhurst Rd Des Plaines IL 12,066 2006 $16.66 In Place
144 Arlington Hts Rd Arlington Heights IL 3,000 2011 $16.00 Asking
1776 W Algonquin Rd Mount Prospect IL 1,200 N/A $14.00 Asking
1141 S Arlington Heights Arlington Heights IL 9,000 1982 $12.50 In Place
512 W Northwest Hwy Mount Prospect IL 1,900 1970 $11.37 In Place
Median $19.46
NET LEASE INVESTMENT OFFERING
PHOTOGRAPHS NET LEASE INVESTMENT OFFERING
AERIAL NET LEASE INVESTMENT OFFERING
SITE PLAN NET LEASE INVESTMENT OFFERING
MAP NET LEASE INVESTMENT OFFERING
MAP NET LEASE INVESTMENT OFFERING
DEMOGRAPHIC REPORT
DEMOGRAPHIC
Population 1-Mile 3-Mile 5-Mile
REPORT:
Total Population 18,346 101,554 240,230
Total Households 6,905 39,107 94,483
Income 1-Mile 3-Mile 5-Mile
Median Household Income $75,520 $92,312 $96,688
NET LEASE INVESTMENT OFFERINGLOCATION OVERVIEW
LOCATION Mount Prospect, Illinois
OVERVIEW: Mount Prospect is a village in Elk Grove and Wheeling Townships in Cook County, Illinois, about 20 miles
northwest of downtown Chicago, and approximately 4 miles north of O’Hare International Airport. As of
the 2010 census, the village had a total population of 54,167.
Chicago, Illinois
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. Chicago has many nicknames, the best-known being the Windy City.
The Chicago metropolitan area is home to the corporate headquarters of 66 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 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. As of
2016, Chicago had the third largest gross metropolitan product in the United States at $640 billion.
The city of Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims
two Dow 30 company: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001
and McDonald’s, who’s in the process of moving their headquarters from the Chicago suburbs to the Chicago West Loop.
One additional Dow 30 companies, Kraft Foods is in the Chicago suburbs, as are Sears Holdings Corporation and the
technology spin-offs of Motorola. The headquarters of United Continental Holdings are in the United Building and its
operations center and its United Airlines subsidiary are in the Willis Tower in Chicago.
Chicago attracts over 50 million domestic leisure travelers, 11 million domestic business travelers and 1.5 million overseas
visitors. These visitors contributed more than $14 billion to Chicago’s economy. Upscale shopping along the Magnificent
Mile and State Street, thousands of restaurants, as well as Chicago’s eminent architecture, continue to draw tourists. The
city is the United States’ third-largest convention destination. A 2011 study by Walk Score ranked Chicago the fourth most
walkable of the fifty largest cities in the United States.
NETLEASE
NET LEASEINVESTMENT
INVESTMENT OFFERING
OFFERINGTENANT OVERVIEW
TENANT 7-Eleven
OVERVIEW: 7-Eleven is the world’s largest convenience store chain operating, franchising and licensing more than 64,319 stores in
18 countries. 7-Eleven is also one of the nation’s largest independent gasoline retailers. Founded in 1927 in Dallas,
Texas, 7-Eleven pioneered the convenience store concept during its first years of operation as an ice company when
its retail outlets began selling perishable items as a convenience to guests. The company’s iconic products have become
a substantial part of American culture from its well-known Big Gulp® fountain soft drink and Big Bite® grill items to
the Slurpee® beverage and its fresh-brewed coffee. 7-Eieven’s food service offerings bring guests a proprietary line of
prepared-fresh-daily and daily delivered deli sandwiches, wraps, breakfast sandwiches and a wide assortment fruits, salads
and baked goods. The name 7-Eleven originated in 1946 when the stores were open from 7:00AM to 11:00PM. 7-Eleven
was ranked #1 by Entrepreneur Magazine in the 2017 annual “Franchise 500” ranking. It is an investment grade rated
company with a Standard & Poor’s rating of AA-.
Website: www.7-eleven.com
Founded: 1927
Number of Locations: 64,319
Number of Employees: 45,000+
Standard & Poor’s Rating: AA-
Headquarters: Irving, Texas
NET LEASE INVESTMENT OFFERINGRandy Blankstein
President
847.562.0003
randy@bouldergroup.com
John Feeney
Senior Vice President
847.562.9280
john@bouldergroup.com
3520 Lake Avenue, Suite 203
Wilmette, IL 60091
www.bouldergroup.comYou can also read
