TACO BELL 7451 Lemont Road | Downers Grove (Chicago MSA), Illinois 60516 - NET LEASE PROPERTY GROUP - MIDWEST
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REPRESENTATIVE PHOTO TACO BELL 7451 Lemont Road | Downers Grove (Chicago MSA), Illinois 60516 NET LEASE PROPERTY GROUP – MIDWEST
TACO BELL
AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT
Affiliated Business Disclosure Memorandum solely for your limited use and benefit footages, and other measurements are
CBRE, Inc. operates within a global family of in determining whether you desire to express further approximations. This Memorandum describes certain
companies with many subsidiaries and related entities interest in the acquisition of the Property, (ii) you will documents, including leases and other materials, in
(each an “Affiliate”) engaging in a broad range of hold it in the strictest confidence, (iii) you will not summary form. These summaries may not be
commercial real estate businesses including, but not disclose it or its contents to any third party without the complete nor accurate descriptions of the full
limited to, brokerage services, property and facilities prior written authorization of the owner of the Property agreements referenced. Additional information and
management, valuation, investment fund (“Owner”) or CBRE, Inc., and (iv) you will not use any an opportunity to inspect the Property may be made
management and development. At times different part of this Memorandum in any manner detrimental available to qualified prospective purchasers. You are
Affiliates, including CBRE Global Investors, Inc. or to the Owner or CBRE, Inc. advised to independently verify the accuracy and
Trammell Crow Company, may have or represent completeness of all summaries and information
clients who have competing interests in the same If after reviewing this Memorandum, you have no contained herein, to consult with independent legal
transaction. For example, Affiliates or their clients further interest in purchasing the Property, kindly and financial advisors,and carefully investigate the
may have or express an interest in the property return it to CBRE, Inc. economics of this transaction and Property’s suitability
described in this Memorandum (the “Property”), and for your needs. ANY RELIANCE ON THE CONTENT
may be the successful bidder for the Property. Your Disclaimer OF THIS MEMORANDUM IS SOLELY AT YOUR OWN
receipt of this Memorandum constitutes your This Memorandum contains select information RISK.
acknowledgement of that possibility and your pertaining to the Property and the Owner, and does
agreement that neither CBRE, Inc. nor any Affiliate not purport to be all-inclusive or contain all or part of The Owner expressly reserves the right, at its sole
has an obligation to disclose to you such Affiliates’ the information which prospective investors may discretion, to reject any or all expressions of interest
interest or involvement in the sale or purchase of the require to evaluate a purchase of the Property. The or offers to purchase the Property, and/or to terminate
Property. In all instances, however, CBRE, Inc. and its information contained in this Memorandum has been discussions at any time with or without notice to you.
Affiliates will act in the best interest of their respective obtained from sources believed to be reliable, but has All offers, counteroffers, and negotiations shall be
client(s), at arms’ length, not in concert, or in a not been verified for accuracy, completeness, or non-binding and neither CBRE, Inc. nor the Owner
manner detrimental to any third party. CBRE, Inc. and fitness for any particular purpose. All information is shall have any legal commitment or obligation except
its Affiliates will conduct their respective businesses presented “as is” without representation or warranty as set forth in a fully executed, definitive purchase and
in a manner consistent with the law and all fiduciary of any kind. Such information includes estimates sale agreement delivered by the Owner.
duties owed to their respective client(s). based on forward-looking assumptions relating to the
general economy, market conditions, competition © 2017 CBRE, Inc. All Rights Reserved.
Confidentiality Agreement and other factors which are subject to uncertainty and
Your receipt of this Memorandum constitutes your may not represent the current or future performance
acknowledgement that (i) it is a confidential of the Property. All references to acreages, square
2 TACO BELL - DOWNERS GROVE, IL
TABLE OF CONTENTS
4 Executive Summary
The Offering
Financial Overview
Investment Highlights
Aerial
Regional Map
09 Property Description
Tenant Overview
Survey
Property Description
Aerial
12 Market Overview
Chicago MSA Overview
Aerials
Demographic Maps
Primary Contact Debt & Structured Finance
MICHAEL KAIDER CBRE GEOFFREY HARRIS CBRE
NNN Specialist 700 Commerce Drive +1 602 735 5615 2575 East Camelback Road, Suite 500
+1 630 573 7015 Suite 450 geoffrey.harris@cbre.com Phoenix, AZ 85016
michael.kaider@cbre.com Oak Brook, IL 60523
FIELD & STREAM - TROY, MI 3
THE OFFERING
CBRE’s Net Lease Property Group is pleased to Taco Bell Corp. is the nation’s leading Mexican-inspired quick service restaurant. Taco
exclusively present the tremendous opportunity Bell, along with more than 350 franchise organizations, serve over 42 million customers
to acquire fee interest in an absolute NNN Taco each week at its 6,738 locations as well as through its mobile, desktop, and delivery
Bell ground lease. The asset is located in Downers ordering services. Taco Bell is a subsidiary of Yum! Brands, Inc. (NYSE: YUM). Yum! Brands
Grove, a west suburb of Chicago, Illinois. Taco Bell’s develops, operates, franchises, and licenses 44,351 quick service restaurants worldwide
original 20-year corporate lease has over 10 years under the KFC, Taco Bell, and Pizza Hut concepts. Yum! Brands is headquartered in
of term remaining, zero landlord responsibilities, Louisville, Kentucky and had fiscal year ending December 2016 sales of $12.9 billion.
four 5-year renewal options, and strong rental
increases.
Taco Bell benefits from its location on an outparcel
to Downers Park Plaza, which draws a tremendous
amount of traffic to the area. The center consists
of 283,280-square feet and is home to strong
regional and national retailers including Shop
N Save Market, Best Buy, TJ Maxx/HomeGoods,
Old Navy, Dollar Tree, and Party City. Additional
retailers in the immediate area include Kohl’s,
Ross Dress for Less, The Home Depot, Walmart
Supercenter, Marshalls, Ulta Beauty, Toys R Us, The
Room Place, Aldi, and PetSmart among others.
The asset is well positioned on the northeast corner
of 75th Street and Lemont Road with exceptional
visibility and combined traffic counts in excess of
47,300 vehicles per day. The center benefits from
a strategic neighborhood location in proximity to
the housing stock in the area, which features a
growing, affluent population base.
4 TACO BELL - DOWNERS GROVE, IL
FINANCIAL OVERVIEW
Offering Price: $2,010,000 Lease Term: 20 Years
Cap Rate: 5.20% Lease Term Remaining: 10 Years, 3 Months
Rent: $104,500.00 Lease Commencement: April 12, 2008
Lease Structure: Absolute NNN Ground Lease Lease Expiration: April 30, 2028
Lot Size: ±0.92 Acres / 40,001 Square Feet Renewal Options: Four, 5-Year Options
Building Size: 2,880 Square Feet There is a 13% rental increase in Year
Rental Increases: 3, 12% in Year 6, and 10% in Year
Tenant: Taco Bell 11, 16, and each option period.
Parent Company Name: Yum Brands, Inc. Landlord Responsibilities: None
RENT SCHEDULE
Monthly Annual
Lease Year Lease Dates
Rent Rent
1-2 4/12/2008 to 4/30/2010 $6,250.00 $75,000.00
3-5 5/1/2010 to 4/30/2013 $7,083.33 $85,000.00
6 - 10 5/1/2013 to 4/30/2018 $7,916.67 $95,000.00
11 - 15 5/1/2018 to 4/30/2023 $8,708.33 $104,500.00
16 - 20 5/1/2023 to 4/30/2028 $9,579.17 $114,950.00
Option 1: 21 - 25 5/1/2028 to 4/30/2033 $10,537.08 $126,445.00
Option 2: 26 - 30 5/1/2033 to 4/30/2038 $11,590.79 $139,089.50
Option 3: 31 - 35 5/1/2038 to 4/30/2043 $12,749.87 $152,998.45
Option 4: 36 - 40 5/1/2043 to 4/30/2048 $14,024.86 $168,298.30
EXECUTIVE SUMMARY 5
INVESTMENT HIGHLIGHTS
SECURE TENANCY:
The opportunity to acquire fee interest in an absolute NNN Taco Bell ground lease located in Downers Grove, Illinois, a western Chicago suburb.
Taco Bell is the nation’s leading Mexican-inspired quick service restaurants with 6,738 locations serving over 42 million customers each week.
Taco Bell is a subsidiary of Yum! Brands, Inc. (NYSE: YUM). Yum! Brands develops, operates, franchises, and licenses 44,351 quick service
restaurants worldwide under the KFC, Taco Bell, and Pizza Hut concepts.
LONG TERM COMMITMENT:
Taco Bell has been a tenant at this location since April 2008 and currently has over 10 years of term remaining. The corporate lease includes
four, 5-year renewal options, strong rental increases throughout the base term and renewal options, and zero landlord responsibilities.
SUPERIOR LOCATION:
Taco Bell is ideally positioned on an outparcel to Downers Park Plaza, a 283,280-square foot grocery-anchored center. The center is home to
strong regional and national retailers including Shop N Save Market, Best Buy, TJ Maxx/HomeGoods, Old Navy, Dollar Tree, and Party City.
Additional retailers in the immediate area include Kohl’s, Ross Dress for Less, The Home Depot, Walmart Supercenter, Marshalls, Ulta Beauty,
Toys R Us, The Room Place, Aldi, and PetSmart among others.
HIGH TRAFFIC VOLUME AND OUTSTANDING VISIBILITY:
Taco Bell is well positioned at the northeast corner of 75th Street and Lemont Road with over 380 feet of uninterrupted frontage. Combined
traffic counts at this signalized intersection exceeds 47,300 vehicles per day.
POWERFUL AREA DEMOGRAPHICS:
The primary trade area has an excellent, affluent demographic profile, with a population of 104,727 within a three-mile radius. Residents within
the primary trade area earn an average household income of $104,411. Within the five-mile extended trade area is a population of 233,125,
earning an average household income of $112,222. Both the primary and extended trade area average household incomes are well above the
national and Chicago MSA averages of $80,675 and $92,004.
ROBUST CHICAGO MSA:
Chicago is one of the most dynamic markets in the nation with a population near 9.68 million. Chicago boasts an attractive retail market, with
the third largest economy in the nation, and over $121.9 billion in annual retail sales (2016 metro Chicago sales; Melaniphy).
6 TACO BELL - DOWNERS GROVE, IL
NORTHEAST AERIAL VIEW
EXECUTIVE SUMMARY 7
REGIONAL MAP 8 TACO BELL - DOWNERS GROVE, IL
TENANT PROFILE
Taco Bell Corp. is the nation’s leading Mexican-inspired quick service restaurant. Taco Bell serves breakfast to late
night Mexican-style items including tacos, burritos, quesadillas, salads, and nachos. Taco Bell, along with more than
350 franchise organizations, serve over 42 million customers each week at its 6,738 locations as well as through
its mobile, desktop, and delivery ordering services. Overseas, Taco Bell has over 250 restaurants with plans to add
2,000 more internationally within the next decade. In 2016, Taco Bell was named as one of Fast Company’s Top 10
Most Innovative Companies in the world.
Taco Bell is a subsidiary of Yum! Brands, Inc. (NYSE: YUM). Yum! Brands develops, operates, franchises, and licenses
quick service restaurants worldwide under the KFC, Taco Bell, and Pizza Hut concepts. As of September 2017, there
were 44,351 restaurants in over 125 countries worldwide, including 21,063 KFC, 16,551 Pizza Hut, and 6,738
Taco Bell locations. Yum! Brands is headquartered in Louisville, Kentucky and had fiscal year ending December 2016 sales of $12.9 billion.
PROPERTY DESCRIPTION 9
SURVEY 10 TACO BELL - DOWNERS GROVE, IL
PROPERTY DESCRIPTION
Property Name Taco Bell
Location 7451 Lemont Road
Downers Grove (DuPage County), IL
60516
GLA 2,880 Square Feet
Site Size ± 0.92 Acres / 40,001 Square Feet
Site Shape Rectangular
Parking 36 spaces including 2 handicap
spaces
PIN 09-29-110-001
Access Access to the site is provided via Lemont
Road. The site can also be accessed
through the retail that surrounds the
site.
Frontage/Visibility ±200 feet of frontage on Lemont Road
and ±180 feet on 75th Street.
Flood Zone According to the flood hazard maps
published by the FEMA, the site is within
Zone X as indicated on Community
Map Panel No. 17043C0907H dated
December 16, 2004. Zone X, an area
that is determined to be outside the
100-and 500-yearflood plains.
Surrounding Land Uses The area surrounding the asset consists
primarily of retail developments and
residential subdivisions.
PROPERTY DESCRIPTION 11NORTHWEST AERIAL VIEW 12 TACO BELL - DOWNERS GROVE, IL
SOUTHEAST AERIAL VIEW
MARKET OVERVIEW 13DOWNERS GROVE OVERVIEW
Downers Grove is an affluent west suburb of Chicago, located approximately CULTURE & RECREATION
22 miles west of Chicago’s Central Business District, 18 miles southwest of The village of Woodridge offers an array of recreation options.
O’Hare International Airport, and 21 miles northwest of Midway International Downers Grove is home to nearly 600 acres of parks and
Airport. The village was founded in 1832 and is situated at the convergence facilities with a variety of opportunities for all ages. The historic
of Interstate 55 and 355, providing exceptional access to the Chicago MSA. Downers Grove is located in Downers Grove as well as natural
Downers Grove also provides convenient public transportation options resources such as Lyman Woods and Belmont Prairie. Downers
through the PACE suburban bus lines as well as the Belmont, Downers Grove, Grove also has a 69,000 Square foot state-of-the-art Recreation
and Fairview Avenue stations on Metra’s Burlington North Santa Fe Metra and Fitness Center.
line. Downers Grove is bordered by the affluent, well-established western
suburbs of Oak Brook, Lombard, Westmont, Lisle, Darien, and Woodridge.
DEMOGRAPHICS
Downers Grove residents have a strong quality of life within a robust and
growing community. The village has experienced steady growth since 2010
and is currently home to 49,990 residents. Downers Grove residents earn
an average household income of $116,264 – 44% and 26% above the
national and Chicago MSA averages. Downers Grove offers a variety of
housing options including apartments, condominiums, entry level single-
family homes, and upscale homes. The Downers Grove average home
value is $399,607, but the area boasts a wide range of home values, some 1 MILE
exceeding $1 million.
3 MILES
ECONOMY 5 MILES
In addition to being an ideal location to live, Downers Grove is an excellent
place to work and do businesses. Currently there are over 2,770 businesses
that employ 49,458 people. There are several major corporation located
within Downers Grove including Advocate Health Care, Dover Corporation,
Pepperidge Farm, DeVry, Inc. and Sanford, maker of Sharpie and Paper
Mate.
14 TACO BELL - DOWNERS GROVE, ILMARKET OVERVIEW
Chicago is one of the most attractive and dynamic markets in the one business sector or industry, Chicago’s economy is like a well-
nation. Chicago boasts an attractive retail market, with the third balanced portfolio and is better equipped than most cities to
largest economy in the nation and over $121.9 billion in annual weather a slowdown in any particular industry. The Chicago MSA
retail sales (2016 metro Chicago sales; Melaniphy). The market’s has a highly diversified economic base and is home to more than
vibrant business climate, central geographic location, diversified 400 major corporate headquarters, including 33 Fortune 500
economy and available human resources have helped Chicago headquarters.
achieve a prominent position as a world-class city in finance,
international trade, manufacturing, transportation, culture and The Windy City, as it has been nicknamed, welcomes in over 52
the arts. million international and domestic visitors each year who come to
see attractions including Chicago’s numerous parks, art galleries,
One of Chicago’s biggest commercial advantages is its diversified architectural wonders, professional sports teams, universities, and
economy and deep labor pool. With no single emphasis on any more.
MARKET OVERVIEW 15MARKET OVERVIEW
FORTUNE 500 COMPANIES IN THE CHICAGO MSA
RANK COMPANY SECTOR REVENUES ($M)
17 Walgreens Boots Alliance Food and Drug Stores $117,351
24 Boeing Aerospace & Defense $94,571
45 Archer Daniels Midland Food Production $62,346
83 United Continental Holdings Airlines $36,556
84 Allstate Insurance: Property and Casualty (Stock) $36,534
89 Exelon Utilities: Gas & Electric $31,360
109 Mondelez International Food Consumer Products $25,923
111 AbbVie Pharmaceuticals $25,638
112 McDonald’s Food Services $24,622
124 US Foods Holding Wholesalers: Food and Grocery $22,919
127 Sears Holdings General Merchandisers $22,138
135 Abbott Laboratories Medical Products and Equipment $20,853
197 Conagra Brands Food, Beverages & Tobacco $14,134
199 CDW Information Technology $13,982
202 Illinois Tool Works Industrial Machinery $13,599
277 Discover Financial Services Commercial Banks $10,497
281 Baxter International Medical Products and Equipment $10,163
282 W.W. Grainger Wholesalers: Diversified $10,137
304 LKQ Wholesalers: Diversified $9,082
322 Tenneco Motor Vehicles & Parts $8,599
337 Navistar International Motor Vehicles & Parts $8,111
338 Univar Wholesalers $8,074
359 Anixter International Wholesalers: Diversified $7,625
388 R.R. Donnelley & Sons Publishing, Printing $6,896
391 Jones Lang LaSalle Real Estate $6,804
392 Dover Industrial Machinery $6,794
427 TreeHouse Foods Food, Beverages & Tobacco $6,175
433 Motorola Solutions Network & Other Communications Equipment $6,038
439 Old Republic International Insurance: Property and Casualty (Stock) $5,901
450 Packaging Corp. of America Packaging, Containers $5,779
456 Ingredion Food Production $5,704
462 Arthur J. Gallagher Diversified Financials $5,595
16 487 Essendant
TACO BELL - DOWNERSWholesalers:
GROVE, Electronics
IL and Office Equipment $5,369MARKET OVERVIEW
TOP EMPLOYERS
COMPANY TOTAL EMPLOYEES
Advocate Health Care System......................................18,308
University of Chicago....................................................16,197
Northwestern Memorial Healthcare.............................. 15,317
JPMorgan Chase & Co................................................ 14,158
United Continental Holdings Inc...................................14,000
Walgreen Co...............................................................13,006
Health Care Service Corp............................................13,006
Presence Health...........................................................10,500
Abbott Laboratories.....................................................10,000
Northwestern University................................................. 9,708
Jewel-Osco Stores......................................................... 9,660
Chicago Transit Authority............................................... 9,510
University of Illinois........................................................ 9,212
American Airlines..........................................................8,900
Rush University Medical Center...................................... 8,273
AT&T............................................................................ 8,000
Allstate Insurance Co..................................................... 7,800
Wal-Mart Stores Inc....................................................... 7,700
Emloyco USA Inc........................................................... 7,409
Archdiocese of Chicago................................................. 7,376
Source: Moody’s Analytics, Precis U.S. Metro, Chicago MSA, November 2017
MARKET OVERVIEW 17MARKET OVERVIEW
TRANSPORTATION
WHY CHICAGO?
Chicago is one of the primary transportation hubs in the United States. Chi-
cago is home to O’Hare International Airport, the 3rd busiest airport in the • Chicago has a strong, globally diverse economy larger than
that of many countries.
nation. According to the Chicago Department of Aviation, in 2016 the airport
serviced nearly 78 million passengers to and from 208 destinations around • Chicago’s industry mix most closely matches that of the nation,
the world via more than 48 passenger carriers. Chicago is also home to Mid- with no single industry employing more than 20% of the work-
way International Airport, which serviced more than 22 million passengers force.
via five passenger carriers to 75 destinations in the US, Mexico, Jamaica, the • Chicago is one of the most cost-effective cities in the world for
Dominican Republic and Canada. doing business, ahead of New York and Los Angeles, accord-
ing to KPMG.
Several major interconnected expressways and interstate highways pass though
the Chicago area. Interstates 80, 88 and 290 are the main east/west routes. • Chicago’s affordable cost of living and world-class cultural and
Interstates 55 and 57 provide access to the south and southwestern suburban recreational opportunities make it an excellent value for the
areas. Communities to the north and northwest are accessed via Interstates city’s vibrant and diverse workforce.
90 and 94. North/south travel between the western suburbs is facilitated by • Chicago is a central transportation hub with direct flights be-
Interstates 294 and 355. tween more than 200 cities worldwide, and direct connections
to six major U.S. Interstates.
• Chicago is hub of international business activity, with more than
1,800 foreign-based companies and more than $100 billion in
foreign direct investment.
DEMOGRAPHICS
The Chicago metropolitan statistical area is home to over
9.68 million residents, making it the third most populous MSA
in the nation. The population is projected to grow 1.53% over
the next five years to 9.83 million. Residents earn an average
household income of $92,004; more than 8% higher than
the state average of $84,983 and nearly 14% higher than the
national average of $80,675.
18 TACO BELL - DOWNERS GROVE, ILMARKET OVERVIEW
CHICAGO ACCOLADES
Top 10 Most Competitive City for Business
in the World
The Economist Intelligence Unit
#1 North American city for foreign direct
investment
NOV 2017 ESTIMATED EMPLOYED POPULATION BY OCCUPATION IBM, Global Location Trends, 2017
2%
Professional & Business Services
#1 Top Metro in the U.S. for Corporate Investment
3%
4%
Education & Health Services
Site Selection, March 2017
19%
5%
Retail & Wholesale Trade
Government
Top 21 Best City for Building Wealth
7%
Bankrate.com, October 2016
Leisure & Hospitality
8% Manufacturing
16%
#2 Top Metro in the United States for the Number
Financial Activities
of Fast Growing Small Businesses
Transportation & Utilities
10% Inc. 5000 List, 2015
Other Services
15% Construction & Mining
11%
Information
MARKET OVERVIEW 19SOUTHWEST AERIAL VIEW 20 TACO BELL - DOWNERS GROVE, IL
POPULATION CONCENTRATION
2017 TOTAL POPULATION
1 MILE 3 MILES 5 MILES
12,535 104,727 233,125
DAYTIME POPULATION
1 MILE
3 MILES 5 MILE
5 MILES
105,121
POPULATION PER SQUARE MILE — 2017
Over 2,500
1,000 to 2,500
500 to 1,000
250 to 500
Less than 250
MARKET OVERVIEW 21HOUSEHOLD INCOME
AVERAGE HOUSEHOLD INCOME
1 MILE 3 MILES 5 MILES
$102,190 $104,411 $112,222
HOUSEHOLDS EARNING OVER
$75,000 ANNUALLY
1 MILE
3 MILES
1 MILE 3 MILES 5 MILES
5 MILES 2,590 21,774 48,956
AVERAGE HOUSEHOLD INCOME — 2017
Over $125,000
$100,000 to $125,000
$75,000 to $100,000
$50,000 to $75,000
Less than $50,000
22 TACO BELL - DOWNERS GROVE, ILPOPULATION GROWTH
PROJECTED POPULATION GROWTH
2017-2022 (POPULATION)
1 MILE 3 MILES 5 MILES
122 1,711 3,931
PROJECTED POPULATION GROWTH
2017-2022 (PERCENT)
1 MILE 3 MILES 5 MILES
0.97% 1.63% 1.69%
1 MILE
HISTORICAL POPULATION
GROWTH 2010-2017 (PERCENT)
3 MILES
1 MILE 3 MILES 5 MILES
5 MILES
0.36% 2.24% 2.31%
POPULATION GROWTH 2010 — 2017
Over 15%
10% to 15%
5% to 10%
Up to 5%
Loss or No Growth
MARKET OVERVIEW 23TACO BELL 7451 Lemont Road Downers Grove (Chicago MSA), Illinois 60516 Primary Contact MICHAEL KAIDER CBRE NNN Specialist 700 Commerce Drive +1 630 573 7015 Suite 450 michael.kaider@cbre.com Oak Brook, IL 60523 Debt & Structured Finance GEOFFREY HARRIS CBRE +1 602 735 5615 2575 East Camelback Road, Suite 500 geoffrey.harris@cbre.com Phoenix, AZ 85016 NET LEASE PROPERTY GROUP – MIDWEST
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