NCH Medical Group - LoopNet...4/1/2023-3/31/2024 $282,625.00 $23,552.08 4/1/2024-3/31/2025...

ROLLING MEADOWS, IL

NCH Medical Group

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

ROLLING MEADOWS, IL

NCH Medical Group

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

NET LEASED DISCLAIMER

NCH Medical GroupROLLING MEADOWS, IL

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

NCH Medical Group


PRICING AND FINANCIAL ANALYSIS

Per Condominium Declarations:“Each Unit Owner shall be obligated to maintain his or her own Building, Unit and the Limited Common Elements appurtenant thereto in good, clean order and repair. This shall include the exterior walls of the Building, the roof of the Building, any fire system equipment associated with his or her respective Building, but explicitly shall not include any exterior lighting and fire system testing and monitoring, which shall be maintained and performed by the Association.

Per Lease: “Costs associated with capital improvements installed or constructed by Landlord other than in the initial construction of the Building, whether such were constructed or installed before or after the Commencement Date, shall be amortized with interest return at the Price Rate plus two (2) percentage points over the estimated useful life of the capital improvements as reasonably determined by Landlord in accordance with standard accounting practices and the annual amortization of principal and interest attributable to the Lease Term shall be an Operating Costs. The capital improvements referred to in the previous sentence shall include: replacement of roof structure and roof membranes; exterior painting; parking area resurfacing, resealing and restriping parking areas and driveways and upgrading Building commons systems and facilities (including HVAC systems, and if owned by Landlord, Telecommunication Facilities.)

FIRST TRUST DEED

Loan Amount $2,307,500

Loan Type Proposed New

Interest Rate 4.25%

Amortization 25 Years

Loan to Value 70%

Annualized Operating Data5999 South New Wilke RoadRolling Meadows, IL 60008

Price $3,550,000

Down Payment 35% / $1,242,500

Rentable Square Feet 13,700

Price/SF $259.12

CAP Rate 7.19%

Year Built 1990

Lot Size 13,700sf

Type of Ownership Fee Simple

1

Location

Financing

PRICING AND FINANCIAL ANALYSIS

Loan information is time sensitive and subject to change.Contact your local Marcus & Millichap Capital Corporationrepresentative.


Rent Increases Annual Monthly4/1/2018-3/31/2019 $255,225.00 $21,268.75

4/1/2019-3/31/2020 $260,705.00 $21,725.424/1/2020-3/31/2021 $266,185.00 $22,182.08

4/1/2021-3/31/2022 $271,665.00 $22,638.754/1/2022-3/31/2023 $277,145.00 $23,095.424/1/2023-3/31/2024 $282,625.00 $23,552.084/1/2024-3/31/2025 $288,105.00 $24,008.75Base Rent ($18.63/SF) $255,225

Net Operating Income $255,225Debt Service $150,007

Debt Coverage Ratio 1.70

Net Cash Flow After Debt Service 8.47% / $105,218

Principal Reduction $52,962

Total Return 12.73% / $158,180

Tenant Trade Name Northwest Suburban

Ownership Private

Tenant Corporate Store

Lease Guarantor Corporate Guarantee

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term 7 years

Lease Commencement 4-1-2013

Rent Commencement 4-1-2013

Lease Expiration Date 3-31-2025

Term Remaining on Lease 7 years

Increases $5,480 per year

Options None

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 X0150222Marcus & Millichap. All rights reserved.

Tenant Summary

FINANCIAL OVERVIEW

Tenant reimburses landlord for taxes, insurance, and all operating expenses.*Above amounts includes $8,625 annual tenant obligations*Seller will adjust for pre-4/1/18 closing

2

PRICING AND FINANCIAL ANALYSISNCH Medical GroupROLLING MEADOWS, IL

Existing FinancingLoan Type Free and Clear


Proposed Financing

FIRST TRUST DEEDLoan Amount $2,307,500

Loan Type Proposed New

Interest Rate 4.25%

Amortization 25 Years

Loan to Value 70%

Debt Coverage Ratio 1.70

FINANCING

3

PRICING AND FINANCIAL ANALYSISNCH Medical GroupROLLING MEADOWS, IL


Property Name NCH Medical Group

Property Address 5999 South New Wilke Road Building #2

Rolling Meadows, IL 60008

Property Type Single-Tenant Medical Office


Tenant Trade Name Northwest Suburban Physicians

Ownership Private

Tenant Corporate Store

Sales Volume

Net Worth

Lease Guarantor Corporate Guarantee

Credit Rating

Valueline Financial Strength

Rating Agency

Stock Symbol

Board

Rank

Lease Commencement Date 4-1-2013

Rent Commencement Date 4-1-2013

Lease Expiration Date 3-31-2025

Term Remaining on Lease 7 years

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term 7 years

Year 1 Net Operating Income $255,225

Increases $5,480 per year

Options to Renew None

Options to Terminate None

Options to Purchase None

First Right of Refusal None

No. of Locations 20

Headquartered 800 W Central Rd, Arlington Heights, IL 60005

Web Site www.nch.org

TENANT OVERVIEW


PROPERTY DESCRIPTION

Marcus & Millichap is pleased to present the NCH Medical Group single tenant medical building located in Rolling Meadows, Illinois. NCH occupies this 13,700 square foot property operating under a 12-year lease with approximately 7 years remaining. The rent increases a flat $5,480 per year and there are no options to extend the lease which terminates on 3-31-2025. The lease is structured whereby the tenant is responsible for all capital expenditures not covered by the Condominium Association resulting in an Absolute NNN lease.

In 2014, the entire building underwent a major rehabilitation-(ie. down to the studs). Tenant funded over $1 million of the costs. Also, building has an all new HVAC Mechanical System-2012.

Geographically, the property is located 24 miles northwest of downtown Chicago with excellent highway access, approximately 1.5 miles from the Northwest Community Hospital, nearby dense retail, office and residential destinations (including Woodfield Mall which is two miles away.) The property is Building #2 of five buildings in the Stonehill Square Condominium Association.

Investment Highlights

■ Total Renovation- "Like New Construction"

■ Tenant Funded $1 Million Gut Rehab

■ New Tear Off Roof - Guarantee Transferrable

■ Lease Guarantee by NCH Medical Group

■ Affiliated with Northwest Community Hospital an 'S&P:A+' & 'Moody's: A2' Rated Credit

■ Lease Terminates March 31, 2025

■ Dense Commercial Corridor – 1.5 miles to Hospital

■ 100 Percent Tenant Reimbursement of All Expenses andCapital items

5

PROPERTY DESCRIPTIONNCH Medical GroupROLLING MEADOWS, IL


INVESTMENT OVERVIEW

6



NORTHWEST COMMUNITY HOSPITAL

NCH Medical Group has partnered with Northwest Community Hospital, an S&P: A+ / Moody’s: A2 rated credit, to create a coordinated healthcare system. With 20 individual locations, this system is designed to deliver positive experiences through their medical offices, immediate care centers, and the hospital.

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NORTHWEST COMMUNITY HOSPITAL

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S&P 'A+' CREDIT

9



MOODY'S 'A2' CREDIT

10



BOND RATINGS

11



NORTHWEST SUBURBAN PHYSICIAN GROUP

Our new practice represents the merger of four long-serving Internal Medicine offices in Arlington Heights, Northwest Suburban Medical Associates-Internal Medicine, and New Generations. Our union will help us better meet your healthcare needs in today’s complex medical environment, while preserving the personalized service you have come to expect from our family practices in Arlington Heights. To help us do this, we’ve developed this website to assist you. In this site you can learn about our doctors, our locations, our family practice in Arlington Heights , request an appointment, request prescription refills, complete health assessments and much more. Our founding practices have been serving the primary care needs of patients and families in the northwest suburbs for over 40 years.

As those needs change in an evolving healthcare environment, so must our ability to offer the best of what patients have come to expect from their providers. Recent improvements include expanded evening and weekend hours plus the adoption of a state of the art electronic health record which includes a link that allows you to view and download your laboratory results with your physician’s comments and advice. Our doctors are on staff at Northwest Community Hospital, one of the premier hospitals in the northwest suburbs. As we evolve, we continue to look for opportunities for improvement and look forward to continuing to provide you with the highest quality medical care available.

12


The Offering

Property NCH Medical Group

Property Address 5999 South New Wilke Road Building #2


Assessor's Parcel Number 08-08-402-041-1002

Site Description

Number of Stories One

Year Built 1990


Lot Size 13,700sf

Type of Ownership Fee Simple

Parking 44 nearby buildings plus common-non-exclusive


PROPERTY SUMMARY

CompanyLocal

Employees

Graphic Packaging Intl Inc 8,709

Schneider Elc Holdings Inc 4,619

Agilent Technologies Inc 3,275

Salvation Army 3,258

Honeywell 3,045

US Post Office 2,822

A B H S 2,800

N C H 2,800

Motorola 2,799

Northwest Community Hospital 2,380

U O P Equitec Services Inc 2,000

Pepsico 1,711

Major Employers

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PROPERTY PHOTOS

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PROPERTY PHOTOS

Local Map Regional Map

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AREA MAPS

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NORTHWEST SUBURBAN PHYSICIANS

1 1/2 Miles from Northwest Community Hospital

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Rolling Meadows, Illinois

Rolling Meadows, Illinois

City

Seal

Motto: "Progress Thru Participation"

Location in Cook County and the state of Illinois.

Location of Illinois in the United States

Country United States

State Illinois

County Cook

Township Palatine, Elk Grove

Incorporated 1955

Government

• Type Home rule

• Mayor Tom Rooney

Area

• Total 5.64 sq mi (14.6 km2)

• Land 5.63 sq mi (14.6 km2)

• Water 0.00 sq mi (0.0 km2) 0%

Population (2010)

• Total 24,099

• Density 4,280.5/sq mi (1,652.7/km2)

Standard of living (2009-11)

• Per capita income $29,099

21




Demographics

Historical population

Census Pop. %±

1960 10,879 —

1970 19,178 76.3%

1980 20,167 5.2%

1990 22,591 12.0%

2000 24,604 8.9%

2010 24,099 −2.1%

Est. 2014 24,279 [4] 0.7%

U.S. Decennial Census[5]

22



PLAT SURVEY

23



PLAT SURVEY

1)2)3)4)5)

NCH Medical GroupPediatric AssociatesAspen Dental-InvernessOrthopedic Medical Office-Lee MemorialMercy Medical ClinicComplete Care Emergency Room

24

RECENT SALESNCH Medical GroupROLLING MEADOWS, IL


RECENT SALES MAP


RECENT SALES

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50.00

100.00

150.00

200.00

250.00

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350.00

400.00

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600.00

Subject PediatricAssociates

AspenDental-Inverness

OrthopedicMedical

Office-LeeMemorial

MercyMedicalClinic

CompleteCare

EmergencyRoom

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Subject PediatricAssociates

AspenDental-Inverness

OrthopedicMedical

Office-LeeMemorial

MercyMedicalClinic

CompleteCare

EmergencyRoom

Average Price per Square Foot

26

RECENT SALES

Average Cap Rate



CAP RATE AND PRICE PER SQUARE FOOT

1

2

Subject Property

NCH Medical Group5999 South New Wilke Road Building #2


Pediatric Associates905 Old Diley Road

Columbus, OH 43147

Aspen Dental-Inverness2851 Gulf to Lakes Highway

Inverness, FL 34453

Close of Escrow: 9/22/2015 Sales Price: $4,440,000

Rentable SF: 12,539 Down Payment: 100%

Year Built: 2011 CAP Rate: 6.46%

Price/SF: $354.10




Price/SF: $573.08

27

Rentable Square Feet: 13,700 Sales Price: $3,550,000

Year Built: 1990 Down Payment: $1,242,500

CAP Rate: 7.19%

Price/SF: $259.12



RECENT SALES

3

4

5

Orthopedic Medical Office-Lee Memorial2531 Cleveland Avenue

Fort Myers, FL 33901

Mercy Medical Clinic325 South Sixth Place

Lowell, AK 72745

Complete Care Emergency Room1607 South Bowen Road

Pantego, TX 76013




Price/SF: $376.77

28




Price/SF: $357.14



RECENT SALES




Price/SF: $220.00


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 9,864 94,482 279,322

2010 Population 9,775 93,590 275,728

2014 Population 9,913 95,028 279,815

2019 Population 9,940 95,739 282,477

2000 Households 3,634 37,901 110,101

2010 Households 3,726 37,649 109,824

2014 Households 3,806 38,486 112,159

2019 Households 3,793 38,834 113,519

2014 Average Household Size 2.63 2.44 2.48

2014 Daytime Population 12,953 98,732 231,454

2000 Owner Occupied Housing Units 70.64% 63.99% 71.72%

2000 Renter Occupied Housing Units 25.69% 32.31% 25.40%

2000 Vacant 3.67% 3.70% 2.88%



2014 Vacant 4.24% 4.99% 3.77%



2019 Vacant 4.45% 5.19% 3.91%

$ 0 - $14,999 7.8% 7.2% 6.2%

$ 15,000 - $24,999 10.7% 7.4% 7.5%

$ 25,000 - $34,999 10.5% 9.6% 8.5%

$ 35,000 - $49,999 17.7% 14.3% 13.0%

$ 50,000 - $74,999 19.6% 19.6% 19.1%

$ 75,000 - $99,999 12.7% 14.6% 15.3%

$100,000 - $124,999 6.0% 9.1% 11.0%

$125,000 - $149,999 5.5% 5.9% 6.7%

$150,000 - $199,999 4.7% 5.9% 6.4%

$200,000 - $249,999 1.8% 2.7% 2.6%

$250,000 + 3.0% 3.8% 3.8%

2014 Median Household Income $53,366 $64,119 $69,076

2014 Per Capita Income $30,688 $36,649 $37,711

2014 Average Household Income $79,767 $90,274 $93,865

Demographic data © 2012 by Experian.

30

DEMOGRAPHIC ANALYSISNCH Medical GroupROLLING MEADOWS, IL


DEMOGRAPHIC REPORT

Geography: 5 miles

Population

In 2014, the population in your selected geography is 279,814. The population has changed by 0.17% since 2000. It is estimatedthat the population in your area will be 282,476 five years from now, which represents a change of 0.95% from the current year. Thecurrent population is 48.96% male and 51.03% female. The median age of the population in your area is 40.6, compare this to theEntire US average which is 37.3. The population density in your area is 3,555.72 people per square mile.

Households

There are currently 112,159 households in your selected geography. The number of households has changed by 1.86% since 2000.It is estimated that the number of households in your area will be 113,518 five years from now, which represents a change of 1.21%from the current year. The average household size in your area is 2.47 persons.

Income

In 2014, the median household income for your selected geography is $69,076, compare this to the Entire US average which iscurrently $51,972. The median household income for your area has changed by 13.29% since 2000. It is estimated that the medianhousehold income in your area will be $78,547 five years from now, which represents a change of 13.71% from the current year.

Housing

In 2000, there were 81,309 owner occupied housing units in your area and there were 28,790 renter occupied housing units in yourarea. The median rent at the time was $829.

Employment

In 2014, there are 231,453 employees in your selected area, this is also known as the daytime population. The 2000 Census revealedthat 72.86% of employees are employed in white-collar occupations in this geography, and 27.14% are employed in blue-collaroccupations. In 2014, unemployment in this area is 5.43%. In 2000, the average time traveled to work was 29.2 minutes.


31



SUMMARY REPORT

Number of people living in a given area per square mile.


32



POPULATION DENSITY

The number of people employed in a given area per square mile.


33



EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a single housing unit.


34



AVERAGE HOUSEHOLD INCOME

ROLLING MEADOWS, IL

OFFERING MEMORANDUM

NCH Medical Group

Offices Throughout the U.S. and Canadawww.MarcusMillichap.com

Exclusively Listed By:

David B. TarnoffFirst Vice President Investments

Member, National Office and Industrial Properties GroupChicago O’Hare Office

License: IL: 471009921License: WI: 50698-94

License: IN: RB14050851Tel: (773) 867-1483Fax: (773) 867-1510

[email protected]/DavidBTarnoff

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