12
NET LEASED INVESTMENT OFFERING www.bouldergroup.com Burger King 2345 South Pulaski Road Chicago, IL 60623
| Date post: | 21-Nov-2014 |
| Category: |
Real Estate |
| Upload: | the-boulder-group |
| View: | 1,363 times |
| Download: | 2 times |
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Burger King2345 South Pulaski Road
Chicago, IL 60623
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
1) Confidentiality&Disclaimer
2) ExecutiveSummary
3) PropertyOverview
4) Aerial
5) SitePlan
6) Maps
7) TenantProfile
8) DemographicComparisonReport
9) LocationOverview
10) ContactInformation
TABLE OF CONTENTS
TABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
TheinformationcontainedinthefollowingOfferingMemorandumisproprietaryandstrictlyconfidential.ItisintendedtobereviewedonlybythepartyreceivingitfromTheBoulderGroupandshouldnotbemadeavailabletoanyotherpersonorentitywithoutthewrittenconsentofTheBoulderGroup.ThisOfferingMemorandumhasbeenpreparedtoprovidesummary,unverifiedinformationtoprospectivepurchasers,andtoestablishonlyapreliminarylevelofinterestinthesubjectproperty.Theinformationcontainedhereinisnotasubstituteforathoroughduediligenceinvestigation.TheBoulderGrouphasnotmadeanyinvestigation,andmakesnowarrantyorrepresentation.TheinformationcontainedinthisOfferingMemorandumhasbeenobtainedfromsourceswebelievetobereliable;however,TheBoulderGrouphasnotverified,andwillnotverify,anyoftheinformationcontainedherein,norhasTheBoulderGroupconductedanyinvestigationregardingthesemattersandmakesnowarrantyorrepresentationwhatsoeverregardingtheaccuracyorcompletenessoftheinformationprovided.Allpotentialbuyersmusttakeappropriatemeasurestoverifyalloftheinformationsetforthherein.
CONFIDENTIALITY & DISCLAIMER
CONFIDENTITALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
TheBoulderGroupispleasedtomarketforsaleasingletenantBurgerKingpropertylocatedinChicago.The2,980squarefootpropertywasbuiltin2009andislocatedapproximatelysixmilessouthwestofdowntownChicago.ThesubjectpropertybenefitsfromadenseinfilllocationofChicagoandpopulationinexcessofonemillionwithinfivemiles.Thelongtermleasefeaturesrentalescalationseveryfiveyearswiththenextescalationin2014.
ThepropertyislocatedattheintersectionofSouthPulaskiRoadand24thStreet.SouthPulaskihastrafficcountsinexcessof14,500vehiclesperdayandisaprimarynorth-souththoroughfareinChicago.PulaskiRoadhasafullaccessinterchangewithInterstate55oneandone-halfmilessouthoftheproperty.Interstate55experiencestrafficcountsinexcessof172,000vehiclesperday.BurgerKing ispositionedasanoutparceltonewlydevelopedmulti-tenantshoppingcenteranchoredbyAdvanceAutoPartsandDaVitaDialysis(scheduledtoopeninsummer2013).OtherretailersintheimmediateareaincludeWalgreens,CVS,AutoZoneandFifthThirdBank.ThetradeareaisanchoredbynumerousnationalretailersincludingSam’sClub,HomeDepot,Target,Menards,AldiandanAMCmovietheater.
BurgerKing’soriginalleasetermwasfor20yearswithfour5-yearrenewaloptionsandtheleaseexpiresinDecember2029.Thenetoperatingincomeincreasesby5%everyfiveyearsduringtheprimarytermandinrenewaloptions,withthenextescalationinDecember2014.TheguarantorisHeartlandMidwestLLC;awhollyownedsubsidiaryofHeartlandFoodCorp.HeartlandFoodCorp.isthesecondlargestBurgerKingfranchiseeintheUnitedStates.
INVESTMENT HIGHLIGHTS
•LocatedwithintheChicagoMSA
•Longtermleasewith16yearsremaining
•5%rentalescalationin2014andeveryfiveyearsthereafter
•PositionedinadenseinfilllocationofChicago
•Populationinexcessofonemillionwithinfivemilesoftheproperty
•OutparceltoanAdvanceAutoPartsandDaVitaanchoredshoppingcenter
•NearbyretailersincludeSam’sClub,HomeDepot,Target,Menards,AldiandanAMCmovietheater
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Price: $2,462,686
CapRate: 6.70%
RentSchedule: NOI EscalationDate
$165,000$173,250 12/14/2014$181,913 12/14/2019$191,008 12/14/2024$200,559 12/14/2029(Option1)$210,586 12/14/2034(Option2)$221,116 12/14/2039(Option3)$232,172 12/14/2044(Option4)
RenewalOptions: Four5-year
LeaseCommencementDate: December14,2009
LeaseExpirationDate: December13,2029
Tenant: BurgerKing
Guarantor: HeartlandMidwestLLC(2ndlargestBurgerKingfranchisee)
YearBuilt: 2009
LeaseType: NNN
RentableSquareFeet: 2,980
LandSize: 17,722SF
PROPERTY OVERVIEW
PROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
AERIAL
AERIAL
W. 26TH ROAD14,200 VPD
19,100 VPDW. OGDEN AVENUE
S. C
ICER
O AV
ENUE
43,2
00 V
PD
S. P
ULAS
KI A
VENU
E14
,500
VPD
551 ½ MILE
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
SITE PLAN
SITE PLAN
HAR
DIN
G A
VEN
UE
PULA
SKI R
OAD
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
SITE
SITE
MAPS
MAPS
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Burger King (NYSE:BKW)isaglobalchainofhamburgerfastfoodrestaurants.Attheendoffiscalyear2012,BurgerKingoperatedover7,400locationsintheUnitedStatesandover12,900locationsworldwide.BurgerKingprimarilysellshamburgers,cheeseburgers,chicken,frenchfriesandisfamousfortheirsignaturemenuitem,theWhopper.BurgerKingofferscustomerscounterserviceaswellasdrive-thruservice.Asanefforttoenhancecashflowandstrengthenrelationshipswithkeyfranchisees,BurgerKingisworkingtowardsa100%franchisedbusinessmodel.In2012,BurgerKingrefranchised871restaurantsworldwidebringingtheirtotalto97%franchised.
Heartland Midwest LLCisawhollyownedsubsidiaryofHeartlandFoodCorp,BurgerKing’ssecondlargestfranchisee.Heartlandwas founded in2003andoperatesover230 locations in fourMidwest statesandCanada.ThecompanyhasreceivednumerousawardsinresponsetotheirsuccessincludingBurgerKing’s“BrandLeadershipAward”whichispresentedtooneFranchiseeeachyearthathasdemonstratedsuperioroperationsandwhohasdemonstratedaleadershiprolewithintheBurgerKingBrand.HeartlandFoodCorpisheadquarteredinDownersGrove,Illinoisandhasannualrevenuesinexcessof$280million.
Website: www.bk.comNumberofLocations: 12,997StockSymbol: BKW:NYSEMarketCapitalization: $6.8billion
Website: www.heartlandfoodcorp.comNumberofLocations: 230+AnnualRevenue $280million
TENANT PROFILE
TENANT PROFILE
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Population 1-mi 3-mi 5-mi
TotalPopulation 64,332 256,236 1,006,163TotalHouseholds 17,615 100,915 331,419
Income
MedianHouseholdIncome $30,326 $30,456 $36,497AverageHouseholdIncome $41,860 $42,658 $53,433
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORT
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Chicago isthemostpopulouscityintheMidwesternUnitedStatesandthethirdmostpopulouscityintheUnitedStateswith2,700,000residents.ChicagoisthecountyseatofCookCounty,thesecondlargestcountyintheUnitedStates.TheChicagoMSAisthethirdmostpopulatedmetropolitanareaintheUnitedStateswith9,580,567residents.TheMSAcoversover1,300squaremilesandsixcounties.TheChicagometropolitanareaishometothecorporateheadquartersof57Fortune1000companies,includingBoeing,McDonald’s,Motorola,DiscoverFinancialServicesandUnitedAirlines.Chicagoisamajorhubfor industry,telecommunicationsandinfrastructureandO’Hare
InternationalAirportisthesecondbusiestairportintheworldintermsoftrafficmovement.
ThemetroisalsoamajorfinancialcenterinNorthAmerica,andishometothelargestfuturesexchangeintheUnitedStates,theCMEGroup.ChicagoisthirdintheworldontheGlobalFinancialCentersIndexwhichranksthecompetitivenessoffinancialcentersbasedonpeople,businessenvironment,marketaccess,infrastructureandgeneralcompetitiveness.
www.cityofchicago.org
LOCATION OVERVIEW
LOCATION OVERVIEW
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
666DundeeRoad,Suite1801Northbrook,IL60062
Randy [email protected]
Jimmy [email protected]
CONTACT INFORMATION
CONTACT INFORMATION
