net lease property for sale
DESCRIPTION
single tenant net lease property for sale in the Chicago MSATRANSCRIPT
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Northwestern Memorial Hospital350 South Waukegan Road
Deerfield, IL 60062 (Chicago MSA)
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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
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TheinformationcontainedinthefollowingOfferingMemorandumisproprietaryandstrictlyconfidential.ItisintendedtobereviewedonlybythepartyreceivingitfromTheBoulderGroupandshouldnotbemadeavailabletoanyotherpersonorentitywithoutthewrittenconsentofTheBoulderGroup.ThisOfferingMemorandumhasbeenpreparedtoprovidesummary,unverifiedinformationtoprospectivepurchasers,andtoestablishonlyapreliminarylevelofinterestinthesubjectproperty.Theinformationcontainedhereinisnotasubstituteforathoroughduediligenceinvestigation.TheBoulderGrouphasnotmadeanyinvestigation,andmakesnowarrantyorrepresentation.TheinformationcontainedinthisOfferingMemorandumhasbeenobtainedfromsourceswebelievetobereliable;however,TheBoulderGrouphasnotverified,andwillnotverify,anyoftheinformationcontainedherein,norhasTheBoulderGroupconductedanyinvestigationregardingthesemattersandmakesnowarrantyorrepresentationwhatsoeverregardingtheaccuracyorcompletenessoftheinformationprovided.Allpotentialbuyersmusttakeappropriatemeasurestoverifyalloftheinformationsetforthherein.
CONFIDENTIALITY & DISCLAIMER
CONFIDENTITALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
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TheBoulderGroupispleasedtoexclusivelymarketforsaleasingletenantmedicalofficepropertyoccupiedbyNorthwesternMemorialHospitallocatedintheChicagoMSA.ThepropertyislocatedintheprestigiousNorthShorecommunityofDeerfield,whichisoneofthemostaffluentChicagosuburbs.NorthwesternMemorialHospitalrelocatedtothisbuild-to-suitpropertyfromamileawaytotakeadvantageofalargermodernfacility,bettervisibilityandeasieraccess.NorthwesternMemorialHospitalisaninvestmentgradecompanywithaMoody’screditratingofAa2.ThepropertyiscurrentlyunderconstructionandrentwillcommenceMarch11,2013undera15yearprimaryleasewithannual2.5%rentalescalations.
NorthwesternMemorialHospitalislocatedalongWaukeganRoad,whichexperiencestrafficcountsinexcessof26,100vehiclesperday.WaukeganRoadhasadirectaccessinterchangewithInterstate94adjacenttotheproperty.ThepropertyislocatedintheprimaryretailtradeareaadjacenttoDeerbrookMall.DeerbrookMallretailersincludeJewel-Oscogrocerystore,OfficeMax,BedBath&Beyond,T.J.MaxxandSportsAuthority.NorthbrookCourtRegionalMallislocatedapproximatelyonemileeastfromtheproperty.NorthbrookCourtisanchoredbyNeimanMarcus,Macy’s,Lord&TaylorandanAMCmovietheater.
Deerfieldisanaffluentcommunitywhereresidentsenjoyhouseholdincomesinexcessof$145,748withinthreemilesoftheproperty.Thereareover168,000peoplelivingwithinfivemilesoftheproperty.DeerfieldiscentrallylocatedbetweenmanyaffluentNorthShoresuburbs,includingGlencoe,HighlandPark,NorthbrookandWinnetka.TheNorthShoreisoneofthewealthiestandmosthighlyeducatedareasintheMidwest.
ThefacilitywillbestaffedbyFamilyPracticePhysicians,whotreatpatientsforminorinjuries,illnessandvaccinations.Adermatologysuitewillalsobelocatedonthefirstfloor,whilethesecondfloorwillbeoccupiedbyinternalmedicinephysicians. NorthwesternMemorialHospitaliscurrentlyunderconstructionandrentwillcommenceMarch11,2013.NorthwesternMemorialPhysiciansGroup’sprimaryleasetermisfor15yearswithannualrentalescalationsof2.5%.NorthwesternMemorialHospitalisaninvestmentgradecompanywithaMoody’sratingofAa2.
INVESTMENT HIGHLIGHTS
•LocatedwithintheChicagoMSA•Investmentgrademedicalofficetenant(Moody’sAa2)•Relocationandexpansionfromanexistinglocation•2.5%annualrentalescalations•Longtermleasewith15yearsremaininguponrent commencement
•LocatedoffInterstate94exitramp•DeerfieldisanaffluentChicagosuburbwithaveragehouseholdincomesinexcessof$145,748withinthreemilesoftheproperty
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
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Price: $7,151,254
CapRate: 5.50%
NetOperatingIncome: $393,319
RentEscalations: 2.5%annual
RenewalOptions: Two5-yearatFMV
LeaseCommencementDate: March11,2013
LeaseExpirationDate: March10,20281
Tenant: NorthwesternMemorialHospital
CreditRating: Aa2(Moody’s-InvestmentGrade)
YearBuilt: 2013
LeaseType: DoubleNet(Roof&Structure)2
RentableSquareFeet: 16,737
LandSize: 1.87acres(1) Tenant has the right to terminate the lease at the last day of the 10th lease year subject to penalty of approximately $692,000.(2) Property has a 20 year assumable non-prorated roof warranty.
PROPERTY OVERVIEW
PROPERTY OVERVIEW
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AERIAL
AERIAL
LAKE COOK ROAD
S. WAUKEGAN ROAD
49,300 VPD
94
37,900 VPD
26,100 VPD
94
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SITE PLAN
SITE PLAN
WAUKEG
AN ROAD
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SITE
SITE
MAPS
MAPS
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NorthwesternMemorialPhysiciansGroup,theusergroupoccupyingthefacility,isaprimarycaremedicalgroupwithover100physiciansin15medicalofficesintheChicagoMSA.ThesefacilitiesarelocatedintheneighborhoodsofStreeterville,Bucktown,LincolnPark,theLoop,RiverNorthandinthenorthsuburbs.Physicians at these facilities cover various specialties of internalmedicine, obstetrics and gynecology,pediatrics, dermatology, occupationalmedicine, integrativemedicine,wellnessanddiseaseprevention,executivehealthandperioperativecare.
NorthwesternMemorial Hospital is one of the country’s premier academicmedical center hospitals. ItistheprimaryteachinghospitalforNorthwesternUniversity’sFeinbergSchoolofMedicine.Infiscalyear2010, twelveofNorthwesternMemorialHospital’smedical specialtieswere ranked in theU.S.News&WorldReports“America’sBestHospital”issue.NorthwesternMemorialHealthCareCorporationcontractswithmanagedcarepayersonbehalfofthehospital’smedicalstaff.NorthwesternMemorialHealthCareis thecorporateparentofallNorthwesternMemorialHospital,NorthwesternMemorial FoundationandNorthwesternLakeForestHospitallocations.
NorthwesternMemorialPhysiciansGroupWebsite: www.nmpg.comNorthwesternMemorialHospitalWebsite: www.nmh.orgHeadquarters: Chicago,IL
TENANT PROFILE
TENANT PROFILE
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Population 1-mi 3-mi 5-mi
TotalPopulation 5,450 72,452 168,271TotalHouseholds 2,030 27,705 62,667
Income
MedianHouseholdIncome $111,164 $120,146 $104,427AverageHouseholdIncome $136,975 $145,748 $132,888
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORT
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DeerfieldhaslongbeenregardedasoneofthepremiercommunitiesoftheNorthShore.DeerfieldisavillagelocatedwithinLakeCounty,Illinoisapproximately25milesnorthofChicago,Illinois.Atthetimeofthe2010U.S.Census,Deerfieldhadapopulationof18,225andLakeCountyhadapopulationof703,462.Additionally,aportionofDeerfieldVillage is inCookCounty.Peoplecontinuouslychoose to
relocatetoDeerfielddue,inlargepart,totheavailabilityofsuperiorelementaryschools,middleschoolsandthepresenceofDeerfieldHighSchool.DeerfieldHighSchoolisoneofthetophighschoolsinthestate,ranking#5in2012.
TheVillageisalsohometoseveralFortune500companies,includingWalgreens(over5,000employees),BaxterHealthcare,Beam,ConsumersDigest,CosiandFortuneBrandsHome&Security.ThelargestemployersinDeerfieldareWalgreens,Baxter InternationalandTakedaPharmaceuticals.Deerfield isabout threemileswestofLakeMichiganandthreemileseastofChicagoExecutiveAirport.ChicagoO’HareAirportislocatedapproximately15milestothesouthwest,justbeyondtheI-294andI-90intersection.
www.deerfield.il.us
Chicago isthemostpopulouscityintheMidwesternUnitedStatesandthethirdmostpopulouscityintheUnitedStateswith2,700,000residents.ChicagoisthecountyseatofCookCounty,thesecondlargestcountyintheUnitedStates.TheChicagoMSAisthethirdmostpopulatedmetropolitanareaintheUnitedStateswith9,580,567residents.TheMSAcoversover1,300squaremilesand six counties. TheChicagometropolitanarea ishome to the corporateheadquarters of 57 Fortune 1000 companies, including Boeing, McDonald’s, Motorola,DiscoverFinancialServicesandUnitedAirlines.Chicagoisamajorhubforindustry,telecom-
municationsandinfrastructureandO’HareInternationalAirportisthesecondbusiestairportintheworldintermsoftrafficmovement.
ThemetroisalsoamajorfinancialcenterinNorthAmerica,andishometothelargestfuturesexchangeintheUnitedStates,theCMEGroup.ChicagoisthirdintheworldontheGlobalFinancialCentersIndexwhichranksthecompetitivenessoffinancialcentersbasedonpeople,businessenvironment,marketaccess,infrastructureandgeneralcompetitiveness.
www.cityofchicago.org
LOCATION OVERVIEW
LOCATION OVERVIEW
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666DundeeRoad,Suite1801Northbrook,IL60062
Randy [email protected]
Jimmy [email protected]
CONTACT INFORMATION
CONTACT INFORMATION