single tenant net leased starbucks for sale

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NET LEASED INVESTMENT OFFERING www.bouldergroup.com Starbucks 7101 South Stony Island Avenue Chicago, IL 60649

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Net leased Starbucks for sale in the Chicago MSA

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Page 1: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

Starbucks7101 South Stony Island Avenue

Chicago, IL 60649

Page 2: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

1) Confidentiality&Disclaimer

2) ExecutiveSummary

3) PropertyOverview

4) ProFormaAnalysis

5) Aerial

6) SitePlan

7) Maps

8) TenantProfile

9) DemographicComparisonReport

10) LocationOverview

11) ContactInformation

TABLE OF CONTENTS

TABLE OF CONTENTS

Page 3: Single Tenant Net Leased Starbucks For Sale

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

Page 4: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

TheBoulderGroupispleasedtoexclusivelymarketforsaleasingletenantnetleasedStarbuckspropertylocatedinadenselypopulatedpartofChicago, Illinois.The1,696square foot retailbuildingwasdeveloped in2004ataheavilytraffickedsignalizedintersection.Starbucksiscommittedtothislocationasevidencedbytheirrecentdecisiontoextendtheleaseforanadditionaltenyears.StarbucksisaninvestmentgraderatedcompanywithaStandardandPoor’sratingofA-.

The Starbucks property is located at the signalized intersection of South Stony Island Avenue and East 71st StreetapproximatelytenmilessouthofdowntownChicago.SouthStonyIslandAvenueisaprimarynorth-souththoroughfarewithtrafficcountsinexcessof42,000vehiclesperdayandistheonlyroadwithaccesstotheChicagoSkywayTollRoad(Interstate90)inIllinois.Thepropertyislocatedapproximatelyone-halfmilenorthfromInterstate90andtwomileseastofInterstate94,whichexperiencestrafficcountsinexcessof34,000and250,000respectively.Additionally,thereisaMetratrainstoplocatedacrossthestreetfromtheStarbucksproperty.MetraisthecommuterraildivisionthatservestheChicagometropolitanareaandover80millionpeopleperyear.TheStarbucksislocatedinadenselypopulatedurbaninfillpartofthecitywithover250,000peoplelivingwithinthreemilesandover515,000peoplelivingwithinfivemiles.TheUniversityofChicago,oneofthecountries’mostprestigiousuniversitiesandhometoapproximately15,000totalstudents,islocatedtenblockstothenorthoftheStarbucks.

Starbucksiscommittedtothislocationasevidencedbytheirdecisiontorecentlyextendtheleaseforanadditionaltenyears.TheclosestStarbuckslocationtothesubjectpropertyisover2.5milesaway.Furthermore,theclosestStarbuckslocationwithadrivethruislocatedover4.5milesaway.ThereisaBankofAmericalocatedadjacenttotheStarbucksproperty.OtherretailersintheimmediatevicinityincludeJewel-Osco,FamilyDollar,PNCBank,FifthThirdBank,Walgreens,Save-A-Lot,andAutoZone.

Thereare10yearsremainingontherecentlyextendedStarbucksleasethatexpiresJuly31,2024.Theleasefeaturesan8.3%rentalescalation intheprimarytermand7.5%ineachrenewaloptionperiod.Therearefour5-yearrenewaloptionsremaining.Starbucksisaninvestmentgraderatedcompany(S&P:A-)andispubliclytraded(NASDAQ:SBUX)withamarketcapitalizationinexcessof$53billion.

INVESTMENT HIGHLIGHTS•Starbucksiscommittedtothislocationasevidencedbytheirdecisiontorecentlyextendtheleasefortenyears

•LocatedinanurbaninfillpartofChicagoataheavilytraffickedsignalized intersection(50,000VPD)

•Longtermleasewith10yearsremaining

•Investmentgradetenant(S&P:A-)

•Rentalescalationof8.3%intheprimarytermand7.5%ineachrenewaloption

•TenblockssouthfromtheUniversityofChicago

•OnlyStarbuckswithina2.5mileradius

•Locatedinadenselypopulatedareawithover250,000peoplelivingwithinathree mileradius

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Page 5: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

PROPERTY OVERVIEW

PROPERTY OVERVIEW

Price: $1,563,600

CurrentCapRate: 6.50%

NetOperatingIncome: $101,634

RentalEscalations 8.3%inYear6,7.5%inOptionPeriods

RenewalOptions: Four5-Year

LeaseCommencementDate: July16,2004

LeaseExpirationDate: July31,2024*

Tenant: Starbucks

Credit: A-(S&P)

YearBuilt: 2004

LeaseType: NN(Roof,Structure,ParkingLot&HVAC)

BuildingSize: 1,696SF

LandSize: 14,080SF

*Tenant has the one time opportunity to terminate the lease on July 31, 2020

Page 6: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

PRO FORMA ANALYSIS

PROFORMA ANALYSIS

2014Rent

BaseRent $101,760Total Rent $101,760

RecoveriesCAM(Exclusingsnowremoval)2 $3,782SnowRemoval $3,151AdminFee3 $315

Tax $31,740Insurance $1,146

Total Recoveries $40,133

Total Income

$141,893

Expenses1

CAM(Excludingsnowremoval) ($4,223)SnowRemoval ($3,151)Taxes ($31,740)Insurance ($1,146 )

Total Expenses ($40,259)

Net Operating Income $101,634

1)Forthepurposeofthisanalysis,a3%growthratewasappliedtothe2013expenses

2)Thereisa7%caponCAM(excludingsnowremoval);in2013,theactualCAMcapwas$3,534

3)Landlordcancollecta10%administrativefeeonCAMandsnowremoval;astheCAMcaphasbeenachievedforCAM,noadministrativefeeiscollected

Page 7: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

AERIAL

AERIAL

N

S. S

TON

Y IS

LAN

D

OAK WOODS CEMETERYMETRA TRACKS

42,0

00 V

PD

90

Page 8: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

SITE PLAN

SITE PLAN

S STONY ISLAND AVENUE

DRIVE-THRU

E 71

ST S

TREE

T

MET

RA T

RACK

S

N

Page 9: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

MAPS

MAPS

Lake Michigan

Page 10: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

MAPS

MAPS

Lake Michigan

Page 11: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

Starbucks (NASDAQ:SBUX) isanAmericanglobalcoffeecompanyandcoffeehousechainbased inSeattle,Washington.Starbucksisthelargestcoffeehousecompanyintheworldwithapproximately21,000locationsworldwidein64countries.Thereareover13,000locationsintheUnitedStatesofAmerica.

Starbuckslocationsservehotandcoldbeverages,whole-beancoffee,microgroundinstantcoffee,full-leafteas,pastries,andsnacks.Moststoresalsosellpre-packagedfooditems,hotandcoldsandwiches,anditemssuchasmugsandtumblers.Since1987,Starbuckshasopenedonaveragetwonewstoreseveryday.

StarbucksispubliclytradedontheNASDAQ,SBUX,andhasamarketcapitalizationinexcessof$53billion.StarbucksisinvestmentgraderatedwithaStandardandPoor’sratingofA-.

Website: www.starbucks.comCreditRating: S&P:A-StockSymbol: NASDAQ:SBUXMarketCapitalization: $53billionNumberofLocations: 21,000Headquarters: Seattle,WashingtonFounded: 1971

TENANT PROFILE

TENANT PROFILE

Page 12: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

Population 1-mi 3-mi 5-mi

TotalPopulation 38,361 252,568 515,306TotalHouseholds 16,918 106,437 199,818

Income

AverageHouseholdIncome $40,456 $45,811 $44,665

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORT

Page 13: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

ChicagoisthemostpopulouscityintheMidwesternUnitedStatesandthethirdmostpopulouscityintheUnitedStateswith2,700,000residents.ChicagoisthecountyseatofCookCounty,thesecond largestcounty in theUnitedStates.TheChicagoMSA is thethirdmostpopulatedmetropolitanareaintheUnitedStateswith9,580,567residents.TheMSAcoversover1,300square miles and six counties. The Chicago metropolitan area is home to the corporateheadquartersof57Fortune1000companies,includingBoeing,McDonald’s,Motorola,Discover

FinancialServicesandUnitedAirlines.Chicagoisamajorhubforindustry,telecommunicationsandinfrastructureandO’HareInternationalAirportisthesecondbusiestairportintheworldintermsoftrafficmovement.

ThemetroisalsoamajorfinancialcenterinNorthAmerica,andishometothelargestfuturesexchangeintheUnitedStates,theCMEGroup.ChicagoisthirdintheworldontheGlobalFinancialCentersIndexwhichranksthecompetitivenessoffinancialcentersbasedonpeople,businessenvironment,marketaccess,infrastructureandgeneralcompetitiveness.

www.cityofchicago.org

LOCATION OVERVIEW

LOCATION OVERVIEW

Page 14: Single Tenant Net Leased Starbucks For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

CONTACT INFORMATION

CONTACT INFORMATION

666DundeeRoad,Suite1801Northbrook,IL60062

Randy [email protected]

Jimmy [email protected]