single tenant net leased starbucks for sale
DESCRIPTION
Net leased Starbucks for sale in the Chicago MSATRANSCRIPT
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Starbucks7101 South Stony Island Avenue
Chicago, IL 60649
NET LEASED INVESTMENT OFFERING
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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
NET LEASED INVESTMENT OFFERING
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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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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
NET LEASED INVESTMENT OFFERING
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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
NET LEASED INVESTMENT OFFERING
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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
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AERIAL
AERIAL
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OAK WOODS CEMETERYMETRA TRACKS
42,0
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90
NET LEASED INVESTMENT OFFERING
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SITE PLAN
SITE PLAN
S STONY ISLAND AVENUE
DRIVE-THRU
E 71
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TREE
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MET
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NET LEASED INVESTMENT OFFERING
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MAPS
MAPS
Lake Michigan
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MAPS
MAPS
Lake Michigan
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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
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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
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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
NET LEASED INVESTMENT OFFERING
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CONTACT INFORMATION
CONTACT INFORMATION
666DundeeRoad,Suite1801Northbrook,IL60062
Randy [email protected]
Jimmy [email protected]