at&t, papa john’s & pma 701-709 e lincoln highway new

AT&T, PAPA JOHN’S & PMA701-709 E Lincoln HighwayNew Lenox, IL 60451 (Chicago MSA)

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

I. Executive Profile Executive Summary

Investment Highlights

Property Overview

III. Location Overview Photographs

Site Plan

Aerial

Maps

IV. Market & Tenant Overview Demographic Report

Market Overview

Tenant Overview

TABLE OF CONTENTS


II. Financial Overview Rent Roll

ProForma Analysis

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum 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. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group 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.

DISCLAIMERSTATEMENT:

DISCLAIMER STATEMENT



EXECUTIVESUMMARY:

The Boulder Group is pleased to exclusively market for sale a fully leased three-tenant property located within the Chicago MSA in New Lenox, Illinois. The property is a net leased investment occupied by AT&T, Papa John’s and Property Management Advisors (PMA). The property is strategically located along the primary thoroughfare and is positioned as an outparcel to a recently constructed Walmart Supercenter development.

The 5,362 square foot building was constructed in 2015 and is located along East Lincoln Highway. East Lincoln Highway is the primary east-west thoroughfare in the trade area and connects the property to Interstate 80. Interstate 80 is located two miles west of the property. The three-tenant property is strategically positioned as an outparcel to the New Lenox Town Center which was recently developed in 2010. The New Lenox Town Center is a Walmart Supercenter anchored development which features Ross Dress For Less, TJ Maxx, Goodwill, Aldi, AutoZone, Discount Tire, PepBoys, Chase Bank and Physicians Immediate Care. Additional retailers located in the immediate trade area include Lowe’s, Target, LA Fitness, Michael’s, Walgreens, American Mattress, Portillo’s and Bank of America. The surrounding area is affluent with average annual household incomes in excess of $100,000 within a one mile radius.

The AT&T store has approximately four years remaining on their original lease with two 5-year renewal option periods. Papa John’s recently executed a new 5 year lease with two 5-year renewal option periods. Property Management Advisors recently executed a new four year lease with one 5-year renewal option period.

AT&T is the largest telecommunications company in the word and the second largest provider of mobile in the United States. As of 2016, it is the 17th-largest mobile telecom operator in the world, with 130.4 million mobile customers. AT&T is a publicly traded company (NYSE: T) with a market capitalization in excess of $146.8 Billion. AT&T is an investment grade rated company with a Standard & Poor’s rating of BBB. The guarantor of the lease is Red Skye Wireless, LLC., a subsidiary of GameStop Corp., a publically traded company (NYSE: GME).

Papa John’s is the third largest take-out and pizza delivery restaurant chain in the world, with headquarters in Jeffersontown, Kentucky, a suburb of Louisville. As of January 2016, Papa John’s just under 4,900 establishments around the world, including around 3,700 in the U.S. and over 1,200 spread amongst 37 other countries and territories. Papa John’s is a publicly traded company (NASDAC: PZZA) with a market capitalization in excess of $2.83 Billion. The franchise is operated by Ozark Pizza Company, LLC. Ozark Pizza Company owns and operates 59 Papa John’s restaurants.

Property Management Advisors is a property management company that manages existing operations and serves in the Midwest.

EXECUTIVE SUMMARY


INVESTMENT HIGHLIGHTS:

• Located within the Chicago MSA

• New construction (2015)

• Positioned as an outparcel to a Walmart Supercenter anchored development that also features Ross Dress For Less, TJ Maxx, Goodwill, Aldi, AutoZone, Discount Tire, PepBoys, Chase Bank and Physicians Immediate Care

• Affluent area with over 35,000 people living within a three mile radius earning average annual household incomes in excess of $112,000

• Additional retailers located in the trade area include Lowe’s, Target, LA Fitness, Michael’s, Walgreens, American Mattress, Portillo’s and Bank of America

• Positioned along primary east-west thoroughfare in the trade area

INVESTMENT HIGHLIGHTS


PROPERTY OVERVIEW:

PROPERTY OVERVIEW

Price: $2,181,700

Cap Rate: 7.00%

Net Operating Income: $152,719

Year Built: 2015

Lease Type: NNN

Rentable Square Feet 5,362 SF

RENTROLL:

Tenant Square Feet Expiration Date Options Annual Rent CAM/TAX/INS

AT&T 2,475 SF 11/30/2020Two 5-YearOption 1Option 2

$71,775$75,488$79,200

NNN

Papa John’s 1,350 SF 9/30/2021Two 5-YearOption 1Option 2

$37,800$39,825$43,038

NNN

Property Management Advisors (PMA)

1,537 SF 12/31/2020One 5-Year

Option 1

$43,036

$43,036NNN

Total 5,362 SF $152,611


PRO FORMAANALYSIS:

PRO FORMA ANALYSIS

IncomeBase Rent $152,611

CAM $38,187 Real Estate Taxes $42,562 Insurance $1,442 Admin Fee1 $7,373 Total Recoveries $89,564

Gross Rental Income $242,175

Effective Gross Income $242,175

Expenses2

CAM $(38,187)Taxes $(45,562)Insurance $(1,442)Management Fee (3%)3 $(7,265)

Total $(89,456)

Net $152,719

“1) Tenants pay administation fees equal to: AT&T - 10% of operating expenses (CAM, Real Estate Taxes and Insurance) Papa John’s - 15% of CAM and Insurance PMA - Prorata share of Management Fee

2) Expenses based on 2017 Budget.

3) Management fee based on 3% of Effective Gross Income.


PHOTOGRAPHS


AERIAL

EAST LINCOLN HIGHWAY (20,000 VPD)

NEW LENOXTRAIN STATION


SITE PLAN

L I N C O L N H I G H W A Y

SUBJECT PROPERTY


SITE PLAN

LINCOLN HIGHWAY


MAPS


MAPS

Lake Michigan

DEMOGRAPHICREPORT:

DEMOGRAPHIC REPORT

Population 1-Mile 3-Mile 5-Mile

Total Population 6,268 36,948 88,165

Total Households 2,105 12,347 29,920

Income 1-Mile 3-Mile 5-Mile

Average Household Income $101,400 $111,968 $109,536

MARKET OVERVIEW

MARKETOVERVIEW:

New LenoxNew Lenox is a village in Will County, Illinois. As of the 2010 US Census, the village had a population of 24,394. The Chicago Metropolitan Agency for Planning forecasts New Lenox will have a population of 90,652 in 2030. New Lenox is located approximately 35 miles southwest from downtown Chicago. Interstate 80 and Interstate 355, also known as The Veterans Memorial Tollway, pass through New Lenox and lend to easy transportation to many other major highways and to Chicago, Joliet, Naperville, Wheaton, Bolingbrook. New Lenox has two Metra commuter rail lines. The Main New Lenox Metra Station is located on the corner of U.S. Route 30 and Cedar Road. This rail line services towns on Metra’s Rock Island Line between Joliet Union Station and Chicago’s LaSalle Street Station. New Lenox also has a Metra Station located on the corner of Cedar Road and Laraway Road. This rail line services towns on Metra’s South-West Service Line between Manhattan and Chicago’s Union Station.

ChicagoChicago is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald’s, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O’Hare International Airport is the second busiest airport in the world in terms of volume.

The metro is a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness.

TENANT OVERVIEW

AT&TAT&T can trace its origin back to the original Bell Telephone Company founded by Alexander Graham Bell after his invention of the telephone. AT&T is an American multinational telecommunications corporation headquartered in Dallas, Texas. The company’s offers telecommunications products and services.

AT&T is the largest telecommunications company in the world and the second largest provider of mobile in the United States. It is the 17th-largest mobile telecom operator in the world, with 130.4 million mobile customers.

AT&T is a publicly traded company (NYSE: T) with a market capitalization in excess of 146.8 Billion. AT&T is an investment grade rated company with a Standard & Poor’s rating of BBB.

The guarantor of the lease is Red Skye Wireless, LLC., a subsidiary of GameStop Corp., a publically traded company (NYSE: GME).

Website: www.att.comStock Symbol: T (NYSE)Market Capitalization: $146.8 BillionCredit Rating: S&P: BBB (Investment Grade)Headquarters: Dallas, TX

Papa John’sPapa John’s is an American restaurant company. Papa John’s began operations in 1984. It runs the third largest take-out and pizza delivery restaurant chain in the world. As of January 2016, there are 4,893 Papa John’s restaurants in operation, consisting of 752 Company-owned and 4,141 franchised restaurants operating domestically in all 50 states and in 39 countries and territories.

Papa John’s Company-owned restaurants include 213 restaurants operated under four joint venture arrangements and 45 units in Beijing and North China. Papa John’s has 100,000 team members at franchised stores and over 20,000 team members at Papa John’s corporate stores. Papa John’s is a publicly traded company (NASDAC: PZZA) with a market capitalization in excess of $2.83 Billion. The subject franchise is operated by Ozark Pizza Company, LLC.

Website: www.papajohns.com Number of Locations: 4,900Year Founded: 1984Stock Symbol: PZZAMarket Capitalization: $2.83 BillionHeadquarters: Jeffersontown, Kentucky

TENANT OVERVIEW:

666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

Randy [email protected]

John FeeneyVice [email protected]

at&t, papa john’s & pma 701-709 e lincoln highway new

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