TCF BANK (Ground Lease)7901 South Harlem AvenueBurbank, Illinois 60459 (Chicago MSA)
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TABLE OF CONTENTS
TABLE OF CONTENTS
II. Location Overview Photographs Aerial Site Plan Maps
III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview
I. Executive Profile Executive Summary Investment Highlights Property Overview
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DISCLAIMERSTATEMENT:
DISCLAIMER STATEMENT
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.
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EXECUTIVESUMMARY:
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant TCF Bank ground lease located within the Chicago MSA in Burbank, Illinois. The property is positioned at a heavily trafficked signalized intersection in a dense infill area. The TCF Bank features a drive-thru and has excellent visibility along both Harlem Avenue and 79th Street. There are seven years remaining on the TCF Bank ground lease which expires in December 2024. The ground lease features a 10% rental escalation in 2019 and each four 5-year renewal option period. TCF Bank is a national bank holding company based in Wayzata, Minnesota. As of September 2017, TCF Bank has $23.0 billion in total assets and 321 bank branches in seven states providing retail and commercial banking services.
The TCF Bank property is strategically positioned on the southeast corner of Harlem Avenue and 79th Street, two primary thoroughfares in Burbank, Illinois. The intersection experiences traffic counts in excess of 73,200 vehicles per day. There are approximately 133,700 people living within a three mile radius of the property earning an average household income of more than $74,000 per year.
The property is located in a dense area surrounded by a number of national and local retailers. Northwester College, an institution of higher education, has a campus immediately across the street from the property which includes 17 classrooms, 13 computer labs, a medical lab, a nursing lab, a radiography lab, and an auditorium with seating for approximately 200 people. FedEx Ground and UPS Freight have large distribution centers in the immediate area and Chicago’s Midway International Airport is roughly five-miles northeast of the property.
There are seven years remaining on the TCF Bank ground lease which expires December 30, 2024. The lease features a 10% rental escalation in December 2019 and in each renewal option period. The TCF Bank has strong deposits which have increased by more than 27% over the last five years of operation. TCF Bank is publicly traded company (NYSE: TCF) and is an investment grade rated company with a Standard & Poor’s rating of “BBB-”.
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INVESTMENT HIGHLIGHTS:
INVESTMENT HIGHLIGHTS
• Located within the Chicago MSA
• Investment grade rated tenant
• Corporately guaranteed
• No landlord responsibilities
• 7 years remaining in primary term
• 10% rental escalation in primary term and renewal option periods
• Dense in-fill area
• Strong deposits which have increased by more than 27% over the last five years
• Drive-thru bank branch
• Positioned in a retail corridor with exceptional visibility to 73,200 vehicles per day
• Densely populated area with over 133,600 people living within a three-mile radius earning an average household income in excess of $74,000 per year
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PROPERTY OVERVIEW:
PROPERTY OVERVIEW
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Price: $4,000,000
Cap Rate: 6.05%2019 Cap Rate: 6.65%Rent Schedule: NOI Escalation Date
$242,000$266,200 12/31/2019$292,820 12/31/2024 (Option 1)$322,102 12/31/2029 (Option 2)$354,312 12/31/2034 (Option 3)$389,743 12/31/2039 (Option 4)
Rental Escalations: 10% in December 2019Renewal Options: Four 5-Year; 10% EscalationsLease Commencement Date: December 31, 2004Lease Expiration Date: December 30, 2024Tenant: TCF BankCredit Rating: Investment Grade: (S&P: BBB-)Year Built: 2004Lease Type: Ground Lease - No Landlord ResponsibilitiesParking: 28 SpacesBuilding Size: 4,160 SFLand Size: 0.97 AcresProperty Address: 7901 South Harlem Avenue, Burbank, Illinois 60459
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PHOTOGRAPHS
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AERIAL
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SITE PLAN
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MAP
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MAP
DEMOGRAPHICREPORT:
DEMOGRAPHIC REPORT
Population 1-Mile 3-Mile 5-Mile
Total Population 16,233 133,629 370,236
Total Households 5,385 46,502 128,537
Income 1-Mile 3-Mile 5-Mile
Median Household Income $60,262 $58,474 $58,335
Average Household Income $74,602 $74,018 $75,213
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MARKET OVERVIEW
MARKETOVERVIEW:
Burbank, IllinoisBurbank is a city in Cook County, Illinois with a population of over 29,000 people. Burbank is one of the younger communities in Cook County. Incorporated in 1970, it is bordered by Chicago on the east, Oak Lawn on the south, Bridgeview on the west, and Bedford Park on the north. Burbank is less than two miles south of Chicago Midway International Airport and 12 miles from the Chicago Loop.
Burbank was the last part of Stickney Township to incorporate. In 1970, to avoid annexation by Chicago, residents formed the city of Burbank. The name was taken from the local Luther Burbank Elementary School, named after the famous horticulturist. Six years later, in 1976, the city’s population peaked at 29,448.
More than half of the city’s revenue comes from retail sales taxes. Stores are concentrated along Harlem and Cicero Avenues, the city’s main north-south thoroughfares, with some retail businesses also on 79th and 87th Streets. There is almost no manufacturing in Burbank.
www.burbankil.gov
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MARKET OVERVIEW
MARKETOVERVIEW:
Chicago, IllinoisChicago 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 66 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 traffic movement.
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. As of 2016, Chicago had the third largest gross metropolitan product in the United States at $640 billion. The city of Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims two Dow 30 company: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001 and McDonald’s, who’s in the process of moving their headquarters from the Chicago suburbs to the Chicago West Loop. One additional Dow 30 companies, Kraft Foods is in the Chicago suburbs, as are Sears Holdings Corporation and the technology spin-offs of Motorola.
Chicago attracts over 50 million domestic leisure travelers, 11 million domestic business travelers and 1.5 million overseas visitors. These visitors contributed more than $14 billion to Chicago’s economy. Upscale shopping along the Magnificent Mile and State Street, thousands of restaurants, as well as Chicago’s eminent architecture, continue to draw tourists. The city is the United States’ third-largest convention destination. A 2011 study by Walk Score ranked Chicago the fourth most walkable of the fifty largest cities in the United States.
www.cityofchicago.org
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TENANT OVERVIEW
TENANTOVERVIEW:
TCF BankTCF Bank is a national bank holding company based in Wayzata, Minnesota. As of September 30, 2017, TCF had $23.0 billion in total assets and 321 bank branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona and South Dakota providing retail and commercial banking services. Through its subsidiaries, TCF also conducts commercial leasing, equipment finance and auto finance business in all 50 states and commercial inventory finance business in all 50 states and Canada.
TCF Bank began business in 1923 as Twin City Building and Loan Association. The company went public in 1986 chartered under the name TCF Banking and Savings, F.A. (TCF Bank). Despite some bank acquisitions such as Great Lakes Bancorp and Standard Financial, TCF Bank has grown primarily through de novo expansion.
TCF Bank is the wholly owned banking subsidiary of TCF Financial Corporation. TCF Financial Corporation is publicly traded on the New York Stock Exchange using the symbol “TCF”. It is an investment grade rated company with a Standard & Poor’s rating of “BBB-”.
Website: www.tcfbank.comFounded: 1923Number of Locations: 320+Standard & Poor’s Rating: BBB- (Investment Grade)Stock Symbol: TCF (New York Stock Exchange)Headquarters: Wayzata, Minnesota
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