net lease citibank for sale | the boulder group
TRANSCRIPT
CITIBANK (S&P: A-)136 North York Street, Elmhurst, IL 60126 (Chicago MSA)
NET LEASE INVESTMENT OFFERING
NET LEASE INVESTMENT OFFERING
TABLE OF CONTENTS
I. Executive Summary
Executive SummaryInvestment HighlightsProperty Overview
II. Location Overview
AerialMaps
III. Market & Tenant Overview
Citibank ProfileLocation OverviewDemographics
NET LEASE INVESTMENT OFFERING
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 hasThe Boulder Group conducted any investigation regarding these matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of the information provided. All potential buyers must takeappropriate measures to verify all of the information set forth herein.
DISCLAIMER STATEMENT:
NET LEASE INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant Citibank located in an affluent suburb of the Chicago MSA. The property is centrally located in downtown Elmhurst at a prominent signalized intersection. The average annual household income in a one mile radius of the Citibank is in excess of $125,000. There are over eight years remaining on the Citibank lease that expires June 30, 2023. The lease features a 10% rental escalation in the primary term and in each renewal option period. Citibank is an investment grade rated tenant (S&P: A-) and is publicly traded (NYSE: C) with a market capitalization in excess of $158 billion.
The 4,300 square foot Citibank is strategically located at the signalized intersection of North York Road and Schiller Street. The Citibank is centrally located along the main north-south thoroughfare in downtown. The property is located in the immediate proximity to the Elmhurst Metra train station. Metra is the commuter rail division that serves the Chicago metropolitan area with over 80 million passengers per year. The Citibank will benefit from a large municipal parking garage that is currently being constructed immediately behind the property. The surrounding area is affluent with approximately 17,000 people living within a one mile radius earning average annual household incomes in excess of $125,000. Approximately 120,000 people live within a three mile radius of the property. Interstate 290, which experiences traffic counts in excess of 145,000 vehicles per day, is located approximately three-fourths of a mile north of the Citibank.
Downtown Elmhurst has an eclectic mix of both national and local retailers, restaurants, boutique shops and businesses. Across the street from the property is a Chipotle, Buffalo Wild Wings, and Walgreens. Jewel-Osco is located just to the east of property providing an additional draw to the immediate area. The downtown corridor is surrounded by numerous multi-family housing developments providing for constant foot traffic.
Citibank has over eight years remaining on the primary term of their lease that expires June 30, 2023. The lease features a 10% rental escalation in the primary term and in each of the four five-year renewal option periods. Citibank is an investment grade rated company (S&P: A-) and is publicly traded with a market capitalization in excess of $158 billion.
EXECUTIVE SUMMARY:
NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
• Located within the Chicago MSA
• Investment grade tenant (S&P: A-)
• 10% rental escalations in the primary term and in each renewal option period
• Approximately 17,000 people living within a one mile radius earning average annual household incomes in excess of $125,000
• Centrally located in downtown Elmhurst across the street from a Jewel-Osco, Walgreens, Chipotle, and Buffalo Wild Wings
• Located in the immediate proximity to the Elmhurst Metra train station
• A large municipal parking garage is currently under construction immediately behind the property
• Close proximity to access to Interstate 290 which experiences traffic counts in excess of 145,000 vehicles per day
• Positioned at a signalized intersection
• Elmhurst College (3,500 students) is located less than one-half mile from the property
INVESTMENT HIGHLIGHTS:
NET LEASE INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $3,215,385
Cap Rate: 6.50%
Net Operating Income: NOI Escalation Date $209,000 $229,900 7/1/2018 $252,890 7/1/2023 Option 1 $278,179 7/1/2028 Option 2 $305,997 7/1/2033 Option 3 $336,597 7/1/2038 Option 4
Additional Income: $10,450* (Excluded From Above NOI)
Rental Escalations: 10% Every Five Years
Renewal Options: Four 5-Year
Lease Commencement Date: June 25, 2008
Lease Expiration Date: June 30, 2023
Tenant: Citibank
Credit: A- (S&P)
Year Built: 1998 (Gut Rehabbed)
Lease Type: NN
Rentable Square Feet: 4,300 SF (1st Floor Only – Vertical Subdivision)
*Tenant pays to landlord a 5% ($10,450) management fee. Current ownership has self-managed this property for seven years and has no offsetting expenses against the management fee.
PROPERTY OVERVIEW:
NET LEASE INVESTMENT OFFERING
AERIAL
N
ELMHURST CITY HALL
145,000 VPD
ELMHURST PUBLIC LIBRARY
ELMHURST ART MUSEUM
ELMHURST COLLEGE (3,500 STUDENTS)
ELMHURST TRAIN STATION
North York Road
Schi
ller S
treet
NET LEASE INVESTMENT OFFERING
MAPS
N
NET LEASE INVESTMENT OFFERING
MAPS
N
NET LEASE INVESTMENT OFFERING
CITIBANK PROFILE
Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions. The company’s Global Consumer Banking segment provides traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It offers various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. As of December 31, 2013, this segment operated 3,729 branches in 36 countries. The company’s Institutional Clients Group segment provides a range of banking, and financial products and services to corporate, institutional, public sector, and high-net-worth clients. This segment offers various wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, and equity and fixed income research services. It also provides corporate lending, investment banking and advisory services, and private banking, as well as derivative services. In addition, this segment provides cash management and trade finance services for corporations, financial institutions, and public sector entities; securities services to investors, such as asset managers; custody and clearing services to intermediaries, including broker-dealers; and depository and agency/trust services to multinational corporations and governments.
The company was founded in 1812 and is based in New York, New York. Citibank is publicly traded on the New York Stock Exchange, C, and has a market capitalization in excess of $158 billion. Citibank is an investment grade rated company with a Standard and Poor’s rating of A-.
Website: www.citibank.com
Credit Rating: Investment Grade (S&P: A-)
Stock Symbol: NYSE: C
Market Capitalization: $158 Billion
Year Founded: 1812
Headquarters: New York, NY
CITIBANK PROFILE:
NET LEASE INVESTMENT OFFERING
LOCATION OVERVIEW
Elmhurst is an affluent western suburb of Chicago located in both DuPage and Cook counties. As of the 2010 U.S. Census, the city had a population of 44,121. The city was incorporated in 1910 and covers approximately ten square miles. Elmhurst is located approximately 17 miles west of downtown Chicago. It is easily accessible by Interstate 290 and Interstate 294 and is served by Pace buses and Metra commuter rail. Elmhurst has a vibrant downtown district with many urban boutiques, excellent restaurants, a 9 screen movie theatre (York Theatre), art, culture, and events throughout the year. The largest employers in the community are Elmhurst Memorial Health Care, Superior Ambulance Service, Elmhurst Community School District, HSBC Bank USA, and McMaster-Carr. The city is home to Elmhurst College, a private liberal arts college with approximately 3,500 students.
Chicago 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.
www.cityofchicago.org
LOCATION OVERVIEW:
Population 1 Mile 3 Mile 5 Mile
Total Population 16,792 118,297 304,398
Total Households 5,760 41,187 105,722
Income 1 Mile 3 Mile 5 Mile
Median Household Income $100,709 $66,984 $61,570
Average Household Income $125,567 $89,160 $80,979
NET LEASE INVESTMENT OFFERING
DEMOGRAPHICS
DEMOGRAPHIC REPORT:
Randy [email protected]
Jimmy [email protected]
666 Dundee Road, Suite 1801Northbrook, IL 60062
www.bouldergroup.com