7-eleven | starbucks | new construction...• starbucks is leading global coffeehouse company...

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7-ELEVEN | STARBUCKS | NEW CONSTRUCTION 7148 W. Ogden Avenue, Berwyn, Illinois 60402

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Page 1: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

7-ElEvEn | StarbuckS | nEw conStruction7148 W. Ogden Avenue, Berwyn, Illinois 60402

Page 2: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

Downtown chicago

Ogden Ave28,200 VPD

Harlem Ave32,175 VPD

Subject Property

Harlem & ogdenintersection60,375 total vPD

Page 3: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

invEStMEnt HiGHliGHtS

� best in class tenancy | 7-Eleven carries “aa-” credit rating | Starbucks carries “bbb+” credit rating• 7-Eleven is Leading Global Convenience Store Chain (67,400 Plus Locations)• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations)

� brand new construction build-to-Suit for 7-Eleven and Starbucks | High Quality aesthetically appealing Materials• 15-Year 7-Eleven Lease and 10-Year Starbucks Lease• Rent Expected to Commence August 18, 2020 (approximately)• Rental Increases Every Five Years• Four, Five-Year Option Periods for Each Tenant

� irreplaceable, Signalized Hard corner intersection of ogden avenue (route 66) and Harlem Avenue | Combined Traffic Count Exceeds 60,000 Vehicles per Day

� less than a Half Mile to the Metra Harlem bnSF train Station | 15,822,652 annual ridership

� less than one Mile to loyola Medicine Macneal Hospital | 374 beds

� Excellent Demographics | High Daytime Population | 491,262 People within Five Miles of Subject Property• Population of 204,265 Within Three Miles of Subject Property with an Average

Household Income of $75,974

newconstruction

nationaltenants

Hard cornerlocation

Heavilytraveled

Page 4: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

Lease Type NNNLease Guarantor 7-Eleven, Inc (Corporate)Gross Leasable Area 3,000 SFLease Term Remaining 15 YearsRent Commencement 8/18/2020Lease Expiration 8/31/2035Options 4, 5-YearOption to Terminate NoneRight of First Refusal Yes, 20 Days

lEaSE SuMMarY - 7-ElEvEn

rEnt ScHEDulEterm Period annual rentBase Current $186,000

9/1/2025 $199,950 9/1/2030 $214,946

Option 1 9/1/2035 $231,067 Option 2 9/1/2040 $248,397 Notes: N/A

Lease Type NNLease Guarantor Starbucks Corporation (Corporate)Gross Leasable Area 2,100 SFLease Term Remaining 10 YearsRent Commencement 8/18/2020Lease Expiration 8/31/2030Options 4, 5-YearOption to Terminate NoneRight of First Refusal None

lEaSE SuMMarY - StarbuckS

rEnt ScHEDulEterm Period annual rentBase Current $94,500

9/1/2030 $98,700 Option 1 9/1/2035 $102,900 Option 2 9/1/2040 $107,100 Option 3 9/1/2045 $111,300 Notes: N/A

7-Eleven | Starbucks | New Construction7148 W. Ogden Avenue, Berwyn, Illinois 60402

Price $5,540,000cap rate 5.00%combined noi $276,900Year Built 2020Lot Size .75 Acres +/-Parcel Numbers 16-31-316-002-0000, 16-31-316-003-0000

16-31-316-004-0000, 16-31-316-001-0000Parking 22 Surface Spaces +/-*NOI reflects $3,600 annual payment to Illinois Department of Transportation

Page 5: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

tEnant ProFilE | 7-ElEvEn

� Globally Recognized Convenience Store | Largest Franchise in the World

� Over 67,000 Locations Worldwide � 97 Percent Franchised | 87 Percent International Units � Ranked Number Two in Entrepreneur ‘s 2019 Franchise 200

� $86 Billion in Global Sales (2018) � Headquartered in Dallas, Texas � Founded in 1927

� Japanese Diversified Retail Group � Fifth Largest Retailer in the World � $1.63 Billion in Net Income (2018) � Headquartered in Nibancho, Chiyoda, Tokyo, Japan

� Founded in 1920 as Ito-Yokado

67,000locationS

aa-crEDit ratinG

15YEar tErM

nnnlEaSE

7-ElEvEn.coM

ParEnt coMPanY

Tenant/Guarantor: 7-Eleven, Incorporated (Corporate)

Page 6: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

lEaSE SuMMarY

TENANT 7-Eleven

SQUARE FEET 3,000

LEASE COMMENCEMENT August 18, 2020

LEASE EXPIRATION August 31, 2035

LEASE TYPE NNN

RENTAL INCREASES 7.5% Every Five Years

RENEWAL OPTIONS Four, Five-Year

INSURANCE Tenant

COMMON AREA Tenant

ROOF & STRUCTURE Tenant

REPAIRS & STRUCTURE Tenant

PARKING LOT Tenant

HVAC Tenant

UTILITIES Tenant

RIGHT OF FIRST REFUSAL Yes, 20 Days

RIGHT TO TERMINATE None*representative Photo

Page 7: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

tEnant ProFilE | StarbuckS

� Leading Coffee Company and Coffeehouse Chain

� Starbucks Top Line to Grow by 10 Percent in 2019 (Forbes)

� One of 10 “Worlds Most Valuable Brands” (Forbes, 2013-2019)

� Net Revenue of $26.5 Billion in 2019, Up Seven Percent from Prior Year

� 31,256 Retail Stores in 80 Countries (As of 10.30.2019)

� Fortune 500 Company | 17 Consecutive Years

� Recognized as One of the World’s Most Ethical Companies for the 12th Year in a Row (Ethisphere)

� Headquartered in Seattle, Washington | Founded in 1971

31,256locationS

bbb+crEDit ratinG

10YEar tErM

nnlEaSE

StarbuckS.coMTenant/Guarantor: Starbucks Corporation (Corporate)

Page 8: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

lEaSE SuMMarY

TENANT Starbucks

SQUARE FEET 2,100

LEASE COMMENCEMENT August 18, 2020

LEASE EXPIRATION August 31, 2030

LEASE TYPE NN

RENTAL INCREASES Yes

RENEWAL OPTIONS Four, Five-Year

INSURANCE Tenant

COMMON AREA Tenant

ROOF & STRUCTURE Landlord

REPAIRS & STRUCTURE Landlord

PARKING LOT Landlord

HVAC Tenant

UTILITIES Tenant

RIGHT OF FIRST REFUSAL None

RIGHT TO TERMINATE None*representative Photo

Page 9: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

SitE Plan

Page 10: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks
Page 11: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

location HiGHliGHtS | bErwYn, il

included in the chicago Metropolitan Statistical area• 12 Miles Southwest of Downtown Chicago

Four Major business Districts • Roosevelt Road (Entertainment District), Cermak Road,

Depot Downtown District and Ogden Avenue

Home to loyola Medicine Macneal Hospital | 374-bed, Fully accredited teaching Hospital | 2,000 Employees and over 500 Physicians

Major area attractions • Historic Route 66 Scenic Byway Wayside Exhibits, World

War I Memorial and Hawthorne Museum at Morton College

Easily accessible • Located Between Interstate 290 and Interstate 55 | Lies

Right in the Heart of the Chicagoland Transit System• Three Metra Rail BNSF Train Stations Offer a Quick

Commute to Downtown Chicago and Counties Throughout Chicagoland | LaBergne, Berwyn and Harlem Stations

three tiF Districts have been Established to Help businesses Get off the Ground or to Help businesses and Property owners with rehabilitation and renovation buildings

Subject Property

Harlem & ogdenintersection60,375 total vPD

Page 12: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

aErial

Loyal Medicine MacNeal Hospital

374 Beds

Excellent Demographics

204,265 People Live Within Three Miles of Subject Property

Harlem Ave32,175 VPD

BNSF Line 15,822,652 Annual Ridership

39th St23,500 VPD

66

Loyal Medical Group Professional Building

Ogden Ave28,200 VPD

Subject Property

Page 13: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

rEGional MaP

lake Michigan

Subject Property

DEMoGraPHicSPopulation 1-Mile 3-Miles 5-Miles2018 Population 24,220 204,265 564,936

Households 1-Mile 3-Miles 5-Miles2018 Households 9,115 68,456 191,7822023 Households 9,259 68,662 192,027

Daytime Population 1-Mile 3-Miles 5-Miles2018 Population 18,256 151,610 491,262

income 1-Mile 3-Miles 5-Miles2018 Median HH Income $61,120 $58,777 $55,3982018 Average HH Income $85,758 $75,974 $78,375

Page 14: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap. All Rights Reserved. Activity ID: ZAB0670398

conFiDEntialitY aGrEEMEnt

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

non-EnDorSEMEnt noticE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.

Page 15: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

Stnl ManDatorY MarkEtinG PackaGE DiSclaiMEr

Marcus & Millichap hereby advises all prospective purchasers of Single Tenant Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a single tenant property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a single tenant property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any single tenant property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure and signing this Disclaimer, you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this single tenant property.

MARCUS & MILLICHAP

BY:

POTENTIAL PURCHASER

BY:

TBD, Regional Manager NAME:

TITLE:

Page 16: 7-ElEvEn | StarbuckS | nEw conStruction...• Starbucks is Leading Global Coffeehouse Company (31,000 Plus Locations) brand new construction build-to-Suit for 7-Eleven and Starbucks

EXcluSivElY liStED bY

SEan SHarkoSEnior vicE PrESiDEnt invEStMEntSchicago oakbrook(630) [email protected] il 471.010712

auStin wEiSEnbEckSEnior vicE PrESiDEnt invEStMEntSchicago oakbrook(630) [email protected] il 475.140200

brokEr oF rEcorD

StEvEn wEinStockchicago oakbrook(630) [email protected] 471.011175

aDrian MEnDoZaFirSt vicE PrESiDEnt invEStMEntSchicago oakbrook(630) [email protected] IL 475.147980