chicago net lease property for sale | the boulder group
TRANSCRIPT
AUTOZONE 1690 Douglas RoadMontgomery, IL 60538 (Chicago MSA)
NET LEASE INVESTMENT OFFERING
NET LEASE INVESTMENT OFFERING
TABLE OF CONTENTS
I. Executive Summary
Executive SummaryInvestment HighlightsProperty Overview
II. Location Overview
Site PlanAerialMapsPhotos
III. Market & Tenant Overview
Tenant 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 AutoZone property located within the Chicago MSA. The property is strategically positioned along a primary north-south thoroughfare amongst many national retailers. The AutoZone lease has over eleven years remaining and expires in November 2026. The absolute triple net lease features 10% rental escalations in each of the four 5-year renewal option periods. AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the U.S. The company is publicly traded on the New York Stock Exchange (AZO) and is investment grade rated (S&P: BBB).
The 7,360 square foot AutoZone is strategically located along Douglas Road just north of its intersection with US Route 30. Douglas Road is a primary north-south thoroughfare in the area which experiences traffic counts in excess of 22,000 vehicles per day. The surrounding area is densely populated with approximately 110,000 people living within a three mile radius of the property. Additionally, there are over 240,000 people living within a five mile radius earning average annual household incomes of approximately $85,000. The immediate area features numerous retailers including Jewel-Osco, Walgreens, Fifth-Third Bank, BMO Harris Bank, Goodrich Kendall 10 Theater, McDonald’s and Associated Bank. Further contributing to the strength of the area is its proximity to the Caterpillar manufacturing plant which employs over 2,500 people.
AutoZone is poised for future success due to the aging supply of vehicles on the road. A recent report by R.L. Polk & Co. and IHS Automotive shows that the average age of vehicles on the road has increased to 11.5 years. Additionally, the amount of vehicles over 12 years old is expected to increase 15% by 2019. AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the U.S.
EXECUTIVE SUMMARY:
NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
• Located within the Chicago MSA and borders Naperville
• Long term lease with over 11 years remaining
• Investment grade rated tenant (S&P: BBB)
• No landlord responsibilities
• 10% rental escalations in each renewal option period
• Over 240,000 people living within a five mile radius of the property earning average annual household incomes of approximately $85,000
• Retailers located in the immediate proximity to the property include Jewel-Osco, Walgreens, Fifth-Third Bank, BMO Harris Bank, Goodrich Kendall 10 Theater, McDonald’s and Associated Bank
• Close proximity to a Caterpillar plant which employs 2,500 people
• Positioned along a primary north-south thoroughfare in the area
INVESTMENT HIGHLIGHTS:
NET LEASE INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $1,842,105
Cap Rate: 5.70%
Net Operating Income: $105,000
Rental Escalations: NOI Escalation Date
$105,000 $115,500 10/1/2026 Option 1 $127,056 10/1/2031 Option 2 $139,752 10/1/2036 Option 3 $153,732 10/1/2041 Option 4
Renewal Options: Four 5-Year
Lease Commencement Date: September 1, 2006
Lease Expiration Date: September 30, 2026
Tenant: AutoZone
Credit Rating: S&P: BBB
Year Built 2006
Lease Type: NNN
Building Size: 7,360 SF
Land Size: 33,000 SF
PROPERTY OVERVIEW:
NET LEASE INVESTMENT OFFERING
SITE PLAN
DO
UG
LAS
RO
AD
(22,
000
VE
HIC
LES
PER
DAY
)
N
AERIAL
NNNET LEASE INVESTMENT OFFERING
Douglas Road (22,000 VPD)
34
30
NET LEASE INVESTMENT OFFERING
MAPS
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NET LEASE INVESTMENT OFFERING
MAPS
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NET LEASE INVESTMENT OFFERING
EXTERIOR PHOTOS
NET LEASE INVESTMENT OFFERING
TENANT PROFILE
AutoZone was founded originally as a division of Memphis-based wholesale grocer Malone & Hyde and the company was known as Auto Shack. On July 4, 1979, the first store opened in Forrest City, Arkansas under the name of Auto Shack. After the sale of the grocery operation to the Fleming Companies, the name of the company was changed to AutoZone to reflect the new focus of the company. The company offers various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.
Today, AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the U.S. As of August 30, 2014, it operated 4,984 stores in the United States, including Puerto Rico; 402 stores in Mexico; and 5 stores in Brazil. AutoZone, Inc. is a publicly traded company on the New York Stock Exchange (AZO) with a market capitalization in excess of $21 billion. AutoZone, Inc. is an investment grade rated company with a Standard & Poor’s rating of BBB.
Website: http://www.autozoneinc.com/
Credit Rating: S&P: BBB
Stock Symbol: NYSE: AZO
Market Capitalization: $21 Billion
Year Founded: 1997
Headquarters: Memphis, Tennessee
TENANT PROFILE:
NET LEASE INVESTMENT OFFERING
LOCATION OVERVIEW
Montgomery is a village in Kane and Kendall counties, Illinois. As of the 2010 US Census, the village had a population of 18,438 which is a 237% increase from the 2000 US Census. In the beginning of the twenty-first century, Montgomery experienced rapid growth, along with many other communities in Kendall County.
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.
LOCATION OVERVIEW:
NET LEASE INVESTMENT OFFERING
DEMOGRAPHICS
DEMOGRAPHIC REPORT: Population 1 Mile 3 Mile 5 Mile
Total Population 10,731 108,547 240,347
Total Households 3,693 33,392 75,284
Income 1 Mile 3 Mile 5 Mile
Median Household Income $61,883 $58,146 $67,290
Average Household Income $75,051 $71,942 $84,841
Jimmy [email protected]
John FeeneyVice [email protected]
666 Dundee Road, Suite 1801Northbrook, IL 60062
www.bouldergroup.com