net lease - pnc property

www.bouldergroup.com

NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING

PNC BankPNC BankPNC BankPNC Bank (Ground Lease)(Ground Lease)(Ground Lease)(Ground Lease) 1996 Freedom Parkway1996 Freedom Parkway1996 Freedom Parkway1996 Freedom Parkway

Washington, ILWashington, ILWashington, ILWashington, IL 61571 (Peoria MSA)61571 (Peoria MSA)61571 (Peoria MSA)61571 (Peoria MSA)

CONFIDENTIAL OFFERING MEMORANDUM

NET LEASED INVESTMENT OFFERING


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Confidentiality & Disclaimer

Executive Summary

Property Overview

Aerial

Site Plan

Maps

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information

TABLE OF CONTENTS

TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS



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, 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 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.

CONFIDENTIALITY & DISCLAIMER

CONCONCONCONFIDENTIALITY & FIDENTIALITY & FIDENTIALITY & FIDENTIALITY & DISCLAIMERDISCLAIMERDISCLAIMERDISCLAIMER



The Boulder Group is pleased to exclusively market for sale a single tenant PNC Bank ground lease located in

Washington, Illinois. The PNC Bank is located on a 58,730 square foot parcel and was built in 2007. This ground

lease is located as an outlot parcel to a Wal-Mart Supercenter and adjacent to a Menards. The Wal-Mart Supercenter

was developed in 2003 as a relocation to replace a smaller location. Washington is 10 miles east of Peoria, the

home of Caterpillar which employs over 17,000 people.

The property is located along US 24 and benefits from its position on the hard corner of a signalized intersection.

The intersection of Freedom Parkway and US 24 experiences traffic counts in excess of 21,000 vehicles per day.

Over 9,000 cars travel in and out of the shopping center which features Wal-Mart, Menards and PNC Bank daily. The

property is located within the primary retail trade area that includes retailers such as Wal-Mart Supercenter,

Menards, Kroger, Tractor Supply, AutoZone, Advance Auto Parts and Dollar General.

PNC Bank’s original ground lease term was for 20 years with three 10-year renewal options and the lease expires in

December 2028. The net operating income increased by 14% every five years during the primary term and the

options periods. PNC is a publicly traded company on the New York Stock Exchange (PNC), with a market

capitalization of $30 Billion. PNC is an investment grade company with a Standard & Poor’s rating of A-.

• Investment grade rated company (Standard & Poor’s: A-)

• Multiple 14% rental escalations in primary term

• Long term ground lease with 17 years remaining

• Positioned on the hard corner of a signalized intersection

• Outlot parcel to a Wal-Mart Supercenter

• Average household income in excess of $75,000 within five miles of the property

• No landlord responsibilities

• Nearby retailers include Menards, Kroger, Tractor Supply, AutoZone Advance Auto Parts and Dollar General

• Three 10-year renewal options

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY



Price: $1,119,272

Cap Rate: 5.5%

Rent Schedule: NOI Escalation Date

$ 61,560 *

$ 70,178 1/1/2019

$ 80,003 1/1/2024

$ 91,203 1/1/2029 (Option 1)

$103,972 1/1/2034 (Option 2)

$118,528 1/1/2039 (Option 3)

$135,122 1/1/2044 (Option 4)

$154,039 1/1/2049 (Option 5)

$175,605 1/1/2054 (Option 6)

Renewal Options: Three 10-Year

Renewal Escalations: 14% increases every 5 years

Lease Commencement Date: December 15, 2008

Lease Expiration Date: December 31, 2028

Tenant: PNC

Credit Rating: A- (Standard and Poor’s)

Year Built 2008

Lease Type: Ground Lease - NNN

Rentable Square Feet: 3,501 SF

Land Size: 58,730 SF

PROPERTY OVERVIEW

PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW

* Seller to pay rent difference from the closing date until January 1, 2013 when the escalated rent commences.



AERIAL

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SITE PLANSITE PLANSITE PLANSITE PLAN

SITE PLAN



MAPS

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Website: www.pnc.com

Number of Locations: 2,870 branches and 6,400

ATMs Stock Symbol: PNC : NYSE

Standard & Poor’s Rating: A-

Market Capitalization: $30 Billion

PNC Financial Services is a diversified financial services company in the United States. PNC is engaged in retail

banking, corporate and institutional banking, asset management, and residential mortgage banking. PNC provides

many of its products and services nationally throughout 14 states. It provides certain products and services

internationally. Retail Banking provides deposit, lending, brokerage, trust, investment management, and cash

management services. Corporate and Institutional Banking provides lending, treasury management, and capital

markets-related products and services. Asset Management Group includes personal wealth management for high

net worth and ultra-high net worth clients and institutional asset management. PNC as of December 31, 2010, has

assets of approximately $264.3 billion and 2,870 bank branches. PNC is the 6th largest bank in the United States by

deposits and the 3rd largest provider in off premise ATMs.

TENANT PROFILE

TENANT PROFILETENANT PROFILETENANT PROFILETENANT PROFILE



PopulationPopulationPopulationPopulation 3333----mi.mi.mi.mi. 5555----mi.mi.mi.mi. 7777----mimimimi

Total Population 20,680 39,802 84,697 Total Households 8,340 15,821 34,462

IncomeIncomeIncomeIncome

Median Household Income $63,707 $65,419 $57,084 Average Household Income $72,511 $75,409 $65,866

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT

WashingtonWashingtonWashingtonWashington is a located in Tazewell County, Illinois. According to the 2010 census there Washington and Tazewell County had a population of 15,134 and 135,394 respectively. Washington is located 10 miles east of Peoria and is part ofMetropolitan Statistical Area.

http://ci.washington.il.us/http://www.tazewell.com/

Peoria Peoria Peoria Peoria is the largest city on the Illinois River and the seventhwith a total population of 112,303. According to the 2009 Census, the Peoria Metropolitan Statistical Area had a population of 375,865, making it the third largest metropolitan area in the state after the Chicago metropolitan area and the Metroportion of the St. Louis metropolitan area.

Peoria is home to the headquarters of Caterpillar Inc., one of the 30 companies composing the Dow Jones Industrial Average. The largesCaterpillar, Inc. (17,338), St. Francis Hospital (5,800), Methodist Medical Hospital (3,000), XPAC packaging (1,500) and Bradley University (1,237).

Peoria is home to Bradley University (6,000 students) and Illinois Central Colleg12,000 students).

Peoria is centrally located between Chicago (141 miles), Indianapolis (201 miles) and St. Louis (158 miles).

http://www.ci.peoria.il.us/



is a located in Tazewell County, Illinois. According to the 2010 census there Washington and Tazewell County had a population of 15,134 and 135,394 respectively. Washington is located 10 miles east of Peoria and is part ofMetropolitan Statistical Area.

http://ci.washington.il.us/ http://www.tazewell.com/

LOCATION OVERVIEW

LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW

the largest city on the Illinois River and the seventh-most populated in Illinois, with a total population of 112,303. According to the 2009 Census, the Peoria Metropolitan Statistical Area had a population of 375,865, making it the third largest

tan area in the state after the Chicago metropolitan area and the Metroportion of the St. Louis metropolitan area.

Peoria is home to the headquarters of Caterpillar Inc., one of the 30 companies composing the Dow Jones Industrial Average. The largest employers of Peoria are Caterpillar, Inc. (17,338), St. Francis Hospital (5,800), Methodist Medical Hospital (3,000), XPAC packaging (1,500) and Bradley University (1,237).

Peoria is home to Bradley University (6,000 students) and Illinois Central Colleg12,000 students).

Peoria is centrally located between Chicago (141 miles), Indianapolis (201 miles) and St. Louis (158 miles).

http://www.ci.peoria.il.us/

is a located in Tazewell County, Illinois. According to the 2010 census there Washington and Tazewell County had a population of 15,134 and 135,394 respectively. Washington is located 10 miles east of Peoria and is part of the Peoria

LOCATION OVERVIEW

most populated in Illinois, with a total population of 112,303. According to the 2009 Census, the Peoria Metropolitan Statistical Area had a population of 375,865, making it the third largest

tan area in the state after the Chicago metropolitan area and the Metro-East

Peoria is home to the headquarters of Caterpillar Inc., one of the 30 companies t employers of Peoria are

Caterpillar, Inc. (17,338), St. Francis Hospital (5,800), Methodist Medical Hospital (3,000), XPAC packaging (1,500) and Bradley University (1,237).

Peoria is home to Bradley University (6,000 students) and Illinois Central College (over

Peoria is centrally located between Chicago (141 miles), Indianapolis (201 miles) and



666 Dundee Road Suite 1801 Northbrook, IL 60062

Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

CONTACT INFORMATION

CONTACT CONTACT CONTACT CONTACT INFORMATIONINFORMATIONINFORMATIONINFORMATION

net lease - pnc property

Real Estate

aerialnet leased investment

subject property

investment grade company

boulder group hasnot

lease expiration date

unverified information

following offering memorandum

walmart supercenterwas