West Dundee, Il (Chicago Msa)
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INVESTMENT OPPORTUNITY PETCO ACROSS FROM REGIONAL MALL WEST DUNDEE, IL (CHICAGO MSA) OFFERED AT: $3,294,000| 7.50% CAP OFFERED AT $2,027,000 | 6% CAP Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW TABLE OF CONTENTS EXECUTIVE SUMMARY 4 Executive Summary 5 Investment Highlights 6 Lease Summary & Rent Overview 7 Lease Abstract PROPERTY INFORMATION 9 Location Maps 10 Site Plan 11 Neighboring Tenants 13 Aerials TENANT OVERVIEW 19 About Petco AREA OVERVIEW 21 West Dundee Overview 22 Spring Hill Mall 23 Chicago Overview 24 Demographics Confidentiality Agreement & Disclosures EXCLUSIVELY LISTED BY RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 [email protected] [email protected] Color Scheme RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47 RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65 Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT BROKER OF RECORD: Lee & Associates of Illinois, LLC IL Brokers Lic# 481000317 Representative Photo PETCO | West Dundee, IL (Chicago) | 2 EXECUTIVE SUMMARY PETCO | West Dundee, IL (Chicago) PETCO | West Dundee, IL (Chicago) | 3 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW • Offering Summary • Investment Highlights Lease Summary & Rent Schedule Lease Abstract -- OFFERING SUMMARY -- INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW Offering Price: $3,294,000 Address: 403 North 8th Street West Dundee, IL Net Operating Income: $247,000 Property Size: Approx 19,000 Sq. Ft. Cap Rate: 7.50% Land Size: Approx 1.73 Acres Price/SF: $185.73 Ownership: Fee Simple (Land, Building) Lease Type: Double Net (NN) Year Built: 1987 / Renovated 1997; New Roof in 2016 Lee & Associates is pleased to exclusively offer for sale, the fee simple interest (land & building) in a Petco located in West Dundee, IL (the “Property”). Built in 1987 and renovated in 1997, the Property consists of a 19,000-square-foot retail building that sits on an approximately 75,359-square-foot parcel. The subject property is leased to Petco Animal Supplies, Inc. (corporate). Founded in 1965, Petco is a leading pet specialty retailer operating more than 1,500 Petco locations across the U.S., Mexico and Puerto Rico, including more than 80 Unleashed by Petco locations (a smaller format neighborhood shop). Currently Petco employs more than 25,000 people and reported $4.2B in revenue for 2017 and was #100 on Forbes largest private companies list in 2018. Petco’s original lease commenced in 1997, reflecting a 20+ year operating history at this location. The tenant has shown their commitment to the site by investing $75,000 in building improvements back in 2013, as well as extending their original lease twice for an additional 11 years, with the most recent 5-year extension commencing in February 2019. The LL replaced the roof in June of 2016. The subject property is located across from the Spring Hill Mall, a 1.37 million square foot mall anchored by Kohl’s, Cinemark Theater, and Macys, with other national tenants such as H&M, Barnes & Noble, Payless ShoeSource, Aeropostale, Hibbett Sports, and Rue21. In 2015, with the support of both The City of Carpentersville and The City of West Dundee, Mall owners Rouse Properties began redevelopment efforts to revive Spring Hill Mall, with construction under way on a $40 million renovation project that will continue for the next two years (Read the full details on page 23 of the OM). Ideally located on N. 8th Street, Petco offers outstanding visibility to traffic counts over 29,000 cars per day. North 8th Street is West Dundee’s main retail corridor, providing strong retail synergy with tenants such as Walgreens, KFC, Dollar Tree, Red Wing Shoes, LA Fitness, Jiffy Lube, Big Lots, Aldi, AutoZone, Fifth Third Bank, and more. The property’s dense infill location offers excellent demographics. There are nearly 160,000 residents with an average household income of over $94,000 living within a 5-mile radius of the subject property. The Petco benefits from limited pet supply store competitors. The closest national pet supply store is a PetSmart, located roughly 6 miles away in Algonquin, IL. The Petco investment property is located within the Village of West Dundee, Illinois, which lies approximately 42 miles northwest of Chicago. As part of the upper Fox River Valley in northern Illinois, West Dundee enjoys one of the region’s most unique and treasured assets, the Fox River greenway. The Fox River serves as the Village’s eastern border and is quickly becoming one of the community’s finest recreational areas. Today, West Dundee is in the midst of an economic revival. The Village has seen the job market increase by 1.6% over the last year and future job growth over the next ten years is predicted to be 38.0%. West Dundee also is in the first phase of renovating its downtown, which will be largely completed by 2020. By updating downtown West Dundee, the community leaders hope to bring business to restaurants and new entertainment centers in the area. PETCO | West Dundee, IL (Chicago) | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary • Investment Highlights • Lease Summary & Rent Schedule Lease Abstract -- INVESTMENT HIGHLIGHTS -- STRONG CORPORATE BACKED LEASE • PETCO: #100 ON FORBES LARGEST PRIVATE COMPANIES LIST DENSE INFILL LOCATION • STRONG DEMOGRAPHICS • LIMITED NATIONAL PET SUPPLIER COMPETITION (2018) • $4.2B IN REVENUE REPORTED IN 2017 The property’s dense infill location offers excellent demographics. There are nearly 160,000 residents with an The subject property is leased to Petco Animal Supplies, Inc. (corporate). Founded in 1965, Petco is a leading pet average household income of over $94,000 living within a 5-mile radius of the subject property. The Petco benefits specialty retailer operating more than 1,500 Petco locations across the U.S., Mexico and Puerto Rico, including from limited pet supply store competitors. The closest national pet supply store is a PetSmart, located roughly 6 more than 80 Unleashed by Petco locations (a smaller format neighborhood shop). Currently Petco employs more miles away in Algonquin, IL. than 25,000 people and reported $4.2B in revenue for 2017 and was #100 on Forbes largest private companies list RD in 2018. LOCATED IN WEST DUNDEE • NORTHWEST SUBURB OF CHICAGO: 3 MOST POPULOUS CITY IN THE U.S. The Petco investment property is located within the Village of West Dundee, Illinois, which lies approximately 42 SUCCESFUL 20+ YEAR OPERATING HISTORY • MULTIPLE LEASE EXTENSIONS REFLECT COMMITMENT TO miles northwest of Chicago. As part of the upper Fox River Valley in northern Illinois, West Dundee enjoys one of SITE & PERCEIVED PROFITABILITY AT THIS LOCATION • ROOF REPLACED IN 2016 the region’s most unique and treasured assets, the Fox River greenway. The Fox River serves as the Village’s eastern Petco’s original lease commenced in 1997, reflecting a 20+ year operating history at this location. The tenant border and is quickly becoming one of the community’s finest recreational areas. has shown their commitment to the site by investing $75,000 in building improvements back in 2013, as well as Today, West Dundee is in the midst of an economic revival. The Village has seen the job market increase by 1.6% extending their original lease twice for an additional 11 years, with the most recent 5-year extension commencing over the last year and future job growth over the next ten years is predicted to be 38.0%. West Dundee also is in in February 2019. The LL replaced the roof in June of 2016. the first phase of renovating its downtown, which will be largely completed by 2020. By updating downtown West LOCATED ACROSS FROM SPRING HILL MALL • UNDERGOING $40 MILLION RENOVATIONS FOR MIXED Dundee, the community leaders hope to bring business to restaurants and new entertainment centers in the area. USE PROJECT (see Page 23 for full details) West Dundee is a northwest suburb of Chicago. Chicago is the third most populous city in the United States. As of the 2017 census-estimate, Chicago has a population of 2,716,450, which makes it the most populous city in both The subject property is located across from the Spring Hill Mall, a 1.37 million square foot mall anchored by Kohl’s, the state of Illinois and the Midwestern United States. The Chicago metropolitan area has nearly 10 million people, Cinemark Theater, and Macys, with other national tenants such as H&M, Barnes & Noble, Payless ShoeSource, is the third-largest in the United States, the fourth largest in North America, and the third largest metropolitan area Aeropostale, Hibbett Sports, and Rue21. In 2015, with the support of both The City of Carpentersville and The in the world by land area. City of West Dundee, Mall owners Rouse Properties began redevelopment efforts to revive Spring Hill Mall, with construction under way on a $40 million renovation project that will continue for the next two years (Read the full Positioned along Lake Michigan, the city is an international hub for finance, commerce, industry, technology, details on page 23 of the OM). telecommunications, and transportation. It is the home of the Chicago Board of Trade, which today is the largest and most diverse derivatives market in the world, generating 20% of all volume in commodities and financial STRATEGIC LOCATION ALONG WEST DUNDEE’S MAIN RETAIL CORRIDOR • EXCELLENT RETAIL SYNERGY futures. Chicago’s O’Hare International Airport is one of the busiest airports in the world, and the region also has The subject property is ideally located on N. 8th Street, offering outstanding visibility to traffic counts over 29,000 the largest number of U.S.