7915 N. HALE AVENUE • PEORIA, IL 61615
OFFERING MEMORANDUM CONFIDENTIALITY AND DISCLAIMER
Exclusively Listed By: The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be re- viewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity Dominic Sulo First Vice President Investments without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified CHICAGO OAKBROOK information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The infor- Tel: (630) 570-2171 mation contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any Fax: (630) 570-2210 investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the [email protected] future projected financial performance of the property, the size and square footage of the property and improvements, the License: IL 475.134920 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 Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any com- mercial 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee informa- tion about this listing to prospective customers.
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this mar- keting package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or spon- sorship 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. Broker of Record: Steven Weinstock Regional Manager Oak Brook Terrace, IL 60181 Tel: (630) 570-2250 License: 471.011175
Marcus & Millichap Oakbrook, IL 1 Mid America Plaza #200 Oakbrook Terrace, IL 60181 P: (630) 570-2200
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 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trade- 2 mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap. All rights reserved. Activity ID: ZAA0670883 Subject Property THE OFFERING
7915 N. HALE AVENUE • PEORIA, IL 61615
PRO FORMA OFFERING TERMS SCHEDULED BASE RENTAL REVENUE $1,045,748 VACANT RENTAL REVENUE $168,750 PRICE TOTAL RENTAL REVENUE $1,214,498 $6,556,000 CAM $48,658
TOTAL REIMBURSEMENT REVENUE $48,658 CAP 10.00% POTENTIAL GROSS REVENUE $1,263,156 Vacancy $168,750 EFFECTIVE GROSS REVENUE $1,094,406 NET OPERATING INCOME $655,552 EXPENSES Real Estate Taxes (Estimated) $207,000 Insurance $17,074 FINANCIAL SUMMARY CAM $144,291 Total Building Sq Ft 150,625 Sq Ft Management Fee $32,832 Reserves ($0.25/SF) $37,656 Price Per Square Foot $43.53 TOTAL EXPENSES $438,853 Lot Size +/- 12.50 Acres BUILDING ONE - OFFICE NET OPERATING INCOME $655,552 Building Sq Ft 100,625 Sq Ft *Taxes are estimated based on full reassessment of property value if acuired BUILDING TWO - WAREHOUSE at the asking price. Purchasers should confirm with their own tax attorney to Building Sq Ft 50,000 Sq Ft determine estimated taxes.
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 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trade- 4 mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap. All rights reserved. Activity ID: ZAA0670883 RENT ROLL
LEASE LEASE TERM MINIMUM RENT PAYMENT DATES LEASE TENANT GLA % OPTIONS COMMENC. START END ANNUAL MONTHLY PSF CHANGES ON CHANGES TO TYPE
BUILDING ONE - OFFICE
OSF Healthcare 70,625 46.89% 6/27/2011 6/1/2019 1/31/2022 $670,938 $55,911 $9.50 One, Six-Month Gross
Option 1 2/1/2022 $706,250
Vacant 15,000 9.96% $168,750 $14,063 $11.25
DHL Logistics 15,000 9.96% 1/1/2020 1/1/2020 12/31/2022 $168,750 $14,063 $11.25 One, Three-Year Gross
Option 1 1/1/2023 $183,750
BUILDING TWO - WAREHOUSE
Louisville Ladder 50,000 33.20% 2/1/2007 1/1/2017 12/31/2021 $206,060 $17,172 $4.12 One, Five-Year Gross
1/1/2021 $208,121
Option 1 1/1/2022 CPI
1/1/2023 CPI
1/1/2024 CPI
1/1/2025 CPI
1/1/2026 CPI
OCCUPIED 135,625 90.04% $1,045,748 $87,146 $7.71
VACANT 15,000 9.96% $168,750 $14,063 $11.25
TOTAL 150,625 100.00% $1,214,498 $101,208 $8.06
5 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL INVESTMENT HIGHLIGHTS
OSF Healthcare Anchored – New Lease with DHL 15,000 SF Vacancy Provides Peoria’s Largest Employer Global Logistics Significant Upside Value
High Cap Rate Opportunity Priced Substantially Below Average HH-Income Exceeds Replacement Cost $100,000 in One Mile
6 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL TENANT OVERVIEWS
When Adrian Dalsey, Larry Hillblom and Robert Lynn founded DHL in 1969, they didn’t know they would revolutionize the world of logistics. Today, DHL is the world’s leading logistics company. There are 380,000 people in over 220 countries and territories who work every day to help you cross borders, reach new markets and grow your business. From its inception, DHL has passion- ately invested in innovative ideas and bravely ventured into new lands. This tenacity fueled our fast growth; operating in a new country every two months and a new city every eight days. Their employees and colleagues traveled to far-flung countries with vastly different cultures and languages, finding opportunity in the face of industrial monopolies, government agencies and competitors.
With the world forever changing, DHL’s business model has always had to adapt fast: They reacted to the invention of the fax machine by transforming from an express courier service to pack- age delivery. In answer to airport congestion, they built their aviation fleet and developed large-scale networks in the US and Europe.
In the last decade, their sustainability initiatives have officially been integrated into the heart of our corporate strategy. This has encouraged a wealth of innovative ideas like their StreetScooter: a DHL-designed electric vehicle which has made eco-friendly deliveries a reality. Examples like this all support their company-wide initiative to improve carbon efficiency by 30 percent, which they met in all their air and road operations, and in all of their buildings and facilities, in 2016. Source: https://www.logistics.dhl/global-en/home.html
TENANT OVERVIEW Company: DHL Logistics
No. of Countries & Territories: 220+
No. of Employees: 380,000
No. of Parcels Delievered per Year: 1,502,000,000 Year Founded: 1969
Headquarters: Bonn, Germany Website: www.logistics.dhl/us-en/home.html
7 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL RECENT NEWS ARTICLES
DHL Opens Chicago Innovation Center DHL aims to provide accurate delivery time forecasts for customers
Freight forwarder Deutsche Post DHL CEO Frank Appel spoke to a German regional news- paper, mentioning that the company plans to provide its customers near-exact delivery time forecasts by email in advance. This email message will be followed with another alert CHICAGO — Chicago’s long history as a transportation and logistics hub is one of the 15 minutes before the package reaches their doorstep, which is ascertained based on reasons DHL North America selected the city for its third Innovation Center worldwide. the GPS position of the delivery van.
The Americas Innovation Center, which opened September 12, showcases technologies Appel stated that DHL has always sought to enhance its quality of delivery, which he said that already have provided significant productivity increases. This is especially so in peak has improved significantly over the years. Nonetheless, statistics put forth by the German volume times such as the holiday season, by using various robotic solutions, the company Federal Network Agency show contrasting figures, with the agency receiving around said. 12,600 written complaints against postal delivery companies, six times higher than the number of grievances a few years before. Those solutions include automated guided vehicles that can ferry goods through ware- houses, mobile robots that can facilitate order fulfillment in e-commerce operations and DHL has stayed true to its principle of ‘first-in, first-out,’ wherein the earliest received pack- collaborative robots designed to help with repetitive tasks, such as picking and packing. ages leave the facility and reach the addressee first. “First received packages or letters must always be delivered first. Even when there is an extremely high inflow of packages, “We want to want to invest in technology, and it’s why we’re quite proud that as an or- nothing must be stored intermediately. So it is practically impossible that customers wait ganization globally this is our third innovation center, where we can display innovation we longer than necessary for a product or a letter. This was certainly the biggest annoyance are working on … or testing new things we’re working on,” DHL Express CEO Mike Parra for many people, whereas the delay of one day in times of very high shipment volumes said. has less importance,” said Appel.
Its other facilities are the DHL Innovation Center near Bonn, Germany, and the Asia Pacific Appel contended that accurate delivery time forecasting would be the future of DHL Innovation Center in Singapore. The Americas Innovation Center is near O’Hare Interna- deliveries. The company has already initiated test runs in... tional Airport, a major cargo hub where... Full Article Click Here: https://www.freightwaves.com/news/dhl-aims-to-provide-accurate-delivery- Full Article Click Here: https://www.ttnews.com/articles/dhl-opens-chicago-innovation-center time-forecasts-for-customers
8 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL TENANT OVERVIEWS
OSF HealthCare, an integrated health system owned and operated by The Sisters of the Third Order of St. Francis, Peoria, Illinois, includes OSF Healthcare System consisting of 13 acute care facilities and two colleges of nursing.
OSF also has a physician organization, employing nearly 700 physicians in various specialties and more than 300 advanced practitioners, who are part of the OSF Medical Group.
OSF HealthCare owns an extensive network of home health services known as OSF Home Care Services and also owns OSF Saint Francis, Incorporated, composed of health care related busi- nesses, and the OSF HealthCare Foundation, the philanthropic arm of OSF HealthCare.
The 13 health care facilities operated by OSF HealthCare have more than 1,600 licensed acute care beds. The largest hospital, OSF Saint Francis Medical Center in Peoria, Illinois, is a tertiary care teaching center providing numerous specialty services and extensive residency programs for physicians.
The array of health services provided by OSF HealthCare and its affiliates also includes approximately 42 hospital-based outpatient facilities, approximately 108 physician office practices in 79 separate locations, six home health agencies and five hospice programs. The Ministry Services office in Peoria, Illinois, provides corporate management services, as well as direction, consultation and assistance to the administration of the health care facilities. Source: https://www.osfhealthcare.org/about
Fiscal Year 2018: Oct. 1, 2017 - Sept. 30, 2018
$2.8 Billion 124 80,056 1 Net Revenue OSF Locations Inpatient Admissions Including Hospitals (Includes Newborns) TENANT OVERVIEW Company: OSF Healthcare
No. of Locations: 124 $4.0 Billion 827,813 2,115,262 No. of Employees: 20,900+ Total Assets Number of Physician Persons Served Enterprise Vists No. of Employed Providers: 761 Year Founded: 1877
Headquarters: Peoria, Illinois $20,805,000 538 1,694,910 Website: www.osfhealthcare.org/ OSF HealthCare Licensed Advanced Outpatient Visits Foundation Practitioners Contribution
1OSF HealthCare Total Net Revenue includes Net Patient Service and other Operating Revenues recognized. All data as of November, 2018
9 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL RECENT NEWS ARTICLES
Illinois Catholic hospitals plan to merge Former sprinkler site now showering hospital supplies across the state
OSF HealthCare and Little Company of Mary Hospital & Health Care Centers expect to OSF HealthCare plans to supply 12 Illinois hospitals from warehouse. merge. PEORIA — OSF HealthCare’s presence continues to grow in Peoria. The Catholic hospitals Wednesday said they’re finalizing agreements to combine, as well as seeking regulatory and church approval. Financial terms of the deal are not being The faith-based organization, which operates 12 hospitals in the state, including one in disclosed. Rockford, will soon supply those hospitals through a giant warehouse that OSF acquired when it purchased the former corporate headquarters of L.R. Nelson in 2017. The merger would give Peoria, Illinois based OSF, a 13-hospital network, a clinical pres- ence in the Chicago area. Little Company of Mary, which has 12 sites of care, including a The 42-acre site, built in 1994 by L.R. Nelson, was sold to German-based Bosch Tool Com- 298-bed community hospital in south suburban Evergreen Park, would gain deeper pock- pany in 2008. Fiskars Brands Incorporated occupied the site next before moving to Wis- ets, better pricing and advanced technology. The deal marks Little Company’s exit as an consin in 2016. independent hospital. OSF has big plans to use space that once housed sprinklers and tools for the 1,500 differ- Little Company last year called off plans to merge with Chicago-based Rush University ent items that hospitals use on a regular basis, said Dennis Dracup, the facility’s general System for Health. At the time, representatives declined to say why the potential union manager. fell apart. Only a portion of the 270,000-square foot warehouse big enough to contain six football “We have explored other affiliation partners in the past and we explored several affiliation fields is used at present as OSF supplies hospitals in its western region, Galesburg, Mon- partners this time around, as well,” Little Company CEO Dr. John Hanlon said in a state- mouth and Kewanee, before phasing in service to all 12 facilities in Illinois. “It should be ment. “What’s different this time is the cultural fit with OSF.” between eight to 10 weeks before we’re up and running for the whole system,” said John Horne, OSF’s chief supply chain officer. Full Article Click Here: https://www.modernhealthcare.com/mergers-acquisitions/illinois-catho- lic-hospitals-plan-merge Full Article Click Here: https://www.rrstar.com/news/20190212/former-sprinkler-site-now-showering- hospital-supplies-across-state
10 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL TENANT OVERVIEWS
For more than 70 years, Louisville Ladder Incorporated is one of the largest manufacturers of ladders in North America. The company’s headquarters is located in Louisville, Kentucky and it has a network of warehouses in various cities throughout the United States and Canada. Louisville Ladder has forged a reputation of consistent trust and unrelenting quality across our entire portfolio of climbing equipment, accessories, and service. Their unwavering commitment to advancing the safety and success of their industry means that they never stop thinking of ways to do things better. From adding a green top to their innovative Cross Step ladder to designing a Tripod ladder that fits into odd spaces, their innovative ideas keep the industry moving forward.
Louisville Ladder specialties are manufacture ladders, safety training for the correct use of ladders, construction , building equipment, tools and supplies, manufacturers of ladders, OSHA, ANSI, job site safety, manufacturing, fiberglass ladders, and construction equipment. They take great pride in their unmatched combination of proven expertise and longevity, but it’s their honesty and authenticity that truly puts them above the rest. From operating as an environmentally conscious organization to working with a culturally diverse staff, they never lose sight of what is important to them as a company.
Louisville Ladder’s C.L.I.M.B. ACADEMY teaches fundamental principles of using step ladders, extension ladders, rolling warehouse ladders, rolling tower scaffolding, and aluminum walkboards. In addition to C.L.I.M.B. ACADEMY their customers benefit from free ladder condition assessments and ladder use audits. Several of their customers have saved thousands of dollars voiding OSHA fines and ladder-related accidents. Source: https://louisvilleladder.com/company
TENANT OVERVIEW Company: Louisville Ladder
No. of Warehouse Locations: 18+
No. of Employees: 1,000+
Year Founded: 1946
Headquarters: Louisville, Kentucky Website: https://louisvilleladder.com/
11 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL LOCATION OVERVIEW
PEORIA, ILLINOIS
Peoria, Illinois is a dynamic and thriving city situated between Chicago, St. Louis, Indianapolis, and the Quad Cities. The Peoria metropolitan area is the third largest metro area in Illinois with a population of more than 373,000 and a trade area of 750,000. Peoria is home to the administration buildings of Cater- pillar, Incorporated, which is one of the 30 companies that make up the Dow Jones Industrial average. Peoria is also home to three major hospitals, Bradley University, and the University of Illinois College of Medicine.
The downtown area and its riverfront should be your first stop when visiting Peoria. The riverfront hosts a myriad of festivals and events throughout the year such as: Erin Feis and the Taste of Peoria, and the year-round attractions are just as enticing. The Spirit of Peoria is a turn-of-the-century paddle wheeler available for sightseeing, theme cruises, private charters and one to five day overnight excursions to Starved Rock and the St. Louis riverfront. Riverfront restaurants like Rhythm Kitchen and Kelleher’s Irish Pub & Eatery offer great dining options, and students from Illinois Central College and Bradley University love spending weekend night’s downtown at hotspots like Ulrich’s Rebellion Room. It’s easy to spend the entire day downtown with everything Peoria’s riverfront has to offer.
The Peoria area is served by three interstate highways. Interstate 74 runs northwest to southeast through the downtown area. Interstate 474 is a southern bypass of Interstate 74 which runs through portions of Peoria and the surrounding suburbs of Bartonville and Creve Coeur, and Interstate 155 which runs south from Interstate 74 in Morton to Interstate 55 in Lincoln which connects Springfield and Saint Louis.
Grandview Drive Peoria Riverfront Museum Luthy Botanical Garden
12 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL AREA MAP
Chicago, IL
153 MILES SOUTHWEST OF CHICAGO
154 MILES O’HARE INTERNATIONAL AIRPORT
7 MILES CBD PEORIA
Springfield, IL
7.1 MILES BRADLEY UNIVERSITY
13 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL PROPERTY PHOTOS
14 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL AERIAL - EAST
Mt Hawley Country Club
N Knoxville Ave 24,066 CPD
Subject Property
W Pioneer Pwky 16,427 CPD
15 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL AERIAL - WEST
The Grove Apartments PARKWAY 318 Units PLAZA
Administrative Services Aquired in 2014 for $12,658,000 Subject Property
W Pioneer Pwky 16,427 CPD
N Hale Ave
16 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL AERIAL
N Knoxville Ave 24,066 CPD N
Versailles Hamlet Apartments Subject 109 Units Property 6
W Pioneer Pwky 16,427 CPD Administrative Services Aquired in 2014 Mt Hawley for $12,658,000 Auxiliary Airport The Grove Apartments 318 Units RICHWOODS 18,491 CPD HIGH SCHOOL 1,251 Students Headquarters
6 Hickory Ridge Apartments 204 Units N Allen Rd N Allen Rd 18,198 CPD 15,266 CPD
17 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL
SITE PLAN ale Ave ale
Vacant
SITE PLA E arcel utline: and Area: - 12. 0 Acres easable Area: 1 0,62 Sq t Ingress Egress:
ioneer kwy 16, 27 Daily
18 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL DEMOGRAPHICS
2018 Population POPULATION 1-MILE 3-MILE 5-MILE 1-MILE 3-MILE 5-MILE 2010 Population 5,269 38,743 90,753 2018 Population 5,268 38,807 90,836 5,268 38,807 90,836 2023 Population 5,411 41,139 94,329
2018 Households HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2010 Households 2,406 17,198 39,336 1-MILE 3-MILE 5-MILE 2018 Households 2,410 17,223 39,281 2,410 17,223 39,281 2023 Households 2,518 18,373 41,054
Average Household Income INCOME 1-MILE 3-MILE 5-MILE Median Household Income $77,734 $72,239 $63,294 1-MILE 3-MILE 5-MILE Per Capita Income $49,920 $45,874 $38,900 $108,800 $102,916 $89,507 Average Household Income $108,800 $102,916 $89,507
19 DHL LOGISTICS I OSF HEALTHCARE I LOUISVILLE LADDER • PEORIA, IL