7-ELEVEN (DARK) 1740 Dempster Street Mt

NET LEASE INVESTMENT OFFERING

7-ELEVEN (DARK) 1740 Dempster Street Mt. Prospect, Illinois (Chicago MSA) TABLE OF CONTENTS

TABLE OF CONTENTS

I. Executive Profile II. Market Overview III. Location Overview IV. Location & Tenant Overview Executive Summary Market Report Photographs Demographic Report Investment Highlights Rent Comparables Aerial Location Overview Property Overview Site Plan Tenant Overview Map

NET LEASE INVESTMENT OFFERING DISCLAIMER STATEMENT

DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential. STATEMENT: 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 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.

NET LEASE INVESTMENT OFFERING EXECUTIVE SUMMARY

EXECUTIVE The Boulder Group is pleased to exclusively market for sale a single tenant net leased 7-Eleven property located SUMMARY: within the Chicago MSA, in Mount Prospect, Illinois. 7-Eleven ceased operations in 2018, however the tenant is obligated to fulfill the terms of the lease for the remaining three years. The 7-Eleven lease expires December 31, 2021, which allows the incoming investor to receive cash flow from the property prior to re-tenanting or re- developing the property.

Mount Prospect is a northwestern suburb of Chicago. The property is located at the signalized corner of Dempster Street and Algonquin Road (19,500 VPD). Additionally, the property is immediately off of Interstate 90 (127,300 VPD). Retailers in the immediate area include Walmart Neighborhood Market, Walgreens, CVS, Jewel-Osco, Kohl’s, Chase and Bank of America. The 7-Eleven property is also located within close proximity to Robert Morris University of Arlington Heights (3,233 students). Mount Prospect is located approximately four miles north of O’Hare International Airport. There are 240,230 people living within five miles fo the property and have an average household income $96,688.

7-Eleven has three years remaining on their lease that expires December 31, 2021 allowing a future investor ample time to re-tenant the property. The income stream is guaranteed by 7-Eleven, an investment grade rated tenant with a Standard & Poor’s rating of “AA-”.

Chicago’s local economy is healthy and a multitude of retailers’ sales numbers continue to climb in the face of continual store closure announcements. Vacancies are below their historical average aided by minimal new development, though the closure of numerous big-box stores throughout the Chicago area will likely pressure metro-wide retail occupancy and will certainly push-up vacancies in power and neighborhood centers. Rents have increased over the past year, albeit modestly, though rental performance is highly bifurcated based upon property type and location. While fundamentals are healthy and rents are growing, sales activity has pulled back significantly, with 18Q2 on pace to be the lowest quarter for sales volume on record.

NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT • Located in the Chicago MSA HIGHLIGHTS: • Value add opportunity

• Three years remaining allowing ample time to re-tenant or re-develop

• Income stream is guaranteed by an investment grade rated tenant (S&P: AA-)

• Located at the signalized corner of Dempster Street and Algonquin Road (19,500 VPD)

• Excellent visibility and curb appeal

• Immediately off of Interstate 90 (127,300 VPD)

• Retailers in the immediate area include Walmart Neighborhood Market, Walgreens, CVS, Jewel-Osco, Kohl’s, Chase and Bank of America

• Located in close proximity to Robert Morris University of Arlington Heights (3,233 students)

• 240,230 people living within five miles of the property and have an average household income $96,688

NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY OVERVIEW: Price: $1,214,292

Cap Rate: 18.07%

Net Operating Income: $219,422

Lease Expiration Date: December 31, 2021

Tenant: 7-Eleven

Year Built 2001

Building Size: 3,000 SF

Land Size: 0.57 AC

NET LEASE INVESTMENT OFFERING MARKET REPORT

MARKET Chicago’s local economy is healthy and a multitude of retailers’ sales numbers continue to climb in the face REPORT: of continual store closure announcements. Vacancies are below their historical average aided by minimal new development, though the closure of numerous big-box stores throughout the Chicago area will likely pressure metro-wide retail occupancy and will certainly push-up vacancies in power and neighborhood centers. For example, the recent bankruptcy by Bon-Ton will result in nearly 2.4 million SF of added vacancy across 32 properties in the Chicago area, while the Toys/Babies R’ Us bankruptcy will result in an additional 1 million SF of available space across 42 spaces. Rents have increased over the past year, albeit modestly, though rental performance is highly bifurcated based upon property type and location. While fundamentals are healthy and rents are growing, sales activity has pulled back significantly, with 18Q2 on pace to be the lowest quarter for sales volume on record. Sales activity in 2018 has been primarily focused on single-tenant net lease properties to credit tenants and grocery-anchored shopping centers that appeal to investors due to their better insulated from e-commerce.

Submarket Statistics (Co-Star) Schaumburg Area Retail Market Rent/SF $17.87 Vacancy Rate 8.70% Market Sales Price/SF $217

NET LEASE INVESTMENT OFFERING RENT COMPARABLES

RENT COMPARABLES:

Rent comparables within 3 miles of subject property:

Address City State Building Size (SF) Year Built Rent PSF Status 5540 New Wilke Rd Rolling Meadows IL 2,450 1983 $22.63 Asking 41 Dunton Ave Arlington Heights IL 4,141 1957 $21.00 Asking 2088 Elmhurst RD Mount Prospect IL 5,942 1970 $20.15 In Place 11 Arlington Hts Arlington Heights IL 3,600 1931 $20.00 Asking 1669 Algonquin Rd Rolling Meadows IL 1,282 1999 $19.91 In Place 1655 Algonquin Rd Rolling Meadows IL 11,964 1999 $19.91 In Place 2058 S Elmhurst Rd Mount Prospect IL 5,470 N/A $19.46 In Place 58 E Northwest Hwy Des Plaines IL 6,068 2005 $18.00 Asking 1051 S Elmhurst Rd Des Plaines IL 12,066 2006 $16.66 In Place 144 Arlington Hts Rd Arlington Heights IL 3,000 2011 $16.00 Asking 1776 W Algonquin Rd Mount Prospect IL 1,200 N/A $14.00 Asking 1141 S Arlington Heights Arlington Heights IL 9,000 1982 $12.50 In Place 512 W Northwest Hwy Mount Prospect IL 1,900 1970 $11.37 In Place Median $19.46

NET LEASE INVESTMENT OFFERING PHOTOGRAPHS

NET LEASE INVESTMENT OFFERING AERIAL

NET LEASE INVESTMENT OFFERING SITE PLAN

NET LEASE INVESTMENT OFFERING MAP

NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC Population 1-Mile 3-Mile 5-Mile REPORT: Total Population 18,346 101,554 240,230 Total Households 6,905 39,107 94,483

Income 1-Mile 3-Mile 5-Mile

Median Household Income $75,520 $92,312 $96,688

NET LEASE INVESTMENT OFFERING LOCATION OVERVIEW

LOCATION Mount Prospect, Illinois OVERVIEW: Mount Prospect is a village in Elk Grove and Wheeling Townships in Cook County, Illinois, about 20 miles northwest of downtown Chicago, and approximately 4 miles north of O’Hare International Airport. As of the 2010 census, the village had a total population of 54,167.

Chicago, Illinois 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. Chicago has many nicknames, the best-known being the Windy City.

The Chicago metropolitan area is home to the corporate headquarters of 66 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 traffic movement.

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. As of 2016, Chicago had the third largest gross metropolitan product in the United States at $640 billion.

The city of Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims two Dow 30 company: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001 and McDonald’s, who’s in the process of moving their headquarters from the Chicago suburbs to the Chicago West Loop. One additional Dow 30 companies, Kraft Foods is in the Chicago suburbs, as are Sears Holdings Corporation and the technology spin-offs of Motorola. The headquarters of United Continental Holdings are in the United Building and its operations center and its United Airlines subsidiary are in the Willis Tower in Chicago.

Chicago attracts over 50 million domestic leisure travelers, 11 million domestic business travelers and 1.5 million overseas visitors. These visitors contributed more than $14 billion to Chicago’s economy. Upscale shopping along the Magnificent Mile and State Street, thousands of restaurants, as well as Chicago’s eminent architecture, continue to draw tourists. The city is the United States’ third-largest convention destination. A 2011 study by Walk Score ranked Chicago the fourth most walkable of the fifty largest cities in the United States. NET LEASELEASE INVESTMENT INVESTMENT OFFERING OFFERING TENANT OVERVIEW

TENANT 7-Eleven OVERVIEW: 7-Eleven is the world’s largest convenience store chain operating, franchising and licensing more than 64,319 stores in 18 countries. 7-Eleven is also one of the nation’s largest independent gasoline retailers. Founded in 1927 in Dallas, Texas, 7-Eleven pioneered the convenience store concept during its first years of operation as an ice company when its retail outlets began selling perishable items as a convenience to guests. The company’s iconic products have become a substantial part of American culture from its well-known Big Gulp® fountain soft drink and Big Bite® grill items to the Slurpee® beverage and its fresh-brewed coffee. 7-Eieven’s food service offerings bring guests a proprietary line of prepared-fresh-daily and daily delivered deli sandwiches, wraps, breakfast sandwiches and a wide assortment fruits, salads and baked goods. The name 7-Eleven originated in 1946 when the stores were open from 7:00AM to 11:00PM. 7-Eleven was ranked #1 by Entrepreneur Magazine in the 2017 annual “Franchise 500” ranking. It is an investment grade rated company with a Standard & Poor’s rating of AA-.

Website: www.7-eleven.com Founded: 1927 Number of Locations: 64,319 Number of Employees: 45,000+ Standard & Poor’s Rating: AA- Headquarters: Irving, Texas

NET LEASE INVESTMENT OFFERING Randy Blankstein President 847.562.0003 [email protected]

John Feeney Senior Vice President 847.562.9280 [email protected]

3520 Lake Avenue, Suite 203 Wilmette, IL 60091