Broadsmore Center | Affluent Submarket
2375 - 2397 S. Randall Road, Algonquin, Illinois 60102
HUNTLEY RD | 14,500 VPD
Subject Property
BROADSMORE DR
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R R N N Broadsmore Center | Affluent Submarket 2375 - 2397 S. Randall Road, Algonquin, Illinois 60102
FINANCIAL SUMMARY PROPOSED FINANCING
Price $2,146,000 LT V 70% Cap Rate 7.50% Interest Rate | Amortization 4.00% | 25 Years Price/ SF $137.75 Down Payment $643,800 Gross Leasable Area 15,579 SF First Trust Deed/Mortgage $1,502,200 Year Built 2004 Debt Service $95,150 Lot Size 2.16 Acres +/- Debt Coverage Ratio 1.69 Parcel Number 03-08-103-003 Net Cash Flow After Debt Services | Return % $65,709 | 10.21% Parking 79 Surface Spaces +/- Principal Reduction $35,712 Total Return | Return % $101,421 | 15.75%
Current Rent $171,535 Total Reimbursements $79,730 Vacancy/Collection Allowance (Actual) ($22,116) Effective Gross Income $251,264 Expenses $90,405 NOI (Starting 11/1/2021) $160,859 CASH FLOW YEAR ONE - STARTING 11/1/2021
Base Rent Current Per SF
Occupied Space $171,535 $12.49 Available Space $22,116 $12.00
Gross Potential Rent $193,651 $12.43
Expense Reimbursements Real Estate Taxes $40,539 $2.60 Insurance $4,425 $0.28 CAM $25,023 $1.61 Management Fee $8,467 $0.54 Administrative Fee $1,275 $0.08
Total Expense Reimbursements $79,730 $5.12
Gross Potential Income $273,380 $17.55
Vacancy/Collection Allowance (Actual) ($22,116) ($1.42)
Effective Gross Income $251,264 $16.13
Expenses Real Estate Taxes $46,573 $2.99 Insurance $5,084 $0.33 CAM $28,748 $1.85 Management Fee (4% EGI) $10,000 $0.64
Total Expenses $90,405 $5.80
Net Operating Income $160,859 $10.33 REIMBURSEMENTS
Annual Expense Reimbursements Tenant Mgmt Fee Admin Fee Gross Income Taxes Insurance CAM Total PSF
Vacant $0 $0 $0 $0 $0.00 $0 $0 $0
Trek Bicycles $9,454 $1,032 $5,836 $16,322 $1.05 $2,171 $0 $18,493
Beardsley's Barber Shop $3,794 $414 $2,342 $6,549 $0.42 $730 $0 $7,280
Chicago Academy of Permanent Makeup $3,898 $426 $2,406 $6,730 $0.43 $924 $0 $7,654
Enterprise Rent-A-Car $3,898 $426 $2,406 $6,730 $0.43 $0 $0 $6,730
Affordable Beds $11,698 $1,277 $7,221 $20,195 $1.30 $3,043 $1,275 $24,513
Pro Dance Elite Studios $7,797 $851 $4,813 $13,460 $0.86 $1,600 $0 $15,060
Total $40,539 $4,425 $25,023 $69,987 $4.49 $8,467 $1,275 $79,730 RENT ROLL
Term of Rent Schedule SF % of % of Renewal Lease Tenant /Suite # Start End Occupancy Monthly Annual Rent/ Leased Total SF Period Changes on Increase Total Rent Options Type (Yrs) Rent Rent SF
Vacant 1,843 11.83% - - - Base Current $1,843 $22,116 $12.00 - 11% N/A -
Retail, Suite 2375 ------
Notes: Assumed market rent.
Trek Bicycles 3,338 21.43% 12/1/2012 1/31/2022 9 Years Base Current $3,162 $37,944 $11.37 - 20% None Net
Retail, Suite 2377-2381 ------
Notes: N/A
Beardsley's Barber Shop 1,269 8.15% 3/1/2020 6/30/2025 5 Years Base Current $966 $11,592 $9.14 - 6% 1, 5-Year Net
Retail, Suite 2383 - 3/1/2022 $981 $11,766 $9.27 1.5%
- 3/1/2023 $995 $11,943 $9.41 1.5%
- 3/1/2024 $1,010 $12,122 $9.55 1.5%
Option 1 7/1/2025 $1,025 $12,304 $9.70 1.5%
Notes: N/A
Chicago Academy of Permanent 1,304 8.37% 5/1/2021 7/31/2024 3 Years Base Current $1,350 $16,200 $12.42 - 8% 1, 3-Year Net Makeup Retail, Suite 2385 - 5/1/2022 $1,377 $16,524 $12.67 2%
- 5/1/2023 $1,405 $16,854 $12.93 2%
Option 1 8/1/2024 $1,433 $17,192 $13.18 2%
- 8/1/2025 $1,461 $17,535 $13.45 2%
Notes: N/A
Enterprise Rent-A-Car 1,304 8.37% 4/1/2006 12/31/2025 20 Years Base Current $1,902 $22,820 $17.50 - 12% 3, 3-Year Net
Retail, Suite 2387 - 1/1/2022 $1,930 $23,162 $17.76 1.5%
- 1/1/2023 $1,959 $23,510 $18.03 1.5%
- 1/1/2024 $1,989 $23,862 $18.30 1.5%
- 1/1/2025 $2,018 $24,220 $18.57 1.5%
Notes: Rent increases of 1.5 percent continue through option periods. Tenant has right to terminate lease with 90 days prior written notice and a fee equal to two months of the current rent at the time of termination. RENT ROLL
Term of Rent Schedule SF % of % of Renewal Lease Tenant /Suite # Start End Occupancy Monthly Annual Rent/ Leased Total SF Period Changes on Increase Total Rent Options Type (Yrs) Rent Rent SF
Affordable Beds 3,913 25.12% 10/1/2012 2/28/2022 9 Years Base Current $4,657 $55,878 $14.28 - 29% 2, 1-Year Net
Retail, Suite 2391 Option 1 3/1/2022 $4,750 $56,996 $14.57 2%
Option 2 3/1/2023 $4,845 $58,135 $14.86 2%
Notes: Tenant has right to terminate lease with 90 days notice.
Pro Dance Elite Studios 2,608 16.74% 9/4/2020 7/31/2023 3 Years Base Current $2,173 $26,080 $10.00 - 14% 1, 5-Year Net
Retail, Suite 2397 - 9/1/2021 $2,206 $26,471 $10.15 1.5%
- 9/1/2022 $2,239 $26,868 $10.30 1.5%
Option 1 8/1/2023 $2,273 $27,271 $10.46 1.5%
- 8/1/2024 $2,307 $27,680 $10.61 1.5%
Notes: N/A
Occupied 13,736 88% $171,535 $12.49 Vacant 1,843 12% $22,116 $12.00 Total 15,579 100% $193,651 $12.43 INVESTMENT HIGHLIGHTS • Multi-Tenant Shopping Center with a Mix of National, Regional and Local Tenants ° 88 Percent Occupied • Neighborhood Shopping Center with Excellent Mix of National, Regional and Local Tenants ° Aesthetically Appealing High Quality Brick Construction Value-Add ° Aesthetically Appealing High-Quality Brick Construction Opportunity ° Opportunity to Add Value and Cap Rate Growth Through Leasing the Remaining 1,843 Square ° Currently 88 Percent Occupied Feet of Vacant Space ° Opportunity to Add Value Through Leasing the Remaining 1,843-Square Foot End-Cap Space
° All Tenants Operating Under Net Leases with Management Fee Reimbursement • All Tenants Operating Under Net Leases with Annual Rental Increases ° Priced Well-Below Replacement Cost at Only $137.75 per Square Foot for the Building ° Five Out of Six Tenants Have Option Periods Available Heavily Traveled • Property Features Excellent Real Estate Fundamentals • Situated Along the Heavily Traveled Randall Road Retail Corridor | 32,700 Vehicles Passing per Day ° Affluent Demographics | Average Household Income of $142,822 Within One-Mile Radius ° The Premier Shopping, Food and Entertainment District in the Northwest Suburbs ° Positioned Along Randall Road which Features Daily Traffic Counts of 32,700 Vehicles ° Located on One of the Main Road Ways Off of Interstate 90, Randall Road is One of the Most Heavily Traveled Roads in the Northwest Suburbs ° High Visibility Site with Over 335 Feet of Street Frontage • ° Abundant Parking in the Front and Rear of the Property | Approximately 79 Surface Spaces Abundance of Retailers ° Modest, Replaceable Rents Averaging $12.49 per Square Foot Offering an Investor Additional Security • Adjacent to the Algonquin Corporate Campus ° A Premier Development Opportunity with Great Access to Algonquin’s Amenities • Situated in the Middle of One of Chicagoland’s Most Prominent Shopping Corridors ° Campus Includes Properties Ranging from One to 100 Acres of Fully Serviced, Shovel-Ready Land ° Less Than Two Miles from Algonquin Commons | Outdoor Shopping Mall with Over 60 Shops | Anchored by Dick’s Sporting Goods, DSW, Nordstrom Rack, Trader Joe’s and ROSS Dress for Less Affluent • Affluent Demographics Demographics ° Notable Retailers Include Costco, Target, Walmart, Dick’s Sporting Goods, Woodman’s, Menards, ° Average Household Income Within One Mile is $142,822 Discount Tire, ROSS Dress for Less, Dollar Tree, JCPenney, HomeGoods, The Home Depot and More MSA Chicago MSA LOCATION HIGHLIGHTS | ALGONQUIN, IL • Included in the Chicago Metropolitan Statistical Area • Significant Capital Contributions to Randall Road Corridor ° Situated in McHenry and Kane Counties | More Than $15 Million in Active Construction Permits | ° One Hour West of Chicago Off Interstate 90 Walmart Remodel, New Burger King, Urgent Care Center and Much More • Dense Trade Area | The Retail Epicenter of McHenry and Northern Kane County • Many Town Developments Including the Algonquin Corporate Campus, East Algonquin Redevelopment Corridor, Randall • 4.1 Million Highly Skilled Workers Within a 30-Minute Drive Road Retailer Corridor, Old Town and Algonquin Markers Park ° Algonquin is in the Midst of a Five-Year, $30 Million • Village Offers a Highly Engaged Business Environment Reinvestment in the Downtown and a High Quality of Life Along with a Government that is ° $46 Million Randall Road Widening Construction Project Responsive, Sustainability Minded and Fiscally Responsible is Scheduled to be Completed by June 2021
• Nearly Two Million Square Feet of Retail Space Along Randall Road Corridor REGIONAL MAP
Lake Michigan
Subject Property
DEMOGRAPHICS 48 Miles to Downtown Chicago Population 1-Mile 3-Miles 5-Miles 2020 Population 7,104 40,944 143,768 2025 Population 7,344 42,136 146,017
Households 1-Mile 3-Miles 5-Miles 2020 Households 2,343 13,647 46,940 2025 Households 2,436 14,129 47,951
Daytime Population 1-Mile 3-Miles 5-Miles 2020 Population 4,184 34,185 115,599
Income 1-Mile 3-Miles 5-Miles 2020 Median HH Income $112,840 $111,371 $94,817 2020 Average HH Income $142,822 $139,192 $117,021
AERIAL
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Included in the Chicago MSA Dense Trade Area | The Retail Epicenter of McHenry and Northern Kane County Nearly Two Million Square Feet of Retail Space Along Randall Road Corridor Significant Capital GRAContributionsNDVIEW DR to Randall TENANT PROFILE 7,800 LOCATIONS
Largest Car Rental Service Provider in the World Measured by Revenue and Fleet $29.9 Billion in Global Revenue (2019 Fiscal Year) $29.9 Billion 7.5 Percent Fiscal Year Growth | 10th Consecutive 2019 REVENUE Year of Record Revenue Growth
Over 7,800 Locations Within 15 Miles of 90 Percent of Airports | Located in 85 Countries Operated Two Million Vehicles in 2019 1975 One of Forbes Largest Private Companies FOUNDED
Named World’s Best Car Rental Company (Travel + Leisure, 2018) Founded in 1957 A- Parent Company: Enterprise Holdings | “A-” Standard and Poor’s Rating STANDARD & POOR’S
Tenant/Guarantor: Enterprise Leasing Company of Chicago, Limited Liability Corporation ENTERPRISE.COM TENANT OVERVIEWS
Family Owned and Operated Barber Shop DBA Beardsley’s Barber Shop
10 Locations with the Chicago, St. Louis and Eastern Alabama Areas Tenant/Guarantor Beardsley’s Barber Shop
Offers Haircuts, Beard Trips, Shaves, and Graphic Cuts Number of Brand Locations 10
Top Eight Barbershop in St. Louis in 2021 by Expertise
beardsleysbarbershop.com
Offers In-Studio Classes and on Zoom DBA Pro Dance Elite
Classes from Age 2.5 to Adult Tenant/Guarantor Kim Brancamp
Wide Variety of Classes Offered; Yoga, Jazz, Hip Hop, Floor Barre, Break Number of Brand Locations 1 Dancing, Ballet, Contemporary and Much More
prodanceelite.com
Founded in 2003 DBA Trek Algonquin
Family Owned and Operated Location Tenant Cycling Republic, Incorporated
Trek Supplier Guarantor Personal
Provides Bike Services Number of Brand Locations 1
trekalgonquin.com
Offers Five-Day Live Courses on Microblade, Shade, and Nano Brow, Brand Chicago Academy of Permanent Makeup & Microblading as well as, Eyeliner and Lash Enhancements Tenant Renee Beaton
Offers Classes Compatible with Illinois Beauty Continuing Education Units Guarantor Personal
Number of Brand Locations 1
chicagoeyebrows.com CONFIDENTIALITY AGREEMENT
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap 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 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.
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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 information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2020 Marcus & Millichap. All Rights Reserved. Activity ID: ZAC0670388 EXCLUSIVELY LISTED BY
ADRIAN MENDOZA SEAN SHARKO AUSTIN WEISENBECK DESIGNATED MANAGING BROKER FIRST VICE PRESIDENT INVESTMENTS SENIOR VICE PRESIDENT INVESTMENTS SENIOR VICE PRESIDENT INVESTMENTS Chicago Oakbrook Chicago Oakbrook Chicago Oakbrook STEVEN WEINSTOCK (630) 570-2163 (630) 570-2238 (630) 570-2169 Chicago Oakbrook (630) 570-2250 [email protected] [email protected] [email protected] [email protected] IL 475.147980 IL 471.010712 IL 475.140200 IL 471.011175