Home Depot at 3001 Plainfield Rd | Joliet
OFFERING MEMORANDUM HOME DEPOT 3001 Plainfield Rd
Joliet, IL 60435 ™ OFFERING MEMORANDUM HOME DEPOT 3001 Plainfield Rd Joliet, IL 60435
EXCLUSIVELY LISTED BY
BEN SNYDER SVP & Senior Director Direct +1 216 503 3607 Mobile +1 614 975 8822 [email protected] License No. 2018002569 (OH) BROKER OF RECORD KYLE MATTHEWS License No. 471.019766 (IL)
2 SECTION I EXECUTIVE OVERVIEW
3 EXECUTIVE SUMMARY
THE OFFERING
Matthews is pleased to present the very rare opportunity to acquire the 100% fee simple interest an absolute triple net lease Home Depot located in Joliet, Illinois TENANT (the “Property”). The lease, which originally commenced in 1993, was recently Home Depot extended through July 2023, and the lease includes nine additional five-year options to extend. LEASE TYPE Absolute NNN The 107,400 square foot Home Depot is located at 3001 Plainfield Road in Joliet, Illinois. Joliet is the seat of Will County and is approximately 30 miles southwest of downtown Chicago. The Property’s primary trade area boasts an impressive GLA demographic profile, with over 69,000 residents earning an average household ±108,600 income of $88,858 within a three-mile radius. The Property was originally constructed in 1992 for Builders Square Inc. and was remodeled and rebranded after Home Depot acquired the lease in 2000. MSA Chicago, Illinois Home Depot is the world’s largest home improvement specialty retailer, with 2,286 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2017, The Home INDUSTRY Depot had sales of $100.9 billion and earnings of $8.6 billion. Home Depot’s Home Improvement stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor’s 500 index.
4 OFFERING PRICE CAP RATE ANNUAL RENT $10,943,538 6.50% $711,330
INVESTMENT HIGHLIGHTS »» Absolute Net Lease: This absolute NNN lease has no landlord responsibilities. »» Convenient Access & Visibility: The Property is situated on Plainfield Rd, a primary Home Depot is responsible for all taxes, insurance, and maintenance of the arterial road running through Joliet with traffic counts of 34,000 vehicles per day. Property, including the roof and structure. There are four points of ingress/egress, providing customers with convenient access to the Property. »» Investment Grade Credit: Home Depot’s credit is currently rated “A” by Standard & Poor’s, “A2” by Moody’s, and “A” by Fitch. These ratings are investment grade, »» Strong Demographics: The Property serves a trade area featuring one of the indicating the company has a strong capacity to meet financial commitments. Chicago MSA’s strongest demographic profiles. Joliet is the third largest city in the state of Illinois. Within a three-mile radius, there are over 69,000 residents with an » » Secure Tenancy: Home Depot is the largest home improvement retailer in the average household income of $88,858. world with more than 2,200 stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. In fiscal 2017, »» Established Retail Corridor: The Property is located in an established retail corridor. the company had sales of $100.9 billion and earnings of $8.6 billion. Home Depot’s National retailers within the immediate area include Target, Dick’s Sporting Goods, stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the PetSmart, Ross Dress for Less, Barnes & Noble, Old Navy, Jo-Ann, Party City, Dow Jones industrial average and Standard & Poor’s 500 index. Fresh Thyme, Michael’s, Bed Bath & Beyond, Planet Fitness, Bob’s Discount Furniture, The Room Place, Kirkland’s, Shoe Carnival, and The Great Escape. The » » Long Term Commitment: Home Depot has been a tenant at this location since Property is also directly across Plainfield Road from Louis Joliet Mall, a 980,000 2000 after acquiring the lease from Kmart and recently extended the lease through square foot super-regional mall anchored by Macy’s, JC Penney, Sears, and a July 2023, showing their strong commitment to the site. The lease includes nine Cinemark 14-screen theater. This critical mass of retailers generates substantial additional five-year options to extend. traffic along Plainfield Road, enabling Home Depot to draw customers from several »» Dunkin’ Donuts Sublease: Home Depot subleases a portion of their premises, of the surrounding communities. approximately 1.14 acres, to Third Dunkin’ Donuts Realty, Inc (the “Subtenant”). »» Unencumbered Offering: Offered free and clear of any existing financing, a new The Subtenant pays Home Depot $85,000 annually in base rent, which subsidizes investor can take advantage of historically low interest rates and ample availability Home Depot’s rent. So effectively, Home Depot is only paying $626,330, or $5.77 in the capital markets to significantly enhance returns through aggressive per square foot, in annual rent. The sublease expires on July 31, 2023, and the capitalization structures. Subtenant has one additional 5-year option. The Subtenant’s base rent will increase to $96,000 annually in their last option period.
5 FINANCIAL OVERVIEW TENANT SUMMARY
Offering Price $10,943,538 Tenant Trade Name Home Depot U.S.A., Inc.
Cap Rate 6.50% Lease Expiration July 31, 2023
Current Annual Rent $711,330 Lease Term Remaining ±5 Years
Lease Structure Absolute NNN Renewal Options Nine, 5-Year Options
Gross Leasable Area ± 108,600 SF Rent Increases None
Site Size ± 14.27 AC Landlord Responsibilities None
6 REGIONAL MAP
SUBJECT PROPERTY
7 SECTION II PROPERTY OVERVIEW
8 TENANT OVERVIEW
TENANT OVERVIEW
Home Depot is an American home improvement supplies retailing company that sells tools, construction products, and services. The company is headquartered at the Atlanta Store Support Center in unincorporated Cobb County, Georgia. The Home Depot is the largest home improvement retailer in the United States, ahead of rival Lowe’s. The company was co-founded by Bernard Marcus, Arthur Blank, Ron Brill, and Pat Farrah in 1978. The Home Depot’s proposition was to build home-improvement superstores, larger than any of their competitors’ facilities. STRATEGY To differentiate itself, the Home Depot exclusively carries several major brands, including: Chem- Dry (carpet cleaning, upholstery cleaning, tile and grout services), Behr paints, Homelite (outdoor Parent Company Trade Name The Home Depot, Inc. and power tools), Martha Stewart Living Omnimedia (outdoor furniture, indoor organization), Ryobi and Ridgid (power tools), American Woodmark cabinetry, Thomasville Furniture Industries Revenue $100.9B cabinetry. Additionally, the retailer has its own house brands: Husky (tools), Workforce (tools, shelving, storage cabinets, extension cords, work lights, tarps, paintbrushes), HDX, Glacier Bay Net Income $8.63B (kitchen sinks, faucets, etc.), Commercial Electric, Home Decorators Collection No. of Employees 400,000+ GEOGRAPHIC REACH Home Depot operates many big-box format stores across the United States (including all 50 Headquartered Atlanta, GA states, the District of Columbia, Puerto Rico, the Virgin Islands, and Guam), all 10 provinces of Founded 1978 Canada, and the country of Mexico. The company has over 90 distribution centers throughout the United States to serve over 2,000 Home Depot stores. The MRO company Interline Brands Website www.homedepot.com is also owned by The Home Depot with 70 distribution centers across the United States.
9 PROPERTY DESCRIPTION PARCEL MAP
PROPERTY NAME ADDRESS Home Depot 3001 Plainfield Rd Interstate 55 ±75,000 ADT
GLA LOCATION ±108,600 SF Joliet, IL 60435
Plainfield Rd ±34,000 ADT LAND AREA BUILT/RENOVATED 14.266 Acres 1992/2001 2
PARKING FRONTAGE/VISIBILITY 1 608 Spaces ± 590 feet along Plainfield Rd
ACCESS PARCELS The Property is accessible via 1 06-03-25-101-032-0000 three points of ingress/egress along Plainfield Rd and one 06-03-25-101-031-0000 point of ingress/egress 2
10 SURROUNDING AREA
JoJoliet Commons
Interstate 55 ±75,000 ADT Plainfield Rd ±34,000 ADT
Louis Joliet Mall Louis Joliet Pointe ShoppingShopp Center
11 SECTION III AREA OVERVIEW
12 JOLIET, ILLINOIS DEMOGRAPHICS
Sitting just southwest of the Windy City, Joliet is an affluent suburb of Chicago. Joliet is POPULATION 1-MILE 3-MILE 5-MILE the seat of Will County, the 3rd largest city in the state of Illinois, and the 2nd largest 2010 Census 8,375 67,325 189,683 municipality in the state by land area. 2018 Estimate 8,630 69,677 196,107 2023 Projection 8,788 70,924 199,692 Conveniently surrounded by Interstates 55, 80, and 355, Joliet has easy access to Chicago and many other large cities in the area. Known as the “Crossroads of Mid- Growth: 2010-2018 68.14% 47.37% 51.47% America,” Joliet is home to approximately 150,000 people as of 2018 estimates. HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2010 Census 2,861 23,508 64,228 The city of Joliet is known for its diversity, outdoor activities, and family-friendliness. Crime rates in Joliet are well below the national average, making it a safe place to live 2018 Estimate 2,855 23,988 65,175 and work. The city is also home to The University of St. Francis and Joliet Junior College. 2023 Projection 2,882 24,348 65,964 Growth: 2010-2018 64.99% 49.21% 43.12% ECONOMY INCOME 1-MILE 3-MILE 5-MILE With a median household income and median home values well above state and national 2018 Average $89,352 $88,858 $88,657 averages, Joliet has a strong economy bolstered by Manufacturing and Construction, Household Income Healthcare, and the presence of multiple casinos. Construction of a series of million- started in 2017 and will undoubtedly bring a great deal of new sqaure-foot developments LARGEST EMPLOYERS companies to the city.
Joliet is home to a strong and diverse retail base including a major regional mall. EMPLOYER # OF EMPLOYEES Manufacturing and logistics have a strong influence on the city’s economy, withAmazon, Amazon 3,500 IKEA, Mars, Whirlpool, Saddle Creek Logistics, and others having a presence in Joliet. St. Joseph Medical Center 3,030 MARKET TRENDS Will County Government 2,200 Joliet Junior College 1,500 The cost of living in Joliet is low compared to other affluent Chicago suburbs, which has NRG Energy 990 prompted a high influx of residents over the past decade. Population growth in a 1-mile Caterpillar 950 radius of the subject property skyrocketed 68.14% from 2000-2018. Harrah’s Hotel & Casino 825 The median home value in Joliet is $188,303, which is above the Illinois state average. City of Joliet 780 The number of housing units in the city has seen constant growth since 1990. During Hollywood Casino 685 the last year, Joliet real estate has appreciated at a rate of 6.74%, out-pacing the national average. Filtration Group Incorporated 600
13 CHICAGOLAND
Situated on the southwestern shore of Lake Michigan, the City of Chicago covers an area of 234 square miles. Chicagoland is an informal name for the metropolitan area associated with the city of Chicago and its suburbs. The region is often considered to include areas beyond its corresponding MSA, as well as portions of the greater CSA.
Chicago has one of the world’s largest and most diversified economies, with more than four million employees and generating an annual gross regional product (GRP) of over $575 billion, which is more than countries like Sweden and Norway. Having been listed as an alpha global city by the Global Cities Index, it is a key player in every sector from risk management, innovation and information technology to manufacturing and health services.
Over $575 billion 2,695,598 Over 40 Million Gross regional product (GRP) Residents annual visitors
14 ECONOMY HIGHER EDUCATION
The city is an efficient economic powerhouse, home to more than 400 major corporate Chicago has been a world center of higher education and research with several universities headquarters, including 31 in the Fortune 500. Boeing, United Continental Holdings, Inc., inside its city limits. Most notably, Northwestern University and the University of Chicago Exelon Corporation, R. R. Donnelley & Sons Company, and Archer Daniels Midland are just a are two top universities that call the city home. few of the Fortune 500 companies based in the area. Motorola Solutions, Inc. intends to move their headquarters from Schaumburg, IL to Chicago in the coming future. McDonald’s has Northwestern University is a large, private research university based in Evanston with a become the latest Fortune 500 company to establish its presence in Chicago as it is preparing comprehensive doctoral program. Attracting over $650 million in sponsored research to move its headquarters from Oak Brook, IL to the windy city by early 2018. each year, Northwestern has the eighth largest university endowment in the country.
As a multicultural city that thrives on the harmony and diversity of its neighborhoods, Chicago The University of Chicago is one of the world’s leading and most influential institutions embodies the values of America’s heartland integrity. It is this level of diversification that has of higher learning. Its main campus is located seven miles south of downtown Chicago resulted in Chicago being rated as having the most balanced economy in the United States. in the Hyde Park and Woodlawn neighborhoods. The University of Chicago has many Additionally, its central location allows Chicago to be at the center of global trade, transit and prominent alumni, including 92 Nobel laureates that have been affiliated with the data networks. university as professors, students, faculty or staff. 15 GETTING AROUND
O’HARE INTERNATIONAL CHICAGO TRANSIT AIRPORT AUTHORITY Chicago O’Hare International Airport is The Chicago Transit Authority (CTA) located on the far northwest side of the operates an extensive network of buses and city, about 17 miles northwest of the Loop. the “L” rapid transit system, which provide It is the primary airport of the Chicago service to Chicago and forty surrounding metropolitan area. As the fourth-busiest suburbs. On an average weekday, CTA airport in the world by passenger traffic, offers 1.7 million rides on buses and trains. O’Hare is a major hub for American As one of the city’s distinguishing features, Airlines, United Airlines and Air Choice the “L” has been credited with fostering the One. With eight runways, more than any growth of Chicago’s dense city core. major international airport, O’Hare has direct service to 210 destinations.
MIDWAY METRA INTERNATIONAL
AIRPORT Metra is the second-most used passenger Eight miles from the Loop on the southwest regional rail network in the country, which side of Chicago, Chicago Midway operates 241 station on 11 different rail lines. International Airport is the second-largest This commuter railroad services passengers passenger airport in Chicagoland. through stations throughout the Chicago Southwest Airlines is the dominant carrier metropolitan area. Metra’s Electric Line at Midway, offering around 250 daily shares its trackage with Northern Indiana departures to sixty nonstop destinations. Commuter Transportation District’s South Passengers enjoy easy access to downtown Shore Line, which provides commuter thanks to the services provided by the CTA. service between South Bend and Chicago.
16 POINTS OF INTEREST
NAVY PIER Navy Pier is Chicago’s lakefront treasure on the shoreline of Lake Michigan. The pier encompasses more than fifty acres of parks, gardens, shops, restaurants, family attractions and exhibition facilities. Drawing nearly nine million visitors annually, Navy Pier is one of the most visited attractions in the entire Midwest.
MAGNIFICENT MILE WILLIS TOWER JOHN HANCOCK CENTER Adjacent to downtown and one block east of Rush Street, the Magnificent Mile is an Still commonly referred to as Sears Tower, the The John Hancock Center is currently the eighth- upscale section of Chicago’s Michigan Avenue, which runs from the Chicago River to Oak Willis Tower is the second-tallest building in the tallest building in the country. Equipped with a restaurant Street in the Near North Side. Several of the tallest buildings in the country lie in this United States. This bustling community of and lounge on the 95th floor, the Observatory (360 district, such as the John Hancock Center and the Trump International Hotel and Tower. business, tourism and culture offers breathtaking Chicago), and America’s highest indoor swimming pool, Serving as the main thoroughfare between Chicago’s Loop business district and Gold views of the city from its Skydeck. Visitors can the John Hancock Center appeals to residents and Coast, the Magnificent Mile contains a mixture of high-end department stores, experience the Ledge, all-glass balconies that tourists alike. From the restaurant, diners can take in restaurants, luxury retailers, residential and commercial buildings, financial services allow visitors to look through the glass floor to the views of the city. companies and hotels, primarily catering to tourists and the affluent. street 1,353 feet below.
17 DEMOGRAPHIC MAP
SUBJECT PROPERTY
18 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Home Depot at 3001 Plainfield Rd Joliet, IL 60435 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
19 OFFERING MEMORANDUM HOME DEPOT 3001 Plainfield Rd Joliet, IL 60435
EXCLUSIVELY LISTED BY
BEN SNYDER SVP & Senior Director Direct +1 216 503 3607 Mobile +1 614 975 8822 [email protected] License No. 2018002569 (OH) BROKER OF RECORD KYLE MATTHEWS License No. 471.019766 (IL)
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