Sherwin Williams at 5338 159Th St Oak Forest, IL 60452
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SHERWIN WILLIAMS OFFERING MEMORANDUM 5338 159th St. Oak Forest, IL Click Here for Property Video ™ EXCLUSIVELY LISTED BY Michael Moreno Aron Cline Rahul Chhajed Broker of Record Senior Associate SVP & Senior Director Senior Associate Kyle Matthews [email protected] [email protected] [email protected] LIC # 471.019766 (IL) DIR (949) 432-4511 DIR (949) 432-4509 DIR (949) 432-4513 MOB (818) 522-4497 MOB (818) 632-0233 MOB (818) 434-1106 LIC # 01982943 LIC # 01904371 (CA) LIC # 01986299 (CA) EXECUTIVE OVERVIEW INVESTMENT HIGHLIGHTS PROPERTY DETAILS • Brand New High Quality Construction – Build-To-Suit Sherwin-Williams building opened its doors for business in 2018 • Inflation Protected Lease Structure – Attractive 10% Rental Increases Every Five Years provides investors with a very strong hedge against future inflation • Extremely Passive Investment – Minimal Landlord Responsibilities – Roof & Structure are sole Landlord Responsibilities • Ideal Sherwin-Williams Building – Property is directly in line with tenant’s latest prototypical building • Perfect 1031 Exchange Property – This net leased property provides a future landlord a brand-new investment with 10% rental increases every 5 years, leased to one of the strongest tenants in the entire retail industry LOCATION • High Density Market – Population within a 5-mile radius of the property exceeds 230,000 • Strong Consumer Demographics – Average resident income within a 1-mile radius is greater than $84,000 • Excellent Street Visibility – The property is strategically located off the intersection of Central Ave and 159th St, which features over 38,000 vehicles in Average Daily Traffic • Highly Visited Location – Sherwin-Williams is located in a retail corridor with a national tenant lineup that features The Home Depot, Menards, Walmart, Target, Lowe’s, Jewel-Osco, McDonald’s, Fresenius Medical Care, Jiffy Lube, Walgreens, Circle K, Dunkin’ Donuts, Starbucks, and CVS amongst many others TENANT • Investment Grade Credit Tenant – Sherwin-Williams is a Fortune 200 company with a market cap of $38.52 Billion • High Growth Tenant – Sherwin-Williams is continuing to expand their national and international footprint, especially with the recent acquisition of Valspar Paint • Market Leader – Sherwin-Williams is the global leader in the paints and coating industry | 3 LIST PRICE $1,901,091 4 | FINANCIAL OVERVIEW FINANCIAL OVERVIEW ANNUALIZED OPERATING DATA Lease Commence Monthly Rent Annual Rent Rent PSF CAP LIST PRICE CAP RATE TERM REMAINING Base Term - 2018-2023 $8,750.00 $105,000 $30.00 5.50% Base Term - 2023-2028 $9,625.00 $115,500 $33.00 6.05% $1,901,091 5.50% ±9.75 Years Option 1 - 2028-2033 $10,587.50 $127,050 $36.30 6.66% Option 2 - 2033-2038 $11,646.25 $139,755 $39.93 7.32% TENANT SUMMARY The Sherwin Williams Tenant Trade Name Company Type of Ownership Fee Simple EXECUTIVE SUMMARY Lease Guarantor Corporate Lease Type NN Property Name Sherwin Williams 5338 159th Street Roof & Structure Landlord Responsible Address Oak Forest, IL 60452 Original Lease Term 10 Years Year Built 2018 Rent Commencement Date 2/23/2018 GLA ±3,500 SF Lease Expiration Date 2/29/2028 Lot Size ±0.77 AC Term Remaining ±9.75 Years Increases 10% Every 5 Years Options Two, 5-Year Options | 5 6 | TENANT OVERVIEW SHERWIN WILLIAMS Sherwin-Williams is one of the top paint manufacturers in the US and worldwide, along with Akzo-Nobel, PPG Industries, and Henkel. The company’s products include a variety of paints, finishes, coatings, applicators, and varnishes sold under brands such as Dutch Boy, Krylon, Sherwin-Williams, Thompson’s WaterSeal, Ronseal, Sayerlack, and Minwax. Additionally, it sells automotive finishing and refinishing products through wholesale branches worldwide. Other outlets include mass merchandisers, home centers, independent dealers and automotive retailers. PARENT COMPANY STRATEGY TRADE NAME Sherwin-Williams focuses on enhancing its operations and The Sherwin growing market share. As part of its strategy, Sherwin-Williams Williams Company invests more than $100 million per year in research, development, and commercialization of new product technologies. Acquisitions NO. OF LOCATIONS are also key to the company’s strategy for growth, such as that of the pending acquisition of rival Valspar, as well as for the addition ±4,340 of new technologies. OPERATIONS NO. OF EMPLOYEES Sherwin-Williams has expanded its operating segments from three to four because of growth in sales, geographic reach, and ±40,706 product lines. It added a Latin American Coatings Group to its Paint Stores Group, Global Finishes Group, and Consumer Group HEADQUARTERED segments. Subsidiaries of the company include Comex North America, Inc., Contract Transportation Systems Co, Oy Sherwin- Williams Finland Ab, Sherwin-Williams Bel, Sherwin-Williams Cleveland, Ohio (Belize) Limited, and Sherwin-Williams France Finishes SAS. YEAR FOUNDED GEOGRAPHIC REACH With a customer base in more than 100 countries, Sherwin- 1866 Williams has operations in the Asia/Pacific, Canada, Caribbean, Europe, and the Americas. | 7 PARCEL MAP TH 159 STREET ±38,000 VPD 8 | SURROUNDING AREA 159TH STREET ±38,000 VPD | 9 AREA OVERVIEW 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 Residents annual visitors (GRP) ECONOMY HIGHER EDUCATION The city is an efficient economic powerhouse, home to more than 400 major Chicago has been a world center of higher education and research with corporate headquarters, including 31 in the Fortune 500. Boeing, United several universities inside its city limits. Most notably, Northwestern University Continental Holdings, Inc., Exelon Corporation, R. R. Donnelley & Sons Company, and the University of Chicago are two top universities that call the city home. and Archer Daniels Midland are just a few of the Fortune 500 companies based in the area. Motorola Solutions, Inc. intends to move their headquarters from Northwestern University is a large, private research university based in Schaumburg, IL to Chicago in the coming future. McDonald’s has become the Evanston with a comprehensive doctoral program. Attracting over $650 latest Fortune 500 company to establish its presence in Chicago as it is preparing million in sponsored research each year, Northwestern has the eighth largest to move its headquarters from Oak Brook, IL to the windy city by early 2018. university endowment in the country. As a multicultural city that thrives on the harmony and diversity of its neighborhoods, The University of Chicago is one of the world’s leading and most influential Chicago embodies the values of America’s heartland integrity. It is this level institutions of higher learning. Its main campus is located seven miles south of diversification that has resulted in Chicago being rated as having the most of downtown Chicago in the Hyde Park and Woodlawn neighborhoods. balanced economy in the United States. Additionally, its central location allows The University of Chicago has many prominent alumni, including 92 Nobel Chicago to be at the center of global trade, transit and data networks. laureates that have been affiliated with the university as professors, students, faculty or staff. 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 city, about 17 miles northwest of the Loop. and the “L” rapid transit system, which It is the primary airport of the Chicago provide service to Chicago and forty metropolitan area. As the fourth-busiest surrounding suburbs. On an average airport in the world by passenger traffic, weekday, CTA offers 1.7 million rides on O’Hare is a major hub for American buses and trains. As one of the city’s Airlines, United Airlines and Air Choice distinguishing features, the “L” has been One. With eight runways, more than any credited with fostering the growth of major international airport, O’Hare has Chicago’s dense city core. direct service to 210 destinations. MIDWAY INTERNATIONAL METRA AIRPORT Eight miles from the Loop on the Metra is the second-most used passenger southwest side of Chicago, Chicago regional rail network in the country, which Midway International Airport is the operates 241 station on 11 different rail second-largest passenger airport in lines. This commuter railroad services Chicagoland. Southwest Airlines is the passengers through stations throughout dominant carrier at Midway, offering the Chicago metropolitan area. Metra’s around 250 daily departures to sixty Electric Line shares its trackage with nonstop destinations. Passengers enjoy Northern Indiana Commuter easy access to downtown thanks to the Transportation