FOR SALE WESTCHESTER, IL
• Attractive In-Place Lease Economics • Investment Grade Tenancy with Value Add Component • Continued Tenant Commitment to the Location • Affluent Chicagoland MSA Demographic Base • 55,000 Vehicle Per Day Intersection 2121 • Large 2.00 Acre Land Parcel SOUTH MANNHEIM ROAD Alex Sharrin Vice President, Capital Markets +1 (312) 228-3197 [email protected]
Krupa Shah 2121 Senior Vice President, Capital Markets SOUTH MANNHEIM ROAD +1 (312) 228-2200 [email protected]
Deanna Becker Senior Associate TABLE OF +1 312 228 2578 [email protected] CONTENTS Investment overview 4
Building photos 6
Property overview 8
Financial overview 12
Market overview 14
Transaction guidelines 16
DISCLAIMER The material in this Offering Memorandum is confidential, furnished solely for the purpose of considering the “AS IS” acquisition of 2121 S. Mannheim Rd in Westchester, IL (the “Property”). The information is not to be used for any other purpose or to be made available to any other person without the express written consent of Agent on behalf of Owner. The material is based, in part, upon information supplied by Owner and, in part, upon information obtained by Agent from sources they deem to be reliable. Summaries contained herein of any legal documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. No warranty or representation, expressed or implied, is made by Owner, Agent or any of their respective related agents or entities as to the accuracy or completeness of the information contained herein. Prospective investors should make their own investigations, projections and conclusions regarding the Property. It is expected that prospective investors will conduct their own independent due diligence concerning the Property, including such engineering and environmental inspections as they deem necessary to determine the condition of the Property and the existence or absence of any potentially hazardous materials used in the construction or maintenance of the Property. No representations, expressed or implied, are made as to the foregoing matters by the Owner, Agent or any of their respective officers, employees, affiliates and/or agents. INVESTMENT 2121 OVERVIEW SOUTH MANNHEIM ROAD
INTRODUCTION JLL, as exclusive advisor, is pleased to present the opportunity to acquire 2121 S. Mannheim Road in Westchester, IL (the “Property”), an 18,340 square foot, two- story office asset located in affluent Western suburbs of Chicago. The Property is currently anchored by credit tenant PNC Bank and strategically situated near the busy intersection of Mannheim Road and Cermak Road. 2121 LEASE ABSTRACT SOUTH MANNHEIM ROAD
Lessee PNC Bank
Lease Type Triple Net
Lease SF Approximately 5,200 USF on the 1st floor
Landlord to be responsible for general maintenance and repair of the Building, Common Areas Landlord Responsibilities and parking lot (including snow removal and landscaping) Tenant responsible for its pro rata share of Taxes and Taxes and CAM CAM.
Lease Term Ten (10) years
Initial Rent $18.00/ SF Net
Escalations 10% in Year 5
Renewal Options Two (2), five (5) year renewal options
Lease Renewal Notification Period Nine (9) months
Cannot sublease or assign without Landlord’s prior Assignment/Subletting Language consent, not to be unreasonably withheld or delayed, except in the case of a Permitted Transfer.
4 CONFIDENTIAL OFFERING MEMORANDUM CONFIDENTIAL OFFERING MEMORANDUM 5 BUILDING 2121 PHOTOS SOUTH MANNHEIM ROAD
6 CONFIDENTIAL OFFERING MEMORANDUM CONFIDENTIAL OFFERING MEMORANDUM 7 PROPERTY 2121 OVERVIEW SOUTH MANNHEIM ROAD
OCCUPANCY
SPACE TYPE P.S.F. TOTAL % OF TOTAL
FIRST FLOOR 9,362 51.0%
SECOND FLOOR OFFICE 8,978 49.0%
TOTAL LEASABLE AREA 18,340 100.0%
(FINISHED BASEMENT) 9,181 (excluded from leasable area)
GROSS BUILDING AREA 27,521 - AVAILABLE FOR LEASE
Floor 1 | 9,362 SF PNC to lease back approximately 5,200 s.f. for retail bank branch.
BA floor | 9,181 SF Floor 2 | 8,978 SF Includes ample storage, break room, two Fully furnished former contact center with training rooms and all building mechanicals. 135 cubes.
8 CONFIDENTIAL OFFERING MEMORANDUM CONFIDENTIAL OFFERING MEMORANDUM 9 PROPERTY MANNHEIM RD OVERVIEW SITE PLAN
Parcel | +/- 86,357 SF / 1.98 acres
PROPERTY OVERVIEW
2121 S. Mannheim Road, ADDRESS Westchester, IL 2121 SOUTH MANNHEIM ROAD TENANT (CREDIT) S&P – ‘A-‘ ; Moody’s – “A3” +/- 20,000 SF
YEAR BUILT TBD RD CRESTWOOD
18,340 SF plus 9,181 SF SQUARE FOOTAGE finished lower level
PARCEL SIZE 1.98 Acres / 86,357 SF
More than 100 surface PARKING parking spaces available
PNC will leaseback 5,200 SF OCCUPANCY on the 1st floor; balance of building is vacant • More than 100 surface parking spaces available
• Entrances off Mannheim Road and Crestwood Drive
10 CONFIDENTIAL OFFERING MEMORANDUM FINANCIALTENANT 2121 OVERVIEW SOUTH MANNHEIM ROAD
COMPANY OVERVIEW ACCOLADES
NYSE Ticker Symbol PNC ACCOLADE PUBLICATION
Company PNC Financial Services Group, Inc. Most Admired Companies | High-Performance Franchise Fortune FORTUNE (2015) Credit Rating S&P: ‘A-’ / Moody’s: ‘A3’ Fortune 200 Company | High-Performance Franchise Fortune FORTUNE Headquarters Pittsburgh, Pennsylvania (2015) Great Workplace Award for Employee Engagement | Gallup Employees Approx. 52,000 GALLUP (2015) Deposits (6/30/18) $264.9 billion Top 50 Companies for Executive Women | National Association NAFE Assets (6/30/18) $380.7 billion for Female Executives (2015) Top Veteran Friendly Companies | U.S. Veterans Magazine (2014) U.S. VETERANS MAGAZINE Revenue (TTM 6/30/18) $16.4 billion
Net Income (TTM 6/30/18) $5.8 billion (35.2% margin) Diversity Leader Award | Profiles in Diversity Journal (2015) PROFILES IN DIVERSITY JOURNAL
Total Retail Branches Approx. 2,600 (across 19 states)
Industry Financial Services
Founded 1845
Company Website www.PNC.com
Based in Pittsburgh, Pennsylvania, PNC Bank (“PNC” or the “Company”) is the fifth largest bank in the United States by total branches, sixth largest by deposits, and ninth largest by total assets. PNC’s major divisions include retail banking, an asset management group, corporate and institutional banking, and residential mortgage banking. The Company boasts more than 2,600 branches with over 9,000 ATMs across 19 states.
PNC’s clients include more than two-thirds of FORTUNE 500 companies as well as thousands of real estate, utilities, healthcare, government, higher education, and not-for-profit entities. PNC Bank has seen notable asset growth over the years. Since 2012, the Company’s assets have grown by nearly 16.5%, and this growth has largely been spread evenly in the last three years.
12 CONFIDENTIAL OFFERING MEMORANDUM CONFIDENTIAL OFFERING MEMORANDUM 13 MARKET 2121 OVERVIEW SOUTH MANNHEIM ROAD
HILLSIDE TOWN CENTER
DEMOS *All numbers are taken from ESRI
AVERAGE ESTIMATED HOUSEHOLD POPULATION INCOME The branch is located approximately 14 miles ROOSEVELT RD 27,100 CPD directly west of Downtown Chicago just south 28,700 CPD
of Interstate 290. The Property is conveniently MANNHEIM RD 28,600 CPD 1 MILES situated in downtown Westchester on a major 13,536 $85.529 local area thoroughfare, Mannheim Road (28,600 VPD). 3 MILES 121,979 $95.272 Expanding on Westchester’s economy and employment, the village is home to the 5 MILES 363,896 $103.252 Westbrook Corporate Center, located on Wolf Road and Cermak Road. Constructed in 1986 12 and renovated in 1996, the complex consists 13,400 CPD 17TH AVE of five ten-story towers encompassing more 20 than one million square feet of office space. The corporate center is home to tenants such as Ingredion, Follett Corporation, and Regus. 45 Other than the Westbrook Corporate Center, Westchester is also home to companies such as G4S Secure Solutions Inc, Sogeti, CommScope Corporation, Yellow Book, Revenue Cycle Solutions, and Healthcare Financial
Management Association. 2121 SOUTH MANNHEIM ROAD
Additionally, Westchester has developed into a beautiful town to reside in with above average household incomes. There is a total of 142,707 households in the area with a median age of 39 demonstrating broad appeal to young, affluent families being priced out of the city.
26,600 CPD CERMARK RD 32,700 CPD 35,200 CPD 10,900 CPD
EDEN LANES BOWLING ALLEY
14 15 TRANSACTION 2121 GUIDELINES SOUTH MANNHEIM ROAD
The offering of 2121 S. Mannheim Road (the “Property”) is being distributed exclusively by Jones Lang Other key Transaction Guidelines include • A list of any contingencies, including committee LaSalle to a select group of prequalified investors. As laid out in the Executive Summary, Ownership is the following: approvals, required to close the transaction requesting offers under the following structure: • Jones Lang LaSalle will be available to assist • Confirmation Buyer accepts a deed restriction, PNC Bank will lease a portion of the 1st floor (approximately 5,200 USF total) back from buyer for ten (10) years prospective investors to arrange on-site inspections restricting occupancy and use of the Property as from the date of closing at a rental rate of $18.00/ SF Net with a 10% increase in Year 5. PNC Bank requires two and to answer any questions related to information a financial services organization.The restriction (2), five (5) year options to renew the lease following the initial 10-year term. contained in this Offering Memorandum. will apply for 5 years following PNC’s occupancy • Jones Lang LaSalle reserves the right to at the Property. accept a preemptive offer at any point in the • Confirmation the Property is being sold “as-is, marketing process. where-is”. The prospective investor will be selected by Owner in its sole and absolute discretion • All offers must be presented in writing and be • Confirmation the Buyer will be responsible for all based on a variety of factors including, but not limited to: net of all seller closing costs. transfer taxes and recording fees at closing. Real All offers must include the following: estate taxes shall be prorated as of the date • The price of Settlement. The Property is being offered with an asking price • The source of purchaser’s capital (including equity that is negotiable. Buyers will be invited to submit Offer price and debt) and proof of funds offers by a bid deadline which will be communicated • The amount of earnest money deposit (which will to qualified investors. become non-refundable following due The Property will be conveyed free and clear of Financial strength diligence period) any existing debt financing. Owner and Jones Lang • An outline of the proposed schedule for due LaSalle reserve the right to alter the Transaction diligence and closing Guidelines in their sole discretion. Level of discretion to invest funds • A description of any physical or environmental assumption which affect the price being offered Ability to close in a timely fashion
Experience in closing similar transactions
Absence of contingencies FACTORS
Acceptance of lease and contract terms
Level of Property due diligence completed
Thoroughness of Property underwriting
16 CONFIDENTIAL OFFERING MEMORANDUM CONFIDENTIAL OFFERING MEMORANDUM 17 2121 SOUTH MANNHEIM ROAD
Alex Sharrin Vice President, Capital Markets +1 (312) 228-3197 [email protected]
Krupa Shah Senior Vice President, Capital Markets +1 (312) 228-2200 [email protected]
Deanna Becker Senior Associate +1 312 228 2578 [email protected]