2266 South 13th Street Milwaukee, Wisconsin Offered at $1,375,000 | 8.00% Cap Introduction CBRE, on behalf of Ownership as its exclusive advisor, is pleased to offer for sale the fee-simple interest in the BMO Harris Bank branch located at 2266 South 13th Street in Milwaukee, Wisconsin (the "Property"). The Property is 100% absolute net-leased to BMO Harris Bank N.A. (“BMO” or “Tenant”), the 21st largest financial institution in the United States with over $82 billion in total deposits and Wisconsin’s second largest bank by deposit base. The Tenant holds an investment grade credit rating (S&P: “A+”) and is the United States operating arm and subsidiary of the Bank of Montreal, a diversified financial services provider with total assets of nearly $523 billion USD. 1 BMO Harris Bank: Milwaukee, Wisconsin Introduction The Offering Located at the hard corner of West Lincoln Avenue and South 13th Street in Milwaukee, Property Highlights Wisconsin, the Property is situated in a primary BMO market as evidenced by the Tenant's new $77 million BMO Tower HQ located just 3.5 miles northwest: https://bmotower.com/ Premier BMO Harris Bank Market The Property totals 7,122 square feet of prime urban real estate surrounded by dense residential Absolute Net Lease Structure communities. The branch was built in 1996 and is situated on a large 1.00 acre site with 36 parking 1.50% Annual Escalations spaces. The branch has a $27 million deposit base and is subject to an absolute net lease to BMO Harris Bank N.A. for a primary lease term of 10 years with approximately 7.2 years remaining (as A+ / Aa3 / AA- (S&P / Moody's / Fitch) of 9/2019). In addition to no landlord obligations, the lease is subject to 1.50% annual escalations Substantial 45% Market Share and includes eight, five-year renewal options with fixed rents through the 20th lease year. 8 x 5-Year Renewal Options The lease includes a one-time termination option that would be effective November 30, 2023. The Property has a current annual net rent of $110,059, which equates to an attractive net rental rate of Free & Clear of Financing $15.45 per square foot. The rent will escalate by 1.50% on November 1st, 2019. Investment Highlights LEADING NORTH AMERICAN FINANCIAL INSTITUTION BMO is the United States’ 21st largest bank by deposit base with over $82 billion in domestic deposits and over 1,500 bank branches in the United States and Canada. The Tenant is the United States operating arm and subsidiary of the BMO Financial Group, a diversified financial services provider headquartered in Toronto, Canada. BMO Harris Bank N.A. is well-regarded by all major rating agencies and currently holds “A+”, “Aa3”, and “AA-” credit ratings from S&P, Moody’s, and Fitch, respectively. TOP PERFORMING BANK BRANCH BMO is the 2nd largest bank in Wisconsin with $18.3 billion in statewide deposits. This urban Milwaukee branch has a deposit base of more than $27 million and an impressive market share of 45% within a 1-mile radius. ABSOLUTE NET LEASE STRUCTURE & ANNUAL ESCALATIONS The Property feature an absolute net lease where the Tenant pays all costs and expenses, and there are no landlord obligations for roof, structure, or mechanical systems. The initial lease term and first two renewal options feature attractive 1.50% annual escalations. SUBSTANTIAL SURROUNDING POPULATION The Property is situated in an urban Milwaukee neighborhood with over 43,000 residents living within one mile of the branch. The surrounding area within three miles is home to a population base with an average annual household income of just over $54,000. When expanding the radius to five miles, the population jumps to more than 425,000 and the average annual household income is nearly $58,000. 2 BMO Harris Bank: Milwaukee, Wisconsin Property Overview The branch is situated within a dense urban community approximately three PRICING & LEASE SUMMARY miles from downtown Milwaukee and less than one mile from Interstate 94. Price: $1,375,000 The Property boasts a prominent hard corner site surrounded by numerous Cap Rate: 8.00% shops, restaurants, a Walgreens, schools, and multiple grocery stores. The Annual Net Rent / PSF: $110,059 / $15.45 land site includes substantial parking areas in addition to three drive-thru Escalations: 1.50% Annual banking lanes and one drive-up ATM. Once inside, the building features an Lease Expiration / Remaining Term: 11/30/2026 / 7.2 Years atrium banking hall, mezzanine level, and full basement with restrooms Initial Lease Term: 10 Years and conference rooms. Of note, BMO only pays rent on above grade space. Cancellation Option: After 7th Lease Year (Effective 11/30/2023) BANK PERFORMANCE METRICS Deposits: $27,213,000 Market Share (1-Mile): 44.6% PROPERTY INFORMATION ATM Address: 2266 South 13th Street Milwaukee, Wisconsin RSF (Above Ground): 7,122 Floors: Ground Floor + Mezzanine + Basement Year Built: 1996 Site Size / Hard Corner: 1.00 Acres / Yes Parking Spaces: 36 Drive-Thru Banking (Lanes / ATMs): 3 / 1 DEMOGRAPHIC PROFILE RADIUS 1-MILE 3-MILE 5-MILE Population: 43,754 188,871 425,178 Households: 12,381 68,699 172,367 Median HH Income: $31,106 $39,441 $42,302 Average HH Income: $41,087 $54,570 $58,383 Average Daily Traffic Count: 15,600 3 BMO Harris Bank: Milwaukee, Wisconsin 4 BMO Harris Bank: Milwaukee, Wisconsin Tenant Overview Established as Harris Bank in 1882, BMO Harris Bank is the United BMO FINANCIAL GROUP QUICK FACTS States operating arm and subsidiary of the Bank of Montreal (“BMO NYSE Ticker Symbol BMO Financial Group”), a diversified financial services provider. With total Headquarters Toronto, Canada assets of $522.8 billion and over 45,000 employees, BMO Financial Employees 45,200+ Group provides a broad range of retail banking, wealth management, Assets $522.8 Billion (10/31/16) and investment banking products and services to more than 12 million Net Income $3.5 Billion (10/31/16) customers. BMO Financial Group through its two largest subsidiaries – Market Cap $55.1 Billion (10/31/16) BMO Harris Bank and BMO Bank of Montreal – mainly operates in the Credit Rating Aa3 / A+ / AA- (Moody’s / S&P / Fitch) United States and Canada. Well regarded by all major rating agencies, Total Retail Branches 1,520+ BMO Harris Bank holds investment grade ratings of “A+”, “Aa3”, and “AA-” Total ATM / ABM 4,500+ by S&P, Moody’s, and Fitch, respectively. Headquartered in Chicago, BMO Harris Bank is one of the largest BMO HARRIS BANK QUICK FACTS banks in the Midwest, Chicago’s second largest bank by market share Headquarters Chicago, IL after JPMorgan Chase, and serves more than two million customers Parent Company Bank of Montreal, d.b.a. BMO Financial Group throughout the United States. The financial institution provides a broad Employees 14,200+ range of personal banking products and solutions with more than 14,000 Credit Rating A+ / Aa3 / AA- (S&P / Moody’s / Fitch) employees, over 600 branches, and approximately 1,300 ATMs in Illinois, Total Retail Branches ~600 Arizona, Wisconsin, Indiana, Kansas, Missouri, Minnesota, and Florida. Total ATMs 1,300+ BMO Bank of Montreal Overview In Canada, BMO Bank of Montreal provides financial services and products ranging from personal banking and wealth management to investment banking. It conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management, and BMO Capital Markets. The bank has more than eight million customers with access to over 900 bank branches and approximately 3,400 ABMs across Canada. TOP 25 COMMERCIAL BANKS AND SAVINGS INSTITUTIONS BY TOTAL DOMESTIC DEPOSITS INSTITUTION NO. OF OFFICES TOTAL DEPOSITS ($000) 1 Bank of America, National Association 4,753 $1,204,485,508 2 JPMorgan Chase Bank, National Association 5,413 $1,155,185,018 3 Wells Fargo Bank, National Association 6,214 $1,145,337,000 4 Citibank, National Association 756 $493,074,000 5 U.S. Bank National Association 3,222 $298,344,516 6 PNC Bank, National Association 2,687 $248,501,083 7 TD Bank, National Association 1,287 $214,486,461 8 Capital One, National Association 810 $207,791,098 9 Branch Banking and Trust Company 2,252 $166,995,354 10 SunTrust Bank 1,425 $155,354,194 11 The Bank of New York Mellon 7 $138,076,000 12 Charles Schwab Bank 2 $137,350,000 13 HSBC Bank USA, National Association 229 $136,076,912 14 Morgan Stanley Bank, National Association 1 $117,073,000 15 Goldman Sachs Bank USA 4 $113,714,000 16 Fifth Third Bank 1,208 $104,211,456 17 Regions Bank 1,599 $99,120,219 18 Manufacturers and Traders Trust Company 839 $95,500,937 19 State Street Bank and Trust Company 1 $93,406,425 20 MUFG Union Bank, National Association 362 $83,063,661 21 BMO Harris Bank National Association 599 $82,315,416 22 KeyBank National Association 961 $78,239,739 23 Citizens Bank, National Association 851 $77,711,847 24 Ally Bank 1 $75,668,198 25 Compass Bank 671 $67,930,826 Source: FDIC as of June 30, 2016 5 BMO Harris Bank: Milwaukee, Wisconsin New BMO Tower Located in Downtown Milwaukee, Currently Under Construction and Expected to Open 2019 WISCONSIN MARKET SHARE ORDERED BY DEPOSITS RANK INSTITUTION AREA BRANCHES 2016 TOTAL DEPOSITS IN MARKET ($000) 2016 TOTAL MARKET SHARE 1 U.S. Bank National Association 137 $29,755,507 20.7% 2 BMO Harris Bank National Association 209 $18,273,176 12.7% 3 Associated Bank, National Association 165 $13,686,052 9.5% 4 JPMorgan Chase Bank, National Association 74 $9,410,758 6.6% 5 Wells Fargo Bank, National Association 55 $4,867,759 3.4% 6 Johnson Bank 38 $3,275,588 2.3% 7 Nicolet National Bank 41 $1,872,081 1.3% 8 Bank Mutual 64 $1,868,876 1.3% 9 Old National Bank 45 $1,827,614 1.3% 10 Town Bank 20 $1,582,661 1.1% 11 PNC Bank, National Association 33 $1,476,167 1.0% 12 North Shore Bank, FSB 46 $1,423,074 1.0% 13 Tri City National Bank 38 $1,163,856 0.8% 14 First Business Bank 1 $1,104,999 0.8% 15 Firstmerit Bank, National Association 43 $1,089,806 0.8% Source: FDIC as of June 30, 2016 6 CONTACT INFORMATION PRIMARY SALES CONTACT BROKER OF RECORD Maury Vanden Eykel Bill Bonifas Senior Director Executive Vice President +1 312 297 7634 +1 414 274 1606 [email protected] [email protected] Affiliated Business Disclosure and Confidentiality Agreement © 2018 CBRE, Inc.