™ PROPERTY RENDERING – UNDER CONSTRUCTION OFFERING MEMORANDUM PHYSICIANS IMMEDIATE CARE & UNITED DENTAL PARTNERS BERWYN (CHICAGO), IL $4,124,000 6.35% 6,258 2020 NEW 15 YEAR & 10 YEAR LEASES LIST PRICE CAP RATE GLA YEAR BUILT LEASE TERM 1 | CONTENTS PROPERTY RENDERING – UNDER CONSTRUCTION 04 EXECUTIVE OVERVIEW 06 FINANCIAL OVERVIEW 08 AREA OVERVIEW LISTED BY: RAHUL CHHAJED Associate Vice President & Director D: (949) 432-4513 M: (818) 434-1106 E: [email protected] License No. 01986299 (CA) W. CERMAK RD MICHAEL MORENO ±31,000 VPD Associate Vice President & Director D: (949) 432-4511 M: (818) 522-4497 E: [email protected] License No. 01982943 (CA) BROKER OF RECORD KYLE MATTHEWS License No. 471019766 (IL) OAK PARK AVE 2 EXECUTIVE SECTION OVERVIEW 01 W. CERMAK RD ±31,000 VPD OAK PARK AVE PROPERTY RENDERING – UNDER CONSTRUCTION 3 PROPERTY ADDRESS LIST PRICE GROSS LEASABLE AREA YEAR 1 NOI CAP RATE LEASE TERM 2201 South Oak Park Road $4,124,000 ± 6,258 SF $261,815.40 6.35% NEW 15 YEAR & 10 YEAR LEASE Berwyn, IL 60402 LOCATION HIGHLIGHTS PROPERTY & LEASE DETAILS • Heavy Population Density - The 1, 3, and 5-mile population numbers are 45,667; 244,022; • Brand New High-Quality Construction - Physicians Immediate Care & United 667,311. Chicago is the 3rd most populous city in the United States Dental Partners will open their doors for business in Q4 of 2020 in newly constructed buildings • Affluent Income Levels - The surrounding market is affluent with income levels well above the national average at approximately $68,449, $74,429, and $73,810 in the 1, 3, and 5-mile radii • Inflation-Protected Lease Structures - Physicians Immediate Care will feature rental increases of 10% every 5 years and United Dental Partners will feature rental • Corner Lot Access & Strong Visibility - This easily accessible property experiences great visibility increases of 3% annually commencing year 6, providing an owner with a safeguard which is crucial for a walk-in clinic and dental office; this is absolutely ideal from a viability against inflation standpoint as a huge driver of success for an outpatient facility that relies on brand awareness and walk-in business • High Yield Investment - The subject offering is being offered at a 6.35% cap rate, which is rare for a brand new deal featuring long-term leases from premier medical • High Traffic Counts - The corner of Cermak Road and Oak Park Avenue benefits from stellar traffic tenants, especially in a core suburban market counts with Cermak experiencing over 31,000 vehicles per day and Oak Park seeing over 12,000 vehicles per day • Strong Guarantors - Both Physicians Immediate Care (Joint Venture with Presence Health) and United Dental Partners boast strong guarantor positions that offer • Close Proximity to Massive Numbers of Retailers - This property sits just down the street safety and peace of mind to an investor. See broker for details. from the North Riverside Park Mall which harbors over 1M square feet alone. Additionally, it is surrounded by various national retailers in numerous multi-tenant centers and freestanding • Long-Term Net Leases - Physicians Immediate Care and United Dental Partners locations such as Jewel-Osco, Michael’s, PetCo, Costco, Walmart, Aldi, Kohl’s, Office Depot, and are both respectively on brand new 15 year and 10.5-year primary terms, ideal for hundreds of others an exchange investor looking for a “coupon-clipper” investment. • Near Loyola University Health System - The subject asset is located just east of the Loyola • Passive Ownership / Minimal Responsibilities - Both leases are landlord-friendly University Medical Center, the main medical center for the Loyola University Health System. and come with virtually zero responsibilities except for roof/structure duties. Given Loyola University Medical Center has ranked as a top 5 hospital each year since U.S. News & World that these are brand new builds, an investor can find comfort in knowing that Report started rankings in 2013. Also on campus are Cardinal Bernardin Cancer Center, Edward there likely will be relatively low roof/structure work required in many years to Hines Jr. VA Hospital, and various Loyola outpatient centers. come. TENANT/PRODUCT TYPE • Presence Health & Physicians Immediate Care Joint Venture - Physicians Immediate Care, a Midwest leader in urgent care and occupational health services, partnered up with Presence Health, the state’s largest Catholic health system at the time (12 hospitals), in 2015 to dominate the Chicago market and position themselves to benefit from patients looking to visit a hospital affiliated, many times in-network facility. • United Dental Partners - UDP is a premier dental operator that offers general dentistry, orthodontic, and oral surgery services to patients in Illinois and Indiana • Medical Tenancy - Healthcare real estate assets are extremely sought-after investments given their low susceptibility to the rise of e-commerce and being more “need-based” SURROUNDING TENANTS W. CERMAK RD ± 31,000 VPD NORTH RIVERSIDE PARK MALL SUBJECT PROPERTY OAK PARK AVE ± 12,000 VPD S. HARLEM RD ± 32,000 VPD 5 PROPERTY RENDERING – UNDER CONSTRUCTION FINANCIAL SECTION OVERVIEW 02 OAK PARK AVE W. CERMAK RD ±31,000 VPD 6 PROPERTY SUMMARY - PROPERTY SUMMARY - PRESENCE PHYSICIANS IMMEDIATE CARE UNITED DENTAL PARTNERS Tenant Presence Physicians Immediate Care Tenant United Dental Partners Lease Guarantor Corporate (See broker for details) Lease Guarantor Corporate (See broker for details) Lease Commencement 11/1/2020* Lease Commencement 11/1/2020* Lease Expiration 10/31/2035* Lease Expiration 4/30/2031* Original Lease Term 15 Years Original Lease Term 10 Years & 5 Years Lease Term Remaining ±15 Years Lease Term Remaining ± 10 Years & ±5 Years Option Periods Two (2), Five (5) Year Options Option Periods Three (3), Five (5) Year Options Rental Increases 10% Every 5 Years Rental Increases 3% Annual Commencing Year 6 GLA ±4,158 SF GLA 2,100 Lot Size ±0.836 Acres (±36,413 SF) Lot Size ±0.836 Acres (±36,413 SF) Percentage of GLA 66.44% Percentage of GLA 33.56% Management Tenant Reimburses Management Tenant Reimburses Maintenance Tenant Responsible Maintenance Tenant Responsible Roof/Structure Responsibility Landlord Responsible Roof/Structure Responsibility Landlord Responsible (Tenant Reimburses) Insurance Tenant Responsible Insurance Tenant Responsible Real Estate Taxes Tenant Responsible Real Estate Taxes Tenant Responsible HVAC Tenant Responsible HVAC Tenant Responsible Utilities Tenant Responsible Utilities Tenant Responsible Estoppel Certificate 10 Days Estoppel Certificate 10 Days ANNUALIZED OPERATING DATA LEASE LEASE LEAS TERM % OF ANNUAL MONTHLY ANNUAL MONTHLY RENTAL TENANT GLA OPTIONS START EXPIRATION REMAINING GLA RENTAL RATE RENTAL RATE RENT/SF RENT/SF INCREASES Presence Physicians Two (2), Five (5) 11/1/2020* 10/31/2035* 15 Years 4,158 66.44% $192,515.40 $16,042.95 $46.30/SF $3.86/SF 10% Every 5 Years Immediate Care Year Options 10 Years & 5 Three (3), Five 3% Annual United Dental Partners 11/1/2020* 4/30/2031* 2,100 33.56% $69,300.00 $5,775.00 $33.00/SF $2.75/SF Months (5) Year Options Commencing Year 6 *Currently under construction - lease start is a best estimate and is subject to change DEBT QUOTE Please contact a Barrington Capital agent for financing options: Kevin Puder (562) 841-1789 [email protected] 7 AREA SECTION OVERVIEW 04 BERWYN, IL DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile 2025 Projection 41,880 252,264 673,224 2020 Estimate 42,516 255,181 681,259 2010 Census 44,046 261,517 700,289 Households 1 Mile 3 Mile 5 Mile 2025 Projection 13,338 89,818 226,756 2020 Estimate 13,537 90,470 228,280 2010 Census 14,021 91,586 230,943 Income 1 Mile 3 Mile 5 Mile Average HH Income $81,270 $85,400 $80,905 8 CHICAGO 4 0 0 N . L A K E S H O R E D R 7 2 5 W . R A N D O L P H S T GDP OF 670.5 BILLION W O L F P O I N T W E S T HUB FOR FINANCE, CULTURE, COMMERCE, INDUSTRIAL, HEADQUARTERS EDUCATION, TECHNOLOGY, TELECOMMUNICATIONS, & TRANSPORTATION POPULATION OF 2.7 MILLION H O M E I N S U R A N C E T R U M P B U I L D I N G M E R C H A N D I S E T O W E R S M A R T DEMOGRAPHICS SOUTHBRIDGE LEGEND MIXED-USE DEVELOPMENT ATTRACTION LAKE MICHIGAN EDUCATION HOSPITAL CORPORATION AIR TRAVEL 9 CHICAGO, IL Situated on the southwestern shore of Lake Michigan. Chicagoland is an informal name for the metropolitan area associated with the city of Chicago and its suburbs and has no official definition. 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. • 2,716,450 RESIDENTS • 77 COMMUNITY AREAS • 100 NEIGHBORHOODS • 8 MAJOR LEAGUE SPORTS TEAMS (2 MLB TEAMS) 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 headquarters, including 31 in the Fortune 500. Boeing, United Continental Holdings, universities inside its city limits. Most notably, Northwestern University and the Inc., Exelon Corporation, R. R. Donnelley & Songs Company, and Archer Daniels Midland University of Chicago are two top universities that call the city home.