Chase Ground Lease Property
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Transcript of Chase Ground Lease Property
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NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING
Chase (Ground Lease)Chase (Ground Lease)Chase (Ground Lease)Chase (Ground Lease) 4001 1674001 1674001 1674001 167thththth StreetStreetStreetStreet
Country Club Hills, IL 60478Country Club Hills, IL 60478Country Club Hills, IL 60478Country Club Hills, IL 60478 (Chicago MSA)(Chicago MSA)(Chicago MSA)(Chicago MSA)
NET LEASED INVESTMENT OFFERING
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Confidentiality & Disclaimer
Executive Summary
Property Overview
Site Plan
Overall Site Plan
Map
Tenant Profile
Demographic Comparison Report
Location Overview
Contact Information
TABLE OF CONTENTS
TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS
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The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
CONFIDENTIALITY & DISCLAIMER
CONCONCONCONFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMER
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The Boulder Group is pleased to exclusively market for sale a single tenant Chase Bank ground lease located in the
Chicago MSA. The Chase Bank is located on a 2.07 acre parcel and was built in 2006 with a 30 year ground lease. The
property is located as an out parcel to a 24-hour Wal-Mart Supercenter anchored shopping center. Additionally, there are
215,631 people living within five miles of the property.
The property is located along 167th Street and benefits from its strategic location on the hard corner of a signalized
intersection. 167th Street experiences traffic volumes of 17,200 vehicles per day. Constant traffic is abundant due to the
draw of Country Club Hills Plaza; a Wal-Mart Supercenter anchored shopping center. 167th Street has a full access
interchange with Interstate 57 94,000 vehicles per day less than one-half mile from the property. Additionally the property
is located near Interstates 80 and 294 which experience traffic volumes in excess of 100,000 vehicles per day and
90,000 vehicles per day respectively.
Chase’s original ground lease term was for 30 years with four 5-year renewal options and the lease expires in October
2036. The net operating income increases by 10% every five years during the primary term and the option periods. Chase
is a publicly traded company on the New York Stock Exchange (JPM), with a market capitalization of $151 Billion. J.P.
Morgan Chase is an investment grade rated company with a Standard & Poor’s rating of A+.
• Located as an outparcel to a Wal-Mart Supercenter
• Located within the Chicago MSA
• Long term ground lease with 24 years remaining
• Investment grade rated company (Standard & Poor’s: A+)
• No landlord responsibilities
• Positioned on a hard corner of a signalized intersection
• 10% rental escalations every five years
• Nearby retailers include AMC Loews, Sprint Wireless, Guitar Center, and Payless Shoes
• Less than one-half mile from I-57 interchange (94,000 VPD)
• Close proximity to a planned 500,000 square foot outlet mall, convention center, and hotel development.
INVESTMENT HIGHLIGHTS
EXECUTIVE SUMMARY
EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY
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Price: $2,300,000
Cap Rate: 5.50%
Rent Schedule: NOI Escalation Date
$ 126,500
$ 139,150 10/12/2016
$ 153,065 10/12/2021
$ 168,372 10/12/2026
$ 185,209 10/12/2031
Renewal Options: Four 5-Year
Renewal Rate: 10% increase each option period
Lease Commencement Date: October 12, 2006
Lease Expiration Date: October 11, 2036
Tenant: Chase
Credit Rating: A+ (Standard and Poor’s)
Year Built 2006
Lease Type: Ground Lease - NNN
Rentable Square Feet: 4,342 SF
Land Size: 2.07 Acres
Purchase Option: Chase has the option to purchase the property at any time based on a 7% cap rate of the then current NOI. The seller will escrow the difference between the purchase price and Chase’s purchase option price at negotiated terms and release funds in the event Chase exercises their purchase option during the primary term.
PROPERTY OVERVIEW
PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW
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AERIALAERIALAERIALAERIAL
AERIAL
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SITE PLAN
SITE PLANSITE PLANSITE PLANSITE PLAN
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MAP
MAPMAPMAPMAP
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Website: www.chase.com
Number of Locations: 5,500
Stock Symbol: JPM : NYSE
Standard & Poor’s Rating: A+
Market Capitalization: $151 Billion
Chase Bank is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm J.P. Morgan Chase (NYSE: JPM). The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co in 2004. Now, J.P. Morgan Chase, through its Chase subsidiary, is one of the Big Four Banks of the United States with $2.3 Trillion in assets and $183 Billion in stockholder’s equity as of December 31, 2011. Chase has more than 5,500 branches nationwide (3rd largest nationally) and more than 17,200 ATMs (2nd largest nationally). On September 25th, 2008, J.P. Morgan Chase bought most banking operations of Washington Mutual from the receivership of the Federal Deposit Insurance Corporation (FDIC). In 2011, J.P. Morgan produced record net income of $2.4 Billion and grew total deposits 21% from the prior year to $1.1 Trillion. Currently J.P. Morgan & Chase & Co. is ranked 16thth on the Fortune 500.
TENANT PROFILE
TENANT PROFILETENANT PROFILETENANT PROFILETENANT PROFILE
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PopulationPopulationPopulationPopulation 3333----mi.mi.mi.mi. 5555----mimimimi 7777----mimimimi
Total Population 81,272 215,631 461,866 Total Households 27,926 76,145 161,636
IncomeIncomeIncomeIncome
Median Household Income $64,042 $63,456 $64,440 Average Household Income $71,224 $72,721 $73,732
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT
Country Club HillsCountry Club HillsCountry Club HillsCountry Club HillsChicago. Country Club Hills has a population of over 16,000. Country Club Hills Plaza was recently developed along 167anchored by the largest include Guitar Center, Radio Shack, Footlocker, Payless Shoes and GNC. Adjacent to the center is an AMC Loews Cineplex and Metro Self Storage. Country Club Hills has plans for a 500,000 square foot oretail stores, a 10,000 seat multihotel.
www.countryclubhills.org
The metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness.
www.cityofchicago.com
Chicago Chicago Chicago Chicago is the most
populous city in the United States with 2,700,000 residents. Chicago is the county
seat of Cook County, the second largest county in the United States. The Chicago MSA
is the third most popul
residents. The MSA covers over 1,300 square miles and six counties. The Chicago
metropolitan area is home to the corporate headquarters of 57 Fortune 1000
companies, including Boeing, McDonald's, M
United Airlines. Chicago is a major hub for industry, telecommunications and
infrastructure and O'Hare International Airport is the second busiest airport in the
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LOCATION OVERVIEW
LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW
Country Club HillsCountry Club HillsCountry Club HillsCountry Club Hills is a located in Cook County, Illinois, 25 miles south of Downtown Chicago. Country Club Hills has a population of over 16,000. Country Club Hills Plaza was recently developed along 167th Street in Country Club Hills. The center is anchored by the largest Wal-Mart Supercenter in the Chicago MSA. Other retailers include Guitar Center, Radio Shack, Footlocker, Payless Shoes and GNC. Adjacent to the center is an AMC Loews Cineplex and Metro Self Storage. Country Club Hills has plans for a 500,000 square foot outlet center to be developed. The center will include retail stores, a 10,000 seat multi-purpose convention arena, and a water park resort
www.countryclubhills.org
The metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the
enters based on people, business environment, market access, infrastructure and
is the most populous city in the Midwestern United States and the third most
populous city in the United States with 2,700,000 residents. Chicago is the county
seat of Cook County, the second largest county in the United States. The Chicago MSA
is the third most populated metropolitan area in the United States with 9,580,567
residents. The MSA covers over 1,300 square miles and six counties. The Chicago
metropolitan area is home to the corporate headquarters of 57 Fortune 1000
companies, including Boeing, McDonald's, Motorola, Discover Financial Services and
United Airlines. Chicago is a major hub for industry, telecommunications and
infrastructure and O'Hare International Airport is the second busiest airport in the
LOCATION OVERVIEW
is a located in Cook County, Illinois, 25 miles south of Downtown Chicago. Country Club Hills has a population of over 16,000. Country Club Hills Plaza
Street in Country Club Hills. The center is Mart Supercenter in the Chicago MSA. Other retailers
include Guitar Center, Radio Shack, Footlocker, Payless Shoes and GNC. Adjacent to the center is an AMC Loews Cineplex and Metro Self Storage. Country Club Hills has
utlet center to be developed. The center will include purpose convention arena, and a water park resort
The metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the
enters based on people, business environment, market access, infrastructure and
populous city in the Midwestern United States and the third most
populous city in the United States with 2,700,000 residents. Chicago is the county
seat of Cook County, the second largest county in the United States. The Chicago MSA
ated metropolitan area in the United States with 9,580,567
residents. The MSA covers over 1,300 square miles and six counties. The Chicago
metropolitan area is home to the corporate headquarters of 57 Fortune 1000
otorola, Discover Financial Services and
United Airlines. Chicago is a major hub for industry, telecommunications and
infrastructure and O'Hare International Airport is the second busiest airport in the
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666 Dundee Road Suite 1801 Northbrook, IL 60062
Randy Blankstein President 847.562.0003 [email protected]
Jimmy Goodman Partner 847.562.8500 [email protected]
CONTACT INFORMATION
CONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATION