OFFERING MEMORANDUM Dunkin’ Donuts Center

5414 Grand Avenue | Gurnee, ILDunkin’ Donuts CenterOFFERING MEMORANDUM

Dunkin’ Donuts Center • Gurnee, IL 2 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Ref-erences to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved. Activity ID:

CONFIDENTIALITY AND DISCLAIMER

Offered Exclusively byThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupan-cy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

NON-ENDORSEMENT NOTICEMarcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee iden-tified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affili-ates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Marcus & Millichap1 Mid America Plaza #200Oakbrook Terrace, IL 60181P: +1 630-570-2200

Steven WeinstockM&M REISOut of State BrokerOak Brook Terrace, IL 60181Tel: 6305702250License: 471.011175

Broker of Record:

Dominic SuloVice President InvestmentsCHICAGO OAKBROOKTel: (630) 570-2171Fax: (630) [email protected] License: IL 475.134920

Sean Sharko First Vice President InvestmentsCHICAGO OAKBROOKTel: (630) 570-2238Fax: (630) [email protected] License: IL 471.010712 WI 75784-94

Austin WeisenbeckFirst Vice President InvestmentsCHICAGO OAKBROOKTel: (630) 570-2169Fax: (630) [email protected] License: IL 475.140200 WI 76206-94


THE OFFERING

DUNKIN’ DONUTS CENTER5414 Grand AvenueGurnee, IL 60031

FINANCIAL SUMMARYPrice $1,950,000

Down Payment 100% / $1,950,000

Cap Rate 7.29%

Building Sq Ft 6,217 Sq Ft

Net Operating Income $142,086

Year Built 2003

Lot Size +/- 0.79 Acres

Income Per Sq/Ft

Base Rent

Occupied Space $167,998 $27.02

Gross Potential Rent $167,998 $27.02

Expense Reimbursements

Real Estate Taxes $19,025 $3.06

Insurance $2,640 $0.42

CAM $10,018 $1.61

Total Expense Reimbursements $31,683 $5.10

Gross Potential Income $199,681 $32.12

Effective Gross Income $193,691 $31.16

Vacancy/Collection Allowance (3% OF GPI) $5,990 $0.96

Expenses



CAM $16,317 $2.62

Total Expenses $51,605 $8.30

Net Operating Income $142,086 $22.85


EXPENSES

Income Per Sq/Ft

CAM

Utilities $9,427 $1.52

Repairs & Maintenance $3,000 $0.48

Landscaping/Snow Plowing $3,890 $0.63

TOTAL CAM $16,317 $2.62



Total Expenses $51,605 $8.30


RENT ROLL

Rent ScheduleTenant GLA % of GLA Rent Comm. Lease Exp. Annual Rent Rent/SF Options Changes On Changes To Lease Type

Biryani Point1 2,400 38.60% 11/1/2016 10/31/2019 $50,400 $21.00 One, Five-Year Modified Gross

Option 1 11/1/2019 FMV

Scottrade 1,600 25.74% 5/1/2008 4/30/2019 $51,088 $31.93 One, Three-Year NNN

5/1/2018 $52,621

Option 1 5/1/2019 $60,800

5/1/2020 $62,624

5/1/2021 $64,512

Dunkin’ Donuts 2,217 35.66% 12/1/2006 11/30/2021 $66,510 $30.00 One, Five-Year NNN

12/1/2017 $68,505

12/1/2018 $70,567

12/1/2019 $72,673

12/1/2020 $74,846

Option 1 12/1/2021 $86,064

12/1/2022 $88,658

12/1/2023 $91,318

12/1/2024 $94,045

12/1/2025 $96,883

Occupied 6,217 100% $167,998

Vacant

Total 6,217 100% $167,998

1 For each month of the lease a base payment of $4,200.00 plus the amount of any tax increase on the center in which the premises is located in based upon its pro-rated share of the increased amount from the 2015 tax year as tenant’s proportionate share.


INVESTMENT HIGHLIGHTS

Investment HighlightsGurnee is a village in Lake County, Illinois, United States. It borders the city of Waukegan and is considered a part of the Chicago metropolitan area. It is best known for being the location of Six Flags Great America and Gurnee Mills, together drawing over 26 million visitors annually and this multi-tenant retail property is located on Grand Avenue (Illinois 132) right off of Interstate 94.

In 1835, a land company from New York State erected a Community House to accom-modate families while they were locating and getting government land grants to their farms. Near the Community House, a floating log bridge was built in 1842. Later, a station-ary wooden bridge was constructed, and then an iron bridge was erected.

With the erection of the permanent bridge, roads were established, and this area be-came the hub of the township. It was at this junction that the Milwaukee Road crossed the river from west to east, and then continued north to eventually connect Chicago to Milwaukee. The east-west road, now known as Grand Avenue, was a main route from McHenry County to the port of Waukegan.

In early 1973 the Marriott Corporation approached the village stating that they wanted to build an amusement park near the interchange of Highway 132 and the tollway. The people of Gurnee voted to approve the construction of the facility, known today as Six Flags Great America. In 2008 KeyLime Cove Indoor Waterpark Resort opened and it sits less than a half mile from the property.

Location OverviewBoth Dunkin’ Donuts and Scottrade Have a Long Operating History - Dunkin’ Donuts and Scottrade have occupied the center since it was constructed, with Biryani Pointe just entering the center in November 2016.

Tourist Hot Spot - Located 745 Feet from Main Entrance of Six Flags Great Amer-ica – The property is located just 775 feet west of the stoplight entrance to Six Flags Great America Theme Park, one the premier tourist attractions in the Mid-west, attracting 2,700,000 visitors annually.

Located Within Four Minutes of Gurnee Mills Mall - With more than 20,000,000 vis-itors each year, Gurnee Mills is the largest outlet and value shopping destination in Illinois. Gurnee Mills provides the ultimate indoor shopping experience with more than 200 stores including tenants such as Kohl’s, Bass Pro shops, Bed Bath & Beyond, Macy’s and Rainforest Café.

Trade Area Draws 26 Million Visitors per Year - This multi-tenant retail property is located on Grand Avenue (Illinois 132) right off of Interstate 94 (Tri-State Toll-way), seeing traffic counts that exceed 25,000 vehicles daily, with an additional 84,100 vehicles per day passing on the highway.

Gurnee is the Midpoint between Chicago and Milwaukee - The area has excep-tional demographics, with a population of 48,775 and an average household income of $105,790 within a three-mile radius of the subject property.


TENANT SUMMARIES

Since 1980, clients have put their trust in them to deliver the right solutions and service that support their individual needs and to help them define their own financial success.

Scottrade has come a long way from their early days as a value-driven brokerage firm. From the beginning, founder and CEO Rodger Riney believed that providing excep-tional value and in-person service could distinguish Scot-trade in the industry. Their extensive nationwide network of branch offices allows clients to receive personalized assis-tance in the communities they call home.

Throughout their more than 35-year history, their clients’ financial plans and goals have evolved – and so has Scot-trade. They’ve grown the brokerage products and ser-vices, expanded banking services and have evolved to offer investment guidance options. Whether clients want to make all their own decisions, validate those decisions or hand it all off to a professional, they’re there to help clear the path so that they have the confidence to build a plan for financial success.

Founded in 1950 with the goal to, “make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores.”

Dunkin’ Donuts is America’s favorite all-day, everyday stop for coffee and baked goods. Dunkin’ Donuts is a market leader in the hot regular/decaf/flavored coffee, iced cof-fee, donut, bagel and muffin categories in the U.S. Dunkin’ Donuts has earned the No. 1 ranking for customer loyalty in the coffee category by Brand Keys for 10 years running in the U.S. The company has more than 12,000 restaurants in 45 countries worldwide. Based in Canton, Mass., Dunkin’ Donuts is part of the Dunkin’ Brands Group, Inc. (Nasdaq: DNKN) family of companies.

The company serves approximately 1.9 billion cups of hot and iced coffee every year, with standards for coffee ex-cellence that are among the best in the industry. Over the long-term, the company plans to more than double its U.S. presence, which will put the total number of restaurants above 17,000.


PROPERTY PHOTOS


AERIAL - NORTH

Subject Property

BIRYANI POINTE

Grand Ave 30,274 CPD

Six Flags Entrance

Est. Annual Attendance 2.7 Million


AERIAL - EAST

Subject Property

BIRYANI POINTE

Gurnee Mills Mall

Grand Ave

30,274 CPD

INTERSTATE

94 90,381 CPDGreat Wolf Lodge2017 Renovation


AERIAL - SOUTHEAST

Subject Property

BIRYANI POINTE

Gurnee Mills Mall

Grand Ave

30,274 CPD

INTERSTATE

94

Great Wolf Lodge2017 Renovation

90,381 CPD


AERIAL

Gra

nd A

ve30

,274

CPD

N

Gurnee Mills Mall

Subject Property

INTERSTATE

94

90,381 CPD

BIRYANI POINTE

Grand Tri-State Business Park

Great Wolf Lodge2017 Renovation

Est. Annual Attendance 2.7 Million


AERIAL VIDEO

Click to watch video in browser

https://youtu.be/U7MgGmdSjtw


SITE PLAN

Gra

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venu

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,274

Dai

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SITE PLAN KEYParcel Outline:Land Area: +/- 0.00 AcresLeasable Area: 0,000 Sq FtIngress/Egress:

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Spruce Street

BIRYANI POINTE


AREA OVERVIEW

Six Flags

Six Flags Great America, which first opened in 1976 is the Nation’s Capital of thrills. Located between Chicago and Milwaukee, Six Flags Great America offers endless adventures for the entire family with 14 heart-pounding roller coasters, three children’s areas, spectacular shows and attractions including Hurricane Harbor water park - free with park admission.

Key Lime Cove

KeyLime Cove is an indoor waterpark resort located in Gurnee, Illinois. This is your destination if you want to get here fast and then take it slow. Once you arrive at our waterpark resort, let your worries escape you. They have everything you need for a fun, family-friendly vacation. The Lost Paradise Indoor Waterpark is the centerpiece of KeyLime Cove, but there is also a 10,000 square feet of KeyLime Cove entertainment including the RipTide Reef Arcade, Leapin’ Lizards artistic adventure spot, Pinki’s Pet Palace, and parents can relax at the Paradise Mist Spa, enjoy live entertainment and have their own brand of fun.

Gurnee Mills Mall

Gurnee Mills is an indoor mall, established in Gurnee, Illinois, a village west of Waukegan, Illinois. It is located about halfway between Chicago and Milwaukee, Wisconsin, a 40-minute drive either way, and near Six Flags Great America. It is a single-level Z-shaped mall. At 1,912,969 square feet of gross leasable area and home to 196 tenants, it is the third largest mall in Illinois, and is visited by more than 20 million people each year. Shop-pers can dine at great restaurants including Rainforest Café and Ruby Tuesday, catch a movie at Gurnee Marcus Cinema, and enjoy indoor ice skating, miniature golf and laser tag at Rink Side Sports and Entertain-ment. Gurnee Mills opened on August 8, 1991.


DEMOGRAPHICS

N

Dunkin’ Donuts Center

POPULATION 1-MILE 3-MILE 5-MILE2010 Population 5,715 48,288 146,405

2014 Population 5,718 48,464 146,233

2019 Population 5,965 50,340 151,079

HOUSEHOLDS 1-MILE 3-MILE 5-MILE2010 Households 2,160 17,710 49,923

2014 Households 2,170 17,847 50,137

2019 Households 2,243 18,626 51,878

INCOME 1-MILE 3-MILE 5-MILE2014 Median Household Income $81,886 $78,368 $64,012

2014 Per Capita Income $40,874 $39,057 $31,088

2014 Average Household Income $107,716 $105,992 $90,397

PopulationIn 2014, the population in your selected geography is 146,232. The population has changed by 7.98% since 2000. It is estimated that the population in your area will be 151,079 five years from now, which represents a change of 3.31% from the current year. The current population is 49.42% male and 50.57% female. The median age of the pop-ulation in your area is 34.5, compare this to the Entire US average which is 37.3. The population density in your area is 1,858.09 people per square mile.

HouseholdsThere are currently 50,136 households in your selected geography. The number of households has changed by 7.12% since 2000. It is estimated that the number of house-holds in your area will be 51,878 five years from now, which represents a change of 3.47% from the current year. The average household size in your area is 2.89 persons.

IncomeIn 2014, the median household income for your selected geography is $64,012, com-pare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 12.97% since 2000. It is estimated that the median household income in your area will be $75,427 five years from now, which represents a change of 17.83% from the current year.

The current year per capita income in your area is $31,088, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $90,396, compare this to the Entire US average which is $74,533.

Race & EthnicityThe current year racial makeup of your selected area is as follows: 61.14% White, 11.98% Black, 0.04% Native American and 7.57% Asian/Pacific Islander. Compare these to En-tire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 33.95% of the current year population in your selected area. Compare this to the Entire US average of 17.13%.

HousingIn 2000, there were 32,962 owner occupied housing units in your area and there were 13,840 renter occupied housing units in your area. The median rent at the time was $649.

EmploymentIn 2014, there are 78,689 employees in your selected area, this is also known as the day-time population. The 2000 Census revealed that 63.76% of employees are employed in white-collar occupations in this geography, and 36.26% are employed in blue-collar occupations. In 2014, unemployment in this area is 9.43%. In 2000, the average time traveled to work was 31.3 minutes.

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OFFERING MEMORANDUM Dunkin’ Donuts Center

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