PANERA BREAD & AMERICAN MATTRESS - Matthews. 2 Matthews Retail Advisors OFFERING MEMORANDUM | Panera...

OFFERING MEMORANDUM

PANERA BREAD & AMERICAN MATTRESS 447 N. MILWAUKEE AVE, VERNON HILLS, IL 60061

™

R E T A I L A D V I S O R S

Matthews Retail Advisors

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Panera Bread & American Mattress located at 447 N. Milwaukee Ave, Vernon Hills, IL 60061 (“Property” ) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

EXCLUSIVELY LISTED BY:

PRICING & FINANCIAL ANALYSISInvestment Overview ..................................................................... 2Investments Highlights...................................................................3Executive Summary.........................................................................4Rent Roll ............................................................................................ 5Rent Roll ............................................................................................ 5Lease Abstract - Panera ................................................................ 6Lease Abstract - American Mattress ..........................................7Company Overview ...................................................................... 8

PROPERTY DESCRIPTIONPhysical Description ..................................................................... 13Local Tenant Map .......................................................................... 14Tenant Map...................................................................................... 15Regional Map .................................................................................. 16Site Plan ........................................................................................... 17

DEMOGRAPHICSCity Overview | Vernon Hills, IL .................................................20County Overview | Lake County, IL ...........................................21Demographics Report .................................................................23

Randy OlczykBroker of Record License No. 471018001

Aron ClinePartner DIRECT +1.310.919.5816MOBILE [email protected] No. 01904371

Matthews Retail Advisors

Marketplace at Vernon Hills

Milwaukee Ave ±31,500 VPDMilwaukee Ave ±31,500 VPD

Pricing & Financial Analysis

™

OFFERING MEMORANDUM | Panera Bread & American MattressP. 2 Matthews Retail Advisors

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Aron Cline and the Matthews Retail Advisors are pleased to exclusively off er for sale to qualifi ed investors a prime net leased two-tenant investment opportunity located within Marketplace Power Center in Vernon Hills, IL. The subject property is brand new high quality construction leased to two national highly desirable tenants such as Panera Bread and American Mattress. Panera Bread has relocated from across Milwaukee Avenue where Dicks Sporting Goods is currently located where it was an extremely high performing store. American Mattress is a privately owned company with over 100 locations throughout the Midwest and is already located in the immediate trade area less than 2.5 Miles from the new location which means American Mattress is extremely successful in this marketplace. The newly developed subject property also sits as a pad site out in front of Marketplace Power Center which is anchored by Home Depot, Sam’s Club, & Kohl’s. The subject property is located along Milwaukee Avenue which has over 31,500 vehicles per day and within close proximity to Townline Rd which has over 43,600 vehicles per day. It is important to note that the subject property is within walking distance to Westfi eld Hawthorn Mall which is one of the top performing malls in the state of Illinois. The immediate trade area has incredibly strong demographics and high barriers to entry. Although the area has high barriers to entry the city has approved development projects in the trade area for some well-known strong retailers such as Trader Joe’s, Mariano’s, Lowe’s, and Panera Bread amongst others. The subject property is conveniently located to serve the affl uent Vernon Hills and Libertyville Residential Communities.

Investment Overview

Matthews Retail Advisors P. 3Panera Bread & American Mattress | OFFERING MEMORANDUM


Investments Highlights

HIGH QUALITY - BRAND NEW CONTRUCTION WITH NATIONAL TENANTS

• Attractive New Construction Shops with Strong publicly traded National tenant Panera Bread and Privately owned American Mattress

• Long Term leases providing long term passive income and security - Panera Bread 15 years; American Mattress 10 Years

• Excellent location – subject property is located along Milwaukee Ave which has ±31,500 VPD. - subject property is located along the main retail corridor as an outparcel to Marketplace Power Center (Home Depot, Sam’s Club, Kohl’s, Best Buy, & Ashley Furniture amongst others)

• Attractive 10 % rental increases every 5 years (including options) – Strong hedge against infl ation

• Immediate Trade Area draws diverse communities including; Vernon Hills, Libertyville, Lake Forest, Lincolnshire, Mundelein, and Gurnee.

STRONG INFILL LOCATION WITH AFFLUENT DEMOGRAPHICS

• Over 1,336 people within a 1-mile radius, with Average Household Income of $162,960



• Other dominant tenants in this trade area include: Home Depot, Sam’s Club, Macy’s, AMC Theaters, Sears, Dicks Sporting Goods, Best Buy, IHOP, Chick Fil A, Dunkin Donuts, Ross Dress For Less, TJ Maxx, Gordman’s, Olive Garden, Walmart, Target, Hobby Lobby, Trader Joe’s Mariano’s, Lowe’s, McDonalds, amongst others.

• Subject Property is located within walking distance to one of the top performing malls in the State of Illinois (Westfi eld Hawtorn Mall) which is a huge traffi c draw to the immediate trade area.

IDEAL 1031 EXCHANGE PROPERTY

• Net leased pad with minimal management responsibilities

• Incredibly strong Tenant lineup with all highly sought after national tenants (Panera Bread & American Mattress (Panera Bread is a relocation store from across the street)

• Panera Bread has a drive thru providing convenience to customers making it less likely for them to leave and relocate

• Panera Bread is one of America’s fastest growing Quick Service Restaurant chains that has a history of being incredibly popular and successful



Executive Summary

Panera Bread & American Mattress447 North Milwaukee AveVernon Hills, IL 60061

Suggested List Price ....................................................................................................... $6,970,000

Gross Leasable Area ...........................................................................................................±8,120 SFCAP Rate - Current .....................................................................................................................5.25%Year Built ..........................................................................................................................................2015Lot Size .....................................................................................................± 1.51 Acres (±65,929 SF)

Annualized Operating Data

Income Current

Base Rent $365,942.50

Estimated Expense Reimbursements $70,423.41

Estimated Gross Potential Income $436,365.91

Total Expenses $70,423.41

Net Operating Income (5.25%) $365,942.50

Capital Reserves ($0.15 PSF) $1,218.00

Total Return (5.23%) $364,724.50

Estimated Expenses

Real Estate Taxes $38,268.00

Insurance ( 0.15 PSF) $1,218.00

Estimated CAM $22,214.64

Estimated Admin Fee $8,722.77

TOTAL EXPENSES $70,423.41

EXPENSES/SF $8.67



Tenant GLA % of GLALease Type

Lease Commencement

Lease Expiration

Annual Rent Rent/SF Increases Lease Term Options

Panera Bread 4,305 SF NNN 6/22/2015 6/30/2030 $215,250.00 $50.0010% Increases Every 5 Years

15 Years Three (5) Year

American Mattress 3,815 SF NNN 5/16/2015 5/31/2025 $150,692.50 $39.5010% Increases Every 5 Years

10 Years Two (5) Year

Occupied 8,120 SF 100% $365,942.50 $44.75

Vacant 0 0%

Total 8,120 SF 100% $365,942.50 $44.75

*Landlord responsible for roof and structure - see lease abstract

Rent Roll



Tenant: Panera Bread LLC, a Delaware Limited Liability Company

Tenant Address: 3630 South Geyer Road, Suite 100, St. Louis, MO 63127

Property Address: 447 N. Milwaukee Ave. Vernon Hills, IL 60061

Date Of Lease: June 30, 2014

Lease Commencement: June 22, 2015

Lease Expiration: June 30, 2030

Rent Increases: 10% rental increases every fi ve (5) years

Renewal Options: Three fi ve (5) year options

Annual Rent:

Years 1-5 $215,250Years 6-10 $236,775Years 11-15 $260,452.50Option PeriodYears 16-20 $286.497.75Years 21-25 $315,126.00Years 26-30 $346,681.65

Tenants Proportionate Share: A percentage computed on the ratio of total Floor Area of the Premises bears to the total Floor Area of the building. 53.65%

CAM

Tenant Shall pay Landlord during the Term as additional rent its Pro rata Share of costs and expenses. Expenses shall include: service and maintenance contracts, window cleaning, snow removal, disposal of trash, drainage, landscaping, curbs, sidewalks, repaving, striping, sealment, the costs including rental of maintaining a management company in the shopping center. Tenant shall also pay a administration fee in the amount of 10% of the Tenants pro rata share of CAM. The Commons Area Expenses for the fi rst year of the Lease will not exceed $3.25 per square foot of the premises. See section 7.4 on pg 15 of the lease

Real Estate Taxes:Tenant Shall pay Landlord during the Term as additional Rent its pro rata share. Taxes have been estimated in good faith to be $5.50 per square foot See section 6.1 pg 12, 13 of the lease

Insurance (Tenant):Landlord shall keep the Shopping Center insured for the benefi t of Landlord in an amount equivalent to full replacement value. Tenant shall maintain, at Tenant’s sole cost and expense a policy of general liability insurance. See pg 12 of lease.

Utilities:Tenant is responsible. Tenant shall, at Tenant’s sole cost and expense, maintain throughout the term of this Lease a maintenance contract for the service and repair of all HVAC equipment (The maintenance contract). All Utilities shall be separately metered with the installation of said meters to be at Land-lord’s Expense. Responsible see pg 29 section 11.1

Repairs and Maintenance:

Landlord shall be responsible to maintain and keep in good order, condition & repair of all Common Areas, Common Utility System, Center service equipment located, load bearing walls, structural columns, structural columns, structural fl oors & structural ceiling of the Center, & the roof. See section 10.1 Article10

Tenant is responsible for all other repairs to the Premises other than those required by Landlord. Tenant shall will keep up the interior of the Premises including but not limited to electrical, plumbing, other mechanical systems including HVAC, plate glass windows and doors.

Lease Abstract - Panera Bread



Tenant: American Mattress, Inc. an Illinois Corporation

Tenant Address: 757 Larch Ave, Elmhurst, Illinois 60126

Property Address: 447 N. Milwaukee Ave. Vernon Hills, IL 60061

Date Of Lease: March 18, 2014

Lease Commencement: May 16, 2015

Lease Expiration: May 31, 2025

Rent Increases: 10% rental increases every fi ve (5) years

Renewal Options: Two fi ve (5) year options

Annual Rent:

Years 1-5 $ $150,692.50Years 6-10 $165,761.75Option periodYears 11-15 $182,357.00 Years 16-20 $200,592.70

Tenants Proportionate Share: A percentage computed on the ration of total Floor Area of the Premises bears to the total Floor Area of the building. 46.9%

CAM

Tenant Shall pay Landlord during the Term as additional rent its Pro rata Share of costs and expenses. Expenses shall include: service and maintenance contracts, window cleaning, snow removal, disposal of trash, drainage, landscaping, curbs, sidewalks, repaving, striping, seal-ment, the costs including rental of maintaining a management company in the shopping center. Tenant shall also pay a management fee in the amount of 5% of the Minimum Rent. See section 6.2 on pg 6 of the lease

Real Estate Taxes: Tenant Shall pay Landlord during the Term as additional Rent its pro rata share. See section 7.1 pg 7 of the lease

Insurance (Tenant):Landlord shall keep the Shopping Center insured for the benefi t of Landlord in an amount equivalent to full replacement value. Tenant shall maintain, at Tenant’s sole cost and expense a policy of general liability insurance. See pg 12 of lease.

Utilities: Tenant Responsible see pg 11 section 13.1

Repairs and Maintenance: Landlord shall be responsible to maintain the foundation, the exterior walls, and structural portion of the roof. See section 9.1 Article

Lease Abstract - American Mattress


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Company Overview

Property Name Panera Bread

Gross Leasable Area 4,305 SF

Property Type Net Leased Restaurant

Parent Company Trade Name Panera Bread Co.

Ownership Public

Rating Agency Standard & Poor’s

Revenue $1.81 billion

Net Income $179.29 million

Stock Symbol PNRA

Board NASDAQ

No. of Locations ±1,900

No. of Employees ±40,100

Web Site www.panerabread.com

Year Founded 1981

Panera Bread Company owns, operates, and franchises retail bakery-cafes in the United States and Canada. The company operates through three segments: Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. The operates bakery-cafes under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery & Café names that offer fresh baked goods, made-to-order sandwiches, soups, salads, pasta dishes, custom roasted coffees, and other complementary products through on-premise sales, as well as provides catering services. The company also supplies fresh dough, produce, tuna, cream cheese, and proprietary sweet goods items.



American Mattress is a family owned and operated company and has been servicing the Chicago area for over 25 years. American Mattress is the largest retailer in the Midwest of Serta, the number one mattress brand in the US, and Tempurpedic the most recommended mattress in the world. It also carries other top mattress brands and sleep accessories. American Mattress is the largest mattress retailer in Chicago, and is known for their quality products and services.

Property Name American Mattress

Gross Leasable Area 3,815 SF

Property Type Net Leased Restaurant

Parent Company Trade Name American Mattress

Ownership Private

No. of Locations 105

Headquartered Chicago, IL

Web Site www.americanmattress.com

Year Founded 1988


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Property Description

™



Coming Soon!Coming Soon!



Physical Description

THE OFFERING

Property Name ...........................................................Panera Bread / American Mattress

Property Address ......................................................................447 North Milwaukee Ave

Vernon Hills, IL 60061

Assessor’s Parcel Number ................................................................ 15-03-102-010-0000

SITE DESCRIPTION

Number of Stories ............................................................................................................. One

Year Built ............................................................................................................................. 2015

Gross Leasable Area (GLA) ......................................................................................8,120 SF

Lot Size.............................................................................................± 1.51 Acres (65,929 SF)

Type of Ownership ............................................................................................... Fee Simple

Parking ..................................................................................................±100 Surface Spaces

Parking Ratio................................................................................................. 12.32 : 1,000 SF

Landscaping ........................................................................................................ Professional

Topography .................................................................................................... Generally Level

CONSTRUCTION

Foundation ........................................................................................................Concrete Slab

Framing ............................................................................................................................. Wood

Exterior ................................................................................................................................Brick

Parking Surface ............................................................................................................ Asphalt

Roof .........................................................................................................................................Flat



Marketplace at Vernon Hills

Milwaukee Ave ±31,500 VPDMilwaukee Ave ±31,500 VPD



Tenant Map



Regional Map

50 min to Chicago



Site Plann



Milwaukee Ave ±31,500 VPD

Average Household Income - $162,960

Demographics

™



City Overview | Vernon Hills, IL

Vernon Hills is an affl uent northern suburb of Chicago located in Lake County, Illinois. The city is approximately 8 square miles and has a population of over 25,000 people.

The city has several major companies located within its limits. CDW, one of the world’s largest privately held companies that specializes in computer hardware, software and supplies, is based out of Vernon Hills. Zebra Technologies, Cole-Parmer, Rust-Oleum Corporation, Elorac Inc., and American Hotel Register Company also have their headquarters in Vernon Hills. These companies are some of the city’s largest employers, alongside Westfi eld Hawthorn, Mitsubishi Electric Automation, and Richard Wolf.

Vernon Hills is home to hundreds of shops, restaurants, and entertainment options. One of the largest shopping centers in the area is Westfi eld Hawthorn, which has over 180 stores. Westfi eld Hawthorn, located across the street from Panera and American mattress, draws thousands of shoppers to its vast selection of retail stores, which include apparel, home goods, jewelry, sporting goods, electronics, and department stores. The mall also has an AMC movie theater as well as a large food court. In addition to Westfi eld Hawthorn, Vernon Hills has countless unique local shops and dining options.



County Overview | Lake County, IL

Lake County is a county in the northeastern corner of the U.S. state of Illinois. The county has a population of about 700,000, making it the third-most populous county in Illinois. Its county seat is Waukegan. Originally part of McHenry County, the townships composing Lake County were carved out into a separate county in 1839.

Lake County is one of the collar counties of the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area. It is located along the shore of Lake Michigan. According to the 2000 census, Lake County is the 31st richest county by per capita income. Vernon Hills, Libertyville, Lake Forest, Lake Bluff , Highland Park are all known for being affl uent communities that provide a high quality of life.

Lake County is home to Naval Station Great Lakes, which is located in the city of North Chicago. It is the United States Navy’s Headquarters Command for training, and the Navy’s only recruit training center. Additionally, Six Flags Great America, Volo Auto Museum, Lake County Discovery Museum, and countless other attractions are located in Lake County.



Demographics Report

Population 1-Mile 3-Mile 5-Mile2020 Projection 1,342 50,045 127,2672015 Estimate 1,336 49,415 127,2352010 Census 1,341 48,835 127,6322000 Census 1,197 42,519 122,089Growth 2015-2020 0.46% 1.27% 0.03%Growth 2010-2015 -0.35% 1.19% -0.31%Growth 2000-2010 11.98% 14.85% 4.54%

Households2020 Projection 513 18,816 46,5162015 Estimate 507 18,549 46,1962010 Census 500 18,260 45,7672000 Census 398 15,095 41,844Growth 2015-2020 1.29% 1.44% 0.69%Growth 2010-2015 1.47% 1.58% 0.94%Growth 2000-2010 25.63% 20.97% 9.37%

Income$ 0 - $14,999 5.33% 4.03% 4.28%$ 15,000 - $24,999 6.51% 5.88% 5.52%$ 25,000 - $34,999 7.10% 7.41% 6.17%$ 35,000 - $49,999 5.52% 10.39% 9.87%$ 50,000 - $74,999 13.61% 13.83% 14.35%$ 75,000 - $99,999 9.27% 13.13% 12.94%$100,000 - $124,999 8.48% 9.12% 9.52%$125,000 - $149,999 6.31% 7.85% 8.19%$150,000 - $199,999 11.05% 10.92% 10.71%$200,000 - $249,999 5.52% 4.61% 4.61%$250,000 - $499,999 11.24% 8.39% 8.80%$500,000+ 10.26% 4.44% 5.03%2015 Average Household Income $162,960 $129,384 $133,8712015 Median Household Income $108,418 $91,122 $93,953

Average Household Income - $162,960Average Household Income - $162,960

Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com

PANERA BREAD & AMERICAN MATTRESS

447 N. Milwaukee AveVernon Hills, IL 60061OFFERING MEMORANDUM

Randy OlczykBroker of Record License No. 471018001

Aron ClinePartner DIRECT +1.310.919.5816 MOBILE +1.818.632.0233 [email protected] License No. 01904371

™

PANERA BREAD & AMERICAN MATTRESS - Matthews. 2 Matthews Retail Advisors OFFERING MEMORANDUM | Panera...

Documents

Transcript of PANERA BREAD & AMERICAN MATTRESS - Matthews. 2 Matthews Retail Advisors OFFERING MEMORANDUM | Panera...