Chili s (Entrance to Gurnee Mills Mall)

Transcription

1 OFFERING MEMORANDUM Chili s (Entrance to Gurnee Mills Mall) 6030 Grand Avenue Gurnee, IL

2 CONFIDENTIALITY AND DISCLAIMER The 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 occupancy 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 NOTICE Marcus & 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 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 Marcus & Millichap, its affiliates 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 YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Offered Exclusively by Dominic Sulo Vice President Investments CHICAGO OAKBROOK Tel: (630) Fax: (630) DSulo@marcusmillichap.com License: IL Matthew Wenger Associate CHICAGO OAKBROOK Tel: (630) Fax: (630) MWenger@marcusmillichap.com License: IL Chad Lieber Associate CHICAGO OAKBROOK Tel: (630) Fax: (630) CLieber@marcusmillichap.com License: IL Broker of Record: Steven Weinstock M&M REIS Out of State Broker Oak Brook Terrace, IL Tel: License: Marcus & Millichap 1 Mid America Plaza #200 Oakbrook Terrace, IL P: Chili s 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. References

3 THE OFFERING CHILI S 6030 Grand Avenue Gurnee, IL FINANCIAL SUMMARY Price $4,445,776 Down Payment 100% / $4,445,776 Cap Rate 6.25% ANNUALIZED OPERATING DATA LEASE YEARS ANNUAL RENT CAP RATE 10 $277, % 11 $282, % Building Sq Ft 5,331 Sq Ft 12 $286, % Net Operating Income $277,861 Year Built $290, % 14 $294, % Lot Size LEASE SUMMARY Lease Type Tenant Guarantor +/ Acres Absolute Net ERJ Dining IV, LLC Franchisee 15 $299, % 16 $303, % 17 $308, % 18 $313, % 19 $317, % 20 $322, % Roof and Structure Tenant Responsible Primary Term 20 Years Rent Commencement Date 10/1/2007 Lease Expiration Date 10/30/2027 Term Remaining 10+ Years Rental Increases 1.50% Annually Renewal Options Four, Five-Year OPTIONS ANNUAL RENT CAP RATE (Option 1) $327, % (Option 2) $352, % (Option 3) $379, % (Option 4) $409, % BASE RENT $277,861 Net Operating Income $277,861 Total Return 6.25% / $277,861 Chili s Gurnee, IL 3 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. References

4 INVESTMENT HIGHLIGHTS Investment Highlights Strong Unit Level Performance - The Gurnee Chili s location has demonstrated strong unit-level sales performance and growth, performing well yearover-year. Leading Chili s Franchisee - As the largest and most successful Chili s Grill & Bar operator, ERJ Dining operates over 125 Chili s and 240 Wendy s restaurants nationwide. Optimal Lease Structure - The property features 11 years of remaining lease term, zero landlord responsibilities, rare 1.50 percent annual rental increases, and four, five-year options to renew. Premier Retail Location - Located at the main entrance to Gurnee Mills Mall, with more than 20,000,000 visitors 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. High Traffic Location with Outstanding Access - The Property benefits from excellent daily traffic counts of 40,000 vehicles per day along Grand Avenue. In addition, the Chili s sits less than one block from Interstate 94, which travels more than 60,000 vehicles per day. Strong Area Demographics - The surrounding area has a dense and affluent demographic profile, with a population of 45,000 residents earning an average household income of $115,000 within a three-mile radius. Location Overview Gurnee 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. In , a land company from New York State erected a Community House to accommodate families while they were locating and getting government land grants to their farms. Near the Community House, a floating log bridge was built in Later, a stationary wooden bridge was constructed, and then an iron bridge was erected. With the erection of the permanent bridge, roads were established, and this area became 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. The hamlet was originally called Wentworth, after Congressman Long John Wentworth, who also served as the Republican Mayor of Chicago between Thereafter, Walter S. Gurnee, the 14th Mayor of Chicago and one of the directors of the railroad, agreed to develop a station in Wentworth, which was called Gurnee Station in honor of Mr. Gurnee. Over time, Gurnee Station became known simply as Gurnee and was incorporated as such. Just east of the bridge, at the junction of Milwaukee Road and Grand Avenue, was the Mutaw Tavern, more recently known as the Mother Rudd House. This was a stage coach stop between Chicago and Milwaukee and was a stopover for farmers, as well as a stop during the underground railroad. This building was acquired by the Village of Gurnee in 1984, has been restored, and now houses the Warren Township Historical Society. 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. Chili s Gurnee, IL 4 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. References

5 TENANT OVERVIEW Chili s Chili s Grill & Bar is a premier American casual dining restaurant chain with over 1,500 locations, including 741 franchised units. The company has a global footprint in 30 different countries worldwide, with most of its restaurants located in the United States and Canada. Chili s is owned and operated by Brinker International Incorporated (NYSE: EAT) which is headquartered in Dallas, Texas and employs over 100,000 people. Originally founded as a full-service dining restaurant in 1975, Chili s has evolved into a signature brand offering fresh Tex-Mex-style cuisine and an atmosphere where family and friends can gather over a delicious meal. Chili s has continued to expand its brick and mortar presence in the United States, opening 12 new stores in In June of 2016, Chili s executives stated that they would launch a new platform in the coming months that included hand-crafted burgers, changes to the brand s bar program, and an expansion of technology for both customers and staff as the company replaces its in-house My Chili s Rewards loyalty program to boost revenue and drive consumer traffic globally. In addition, Chili s is currently ranked #29 on the Franchise Times Top 200 list and in 2015 was recognized as one of the World s Most Admired Food Services Companies by Fortune Magazine. ERJ Dining ERJ Dining is a subsidiary of Bridgeman Foods, one of the largest Chili s and Wendy s franchise operators in the nation. Grossing almost $800 million in sales during 2015 alone, Bridgeman now successfully operates over 125 Chili s and 240 Wendy s under the ERJ Dining banner. In 2007, ERJ Dining acquired 77 Chili s across the Midwest to diversify the company s portfolio in the casual dining space. Today, ERJ Dining is the largest and most successful Chili s operator, with continued plans for expansion and growth on the horizon. 3 rd Largest Casual Dining Concept in the US TENANT PROFILE Company: Chili s No. of Retail Locations: 1,580 Total Revenue (2015): $4.06 Billion Year Founded: 1975 Sales $5B $4.6B $3.8B $3.6B $3.2B $2.6B $2.5B $2.1B $1.9B $1.8B $1.4B $1.2B $0.9B $0.7B $0.7B $0.6B $0.6B $0.4B Headquarters: Website: Dallas, Texas 0 Applebee s Olive Garden Chili s Buffalo Wild Wings Outback Red Lobster Cheesecake Texas Roadhouse TGIF Red Robin Ruby Tuesday BJ s Restaurants Carraba s Logan s Roadhouse Bonefish CPK Joe s Crabshack Chili s Gurnee, IL 5 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. References

6 PROPERTY PHOTOS Chili s Gurnee, IL 6 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. References

7 AERIAL - SOUTHWEST Grand Ave 40,100 CPD Chili s Gurnee, IL 7 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. References

8 AERIAL - NORTHWEST Gurnee Mills Mall 1,912,969 Sq Ft 20,000,000+ Visitors Annually Grand Ave 40,100 CPD Chili s Gurnee, IL 8 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. References

9 AERIAL - WEST Gurnee Mills Mall 1,912,969 Sq Ft 20,000,000+ Visitors Annually Grand Ave 40,100 CPD Chili s Gurnee, IL 9 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. References

10 AERIAL - EAST INTERSTATE 94 60,000 CPD Grand Ave 40,100 CPD Chili s Gurnee, IL 10 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. References

11 AERIAL Gurnee Mills Mall N 60,000 CPD INTERSTATE 94 37,700 CPD Grand Ave 40,100 CPD Hunt Club Rd 18,400 CPD Chili s Gurnee, IL 11 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. References

12 AERIAL VIDEO Click to watch video in browser Chili s Gurnee, IL 12 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. References

13 SITE PLAN Gurnee Cir E N SITE PLAN KEY Parcel Outline: Land Area: +/ Acres Leasable Area: 5,331 Sq Ft Ingress/Egress: Grand Ave 40,000 Daily Chili s Gurnee, IL 13 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. References

14 AREA OVERVIEW 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. Shoppers 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 Entertainment. Gurnee Mills opened on August 8, 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. Chili s Gurnee, IL 14 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. References

15 DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE 2010 Population 4,525 45, , Population 4,519 45, , Population 4,768 47, ,094 HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2010 Households 1,759 16,762 44, Households 1,763 16,867 44, Households 1,854 17,662 46,026 INCOME 1-MILE 3-MILE 5-MILE 2014 Median Household Income $91,309 $87,008 $74, Per Capita Income $47,169 $42,679 $36, Average Household Income $120,710 $115,103 $100,774 Population In 2014, the population in your selected geography is 123,511. The population has changed by 10.72% since It is estimated that the population in your area will be 128,094 five years from now, which represents a change of 3.71% from the current year. The current population is 49.24% male and 50.75% female. The median age of the population in your area is 36.4, compare this to the Entire US average which is The population density in your area is 1, people per square mile. Households There are currently 44,303 households in your selected geography. The number of households has changed by 9.69% since It is estimated that the number of households in your area will be 46,026 five years from now, which represents a change of 3.88% from the current year. The average household size in your area is 2.80 persons. Income In 2014, the median household income for your selected geography is $74,223, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 16.69% since It is estimated that the median household income in your area will be $88,866 five years from now, which represents a change of 19.72% from the current year. The current year per capita income in your area is $36,172, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $100,773, compare this to the Entire US average which is $74,533. N Chili s Race & Ethnicity The current year racial makeup of your selected area is as follows: 68.45% White, 8.57% Black, 0.04% Native American and 8.71% Asian/Pacific Islander. Compare these to Entire 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 23.65% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Lake Michigan Housing In 2000, there were 30,225 owner occupied housing units in your area and there were 10,161 renter occupied housing units in your area. The median rent at the time was $685. Employment In 2014, there are 49,866 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 70.07% of employees are employed in white-collar occupations in this geography, and 29.95% are employed in blue-collar occupations. In 2014, unemployment in this area is 7.64%. In 2000, the average time traveled to work was 32.9 minutes. Chili s Gurnee, IL 15 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. References