OFFERING MEMORANDUM Dunkin Donuts Center 5414 Grand Avenue Gurnee, IL
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) 570-2171 Fax: (630) 570-2210 DSulo@marcusmillichap.com License: IL 475.134920 Sean Sharko First Vice President Investments CHICAGO OAKBROOK Tel: (630) 570-2238 Fax: (630) 570-2210 SSharko@marcusmillichap.com License: IL 471.010712 WI 75784-94 Austin Weisenbeck First Vice President Investments CHICAGO OAKBROOK Tel: (630) 570-2169 Fax: (630) 570-2210 AWeisenbeck@marcusmillichap.com License: IL 475.140200 WI 76206-94 Broker of Record: Steven Weinstock M&M REIS Out of State Broker Oak Brook Terrace, IL 60181 Tel: 6305702250 License: 471.011175 Marcus & Millichap 1 Mid America Plaza #200 Oakbrook Terrace, IL 60181 P: +1 630-570-2200 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. References
THE OFFERING DUNKIN DONUTS CENTER 5414 Grand Avenue Gurnee, IL 60031 FINANCIAL SUMMARY Income Per Sq/Ft Price $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 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 Vacancy/Collection Allowance (3% OF GPI) $5,990 $0.96 Effective Gross Income $193,691 $31.16 Expenses Real Estate Taxes $30,988 $4.98 Insurance $4,300 $0.69 CAM $16,317 $2.62 Total Expenses $51,605 $8.30 Net Operating Income $142,086 $22.85 Dunkin Donuts Center 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
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 Real Estate Taxes $30,988 $4.98 Insurance $4,300 $0.69 Total Expenses $51,605 $8.30 Dunkin Donuts Center 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
RENT ROLL Rent Schedule Tenant GLA % of GLA Rent Comm. Lease Exp. Annual Rent Rent/SF Options Changes On Changes To Lease Type Biryani Point 1 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. Dunkin Donuts Center 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
INVESTMENT HIGHLIGHTS Investment Highlights Both 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 America 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 Midwest, attracting 2,700,000 visitors annually. Located Within Four Minutes of 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. 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 Tollway), 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 exceptional demographics, with a population of 48,775 and an average household income of $105,790 within a three-mile radius of the subject property. 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 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 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 1842. 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. 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. Dunkin Donuts Center 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
TENANT SUMMARIES 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 coffee, 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 excellence 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. 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 exceptional value and in-person service could distinguish Scottrade in the industry. Their extensive nationwide network of branch offices allows clients to receive personalized assistance in the communities they call home. Throughout their more than 35-year history, their clients financial plans and goals have evolved and so has Scottrade. They ve grown the brokerage products and services, 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. Dunkin Donuts Center 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
PROPERTY PHOTOS Dunkin Donuts Center 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
AERIAL - NORTH Est. Annual Attendance 2.7 Million Six Flags Entrance Grand Ave 30,274 CPD Subject Property BIRYANI POINTE Dunkin Donuts Center 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
AERIAL - EAST Gurnee Mills Mall INTERSTATE 94 90,381 CPD Great Wolf Lodge 2017 Renovation Grand Ave 30,274 CPD Subject Property BIRYANI POINTE Dunkin Donuts Center 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
AERIAL - SOUTHEAST Gurnee Mills Mall 90,381 CPD INTERSTATE 94 Great Wolf Lodge 2017 Renovation Subject Property Grand Ave BIRYANI POINTE 30,274 CPD Dunkin Donuts Center 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
AERIAL N Subject Property Est. Annual Attendance 2.7 Million Great Wolf Lodge 2017 Renovation Grand Ave 30,274 CPD BIRYANI POINTE 90,381 CPD INTERSTATE 94 Gurnee Mills Mall Grand Tri-State Business Park Dunkin Donuts Center 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
AERIAL VIDEO Click to watch video in browser Dunkin Donuts Center 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
SITE PLAN BIRYANI POINTE Grand Avenue 30,274 Daily N SITE PLAN KEY Parcel Outline: Land Area: +/- 0.00 Acres Leasable Area: 0,000 Sq Ft Ingress/Egress: Spruce Street Dunkin Donuts Center 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
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, 1991. 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. Dunkin Donuts Center 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
DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE 2010 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-MILE 2010 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-MILE 2014 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 Population In 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 population 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. Households There 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 households 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. Income In 2014, the median household income for your selected geography is $64,012, compare 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. N Dunkin Donuts Center Race & Ethnicity The 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 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 33.95% 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 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. Employment In 2014, there are 78,689 employees in your selected area, this is also known as the daytime 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. Dunkin Donuts Center Gurnee, IL 16 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