Net Lease Property For Sale | The Boulder Group

CULVER’S 1430 East Algonquin Road, Schaumburg, IL 60173 (Chicago MSA)

TABLE OF CONTENTS

TABLE OF CONTENTS I. Executive Profile

II. Location Overview

III. Market & Tenant Overview

Executive Summary

Photographs

Demographic Report

Investment Highlights

Aerial

Market Overview

Property Overview

Site Plan

Tenant Overview

Maps

NET LEASE INVESTMENT OFFERING

DISCLAIMER STATEMENT

DISCLAIMER STATEMENT:

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.

NET LEASE INVESTMENT OFFERING

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY:

The Boulder Group is pleased to exclusively market for sale a single tenant Culver’s property located in an affluent area of the Chicago MSA. The property is located just off of a heavily trafficked signalized intersection near several large corporate campuses. Culver’s has successfully operated at this location since 2006 and recently signed a new lease. Culver’s lease has over 15 years remaining and expires on December 23, 2030. The lease features annual rental escalations of 1.75% and two 10-year renewal option periods. Culver’s is a privately owned and operated fast food restaurant chain with over 500 locations in 22 states. The Culver’s franchise program is tremendously successful and has only had one failed franchisee in 30 years of operation.

The 49,919 square foot Culver’s property is positioned as an outparcel to an Aldi anchored shopping center. The property is benefited by its location within a strong regional retail trade area that features IKEA, Costco, and the Woodfield Mall.

The Woodfield Mall is 2.1 million square feet and attracts over 27 million visitors annually. The mall is anchored by Apple, Nordstrom, Lord & Taylor, and Macy’s. Further contributing to the strength of the Culver’s property is its proximity to several large corporate campus’ including Motorola’s, which employees over 3,500 people. Zurich Insurance Group is relocating their North American Headquarters to a 40-acre site that is located approximately one-half mile south of the property.

Additionally, the Culver’s property is located in the immediate proximity to several large hotels including the Renaissance Convention Center, Embassy Suites, Hyatt, Hyatt Place & Residence Inn.

The 4,500 square foot Culver’s building is located just off of the signalized intersection of East Algonquin Road and North Meacham Road. This heavily traffic signalized intersection experiences traffic volumes in excess of 65,000 vehicles per day.

Further contributing the strength of the Culver’s is its proximity to Interstate 290 which is located approximately one mile east of the property. Interstate 290 experiences traffic counts in excess of 178,000 vehicles per day. The property will greatly benefit from a new Meacham Road and Interstate 90 interchange which is being constructed approximately one-half mile south of the Culver’s. Interstate 90 experiences traffic counts in excess of 157,000 vehicles per day. The surrounding area is affluent with over 81,000 people living within a three mile radius of the property earning average annual household incomes in excess of $95,000.

NET LEASE INVESTMENT OFFERING

INVESTMENT HIGHLIGHTS

INVESTMENT HIGHLIGHTS:

• Located within the Chicago MSA • Culver’s is committed to this location as evidenced by the new 15 year lease that was recently signed • 1.75% annual rental escalations throughout the primary term & renewal option periods • The Culver’s franchise system is tremendously successful as evidenced by only one failed franchisee in thirty years of operation • Strong regional retail trade area that includes IKEA, Costco and the Woodfield Mall which is anchored by Apple, Nordstrom, Lord & Taylor, and Macy’s • Affluent area with over 81,000 people living within a three mile radius of the property earning average annual household incomes in excess of $95,000 • Across the street from a Motorola campus that employs over 3,500 people and Zurich Insurance Group’s new 40-acre North American Headquarters which is currently under construction • Immediate proximity to several large hotels including the Renaissance Convention Center, Embassy Suites, Hyatt, Hyatt Place & Residence Inn • Positioned just off of the heavily trafficked signalized intersection of East Algonquin Road and North Meacham Road which experiences traffic counts in excess of 65,000 vehicles per day • Approximately one mile west from access to Interstate 290 which experiences traffic counts in excess of 178,000 • Outparcel to an Aldi anchored retail center • Over 282,000 people within five miles of the property earning average annual household incomes in excess of $97,000 • A new Interstate 90 (157,000 VPD) and Meacham Road interchange is being constructed one-half mile south of the property

NET LEASE INVESTMENT OFFERING

PROPERTY OVERVIEW

PROPERTY OVERVIEW:

Price:

$2,153,846

Cap Rate:

6.49%

Net Operating Income:

$139,750*

Rental Escalations:

1.75% Annually

Renewal Options:

Two 10-Year With 1.75% Annual Rental Escalations

Lease Expiration Date:

December 23, 2030

Tenant:

Culver’s

Guarantor:

Franchisee (3-Units)

Year Built:

2006

Lease Type:

NN (Roof & Structure)

Building Size:

4,500 SF

Land Size:

49,919 SF

*$1,750 of the NOI is derived from an Administrative Fee.

NET LEASE INVESTMENT OFFERING

PHOTOGRAPHS

NET LEASE INVESTMENT OFFERING

AERIAL

FUTURE RAMP UNDER CONSTRUCTION

ROAD (25 ,000 VPD)

E

AL

GO

NQ

UI

N

(157,00

RO

AD

(4

0 VPD)

0,

00

0

VP

D)

N MEACHA M

(178,000 VPD)

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THORNTREE LANE

S MEACHAM ROAD (25,000 VPD)

SITE PLAN

E A LGO

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NQ

UIN

RO

AD

(40

,00

0 V PD)

MAPS

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MAPS

LAKE MICHIGAN

NET LEASE INVESTMENT OFFERING

DEMOGRAPHIC REPORT

DEMOGRAPHIC REPORT:

NET LEASE INVESTMENT OFFERING

Population

1-Mile

3-Mile

5-Mile

Total Population

10,319

81,751

282,655

Total Households

4,340

32,799

111,844

Income

1-Mile

3-Mile

5-Mile

Median Household Income

$57,463

$72,842

$75,388

Average Household Income

$81,697

$95,863

$97,407

MARKET OVERVIEW

MARKET OVERVIEW:

Schaumburg is a city located in Cook County in northeastern Illinois. Schaumburg is located roughly 28 miles northwest of the Chicago Loop and approximately 10 miles northwest of O’Hare International Airport. As of the 2010 census, the city had a total population of 74,227.

Schaumburg is home to the world headquarters of Motorola Solutions and one of only two IKEA stores in Illinois. Additionally located in Schaumburg is the Woodfield Mall, the largest mall in Illinois and attracts over 27 million visitors annually. The area will benefit from the new 40 acre corporate campus of Zurich North America which is currently under construction. The property is located south of the Motorola Solutions campus and approximately one-half mile south of the Culver’s.

Chicago 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 world in terms of volume.

The metro is 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.

NET LEASE INVESTMENT OFFERING

TENANT OVERVIEW

TENANT OVERVIEW:

Culver’s is a privately owned and operated fast casual restaurant chain that operates primarily in the Midwest. The first Culver’s opened in 1984 in Sauk City, Wisconsin. Today, there are over 500 Culver’s locations in 22 states.

Culver’s menu features Culver’s trademark ButterBurgers and frozen custard, which is also sold in bulk. The menu also includes pork and fish, fried chicken, veggie burgers, salads, and sundaes. The menu is divided into seven sections: sandwiches, sides, drinks, kids meals, dinners, salads, and desserts. Items are made to order and are served at table-side. Culver’s also sells its own brand of root beer.

According to a survey by the Franchisee Business Review, Culver’s was ranked number one in franchisee satisfaction by more than 4,300 restaurant franchisees in the United States and Canada. The Culver’s franchise program is tremendously successful and has only had one failed franchisee in 30 years of operation.

The franchisee and guarantor of this Culver’s location is a 3-unit operator.

Website: Locations: States: Year Founded: Headquarters:

NET LEASE INVESTMENT OFFERING

www.culvers.com 500+ 22 1984 Prairie du Sac, Wisconsin

Randy Blankstein President 847.562.0003 randy@bouldergroup.com

Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com

666 Dundee Road, Suite 1801 Northbrook, IL 60062 www.bouldergroup.com