BP Ground Lease For Sale | The Boulder Group

BP (Ground Lease | S&P: A) 1983 Brookdale Road, Naperville, IL 60563 (Chicago MSA)

TABLE TABLE OF CONTENTS

TABLE OF CONTENTS I. Executive Summary

II. Location Overview

III. Market & Tenant Overview

Executive Summary

Photographs

Demographic Report

Investment Highlights

Aerials

Market Overview

Property Overview

Maps

BP Profile

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DISCLAIMER TABLE OFSTATEMENT CONTENTS

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.

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY:

The Boulder Group is pleased to exclusively market for sale a rare single tenant corporately guaranteed British Petroleum (BP) ground lease located within an affluent suburb of Chicago. The property is strategically located at a signalized intersection along Illinois Route 59, a primary north-south thoroughfare. The corporately guaranteed BP ground lease has approximately eight years remaining. BP is publicly traded (NYSE: BP) with a market capitalization in excess of $113 billion and is an investment grade rated company (S&P: A).

The 79,280 square foot BP property is located at the signalized intersection of Illinois Route 59 and Brookdale Road.

Illinois Route 59 is the primary north-south thoroughfare in the trade area that experiences traffic counts in excess of 45,000 vehicles per day. Additionally, Illinois Route 59 has a direct interchange with Interstate 88. Interstate 88 is located approximately three-quarters of a mile north of the property and experiences traffic counts in excess of 126,000 vehicles per day. The densely populated affluent area has approximately 190,000 people living within a five mile radius earning average annual household incomes in excess of $102,000.

The BP property benefits from its close proximity to many large office buildings including the headquarters of several major corporations. Both Nicor, an energy and shipping company, and Nalco, a supplier of water, energy, and air improvement solutions, are headquartered in the immediate vicinity employing 3,700 and 1,000 people, respectively, at their Naperville offices. Additionally, the surrounding area features many national retailers including Target, Meijer, Walgreens, CVS, and Chase Bank.

There are approximately eight years remaining on the BP ground lease that expires January 15, 2023. The corporately guaranteed lease features a 10% rental escalation in each of the four 5-year renewal option periods. BP is publicly traded on the New York Stock Exchange (BP) with a market capitalization in excess of $113 billion. BP is an investment grade rated company with a Standard and Poor’s rating of A.

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INVESTMENT HIGHLIGHTS

INVESTMENT HIGHLIGHTS:

• Located within an affluent suburb of the Chicago MSA • Rare corporate BP ground lease (S&P: A) • No landlord responsibilities • Approximately 190,000 people living within a five mile radius earning average household incomes in excess of $102,000 annually • Located at a signalized intersection along the heavily trafficked Illinois Route 59 (45,000 VPD) • Interstate 88 is located ¾ of a mile north of the property (126,000 VPD) • Gas station features 20 pumps, a car wash, and a convenience store inclusive of a Domino’s Express • Surrounding area features many large office buildings and the headquarters of several national corporations • Immediate area features many national retailers including Target, Meijer, Walgreens, CVS, and Chase Bank

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PROPERTY OVERVIEW

PROPERTY OVERVIEW:

Price:

$2,828,500

Cap Rate:

5.25%

Rent Schedule:

NOI

Escalation Date

$148,500

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$163,350

1/16/2023 (Option 1)

$179,685

1/16/2028 (Option 2)

$197,653

1/16/2033 (Option 3)

$217,419

1/16/2038 (Option 4)

Renewal Options:

Four 5-Year

Lease Commencement:

January 1, 2003

Lease Expiration:

January 15, 2023

Tenant:

Brookdale Petroleum, Inc.

Lessee:

BP Products North America Inc.

Lessee Credit:

S&P: A

Year Built:

2003

Lease Types:

Ground Lease

Rentable Square Feet:

10,142 SF (Combination of building, canopy, and car wash)

Land Size:

79,280 SF

PHOTOGRAPHS

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AERIAL

59

BROOKDALE ROAD NET LEASE INVESTMENT OFFERING

AERIAL

88 126,000 VPD

CORPORATE HEADQUARTERS

ILLINOIS ROUTE 59 (45,000VPD)

CORPORATE HEADQUARTERS

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MAPS

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MAPS

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DEMOGRAPHICS

DEMOGRAPHIC REPORT:

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Population

1-Mile

3-Mile

5-Mile

Total Population

14,248

70,298

188,199

Total Households

6,355

28,243

68,485

Income

1-Mile

3-Mile

5-Mile

Median Household Income

$60,978

$72,442

$76,728

Average Household Income

$78,583

$96,707

$102,663

MARKET OVERVIEW

MARKET OVERVIEW:

Naperville is a suburban city of Chicago, located in DuPage and Will counties in the State of Illinois. It was rated 1st on the list of best cities for early retirement in 2013 by kiplinger. In a 2010 study, Naperville was named the wealthiest city in the Midwest and eleventh in the nation with a population over 75,000.

As of the 2010 census, the city had a total population of 141,853, making it the fifth-largest city in Illinois.

Once a quaint farming town, Naperville has evolved into an affluent city. The Naperville community is home to many large employers including Edward Hospital, Nicor, Alcatel-Lucent, and BP America. Naperville is served by The Ronald Reagan Memorial Tollway (the tolled portion of Interstate 88) runs near the north edge of Naperville with three exits serving the city. www.naperville.il.us 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 traffic movement.

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. www.cityofchicago.org

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BP PROFILE

BP PROFILE:

BP p.l.c., sometimes referred to by its former name British Petroleum, is a British multinational oil and gas company headquartered in London, England. It is the sixth-largest energy company by market capitalization, the fifth-largest company in the world measured by 2012 revenues, and the sixth-largest oil and gas company measured by 2012 production. BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products worldwide.

The company’s Upstream segment is engaged in the oil and natural gas exploration, field development, and production; midstream transportation, and storage and processing; and marketing and trade of natural gas, including liquefied natural gas (LNG), and power and natural gas liquids (NGL). It also owns and manages crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing facilities and transportation, as well as NGL extraction business. The company’s Downstream segment is involved in the refining, manufacture, marketing, transportation, supply, and trade of crude oil; petroleum; petrochemicals products comprising purified terephthalic acid, paraxylene, acetic acid, and olefins and derivatives, as well as provides related services to wholesale and retail customers. This segment also sells refined petroleum products, such as gasoline, diesel, aviation fuel, and liquefied petroleum gas (LPG). This segment offers lubricants under Castrol, BP, and Aral brand names to automotive, industrial, marine, aviation, and energy markets. BP p.l.c. is also involved in alternative energy business, as well as offers shipping and treasury services. The company was founded in 1889 and is headquartered in London, the United Kingdom.

BP Corp. North America Inc, has been a part of America’s energy industry for nearly 150 years and employs over 20,000 people. Approximately 25% of all BP employees are located in the US, more than any country. BP p.l.c. is publicly traded (NYSE: BP) with a market capitalization in excess of $113 billion and is an investment grade rate company with a Standard and Poor’s rating of A.

Website: www.bp.com Stock Symbol: BP (NYSE) Market Capitalization: $113 billion Credit Rating: A (S&P) Employees: 83,900 World Headquarters: London, United Kingdom

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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