Triple Net Lease Property for Sale Chicago | The Boulder Group

NET LEASED INVESTMENT OFFERING

Gino’s East 500 North LaSalle Street Chicago, IL 60654 www.bouldergroup.com

TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING

TABLE OF CONTENTS

1)

Confidentiality & Disclaimer

7)

Photographs

2)

Executive Summary

8)

Tenant Profile

3)

Investment Highlights

9)

Demographic Comparison Report

4)

Property Overview

10)

Location Overview

5)

Aerials

11)

Contact Information

6)

Maps

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CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING

CONFIDENTIALITY & DISCLAIMER

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 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, 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 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 NET LEASED INVESTMENT OFFERING

EXECUTIVE SUMMARY The Boulder Group is pleased to exclusively market for sale a rare single tenant net leased trophy property located in the River North neighborhood of downtown Chicago. The irreplaceable property is located at the northwest corner of the signalized intersection of North LaSalle Street and West Illinois Street. This Gino’s East location is centrally located amongst many high rise hotel and residential buildings in a well-known tourist destination. Gino’s East recently elected to relocate from their previous famous flagship location and execute a ten year absolute triple net lease at the subject property. The lease features 10% rental escalations every five years. Gino’s East is a Chicago institution and one of the original deep dish pizza restaurants which first opened in 1966. Today, there are eleven Gino’s East restaurants located throughout the Chicago MSA. The Gino’s East property is ideally situated in the heart of Chicago’s River North neighborhood. River North is a vibrant submarket in Chicago which has experienced tremendous development and redevelopment in the past several years. River North is home to many restaurants, retail shops, hotels and high rise residential buildings. The property is located at the signalized intersection of North LaSalle Street and West Illinois Street. LaSalle Street experiences traffic counts of approximately 25,000 vehicles per day and is a main north-south thoroughfare in Chicago. Additionally, the property is benefitted from being located close to Ohio Street and Ontario Street, which are the main entry and exit point for vehicles traveling in and out of the city via Interstate 90/94. Approximately 300,000 vehicles per day travel on Interstate 90/94. There are approximately 90,000 people living within a one mile range of the property earning average household incomes of approximately $110,000.

The three-story, 17,400 square foot building is constructed of brick, wood and masonry. Gino’s East recently invested $1,000,000 in tenant improvements to the building bringing it to elite twenty-first century standards and evidencing their commitment to this location.

Gino’s East recently signed a ten year lease that is scheduled to expire in July 2023. The lease features 10% rental escalations and no landlord responsibilities. Gino’s East is a privately held company that is one of the original Chicago-style pizza restaurants. In addition to the eleven locations located throughout the Chicago MSA, Gino’s East operates a mail-order business where patrons from around the country can order frozen pizzas and have them shipped overnight.

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INVESTMENT HIGHLIGHTS NET LEASED INVESTMENT OFFERING

INVESTMENT HIGHLIGHTS • Located within Chicago’s vibrant River North neighborhood • Rare opportunity to acquire a trophy Chicago single tenant property in a core location • Centrally located amongst Chicago’s most visited tourist attractions • Gino’s East recently signed a 10 year lease • Gino’s East is committed to the location as evidenced by the $1,000,000 renovation recently made to the building • Lease features 10% rental escalations every five years • Gino’s East is an iconic Chicago-style pizza chain • Relocation of Gino’s East flagship location that was previously located three blocks north • No landlord responsibilities • Located along North LaSalle Street less four blocks from the Chicago Loop • Surrounded by high rise residential, hotel, and office buildings in a rapidly developing area • Located at a signalized intersection (25,000 VPD) • Three blocks from one of Chicago’s main points of entry and exit, the Ohio Street/Ontario Street feeder ramps • Approximately 90,000 people living within a one mile range of the property earning average household incomes of approximately $110,000

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PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING

PROPERTY OVERVIEW Price:

$7,000,000

Cap Rate:

6.00%

Rent Schedule:

NOI

Escalation Date

$420,000 $462,000 $508,200 $559,020 $614,922

7/1/2018 7/1/2023 (Option 1) 7/1/2028 (Option 2) 7/1/2033 (Option 3)

$676,416

7/1/2038 (Option 4)

$744,060

7/1/2043 (Option 5)

Rental Escalations:

10% Every Five Years

Renewal Options:

Five 5-Year

Lease Commencement Date:

January 1, 2013

Lease Expiration Date:

June 30, 2023

Tenant:

Gino’s East

Year Renovated:

2013

Lease Type:

NNN

Rentable Square Feet:

17,400 SF

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AERIALS NET LEASED INVESTMENT OFFERING

AERIALS ONTARIO STREET 22,000 VPD

N

94 1 MILE

OHIO STREET 28,000 VPD ROCK N’ ROLL MCDONALD’S

LASALLE STREET 25,000 VPD

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AERIALS NET LEASED INVESTMENT OFFERING

AERIALS N LAKE MICHIGAN

MICHIGAN AVENUE

OHIO/ONTARIO RAMP

CHICAGO RIVER

THE LOOP

OGILVIE STATION

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MAPS NET LEASED INVESTMENT OFFERING

MAPS HANCOCK CENTER

LOYOLA UNIVERSITY

MICHIGAN AVENUE THE SHOPS AT NORTH BRANCH

MERCHANDISE MART

TRUMP TOWER

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PHOTOGRAPHS NET LEASED INVESTMENT OFFERING

PHOTOGRAPHS

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TENANT PROFILE NET LEASED INVESTMENT OFFERING

TENANT PROFILE Gino’s East is a Chicago-based restaurant chain, notable for its deep-dish, Chicago-style pizza. The restaurant features deep-dish pizza baked in cast-iron pans, as well as sandwiches, soups, and salads. The first Gino’s East opened in 1966 by two taxi drivers and a friend. The company subsequently opened other locations throughout the Chicago Metropolitan Area. Today, there are eleven Gino’s East locations throughout Chicago land with four locations in the city of Chicago.

In addition to their restaurant business, Gino’s East operates a mail-order business, where patrons from around the country can order frozen pizzas and have them shipped overnight.

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DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING

DEMOGRAPHIC COMPARISON REPORT Population

1-mi

3-mi

5-mi

Total Population

89,389

336,576

797,930

Total Households

57,230

180,461

370,342

Median Household Income

$73,669

$64,649

$53,098

Average Household Income

$108,321

$97,746

$82,348

Income

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LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING

LOCATION OVERVIEW River North is a rapidly developing and transforming neighborhood in the city of Chicago. A common definition puts the District in the area north of the Chicago River and the Merchandise Mart, south of Chicago Avenue, east of the Chicago River and west of Michigan Avenue. River North has experienced vast changes in the years 1990 - 2012 including the development of vast high rise buildings, nightclubs and restaurants.

River North has become one of Chicago’s top neighborhoods for nightlife especially along Franklin Avenue and Hubbard Street. It also hosts the largest concentration of art galleries in the United States, outside of Manhattan. With its close proximity to Michigan Avenue, the Loop, Merchandise Mart and the Kennedy Expressway, in addition to a recent increase in the residential population, River North has become a urban lifestyle destination for fashion, home, fine dining and nightlife.

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 one of 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. www.cityofchicago.org

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CONTACT INFORMATION NET LEASED INVESTMENT OFFERING

CONTACT INFORMATION

666 Dundee Road, Suite 1801 Northbrook, IL 60062 Randy Blankstein President 847.562.0003 randy@bouldergroup.com

Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com

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