Net Lease Walmart ground lease for sale by The Boulder Group

NET LEASED INVESTMENT OFFERING

Walmart (Ground Lease) 5630 West Touhy Avenue Niles, IL 60714 (Chicago MSA)

www.bouldergroup.com

TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING

TABLE OF CONTENTS

1)

Executive Summary

2)

Investment Highlights

3)

Property Overview

4) Aerial 5)

Site Plan

6) Maps 7)

Tenant Profile

8)

Demographic Comparison Report

9)

Location Overview

10)

Contact Information

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CONFIDENTITALITY & 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 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 NET LEASED INVESTMENT OFFERING

EXECUTIVE SUMMARY The Boulder Group is pleased to exclusively market for sale a rare single tenant Walmart ground lease located in the Chicago MSA. The 132,695 square foot building is located on a 9.82 acre parcel within a dominant retail destination. The Walmart anchors Pointe Plaza, a 330,000 square foot development located in an affluent area north of Chicago. Walmart has approximately ten years of lease term remaining on their ground lease that expires in March 2024. The lease features rental escalations in each of the seven 10-year renewal option periods. Walmart is a publicly traded company (NYSE: WMT) with a market capitalization in excess of $240 billion and is an investment grade rated company (S&P: AA).

The Walmart property is located within an affluent area just north of Chicago. Average household incomes within a one mile radius are in excess of $107,000 annually. Additionally, there are approximately 700,000 people living within five miles earning average household incomes in excess of $80,000 per year. The property is located along West Touhy Avenue, a heavily trafficked east-west thoroughfare that experiences traffic counts in excess of 35,000 vehicles per day. The property is located less than one mile from a full interchange with Interstate 94, which experiences traffic counts in excess of 153,000 vehicles per day. The immediate area is dense providing for high barriers to entry.

The Walmart is well located within one of the dominant retail destinations of Chicago’s northern suburbs. The Walmart anchors Pointe Plaza, a 330,000 square foot development that also features Ross Dress For Less, Walgreens, Fresh Farms International Market, Dress Barn and Babies R’ Us. Directly across the street from Pointe Plaza is Village Crossing, a 450,000 square foot development that features Dick’s Sporting Goods, AMC Theaters, Best Buy, Michael’s, Bed Bath & Beyond and many other national retailers. Jewel-Osco is also located across the street from the Walmart. Other notable retailers in the immediate vicinity along West Touhy Avenue include Target and Costco. This is a 24 hour location and Walmart has a longstanding operating history since 2000. The closest Walmart property is located 5.8 miles away. With convenient interstate access and a large variety of strong retailers, this corridor has the unique advantage of drawing consumers from both the city and suburbs.

Walmart has approximately 10 years remaining on their original twenty-five year ground lease that expires in March 2024. The lease features seven 10-year renewal options with a 10% rental escalation in the first option and 5% rental escalations in each remaining renewal option period. Walmart is an investment grade rated company (S&P: AA) and is publicly traded (NYSE: WMT) with a market capitalization in excess of $240 million.

Walmart is the largest company in the world by both number of employees and revenue.

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INVESTMENT HIGHLIGHTS NET LEASED INVESTMENT OFFERING

INVESTMENT HIGHLIGHTS • Located within the Chicago MSA just north of the city limits • Extremely rare opportunity to acquire a single tenant Walmart property located in a top MSA • 24 hour location with a long operating history at this location (since 2000) • Walmart is investment grade (S&P: AA) and is the largest company in the world • Long term ground lease with approximately 10 years remaining • 10% rental escalation in the first renewal option and 5% in the remaining options • No landlord responsibilities • Located within a dominant retail destination that features Costco, Target, AMC Theaters, Jewel-Osco, and many others • West Touhy Avenue is a primary east-west thoroughfare with traffic counts in excess of 35,000 vehicles per day • Located less than one mile from access to Interstate 94 which experiences traffic counts in excess of 153,000 vehicles per day • Affluent area with household incomes in excess of $107,000 annually within a one mile radius • Opportunity to own 9.8 acres in a dense infill area of Chicagoland

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PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING

PROPERTY OVERVIEW

Price:

$9,966,063

Cap Rate:

4.75%

Tenant:

Walmart

Credit Rating:

AA (S&P)

Rent Schedule:

NOI

Escalation Date

$473,388 $520,726 $546,763 $574,101 $602,806 $632,946 $664,594 $697,823

3/1/24 (Option 1) 3/1/34 (Option 2) 3/1/44 (Option 3) 3/1/54 (Option 4) 3/1/64 (Option 5) 3/1/74 (Option 6) 3/1/84 (Option 7)

Renewal Options:

Seven 10-Year

Rent Commencement Date:

March 1, 1999

Rent Expiration Date:

February 29, 2024

Year Built:

2000

Lease Type:

Ground Lease

Square Feet:

132,695 SF

Land Size:

9.82 acres

3 www.bouldergroup.com

AERIAL NET LEASED INVESTMENT OFFERING

AERIAL

N

94

15

3,0

00

VP

D

W. TOUHY AVENUE 35,000 VPD

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SITE PLAN NET LEASED INVESTMENT OFFERING

SITE PLAN

JARVIS STREET

TOUHY AVENUE

N

CENTRAL AVENUE

SUBJECT OFFERING

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MAPS NET LEASED INVESTMENT OFFERING

MAPS

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TENANT PROFILE NET LEASED INVESTMENT OFFERING

TENANT PROFILE Wal-Mart Stores, Inc., branded as Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. According to the Fortune Global 500 list in 2014, Walmart is the biggest private employer in the world with over two million employees, and the largest retailer in the world. Walmart remains a family-owned business, as the company is controlled by the Walton family, who own over 50 percent of Walmart through their holding company, Walton Enterprises. It is also one of the world’s most valuable companies. Additionally, Walmart is the largest grocery retailer in the United States. Walmart is headquartered in Bentonville, Arkanasas.

Website: Credit Rating: Stock Symbol: Number of Locations: Market Capitalization: Headquarters:

www.walmart.com S&P: AA NYSE: WMT 11,003 $243 billion Bentonville, AR

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DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING

DEMOGRAPHIC COMPARISON REPORT

Population Total Population Total Households

1-mi

3-mi

5-mi

12,461 4,529

181,228 69,428

689,160 257,382

$84,354 $107,017

$64,565 $85,561

$57,499 $80,075

Income Median Household Income Average Household Income

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LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING

LOCATION OVERVIEW Niles is a village in Cook County, Illinois with a population of 29,803 people. Niles is adjacent to Chicago to the south, Skokie to the east, Morton Grove to the northeast, Glenview to the north, and Park Ridge & unincorporated Cook County to the west. The town is centered along Milwaukee Avenue which forms a main artery diagonally through the town on a northwest-southeast bearing.

Grainger (NYSE: GWW), who has their corporate headquarters in nearby Lake Forest, is the largest employer with over 850 employees working in Niles.

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 also 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. The city has also been rated as having the most balanced economy in the United States, due to its high level of diversity. 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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