Net Lease For Sale | The Boulder Group

NET LEASE INVESTMENT OFFERING

PNC BANK (GROUND LEASE) 1640 W Fullerton Avenue Chicago, IL 60614 (Lincoln Park)

TABLE OF CONTENTS

I. Executive Summary Executive Summary Investment Highlights Property Overview

NET LEASE INVESTMENT OFFERING

II. Location Overview Site Plan Aerial Maps Photos

III. Market & Tenant Overview Tenant Profile Location Overview Demographics

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 PNC Bank ground lease located in Chicago’s Lincoln Park neighborhood. Lincoln Park is one of Chicago’s wealthiest and most expensive communities with average single-family home prices of approximately one million dollars. The PNC Bank is strategically positioned at a notable signalized intersection in one of the city’s primary retail destinations. The surrounding area is densely concentrated, providing significant barriers to entry. There are over nine years remaining on the PNC Bank ground lease which expires in December 2024. The ground lease features rare 2% annual rental escalations throughout the primary term and 10% escalations in each renewal option period.

The PNC Bank property is strategically positioned at the heavily trafficked signalized intersection of Fullerton Avenue and Clybourn Avenue which experiences traffic volumes in excess of 48,000 vehicles per day. Fullerton Avenue is the primary east-west thoroughfare in the trade area. The PNC Bank property is benefitted by its proximity to Interstate 90/94 which is located one-half mile to the west. Interstate 90/94 is one of the most traveled stretches of interstate in the United States with traffic volumes in excess of 316,000 vehicles per day. Further contributing to the strength of the PNC Bank property is its location within one of Chicago’s primary retail destinations. Retailers located in the immediate vicinity include Costco, Target, Home Depot, Menards, Kohl’s, Best Buy, TJ Maxx, Jewel-Osco, Mariano’s, Treasure Island Foods, Regal Cinemas, Sports Authority and Aldi. The nearby Costco is one of only two locations in the entire city of Chicago.

The surrounding urban infill area is densely concentrated with homes, apartments and commercial properties. The PNC Bank property is located within an affluent area with average annual household incomes of approximately $150,000 within a one-half mile radius. The immediate area is densely populated with over 51,000 people living within a one mile radius. The property is benefitted by its proximity to DePaul University which is located one-half mile east. DePaul University has a total enrollment of approximately 24,000 students.

The PNC Bank Ground lease has over nine years remaining and expires in December 2024. The ground lease features 2% annual rental escalations throughout the primary term. The ground lease has six 5-year renewal option periods with 10% rental escalations in each. PNC Bank is an investment grade rated company (S&P: A-) and is publicly traded (NYSE: PNC) with a market capitalization in excess of $44 billion.

NET LEASE INVESTMENT OFFERING

INVESTMENT HIGHLIGHTS

INVESTMENT HIGHLIGHTS:

NET LEASE INVESTMENT OFFERING

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Located in Chicago’s Lincoln Park neighborhood

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Investment grade rated tenant (S&P: A-)

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Rare 2% annual rental escalations in the primary term of the lease and 10% rental escalations in each renewal option period

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No landlord responsibilities

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Vibrant retail destination that features Costco (one of only two in Chicago), Target, Home Depot, Menards, Jewel-Osco and TJ Maxx

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Trophy location at the strategic Chicago intersection of Fullerton Avenue and Clybourn Avenue which experiences traffic volumes in excess of 48,000 vehicles per day

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Affluent area with average annual household incomes within a one-half mile radius of approximately $150,000

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One-half mile east of Interstate 90/94 which experiences traffic counts in excess of 316,000 vehicles per day

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Densely populated area with over 51,000 people living within a one mile radius of the property

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One-half mile west of the University of DePaul which has total enrollment of approximately 24,000 students

PROPERTY OVERVIEW

PROPERTY OVERVIEW:

Price:

$6,950,000

Current Cap Rate:

4.26%

Net Operating Income:

NOI $296,208* $302,132 $308,175 $314,338 $320,625 $327,038 $333,578 $340,250 $347,055 $381,760 $419,936 $461,930 $508,123 $558,935 $614,829

Escalation Date 01/01/2017 01/01/2018 01/01/2019 01/01/2020 01/01/2021 01/01/2022 01/01/2023 01/01/2024 01/01/2025 01/01/2030 01/01/2035 01/01/2040 01/01/2045 01/01/2050

(Option 1) (Option 2) (Option 3) (Option 4) (Option 5) (Option 6)

Renewal Options: Six 5-Year Rent Commencement Date:

February 18, 2005

Lease Expiration Date:

December 31, 2024

Tenant: PNC Bank Credit Rating: Investment Grade: (S&P: A-) Year Built: 2004 Lease Type:

Ground Lease – No Landlord Responsibilities

Building Size:

5,274 SF

Land Size:

12,256 SF

*NOI is based off of the January 1, 2016 rent. The seller will credit, at closing, the difference between the current rent and the escalated rent.

NET LEASE INVESTMENT OFFERING

SITE PLAN

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Ashland Avenue (40,000 VPD)

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MAPS

CHICAGO O’HARE INTERNATIONAL AIRPORT

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MAPS

BUCKTOWN

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PHOTOS

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TENANT PROFILE

TENANT PROFILE:

PNC Financial Services is a diversified financial services company in the United States. PNC is engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking. PNC provides deposit, lending, cash management, and investment services to more than 6 million consumer and small business customers across 19 states and the District of Columbia. PNC is the fifth largest bank in the United States (total branches) with more than 2,700 branches and 7,400 ATM machines.

PNC is a publicly traded company (NYSE: PNC) with a market capitalization in excess of $44 billion and is an investment grade rated company (S&P: A-) Website: www.pnc.com Credit Rating:

Investment Grade (S&P: A-)

Stock Symbol: PNC (NYSE)

NET LEASE INVESTMENT OFFERING

Number of Locations:

2,700+

Market Capitalization:

$44 billion

LOCATION OVERVIEW

LOCATION OVERVIEW:

Lincoln Park is a North Side neighborhood of the City of Chicago, Illinois and is boarded by the communities of Lakview to the north, Logan Square to the west, West Town to the southwest and the shore of Lake Michigan on the east. The Lincoln Park community is one of the wealthiest and most expensive communities in Chicago and average single-family home prices are nearly one million dollars. With its large concentration of upscale retailers, boutiques, restaurants, bars and clubs, Lincoln Park offers its residents and visitors a unique experience.

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. www.cityofchicago.org

NET LEASE INVESTMENT OFFERING

DEMOGRAPHICS

DEMOGRAPHIC REPORT:

Population

.5 Mile

1 Mile

1.5 Mile

Total Population

10,044

51,603

137,378

Total Households

4,342

23,105

65,971

1 Mile

3 Mile

5 Mile

Median Household Income

$108,374

$93,747

$81,095

Average Household Income

$148,065

$133,350

$117,348

Income

NET LEASE INVESTMENT OFFERING

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