BARILLA (North American Headquarters | Chicago …...Due to Northbrook’s strategic location and highly educated workforce, the surrounding area is home to corporate headquarters

BARILLA (North American Headquarters | Chicago MSA) 885 Sunset Ridge RoadNorthbrook, IL 60062

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

I. Executive Summary Disclaimer Statement

Executive Summary

Investment Highlights

Property Overview

II. Site Overview Photographs

Interior Photographs

Aerials

Site Plan

Floor Plans

Map

Corporate Map

Surrounding Corporate Headquarters

III. Market Overview Market Statistics

Lease Comparables

TABLE OF CONTENTS


IV. Tenant Overview Tenant Overview

Demographic Comparison Report

Location Overview

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 mea-sures to verify all of the information set forth herein.

DISCLAIMERSTATEMENT:

DISCLAIMER STATEMENT



EXECUTIVESUMMARY:

The Boulder Group is pleased to exclusively market for sale a rare single tenant net leased Barilla office property located within an affluent suburb of Chicago. The property serves as the North American Headquarters for Barilla, an international food company that is the world’s largest seller of pasta with revenue of €3.38 billion. Barilla relocated their headquarters from its previous location in nearby Bannockburn, IL. There are approximately ten years remaining on the recently signed Barilla lease which expires July 31, 2026. This net lease features 2.5% annual rental escalations.

The 75,260 square foot Barilla Headquarters building is strategically located in Northbrook along the Edens Expressway (Interstate 94). This Interstate connects Northbrook and the surrounding North Shore suburbs to downtown Chicago which is located approximately twenty miles south. Interstate 94 experiences traffic counts of approximately 150,000 vehicles per day. The surrounding area is one of the most affluent parts of Chicago with average household incomes in excess of $188,000 annually. There are over 157,000 people living within a five mile radius of the property.

Due to Northbrook’s strategic location and highly educated workforce, the surrounding area is home to corporate headquarters for numerous large corporations including Allstate, Walgreens, Discover, Baxter, Medline, Underwriters Laboratories & Crate and Barrel as well as the national headquarters of Astellas (a Japanese pharmaceutical company), and Bell Flavors & Fragrances (an international flavor and fragrance company). Additionally, the immediate area features many prominent retail destinations including Northbrook Court and a brand new Mariano’s grocery anchored development. Northbrook Court is a one million square foot regional mall that is anchored by Neiman Marcus, Lord & Taylor, Macy’s, Apple and AMC Theatres. The Mariano’s grocery anchored development opened in 2015 and is located across the street from the property.

The Barilla office building is located on a 4.04 acre parcel. The two-story building serves as both an office and R&D property where the company is responsible for product innovation, advanced quality enhancement, testing and packaging development. Barilla employs approximately 150 people at this property. In 2010, Nestle previously occupied this property after making a substantial capital investment of over $18,000,000 in engineering, mechanical and GMP, HAACP and USDA-ready pilot plant finishes. Shortly thereafter in 2014, Nestle relocated their division that was headquartered in Northbrook to a Cleveland Suburb. In 2015, Barilla invested an additional $3,000,000 into the property.

Barilla is an Italian family-owned food company that is the world’s largest pasta company. Barilla has a 30% market share of dry pasta in the USA and 10% market share worldwide. A world leader in the markets of pasta and ready–to–use sauces in continental Europe, bakery products in Italy and crispbread in Scandinavia, the Barilla Group is recognized worldwide as a symbol of Italian know–how. They currently own 20 brands and employ over 8,100 people. In 2015, revenue for Barilla rose to €3.38 billion in 2015 and EBITDA amounted to €440. Additionally, the total debt decreased from €250 million to €170 million.

EXECUTIVE SUMMARY


INVESTMENTHIGHLIGHTS:

Rare Investment Opportunity of a Distinguished International Company’s North American Headquarters

• Barilla is the world’s largest pasta company

• Barilla has a 30% market share of dry pasta in the USA and 10% market share worldwide

• Barilla’s revenue rose to €3.38 billion in 2015 and EBITDA amounted to €440

Attractive Lease Structure

• New 11 year net lease with 10 years remaining

• 2.5% annual rental escalations

• Significantly below market rent ($12.30 per square foot)

Strategic Location in Chicago’s Affluent Northshore

• Northbrook is an affluent suburb of Chicago

• Affluent area with average household incomes within a three mile radius in excess of $188,000

• Over 157,000 people living within a five mile radius of the property

• Located along the Edens Expressway (Interstate 94) with traffic counts of approximately 150,000 vehicles per day

• Surrounding area is home to corporate headquarters for large corporations including Allstate, Walgreens, Discover, Baxter, Underwriters Laboratories & Crate and Barrel as well as the national headquarters of Astellas, and Bell Flavors & Fragrances

Premium Office and Research & Development Building

• Building was significantly renovated in 2010 ($18 million) and recently in 2015 ($3 million)

• Approximately 150 employees work at the office building which serves as the North American Headquarters of Barilla

• Facility is responsible for product innovation, advanced quality enhancement, testing and packaging development

INVESTMENT HIGHLIGHTS


PROPERTY OVERVIEW:

PROPERTY OVERVIEW

Price: $18,000,000

Cap Rate: 5.14%

Net Operating Income: $925,698

Rental Escalations: 2.5% Annually

Renewal Options: One 10-Year at 95% FMV

Rent Commencement Date: August 1, 2015

Lease Expiration Date: July 31, 2026

Tenant: Barilla America Inc.

Guarantor: Barilla G. e R. Fratelli Societa per Azioni

Year Renovated: 2010 | 2015

Lease Type: NN (Landlord responsible for capital expenses greater than $10,000 per instance in any year not to exceed $25,000 in aggregate)

Building Size: 75,260 SF

Land Size: 4 Acres

Number of Floors: Two


PHOTOGRAPHS


INTERIOR PHOTOGRAPHS


AERIALS

INTE

RSTA

TE 94

(15

0,000

VPD)

Downtown Chicago


AERIALS

SKO

KI E B

LVD ( 1 6 , 0 0 0 V P D

)

EDENS EXPRESSWAY (150,000 VPD)

Lake Michigan

D U N D E E R O A D ( 3 4 , 0 0 0 V P D )


SITE PLAN

SU

NS

ET

RID

GE

RO

AD

E N T R A N C E T O S O U T H B O U N D E D E N S E X P R E S S WAY

ED

EN

S E

XP

RE

SS

WA

Y

D U N D E E R D 68

94


FLOOR PLANS

DNUP

UP

UP

VIBRATIONTABLE

EXTERIORWASTE

COMPACTORW/

ROLL-OFFCONTAINER

SUMPPUMP

14'-0" LOUVER

HEAD HEIGHT

6'-0" x

12'-0"

6'-0" x

6'-0"

PC-1

ACCU-2

ACCU-1

ACC-1 ACC-2

PILOT LAB

CAFE

INTERVIEWROOM

INTERVIEWROOM

RECEPTIONFOCUS GROUP ROOM

FRIDGE/FREEZER

LIGHTBOX

STEAMGENERATOR

EQUIPMENT(STEAM KETTLES)

EQUIPMENT(RETORT) LOW HEIGHT PARTITION AND

CURTAIN

FREEZERREF

DW

ICE

PILOT WET LAB PILOT DRY LAB

INCUBATORWALK-IN FREEZERWALK-IN COOLER

P E R K I N SWI L L

1 : 275 03/05/15

1ST FLOOR TEST FIT - TF05 REVISED

885 Sunset Ridge RdNorthbrook, IL 60062

PROJECT NO. 026378.000N.T.S.


FLOOR PLANS

ToDoToDo

ToDoToD

o

TQ90-0001

TQ35-0011-SR

TQ90-0

001

TQ35-0011

-SR

2E

2E

2E

2E

2E

2E

2B

2B

2B

1B

UP DN

DN

DN

ELECTRIC PANELS ELECTRIC PANELS

ELECTRIC PANELS

ELECTRIC PANELS

2E

2E

COPIEROFOI

COPIEROFOI

COPIEROFOI

COPIEROFOI

MIC.(X2),OFOI

MIC.(X2),OFOI

MIC.(X2),OFOI

MIC.(X2),OFOI

FREEZ./REF.,OFOI

FREEZ.TRUE,OFOI

FREEZ.,OFOI

FREEZ.,OFOI

FREEZ.,OFOI

FREEZ.,OFOI

FREEZ.,OFOI

FREEZ.,OFOI

TRAUSEN,OFOI

SUBZERO,OFOI

FRIGIDAIREFREEZER,OFOI

FREEZER,OFOI

FREEZREF,OFOI

COFFEEMAKER

COFFEEMAKER

3

ALIGNALIGN

MULTIPURPOSE ROOM

KITCHEN

KITCHENSTAFF

PHOTOBOOTH

STORAGECABINETS

DISHWASHING

DRY STORAGE CULINARY PREP SENSORY KITCHEN

STORAGECABINETS

MULTI-PURPOSESENSORY ROOM

CHANGINGROOM

COOLERFREEZER

CUSTOMER EXPERIENCE

REF. REF.

SPEEDRACK

SPEEDRACK

OVEN

MIC.

MIC.

OVEN

COMBIOVEN

U.C.BLASTCHILLER

EXISTING ELECTRICAL PANELS EXISTING ELECTRICALPANELS

U.C.REF.

U.C.REF.

P E R K I N SWI L L

1 : 275 03/03/15

2ND FLOOR TEST FIT - TF05 REVISED

885 Sunset Ridge RdNorthbrook, IL 60062

PROJECT NO. 026378.000N.T.S.


MAP

Lake Michigan


Lake Michigan

CORPORATE MAP


SURROUNDING CORPORATE HEADQUARTERS

Allstate Crate & Barrel

Discover Takeda Pharmaceuticals Walgreens

Astellas Pharma


MARKETSTATISTICS:

MARKET STATISTICS

LEASE COMPARABLES:

Office Market Statistics (Q2 2016)“North Submarket” Chicago Total

Number of Buildings: 1,664 13,562

Total Rentable Area: 60,039,864 SF 468,278,344 SF

Vacancy Percentage: 14.2% 13.1%

YTD Deliveries: 14,300 SF 646,576 SF

Under Construction: 0 SF 7,824,462 SF

Quoted Rates: $19.81 (NNN) $23.28 (NNN)

Address City State Tenant Lease Start Date

Lease Term

Leased Space

Rent PSF

150 S Saunders Road Lake Forest IL Horizon Pharma, Inc. January 2016 8 Years 133,218 SF $14.08

1200 Lakeside Drive Bannockburn IL Baxalta, Inc. January 2016 12 Years 76,446 SF $19.72

510 Lake Cook Road Deerfield IL Surgical Care Affiliates June 2016 10 Years 28,410 SF $20.75


Barilla is an Italian family-owned food company that is the world’s largest pasta company. Barilla has a 30% market share of dry pasta in the USA and 10% market share worldwide. Established in 1877, it’s now an international group present in more than 100 countries. A world leader in the markets of pasta and ready–to–use sauces in continental Europe, bakery products in Italy and crispbread in Scandinavia, the Barilla Group is recognized worldwide as a symbol of Italian know–how. They currently own 20 brands and employ over 8,100 people.

As part of the “Good for You, Good for the Planet” strategy, the last 3 years have seen fat cut in 73 products, salt in 15 products, while new products have less sugar and more whole grain. Compared to 2010, there was a 23% reduction of CO2 emissions and a 19% decrease of water consumption per ton of finished product.

In 2015, revenue for Barilla rose to €3.38 billion in 2015 and EBITDA amounted to €440. Additionally, the total debt decreased from €250 million to €170 million.

Italy accounts for almost half of the Barilla Group revenue. In spite of a difficult economic and social context, in which consumption of the product categories where Barilla competes are in decline, the company continued to do better than the market average. In 2015, in Europe (Italy excluded), the Group’s volumes grew by +4% compared to the previous year. In the same timeframe, the Americas region’s net revenue grew thanks to the contribution of all the countries in which the Group operates. In the United States, growth was boosted by pasta, also thanks to launches of new products, such as “Pronto” pasta, and the consolidation of products in the premium and gluten-free sectors, which began in 2014. In New York, the third Barilla restaurant was inaugurated in October 2015.

Website: www.barillagroup.com2015 Revenue: €3.38 billionTotal Employees: 8,100Year Founded: 1877Headquarters: Parma, Italy

TENANT OVERVIEW

TENANT OVERVIEW:


Population 1-Mile 3-Mile 5-Mile

Total Population 3,453 52,545 157,143

Total Households 1,259 19,480 58,772

Income 1-Mile 3-Mile 5-Mile

Median Household Income $121,894 $128,749 $120,580

Average Household Income $177,214 $188,443 $179,532

DEMOGRAPHICREPORT:

DEMOGRAPHIC REPORT


Northbrook is a village on Chicago’s North Shore, located at the northern edge of Cook County, Illinois. Northbrook is connected to downtown Chicago by Metra’s Milwaukee District/North Line, which has two stations: one at Shermer Road and another at Lake Cook Road. Pace buses also serves Northbrook. Interstate 94 links Northbrook and the surrounding suburbs

Northbrook’s location between the Edens Expressway (I-94) and the Tri-State Tollway (I-294) provides industrial and commercial companies an advantage in terms of access to labor and to markets. Through the development of the remaining vacant commercial land and redevelopment of existing industrial and commercial areas, Northbrook has positioned itself for future new and existing business growth.

The corporate headquarters of Underwriters Laboratories and Crate & Barrel are located in Northbrook, as are the North American headquarters of Barilla (an Italian based food company), Astellas (a Japanese pharmaceutical company), and Bell Flavors & Fragrances (an international flavor and fragrance company). Allstate’s headquarters are in a nearby area in Northfield Township.

In addition to a significant office and industrial base, Northbrook has a large retail base anchored by the 1+ million square foot regional mall, Northbrook Court.

LOCATIONOVERVIEW:

LOCATION OVERVIEW


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. Chicago has many nicknames, the best-known being the Windy City.

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. As of 2014, Chicago had the third largest gross metropolitan product in the United States at $610 billion. The city of Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims one Dow 30 company: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001. Two more Dow 30 companies, Kraft Foods and McDonald’s are in the Chicago suburbs, as are Sears Holdings Corporation and the technology spin-offs of Motorola. The headquarters of United Continental Holdings, are in the United Building and its operations center and its United Airlines subsidiary are in the Willis Tower in Chicago.

In 2014, Chicago attracted 50.17 million domestic leisure travelers, 11.09 million domestic business travelers and 1.308 million overseas visi-tors. These visitors contributed more than $13.7 billion to Chicago’s economy. Upscale shopping along the Magnificent Mile and State Street, thousands of restaurants, as well as Chicago’s eminent architecture, continue to draw tourists. The city is the United States’ third-largest convention destination. A 2011 study by Walk Score ranked Chicago the fourth most walkable of fifty largest cities in the United States.

LOCATIONOVERVIEW:

LOCATION OVERVIEW

666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

Randy [email protected]

Jimmy [email protected]

Documents

BARILLA (North American Headquarters | Chicago …...Due to Northbrook’s strategic location and highly educated workforce, the surrounding area is home to corporate headquarters