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SINGLETENANT
___________________
JOLIETILLINOIS
ABSOLUTE NNNINVESTMENT OPPORTUNITY
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EXCLUSIVELY MARKETED BY
PATRICK R. LUTHER, CCIM | MANAGING PRINCIPALSRS NATIONAL NET LEASE GROUP
610 Newport Center Drive, Suite 1500 | Newport Beach, CA 92660DL: 949.698.1115 | M: 480.221.4221
[email protected] | CA License No. 01209944
MATTHEW MOUSAVI | MANAGING PRINCIPALSRS NATIONAL NET LEASE GROUP
610 Newport Center Drive, Suite 1500 | Newport Beach, CA 92660DL: 949.698.1116 | M: 714.404.8849
[email protected] | CA License No. 01732226
SEAN LUTZ | SENIOR VICE PRESIDENTSRS NATIONAL NET LEASE GROUP
155 N. Wacker Drive, Suite 3660 | Chicago, IL 60606DL: 312.279.5345
[email protected] | IL License No. 475132482
DAN ELLIOT | SENIOR VICE PRESIDENTSRS NATIONAL NET LEASE GROUP
155 N. Wacker Drive, Suite 3660 | Chicago, IL 60606DL: 312.279.5342
[email protected] | IL License No. 475144985
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Actual Site
5INVESTMENT SUMMARY
INVESTMENT HIGHLIGHTS
7PROPERTY OVERVIEW
PARCEL MAPAERIALS
SITE PLAN LOCATION MAP
12AREA OVERVIEW
CITY OVERVIEWDEMOGRAPHICS
14FINANCIALS
RENT ROLLBRAND PROFILE
This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.
INVESTMENT SUMMARY OFFERING
PROPERTY SPECIFICATIONS
Actual Site
5 / GOLDEN CORRAL / JOLIET, ILLINOIS INVESTMENT SUMMARY / SRS NATIONAL NET LEASE GROUP
RENTABLE AREA: 10,175 SF
LAND AREA: 1.76 Acres
PROPERTY ADDRESS: 2100 W. Jefferson Street, Joliet, IL 60435
YEAR BUILT: 2003
PARCEL NUMBER: 30-07-18-111-023-0000
OWNERSHIP: Fee Simple (Land and Building)
SRS National Net Lease Group is pleased to present the rare opportunity to acquire the fee simple interest in Golden Corral, an absolute NNN leased, investment property located in Joliet, WI. The tenant, Golden Corral, will execute a brand new 12 year sale leaseback at the close of escrow. The lease features annual 1.50% rental increases throughout the term with 5 (5-year) options to extend. The lease is franchisee guaranteed by an experienced 8-unit operator and is absolute NNN with zero landlord responsibilities.
The subject site is located at the signalized, hard corner intersection of S Hammes Avenue and W. Jefferson Street with a combined 33,100 vehicles passing by each day. The asset has excellent visibility & access with multiple points of ingress/egress on each adjacent street. This Golden Corral is a high volume location and will be undergoing a remodel in the Summer of 2018. The property is located as an outparcel to Marycrest Shopping Plaza which features tenants Zip Fitness, Storage World, Clair Beauty Mart, Masingers Pharmacy and more. Additionally, the property is near national/credit tenants such as Walmart, Sam’s Club, Menards, Public Storage, ALDI, O’Reilly Auto Parts, Walgreens, Pep Boys and more, further increasing consumer traffic and crossover shopping. Furthermore, the property is easily accessible from Interstate 80 (86,000 VPD) located just 2 miles South. The 5-mile trade area is supported by a dense population of approximately 170,000 with an average household income of $74,000.
PRICING: $3,714,000
NET OPERATING INCOME: $260,000
CAP RATE: 7.00%
GUARANTY: Franchisee - (Experienced 8 Unit Operator)
LEASE TYPE: Abs. NNN
LANDLORD RESPONSIBILITIES: None
INVESTMENT HIGHLIGHTS
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6 / GOLDEN CORRAL / JOLIET, ILLINOIS INVESTMENT HIGHLIGHTS / SRS NATIONAL NET LEASE GROUP
BRAND NEW 12 YEAR SALE LEASEBACK | FRANCHISEE GUARANTY BY EXPERIENCED 8 UNIT OPERATOR | ANNUAL RENTAL INCREASES
• Franchisee guaranteed lease by successful 8 unit operator• Brand new 12 year sale leaseback to be executed at the close of escrow• Rare 1.50% annual rental increases throughout the initial term and options
ABSOLUTE NNN LEASE | FEE SIMPLE OWNERSHIP | NO LANDLORD RESPONSIBILITIES
• Tenant pays for CAM, insurance, taxes, and maintains all aspects of the building• No landlord responsibilities• Ideal, management-free investment for an out-of-state, passive investor
LOCATED AT SIGNALIZED HARD CORNER INTERSECTION | EXCELLENT VISIBILITY AND ACCESS ON A CORNER SITE | REMODEL SCHEDULED FOR SUMMER 2018
• The asset is located at the signalized, hard corner intersection of S Hammes Avenue and W. Jefferson Street with a combined 33,100 vehicles passing by each day
• The asset has excellent visibility & access with multiple points of ingress/egress on each adjacent street
• This Golden Corral is a high volume location and will be undergoing a remodel in the Summer of 2018
OUTPARCEL TO MARYCREST PLAZA SHOPPING CENTER | NEARBY NATIONAL/CREDIT TENANTS | INCREASES CONSUMER TRAFFIC
• The property is located as an outparcel to Marycrest Plaza Shopping Center which features tenants Zip Fitness, Storage World, Clair Beauty Mart, and more
• Other nearby national/credit tenants include Walmart, Sam’s Club, Menards, Public Storage, ALDI, O’Reilly Auto Parts, Walgreens, Pep Boys
• Increases consumer traffic and crossover shopping in the trade area
STRONG DEMOGRAPHICS IN DENSE 5-MILE AREA• Over 170,000 residents and 78,000 employees support the trade area• $74,000 average household income
PROPERTY OVERVIEW
PARCEL MAP
Actual Site
7 / GOLDEN CORRAL / JOLIET, ILLINOIS PROPERTY OVERVIEW / SRS NATIONAL NET LEASE GROUP
ACCESSThere are four (4) access points with two (2) access points along W. Jefferson Street/ U.S. Highway 52 and two (2) along S. Hammes Avenue.
TRAFFIC COUNTSW. Jefferson Street/ U.S. Highway 52:............................................29,400S. Larkin Avenue/ State Highway 7: ...............................................29,500
IMPROVEMENTSThere is approximately 10,175 SF of existing building area.
PARKINGThere are approximately 136 parking spaces on the owned parcel. The parking ratio is approximately 13.67 stalls per 1,000 SF of leasable area.
YEAR BUILT2003
PARCELParcel Number: 30-07-18-111-023-0000 Acres: 1.76 Square Feet: 76,666
ZONINGCommercial
N
3,700CARS PER DAY
29,400CARS PER DAY
N
29,500CARS PER DAY
86,000CARS PER DAY
3,700CARS PER DAY
29,400CARS PER DAY
PYLON SIGN
S HAMMES AVE.
W JEFFERSON ST.
N
N
CHICAGO
JOLIET
2016 ESTIMATED POPULATION1 Mile ......................................................... 10,436 3 Mile ......................................................... 81,9255 Mile ........................................................170,403
2016 AVERAGE HOUSEHOLD INCOME1 Mile ........................................................$63,742 3 Mile ........................................................$66,617 5 Mile ........................................................$73,634
2016 ESTIMATED TOTAL EMPLOYEES1 Mile ......................................................... 12,8953 Mile ......................................................... 47,8655 Mile ......................................................... 78,215
12 / GOLDEN CORRAL / JOLIET, ILLINOIS AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP
Joliet is a city in Kendall and Will counties in the U.S. state of Illinois, 40 miles southwest of Chicago. It is the county seat of Will County. At the 2010 census, the city was the fourth largest in Illinois, with a population of 147,433. The City of Joliet is the 3rd largest city in Illinois with a population of 150,572 as of July 1, 2017.
The main attractions in Joliet’s City Center are the Harrah’s Casino, Joliet Slammers baseball (Silver Cross Field), Hollywood Casino (formerly, Argosy Empress Casino) and the Rialto Square Theatre, the ‘Jewel of Joliet’, which has been called one of the world’s 10 most beautiful theaters. The 1999 film Stir of Echoes starring Kevin Bacon had scenes shot on location in Joliet at the Rialto Square Theatre (the hypnotism scenes in which James saw the word “Dig” on the movie screen), at the corner of Scott Street and Washington, and at the old Menards that took over the Wieboltd’s building at Jefferson Square Mall. The lobby of the Rialto Square Theatre also served the filming of John Goodman’s “Balto”.
The Joliet area is replete with a wide range of arts and cultural venues as well as many parks and recreational facilities. The Joliet Historical Museum chronicles the experiences of the people who settled the Joliet area and includes a Route 66 Welcome Center. The Rialto Square Theatre, also known as the “Jewel of Joliet,” has been called one of the world’s ten most beautiful theatres. There are two riverboat casinos in Joliet: the Empress Casino, located on the Des Plaines River; and the Harrah’s Casino located in the downtown Joliet City Center. The Chicagoland Speedway is a state-of-the-art 75,000 seat, 1.5 mile superspeedway which hosts several NASCAR and Indy Racing League events during the year, and the Route 66 Raceway features concerts, motorsports, and more. The city’s scenic Bicentennial Park, located along the Des Plaines River, includes an indoor theater as well as an outdoor bandshell in a park setting.
Joliet is home to a professional minor league baseball team. The Joliet Jackhammers are an independent team competing in the Northern League. The Jackhammer home stadium is Silver Cross Field, a 4,200-seat facility featuring luxury suites, a souvenir shop, a picnic area and a playground located inside the stadium. Less than an hour away is the city of Chicago, home to several major league teams spanning a wide variety of sports.
As of 2009 almost all public school students in Joliet attend schools in Joliet Public Schools District 86 and Joliet Township High School District 204 and Plainfield Consolidated School District 202. The Joliet Regional Airport is located off of Jefferson Street near Interstate 55. Lewis University Airport is located to the north in the nearby village of Romeoville and is owned by the Joliet Regional Port District.
AREA OVERVIEW OF JOLIET, ILLINOIS
AREA OVERVIEW (CONTINUED)
13 / GOLDEN CORRAL / JOLIET, ILLINOIS AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP
DEMOGRAPHICS 1 MILE 3 MILES 5 MILES
2016 Estimated Population 10,436 81,925 170,4032021 Projected Population 10,501 82,492 172,3782010 Census Population 10,381 81,613 168,260Projected Annual Growth 2016 to 2021 0.12% 0.14% 0.23%Historical Annual Growth 2010 to 2016 0.07% 0.05% 0.17%
2016 Estimated Households 4,509 30,919 58,5252021 Projected Households 4,531 31,131 59,1982010 Census Households 4,514 30,921 57,953Projected Annual Growth 2016 to 2021 0.10% 0.14% 0.23%Historical Annual Growth 2010 to 2015 -0.02% 0.00% 0.14%
2016 Estimated White 70.60% 64.60% 64.90%2016 Estimated Black or African American 14.90% 18.80% 18.00%2016 Estimated Asian or Pacific Islander 2.40% 1.90% 2.10%2016 Estimated American Indian or Native Alaskan 0.30% 0.30% 0.30%2016 Estimated Other Races 8.80% 10.90% 11.70%2016 Estimated Hispanic 19.40% 25.90% 28.70%
2016 Estimated Average Household Income $63,742 $66,617 $73,634 2016 Estimated Median Household Income $46,377 $52,849 $58,364 2016 Estimated Per Capita Income $27,872 $25,892 $26,225
2016 Estimated Total Businesses 746 3,186 5,3292016 Estimated Total Employees 12,895 47,865 78,215
FINANCIAL INFORMATION PROPERTY SPECIFICATIONS
RENT ROLL
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BRAND PROFILE
14 / GOLDEN CORRAL / JOLIET, ILLINOIS RENT ROLL / SRS NATIONAL NET LEASE GROUP
Price: .......................................................................................................................................$3,714,000Net Operating Income: ...............................................................................................................$260,000Cap Rate: ........................................................................................................................................ 7.00%Lease Type:................................................................................................................................Abs. NNN
Year Built: ......................................................................................................................................... 2003Rentable Area: ...........................................................................................................................10,175 SFLand Area: ................................................................................................................................ 1.76 AcresAddress: .................................................................................... 2100 W. Jefferson Street, Joliet, IL 60435
GOLDEN CORRALGolden Corral Corporation operates restaurants in the United States. Its restaurants offer steaks, pork, seafood, shrimp, and chicken, sirloin, omelettes, pancakes, sausages and bacon, fruits, French toasts, pastries, breads, yeast rolls, cakes and pies, cookies, brownies, and ice creams, as well as chocolate flowing fountains in breakfast, lunch, and dinner. The company also offers franchising opportunities. Golden Corral Corporation was founded in 1973 and is based in Raleigh, North Carolina. It has support centers in Hurst, Texas; Raleigh, North Carolina; and Greenwood Village, Colorado.
Company Type: ..................................... PrivateLocations: .................................................. 500
Website: ........ www.goldencorralfranchise.com
LEASE TERM RENTAL RATES
TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONSGolden Corral 10,175 COE 12 Years Year 1 - $21,667 $2.13 $260,000 $25.55 Absolute NNN 5 (5-Year)
Franchisee Guaranty Year 2 1.50% $21,992 $2.16 $263,900 $25.94 1.50% Annual
1.50% Annual Rental Increases Throughout Initial Term
800+PROPERTIES CURRENTLY
REPRESENTED
$2.6B*TRANSACTION VALUE
600+CLIENTS REPRESENTED
IN 2016
250+BROKERS,
PROFESSIONALS,AND STAFF
#1LARGEST REAL ESTATE FIRM
EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA
20+OFFICES
*STATISTICS ARE FOR 2016.
SRS GLOBAL STATS
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