NNN Leased offering

NET LEASED INVESTMENT OFFERING

Save-A-LotNEC of E. 63rd Street and Calumet Avenue

Chicago, IL

CONFIDENTIAL OFFERING MEMORANDUM

www.bouldergroup.com

Representative Photo



TABLE OF CONTENTS

TABLE OF CONTENTS

1)

2)

3)

4)

5)

6)

7)

8)

9)

10)

Confidentiality & Disclaimer

Executive Summary

Property Overview

Site Plan

Aerial

Maps

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information



CONFIDENTIALITY & DISCLAIMER

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Marketing Brochure 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 Marketing Brochure 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 Marketing Brochure 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.



EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Newly renovated grocery building to be completed in early 201110 year lease with increasing renewal optionsCorporately owned Save-A-Lot locationSave-A-Lot has over 1,200 locations with significant growth plansLocated in a dense area of ChicagoLess than a quarter mile from two major interstatesDirectly adjacent to a Chicago Transit Authority “Green Line” stationDense in-fill areaHigh sales expected as property is located in an area with limited grocery options

The Boulder Group is pleased to exclusively offer for sale a Save-A-Lot grocery store property in the city of Chicago. The property is tenanted by Save-A-Lot which recently signed a ten year lease in a newly rehabbed building. The property is located less than seven miles south of Downtown Chicago in the Washington Park community. This infill area is one of the most dense and heavily populated neighborhoods of Chicago with multiple barriers to entry. The property will benefit from over 27,000 vehicles passing the site daily as well as significant pedestrian traffic. The property is located adjacent to a Chicago Transit Authority “Green Line” Station which will allow residents of Washington Park and nearby neighborhoods convenient access to the grocery. Save-A-Lot tenanted this building as it is located in a “food desert” and expects to have a high sales volume: Food deserts are areas that lack access to affordable fruits, vegetables, whole grains, low-fat milk, and other foods that make up the full range of a healthy diet.

The Washington Park neighborhood is an urban infill area with multiple attractions and amenities. The focal point of the area is a 372 acre park where residents enjoy an abundance of activities. Washington Park is less than a quarter mile from both Interstates I-90 and I-94 which provide steady traffic flow throughout the area. There are over 231,700 vehicles that travel these interstates daily. Washington Park is located just west of The University of Chicago which has over 15,000 students. The immediate area is home to national retailers such as Walgreens, AutoZone and McDonalds.

Save-A-Lot has a ten year lease with an expected rent commencement date of February 1, 2011 with increasing renewal options. The rental rate will increase in each of the five year renewal periods. Save-A-Lot is a wholly owned subsidiary of Supervalu which is the nation’s fourth largest food retailer. Moran Foods (see Tenant Profile section) is the operator of this particular location and has been associated with Save-A-Lot since 1977. This is an ideal location for Save-A-Lot due to the area’s population densities, the lack of fresh food options, and location across from the neighborhood’s elementary school.

Investment Highlights




PROPERTY OVERVIEW

PROPERTY OVERVIEW

Price:

Cap Rate:

Net Operating Income:

Renewal Options:

Renewal Rent*:

Lease Commencement Date*:

Lease Expiration Date*:

Tenant:

Year Built

Lease Type:

Building Square Footage:

Land Square Footage:

Parking Spaces:

$2,423,500

8.50%

$206,120

Four 5-Year

$224,410 – February 1, 2016

$238,700 – February 1, 2021

$254,990 – February 1, 2026

$254,990 – February 1, 2031

February 1, 2011

January 31, 2016

Moran Foods, Inc. d/b/a Save-A-Lot

2011 full rehab of existing building

NN

16,290

33,132

34 stalls with additional street parking

*All dates are estimates and subject to change, as the improvements are currently under construction.



SITE PLAN

SITE PLAN



AERIAL

AERIAL

I-94187,600 VPD

I-90 / I-94231,700 VPD

I-9042,900 VPD

DullesElementary School

SITE



MAPS

MAPS

SITE

SITE



TENANT PROFILE

TENANT PROFILE

Website:Number of Locations:Company Origination: Store Operations:Plans:

www.save-a-lot.com1,200 197739 statesDouble locations in five years

owned and operated location. Save-A-Lot grocery store network spans from Maine to California, serving more than 4 million shoppers each week. In 2009, Save-A-Lot hired a former Wal-Mart executive to help the company thrive in this economic time period. The company has a five-year plan to double the number of Save-A-Lot locations, of which 75% are run by franchisees.

The company procures, distributes and markets a carefully selected assortment of high quality food and household needs, emphasizing their own exclusive brands. The highly efficient supply chain enables Save-A-Lot to sell at prices well below other retailers.

Save-a-Lot was founded in 1977 by Bill Moran and Chase Gabbard and was later acquired by Supervalu in 1992. Moran Foods, Inc. is the tenant for the subject asset and has been in the grocery business for over thirty years. Despite being an independent retailer using the Save-A-Lot brand, they are an integral part of Supervalu. Moran Foods has assets over $1 billion and sales that exceed $3 billion.

Save-A-Lot is a wholly owned subsidiary of SUPERVALU INC., (Fortune 100 company) and one of the largest companies in the United States and the fourth largest food retailer. Save-A-Lot is one of the nation's leading extreme value, carefully selected assortment grocery chains, operating nearly 1,200 value-oriented stores in all types of neighborhoods — urban, rural and suburban. More than two-thirds of the stores are licensed; the rest are company owned and operated. The subject property is a company



DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORT

Population

2009 Total Population

2009 Total Households

2009 Daytime Population

Income

2009 Median Household Income

2009 Average Household Income

1-mile

34,337

12,582

31,991

$40,757

$19,971

3-mile

339,938

127,121

269,542

$50,949

$29,775

5-mile

760,504

267,645

599,075

$53,386

$34,415




LOCATION OVERVIEW

LOCATION OVERVIEW

The Washington Park neighborhood is one of Chicago’s (only 7 miles from the Loop) most well-defined community

areas. The neighborhoods central focus is the 372 acre park named Washington Park, stretching east-west from

Cottage Grove Avenue to the Dan Ryan Expressway, and north-south from 63rd Street to 51st, and is home of the

DuSable Museum of African American History. The park was the proposed site of the Olympic Stadium and the Olympic

Aquatics Center in Chicago's bid to host the 2016 Summer Olympics.

Including the park, the community area hosts two listings on the National Register of Historic Places. The park in this

community area was named for President George Washington in 1880. In the 1920s, the University of Chicago

created the community area system of city subdivision with the current names that continue to be used today.

Washington Park is a social center of the South Side and hosts many festivals in the summer, including Chicago's best

organized cricket league and the terminus of the Bud Billiken Parade and Picnic. The largest 16" softball league in

Chicago is played there on Sundays (called "Sunday's Best Softball League"). There are 34 teams who play on 13

diamonds. There is also a weekday evening league.



CONTACT INFORMATION

CONTACT INFORMATION

Randy [email protected]

Jimmy [email protected]

666 Dundee Road Suite 1801Northbrook, IL 60062

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Education

NNN Leased offering