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Chuck E Cheeses ground lease for sale
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NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Chuck E. Cheese’s (Ground Lease) 445 Commerce Drive
Woodbury, MN 55125 (Minneapolis-Saint Paul MSA)
Representative Image
NET LEASED INVESTMENT OFFERING
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TABLE OF CONTENTS
TABLE OF CONTENTS
1) Confidentiality&Disclaimer
2) ExecutiveSummary
3) PropertyOverview
4) Aerial
5) SitePlan
6) Maps
7) TenantProfile
8) DemographicComparisonReport
9) LocationOverview
10) ContactInformation
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TheinformationcontainedinthefollowingOfferingMemorandumisproprietaryandstrictlyconfidential.ItisintendedtobereviewedonlybythepartyreceivingitfromTheBoulderGroupandshouldnotbemadeavailabletoanyotherpersonorentitywithoutthewrittenconsentofTheBoulderGroup.ThisOfferingMemorandumhasbeenpreparedtoprovidesummary,unverifiedinformationtoprospectivepurchasers,andtoestablishonlyapreliminarylevelofinterestinthesubjectproperty.Theinformationcontainedhereinisnotasubstituteforathoroughduediligenceinvestigation.TheBoulderGrouphasnotmadeanyinvestigation,andmakesnowarrantyorrepresentation.TheinformationcontainedinthisOfferingMemorandumhasbeenobtainedfromsourceswebelievetobereliable;however,TheBoulderGrouphasnotverified,andwillnotverify,anyoftheinformationcontainedherein,norhasTheBoulderGroupconductedanyinvestigationregardingthesemattersandmakesnowarrantyorrepresentationwhatsoeverregardingtheaccuracyorcompletenessoftheinformationprovided.Allpotentialbuyersmusttakeappropriatemeasurestoverifyalloftheinformationsetforthherein.
CONFIDENTIALITY & DISCLAIMER
CONFIDENTITALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
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The Boulder Group is pleased to exclusivelymarket for sale a single tenant corporately guaranteed Chuck E.Cheese’s (CEC)ground leasedproperty in theMinneapolis-SaintPaulMSA.The15,762squarefootbuilding isbeingconstructedona2.34acrelandparcelwithrentexpectedtocommenceonMarch15,2014.TheCECislocatedadjacenttoaSuperTargetandwillbethemostrecentadditiontotheCommerceHillShoppingCenterthatalsofeaturesaMcDonald’s,Bruegger’sBagels,EuropeanWax,GreatClips,andCorTrustBank.Thegroundleasewillhave15yearsremaininguponrentcommencementandwillfeature10%rentalescalationseveryfiveyears.
ThesubjectpropertyislocatedalongCommerceDriveintherecentlydevelopedCommerceHillShoppingCenter,whichisanchoredbyaSuperTarget.ThepropertyislocatedlessthanonemilefromanInterstate94interchange,whichexperiencestrafficcountsofapproximately100,000vehiclesperday.ThepropertyispositionedinavibrantretailcorridoracrossthestreetfromaSam’sClubanchoredshoppingcenter.OtherretailersintheimmediateareaincludeWalmart,WellsFargoBank,BMOHarrisBank,Staples,SlumberlandFurniture,andAshleyFurniture.Thepropertyislocatedwithinanaffluentarea,withtheaveragehouseholdenjoyingincomesinexcessof$122,000withinonemile.Additionally,accordingtothe2010USCensus,thecityofWoodburyhad22,594households,ofwhich42.3%hadchildrenundertheageof18livingwithinthem.
TheCECground lease is for15 years and is estimated to commenceMarch15,2014. Thereare10% rentalescalationseveryfiveyearsduringtheprimarytermandrenewaloptions.ChuckECheese’sistheprimarybrandofCECEntertainment,whichisapubliclytradedcompany(NYSE:CEC)withamarketcapitalizationinexcessof$830million.Therearecurrently567CEClocationsin47statesand9foreigncountriesandterritories.
INVESTMENT HIGHLIGHTS
• LocatedwithintheMinneapolis-St.PaulMSA
• Longtermgroundleasewith15yearsremaininguponrent commencement
• Zerolandlordresponsibilities
• 10%rentalescalationsevery5yearsduringtheprimaryterm andrenewaloptionperiods
• LocatedadjacenttoarecentlydevelopedSuperTarget
• Corporatelyguaranteedleasebyapubliclytradedcompany(NYSE:CEC)
• LessthanonemilefromanInterstate94interchange(100,000VPD)
• Locatedwithinanaffluentareawithaveragehouseholdincomesinexcessof$114,000withinathreemileradius
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
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PROPERTY OVERVIEW
PROPERTY OVERVIEW
Price: $2,280,701
CapRate: 5.70%
RentSchedule: NOI EscalationDate
$130,000 3/1/2014$143,000 3/1/2019$157,300 3/1/2024$173,030 3/1/2029(Option1)$190,333 3/1/2034(Option2)$209,336 3/1/2039(Option3)$230,303 3/1/2044(Option4)
RenewalOptions: Four5-Year
LeaseCommencementDate: March15,2014*
LeaseExpirationDate: February28,2029*
Tenant: ChuckECheese’s
Guarantor: CECEntertainmentInc.(NYSE:CEC)
YearBuilt: 2014
LeaseType: NNNGroundLease
BuildingSize: 15,762SF
LandSize: 2.34acres
*Estimated
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AERIAL
AERIAL
N
DISTRIBUTION CENTER
94
WO
OD
BURY DR
IVE18,650 VPD
100,000 VPD
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SITE PLAN
SITE PLAN
COMMERCE DRIVE
N
TAMARACK ROAD
HUD
SON PL.
FUTUREBLDG. FUTURE
BLDG.
FUTUREBLDGS.
FUTUREBLDG.
FUTUREBLDG.
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MAPS
MAPS
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CEC Entertainment (Chuck E. Cheese’s)hasservedasthenationallyrecognizedleader infamilydiningandentertainmentforover30years.Thecompanyanditsfranchiseesoperateasystemof567ChuckE.Cheese’sstoreslocatedin47statesandnineforeignterritories.Currently,514locationsintheUnitedStatesandCanadaarecorporatelyownedandoperatedincludingthesubjectproperty.EachChuckE.Cheese’sfeaturesmusicalandcomicroboticentertainment,games,ridesandplayareas,aswellasavarietyofdiningoptionsincludingpizzas,sandwiches,wings,appetizers,asaladbaranddesserts.ChuckE.Cheese’sislistedontheNYSEasCECandhasamarketcapitalizationofover$830million.
Website: www.chuckecheese.comStockSymbol: CECMarketCapitalization: $830+millionRevenue(ttm) $820.91millionNumberofLocations: 567Employees: 17,600
TENANT PROFILE
TENANT PROFILE
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Population 3-mi 5-mi 7-mi
TotalPopulation 46,374 112,232 204,599TotalHouseholds 17,080 42,106 76,001
Income
MedianHouseholdIncome $90,003 $77,634 $65,575AverageHouseholdIncome $114,846 $100,918 $87,361
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORT
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Woodbury, Minnesota isacity inWashingtonCounty,Minnesotaandasuburbof theTwinCitiesmetropolitanarea.ItissituatedeastofSaintPaulalongInterstate94.Accordingtothe2010census,thepopulationwas61,961,makingitthe10largestcityinthestate.Therewere22,594householdsofwhich42.3%hadchildrenundertheageof18livingwithinthem.
www.ci.woodbury.mn.us
Minneapolis-Saint Paul,MinnesotaisthemostpopulousurbanareainthestateofMinnesotaandservesasthestatecapital.Itiscomposedof182citiesandtownshipswhichcreatethe15th-largestmetropolitanareainthecountrywithapopulationof3,422,264.TheMSAisthesecond largesteconomy in theMidwestand ishometo18 ‘Fortune500’companiesincludingUnitedHealthGroup,Target,BestBuy,3M,GeneralMills,andXcelEnergy.ItisalsohometomanylargeprivatecompaniessuchasCargilandCarlson.
www.ci.minneapolis.mn.us
LOCATION OVERVIEW
LOCATION OVERVIEW
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666DundeeRoad,Suite1801Northbrook,IL60062
Randy [email protected]
Jimmy [email protected]
CONTACT INFORMATION
CONTACT INFORMATION
