Single Net Leased Starbucks property for sale by The Boulder Group

1. STARBUCKS (Chicago MSA | S&P: A-)
630 Northwest Highway
Cary, IL 60013
NET LEASE INVESTMENT OFFERING
Representative Image

2. TABLE OF CONTENTS
I. Executive Profile
Executive Summary
Investment Highlights
Property Overview
II. Location Overview
Aerial
Site Plan
Maps
III. Market & Tenant Overview
Demographic Report
Market Overview
Tenant Overview
TABLE OF CONTENTS
NET LEASE INVESTMENT OFFERING

3. 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.
DISCLAIMER
STATEMENT:
DISCLAIMER STATEMENT
NET LEASE INVESTMENT OFFERING

4. NET LEASE INVESTMENT OFFERING
EXECUTIVE
SUMMARY:
The Boulder Group is pleased to exclusively market for sale a single tenant Starbucks property strategically located in the Chicago
MSA. The new construction Starbucks is positioned as an outparcel to a Jewel-Osco grocery anchored center along the trade
area’s primary thoroughfare. The new Starbucks lease is for ten years and rent is estimated to commence in October 2016. The
Starbucks lease features four 5-year renewal option periods with 10% rental escalations in each.
The Starbucks property is strategically located along Northwest Highway which is the primary thoroughfare in the trade area.
Northwest Highway experiences traffic counts in excess of 28,000 vehicles per day. The Starbucks is strategically positioned as
an outparcel to a Jewel-Osco grocery anchored center. The Jewel Osco center features a Dunkin Donuts that does not have
a drive thru and is significantly out-positioned by the subject freestanding drive thru Starbucks. Additional retailers located in
the immediate trade area include Walgreens, ALDI, US Bank, Chase Bank, Fifth Third Bank, AutoZone, O’Reilly Auto Parts,
McDonald’s and Taco Bell. The property is located one mile north of the Cary Metra rail station which connects the suburb of
Cary to downtown Chicago. Metra is the commuter rail division that serves the Chicago metropolitan area with over 80 million
passengers per year.
The surrounding area is affluent with average annual household incomes within a three mile radius that are in excess of $112,000.
There are over 110,000 people living within a five mile radius of the property earning average annual household incomes in
excess of $104,000. Cary is located approximately forty-five miles northwest of downtown Chicago.
Starbucks is a publicly traded company on the NASDAQ (SBUX) with a market capitalization in excess of $81 billion. Starbucks
is an investment grade rated company with a Standard & Poor’s rating of A-. Starbucks operates as a roaster, marketer, and
retailer of specialty coffee worldwide. As of March 27, 2016, it operated 23,921 stores. Starbucks Corporation was founded in
1985 and is based in Seattle, Washington.
EXECUTIVE SUMMARY

5. NET LEASE INVESTMENT OFFERING
INVESTMENT
HIGHLIGHTS:
• Located within the Chicago MSA
• Investment grade rated tenant (S&P:A-)
• Long term brand new ten year lease
• New construction
• Outparcel to a Jewel-Osco grocery anchored center
• Positioned along Northwest Highway (28,000 VPD)
• Affluent area with average annual household incomes within a three mile radius in excess of $112,000
• Over 110,000 people living within a five mile radius of the property
• One mile north of the Cary Metra rail station which connects Cary to downtown Chicago
• 10% rental escalations in each renewal option period
• Starbucks will greatly out position the inline Dunkin Donuts
• Only Starbucks in Cary, IL
INVESTMENT HIGHLIGHTS

6. NET LEASE INVESTMENT OFFERING
PROPERTY
OVERVIEW:
PROPERTY OVERVIEW
Price: $1,708,737
Cap Rate: 5.15%
Rent Schedule: NOI Escalation Date
$88,000
$96,800 3/1/2027 (Option 1)
$106,480 3/1/2032 (Option 2)
$117,128 3/1/2037 (Option 3)
$128,841 3/1/2042 (Option 4)
Rent Commencement Date: October 1, 2016 (Estimated)
Lease Expiration Date: February 28, 2027 (Estimated)*
Rental Escalations: 10% in Each Renewal Option
Renewal Options: Four 5-Year
Tenant: Starbucks
Credit Rating: Investment Grade (S&P: A-)
Year Built: 2016
Lease Type: NN (Roof, Structure, Parking Lot and HVAC)
Building Size: 2,000 SF
* Tenant has the one time opportunity to terminate the lease on the last day of the 84th full calendar month of the term with 180 days notice.

7. NET LEASE INVESTMENT OFFERING
AERIAL
Northwest Highway (28,000 VPD)

8. NET LEASE INVESTMENT OFFERING
SITE PLAN
N O R T H W E S T H W Y ( 2 8 , 0 0 0 V P D )
FEINBERGDR
SUBJECT PROPERTY
INLINE RETAIL CHIROPRACTOR
CHINA HOUSE
KEY WEST TAN

9. NET LEASE INVESTMENT OFFERING
MAPS
Lake Michigan

10. NET LEASE INVESTMENT OFFERING
MAPS
Lake Michigan

11. NET LEASE INVESTMENT OFFERING
Population 1-Mile 3-Mile 5-Mile
Total Population 9,664 39,241 110,731
Total Households 3,325 13,669 40,041
Income 1-Mile 3-Mile 5-Mile
Median Household Income $89,494 $90,771 $82,904
Average Household Income $102,493 $112,544 $104,298
DEMOGRAPHIC
REPORT:
DEMOGRAPHIC REPORT

12. NET LEASE INVESTMENT OFFERING
Cary is a village located in Algonquin Township in McHenry County, Illinois. As of the 2010 Census, the population was 18,271 people.
Metra’s Union Pacific/Northwest Line has a station in Cary, and operates daily service to Ogilvie Transportation Center in downtown
Chicago. Cary is located approximately forty-five miles northwest of downtown Chicago.
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 volume.
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.
MARKET
OVERVIEW:
MARKET OVERVIEW

13. NET LEASE INVESTMENT OFFERING
Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four
segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; and Channel Development. Its stores offer coffee and
tea beverages, packaged roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, juices, and
bottled water. The company’s stores also provide fresh food and snack offerings; and various food products, such as pastries, and
breakfast sandwiches and lunch items, as well as serve ware, beverage-making equipment, and accessories. In addition, it licenses
its trademarks through licensed stores, and grocery and national foodservice accounts. The company offers its products under
the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks VIA, Seattle’s Best Coffee,
Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries Iced Café Favorites brand names. As of March
27, 2016, it operated 23,921 stores. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington.
Starbucks is a publicly traded company on the NASDAQ (SBUX) with a market capitalization in excess of $81 billion. Starbucks is an
investment grade rated company with a Standard & Poor’s rating of A-.
Website: www.starbucks.com
Credit Rating: Investment Grade (S&P: A-)
Stock Symbol: NASDAQ: SBUX
Market Capitalization: $81 Billion
Headquarters: Seattle, WA
TENANT OVERVIEW
TENANT
OVERVIEW:

14. 666 Dundee Road, Suite 1801
Northbrook, IL 60062
www.bouldergroup.com
Randy Blankstein
President
847.562.0003
randy@bouldergroup.com
Jimmy Goodman
Partner
847.562.8500
jimmy@bouldergroup.com
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