Triple Net Leased Office Property for Sale

NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Brown Mackie College (NASDAQ: EDMC)
3454 Douglas Road
South Bend, Indiana

TABLE OF CONTENTS
TABLE OF CONTENTS
1) Confidentiality & Disclaimer
2) Executive Summary
3) Investment Highlights
4) Property Overview
5) Aerial
6) Site Plan
8) Property & Building Description
9) Floor Plans
10) Exterior Photos
11) Interior Photos
12) Tenant Profile
13) Maps
14) Location Overview
15) Demos
16) Contact Information

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 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 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.
CONFIDENTIALITY & DISCLAIMER
CONFIDENTIALITY & DISCLAIMER

The Boulder Group is pleased to exclusively market for sale a single tenant net leased, Class A office/education building tenanted by Brown Mackie
College (NASDAQ: EDMC) located in South Bend, Indiana. The 47,537 square foot Brown Mackie College office building was built in 2009 on a
6.08 acre parcel along a primary east-west thoroughfare in South Bend. Brown Mackie College is owned by Education Management Corporation.
Education Management Corporation is a publicly traded company on the NASDAQ (EDMC) with a market capitalization in excess of $600 million.
Goldman Sachs owns 43% of EDMC. The lease is fully guaranteed by Education Management Corporation with over five years of lease term
remaining in the primary term.
The Brown Mackie College property is ideally located in the heart of the South Bend combined statistical area that has a total population in excess
of 720,000 residents. There are over 230,000 people living within seven miles of the property earning average annual household incomes of
approximately $60,000. The University of Notre Dame is located less than two miles to the west of the subject property. Notre Dame is one of the
country’s premiere universities with approximately 12,000 students. The property is located just off of the signalized intersection of West Douglas
Road and Grape Road. Grape Road is the dominant retail corridor in the trade area and home to many of the nation’s largest retailers as well as
University Park Mall. University Park Mall is an 820,000 square foot mall located less than a mile north of Brown Mackie College and is owned by
Simon Property Group. The mall is anchored by Macy’s, JCPenney, Sears, and Barnes & Noble. Other notable retailers in the immediate vicinity
include SuperTarget, Walmart Supercenter, Sam’s Club, Meijer, Whole Food’s, Kohl’s, Lowe’s, and Home Depot.
The Brown Mackie College property will benefit from the extension and rerouting of Douglas Road that recently was completed. Douglas Road now
begins at the Indiana Toll Road from the west and runs all the way through town. This improvement will allow traffic exiting the toll road to have
direct access to the property that is three miles to the east of the exit.
The Brown Mackie College in South Bend offers courses in the fields of nursing, healthcare & wellness, business & technology, and veterinary
technology. The Brown Mackie College is well positioned for future success in the South Bend market due to the strength and prominence of the
local health care industry. Healthcare and education are the two driving forces and leading employers in the South Bend region. Memorial Health
System is the largest employer in the area and in 2012 merged with Elkhart General Hospital to form the Beacon Health System.
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Brown Mackie College is a system of for-profit colleges located in the United States. The colleges offer bachelor’s degrees, associate degrees and
certificates in programs including early childhood education, information technology, health sciences and legal studies. Brown Mackie is owned
and operated by Education Management Corporation. Education Management Corporate is a publicly traded company that trades on the NASDAQ
(EDMC) with a market capitalization in excess of $600 million. EDMC has 110 campuses throughout the United States and Canada and over
120,000 enrolled students.
There are over five years remaining on the Education Management Corporation (NASDAQ: EDMC) guaranteed lease that expires in August 2019.
This triple-net lease has two 5-year renewal options with rental escalations in each option.

• Lease is guaranteed by Education Management Corporation, a publicly traded company (NASDAQ: EDMC) with a market
capitalization in excess of $600 million
• Located less than two miles from the University of Notre Dame
• Centrally located within the South Bend-Mishawaka area and within the dominant Grape Road retail corridor
• Class A upscale office building that was recently constructed in 2009
• Two 5-Year renewal options with rental escalations
• Triple-net lease with no landlord expenses
• The recent extension and rerouting of Douglas Road (2013) greatly enhances the properties access
• Located one and a half hour drive from Chicago
• Located less than a quarter mile from Interstate 80/90, both of which travel from coast to coast (Interstate 80: New York City
to San Francisco, Interstate 90: Boston to Seattle)
• Brown Mackie College offers courses in the fields of nursing, healthcare and wellness, which has it well positioned for future
success in the South Bend market due to the strength and prominence of the local healthcare industry
• Goldman Sachs owns 43% of Education Management Corporation
INVESTMENT HIGHLIGHTS
INVESTMENT HIGHLIGHTS

PROPERTY OVERVIEW
PROPERTY OVERVIEW
Price: $9,188,900
Cap Rate: 10.00%
Rent Schedule: NOI Escalation Date
$918,890
$940,500 8/17/2019 (Option 1)
$1,039,500 8/17/2024 (Option 2)
Renewal Options: Two 5-Year
Lease Commencement Date: August 17, 2009
Lease Expiration Date: August 16, 2019
Tenant: Brown Mackie College
Guarantor: Education Management Corporation
Stock Symbol: EDMC (NASDAQ)
Year Built: 2009
Lease Type: NNN*
Building Size: 47,537 SF
Land Size: 6.08 acres
Floors: Three
*Tenant is responsible for the payment of Operating Expenses. Operating Expenses shall be any and all expenses incurred by landlord in connection with
the operating, maintenance, replacement and repair of the building and its operating systems, including the roof, plumbing, electrical, HVAC, elevators, and
escalators. Land can charge a management expense (not to exceed (5%) five percent).

AERIAL
AERIAL
N
DISTRIBUTION CENTER
80
90
INDIANA TOLL TOAD
2 miles

SITE PLAN
SITE PLAN
N
DOUGLAS ROAD

PROPERTY & BUILDING DESCRIPTION
PROPERTY & BUILDING DESCRIPTION
Building Type: Single Tenant Three Story Office
Constructed: 2009
Building Size: 47,537 SF
Site Size: 6.08 acres
Parking Spaces: 528
Roof: Ballasted Membrane
Building Envelope: Stucco / Concrete Block
Structure: Steel Frame, Concrete Block & Brick Façade
Fire Protection: ESFR Sprinkler System
Electrical System
(Total Service):
1600 AMP, 480/277 Volt, Three-Phase, Four-Wire Electric
Switchgear From Transformer
Interior Ceiling: Acoustic Tile
HVAC: Rooftop Heating & Air Conditioning

FLOOR PLANS - FIRST FLOOR
FLOOR PLANS

FLOOR PLANS - SECOND FLOOR
FLOOR PLANS

FLOOR PLANS - THIRD FLOOR
FLOOR PLANS

EXTERIOR PHOTOGRAPHS
EXTERIOR PHOTOGRAPHS

INTERIOR PHOTOGRAPHS
INTERIOR PHOTOGRAPHS

TENANT PROFILE
TENANT PROFILE
Brown Mackie College is a system of for-profit colleges located in the United States that was established in 1892. The colleges offer bachelor’s
degrees, associate degrees, and certificates in programs including early childhood education, information technology, health sciences and legal
studies.
Website: www.brownmackie.edu
Locations: 28 Campuses
Enrollment: 17,000+ Students
Established: 1892
Guarantor: Education Management Corporation (NASDAQ: EDMC)
Education Management Corporation is a Pittsburgh-based operator of private sector post-secondary educational institutions in the United States
and Canada that was founded in 1962. EDMC is owned in part by Goldman Sachs, which has a 43% stake in the company. Education Management
Corporation currently operates 110 schools through its four higher education systems; Brown Mackie College, Argosy University, The Art Institute,
and South University. EDMC schools offer online and campus-based programs at the doctorate, master’s, bachelor’s, associate, and certificate level.
Website: www.edmc.edu
Stock Symbol: NASDAQ: EDMC
Market Capatilization: $675 Million
Enrollment: 120,920 Students
Locations: 110 Campuses
Employees: 23,000
Headquarters: Pittsburgh, PA

MAPS
MAPS

LOCATION OVERVIEW
LOCATION OVERVIEW
South Bend, Indiana is the county seat of St. Joseph County on the St. Joseph River near its southernmost bend, from which
it derives its name. As of the 2010 census, the city had a total population of 101,168 residents and a combined statistical
area of 721,296. It is the fourth largest city in Indiana and the economic and cultural hub of the Michiana region. South Bend
is located approximately 90 miles east of Chicago and is approximately 20 miles from the nearest shore of Lake Michigan.
Healthcare, education, and small business are the driving forces behind the South Bend economy. The University of Notre
Dame is home to approximately 12,000 students and over 5,000 employees. It is one of the top employers in the area. Health
care is another major contributor to the South Bend economy. Memorial Health System is the largest employer in the city. In 2012, Memorial
announced that it was merging with Elkhart General Hospital to form Beacon Health System. AM General, Crowe Horwath, Martin’s Super
Markets, and Schurz Communications all have their corporate headquarters in South Bend. Other notable businesses include Honeywell, Bosch,
Woodwind & Brasswind,and PEI Genesis.
Efforts are underway to spur economic growth in South Bend. The St. Joe Valley Metronet is a not-for-profit organization attempting to create a
more robust telecommunications infrastructure capable of inexpensive high-speed data transmission. This will bring more high tech firms to the
city and surrounding area. In 2012, Kiplinger’s Personal Finance ranked South Bend high in its rankings of the “Ten Best Cities for Cheapskates”.
www.ci.south-bend.in.us

DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORT
Population 3-mi 5-mi 7-mi
Total Population 68,508 159,365 231,477
Total Households 27,256 61,850 89,559
Income
Median Household Income $39,017 $38,576 $40,056
Average Household Income $58,417 $57,924 $58,126

666 Dundee Road, Suite 1801
Northbrook, IL 60062
Randy Blankstein
President
847.562.0003
rblank@bouldergroup.com
Jimmy Goodman
Partner
847.562.8500
jimmy@bouldergroup.com
CONTACT INFORMATION
CONTACT INFORMATION

Triple Net Leased Office Property for Sale

Recomendados

Recomendados

Mais conteúdo relacionado

Semelhante a Triple Net Leased Office Property for Sale

Semelhante a Triple Net Leased Office Property for Sale (20)

Mais de The Boulder Group

Mais de The Boulder Group (20)

Último

Último (20)

Triple Net Leased Office Property for Sale