FRESENIUS MEDICAL CARE (Investment Grade) 3500 …bouldergroup.com/media/pdf/Fresenius - Chicago, IL...

FRESENIUS MEDICAL CARE (Investment Grade)3500 W Grand AvenueChicago, IL 60651

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

I. Executive Profile

Executive Summary Investment Highlights Property Overview

II. Location Overview

Photographs Site Plan Aerial Maps

III. Market & Tenant Overview

Demographic Report Market Overview Tenant Overview

TABLE OF CONTENTS


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.

DISCLAIMERSTATEMENT:

DISCLAIMER STATEMENT



EXECUTIVESUMMARY:

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Fresenius Medical Care property located in Chicago, IL. The property is positioned near a heavily trafficked signalized intersection in a dense in-fill area. The newly signed Fresenius lease is for 15 years and features rare 2% annual rental escalations throughout the primary term and three 5-year renewal option periods. Unlike many other states, Fresenius was required to obtain a Certificate of Need from the State of Illinois in order to open and operate this facility. A Certificate of Need adds a significant barrier to entry.

The Fresenius property is conveniently located just off the trafficked intersection of Grand Avenue and Division Street on the Northwest Side of Chicago in the Humboldt Park neighborhood. The intersection experiences traffic counts in excess of 32,000 vehicles per day. The building has great visibility along Grand Avenue, a popular thoroughfare in Chicago. The surrounding area is densely concentrated with commercial buildings and residential homes providing for significant barriers to entry. There are over 58,000 people living within a one mile radius of the property. The property is surrounded by numerous national retailers including CVS Pharmacy, Dunkin’ Donuts and Auto Zone.

Fresenius is the dominant provider of kidney dialysis and renal care products and is a publicly traded company (NYSE: FMS) with a market capitalization in excess of $38 billion. Fresenius is an investment grade rated company with a Standard & Poor’s rating of BBB-.

EXECUTIVE SUMMARY


INVESTMENT HIGHLIGHTS:

• Located in the city of Chicago

• Fresenius is an investment grade rated company (S&P: BBB-)

• Fresenius is publicly traded on the New York Stock Exchange (FMS) with a market capitalization in excess of $38 billion

• New Construction (2017)

• Long term 15 year lease

• Minimal landlord responsibilities

• 2% annual rental escalations throughout the primary term

• Three 5-year renewal option periods with annual rental escalations

• Fresenius obtain a Certificate of Need from the State in order to open and operate this facility

• Over 58,000 people living within a one mile radius of the property

• Significant barriers to entry

• Positioned near a trafficked signalized intersection in a dense in-fill area

• Retailers located in the immediate surrounding trade area include CVS Pharmacy, AutoZone and Dunkin Donuts

INVESTMENT HIGHLIGHTS


PROPERTY OVERVIEW:

PROPERTY OVERVIEW

Price: $8,680,000

Year 1 Cap Rate: 5.60%

Average Cap Rate (Initial Term): 6.46%

Net Operating Income: $486,080

Rental Escalations: 2% Annually

Renewal Options: Three 5-Year with 1% Annual Escalations

Rent Commencement Date: March 23, 2017

Lease Expiration Date: March 31. 2032

Tenant: Fresenius Medical Care of Illinois, LLC

Guarantor: Fresenius Medical Care Holdings, Inc.

Year Built: 2017

Lease Type: NN (Roof & Structure)

Building Size: 15,680 SF

Land Size: 1.93 Acres


PHOTOGRAPHS


SITE PLAN

C H I C A G O, M I L WA U K E E A N D S T . PA U L R A I L R O A D

W E S T G R A N D AV E N U E ( 1 6 , 1 0 0 V P D )


AERIAL


MAPS

Lake Michigan

DEMOGRAPHICREPORT:

DEMOGRAPHIC REPORT

Population 1-Mile 3-Mile 5-Mile

Total Population 58,263 472,494 1,355,101

Total Households 18,419 170,497 537,458

Income 1-Mile 3-Mile 5-Mile

Average Household Income $42,409 $65,045 $87,332

MARKET OVERVIEW

MARKETOVERVIEW:

ChicagoChicago 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. Chicago has many nicknames, the best-known being the Windy City.

The Chicago metropolitan area is home to the corporate headquarters of 66 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 traffic movement.

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. As of 2016, Chicago had the third largest gross metropolitan product in the United States at $640 billion. The city of Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims two Dow 30 company: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001 and McDonald’s, who’s in the process of moving there headquarters from the Chicago suburbs to the Chicago West Loop. One additional Dow 30 companies, Kraft Foods is in the Chicago suburbs, as are Sears Holdings Corporation and the technology spin-offs of Motorola. The headquarters of United Continental Holdings, are in the United Building and its operations center and its United Airlines subsidiary are in the Willis Tower in Chicago.

Chicago attracts over 50 million domestic leisure travelers, 11 million domestic business travelers and 1.5 million overseas visitors. These visitors contributed more than $14 billion to Chicago’s economy. Upscale shopping along the Magnificent Mile and State Street, thousands of restaurants, as well as Chicago’s eminent architecture, continue to draw tourists. The city is the United States’ third-largest convention destination. A 2011 study by Walk Score ranked Chicago the fourth most walkable of the fifty largest cities in the United States.

TENANT OVERVIEW

FreseniusFresenius is a diversified medical equipment company based in Germany. The Fresenius Group provides products and services for dialysis, hospitals as well as inpatient and outpatient medical care. Fresenius consists of four business segments; Fresenius Medical Care, Fresenius Helios, Fresenius Kabi, and Fresenius Vamed. They are active in over 120 countries.

The North American branch of Fresenius Medical Care is headquartered in Waltham, Massachusetts. Fresenius Medical Care North America is a major provider of kidney dialysis and renal care products. They provide products, dialysis care services, education and support for Chronic Kidney Disease. Fresenius Medical Care North America provides renal services to hundreds of thousands of people throughout the United State, Mexico, and Canada through their 2,200+ dialysis facilities.

Fresenius Medical Care North America is a division of Fresenius Medical Care, the world’s largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.1 million individuals worldwide.

Fresenius is publicly traded on the New York Stock Exchange (Symbol: FMS) with a market capitalization in excess of $23 billion. Fresenius is an investment grade rated company with a Standard & Poor’s rating of BBB-.

Website: www.fmcna.comCredit Rating: Investment Grade (S&P: BBB-)Stock Symbol: NYSE: FMS Market Capitalization: $38 billionNumber of Locations: 2,200+Headquarters: Bad Homburg, Germany

TENANT OVERVIEW:

666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

Randy [email protected]

Jimmy [email protected]

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