Net Lease Kroger For Sale

www.bouldergroup.com

NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING

KrogerKrogerKrogerKroger 2701 Columbus Street2701 Columbus Street2701 Columbus Street2701 Columbus Street

Ottawa, IL 61350Ottawa, IL 61350Ottawa, IL 61350Ottawa, IL 61350

NET LEASED INVESTMENT OFFERING


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Confidentiality & Disclaimer

Executive Summary

Property Overview

Aerial

Site Plan

Map

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information

TABLE OF CONTENTS

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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.

CONFIDENTIALITY & DISCLAIMER

CONCONCONCONFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMER



The Boulder Group is pleased to exclusively market for sale a single tenant net leased Kroger property located in Ottawa, Illinois. This is a proven location for Kroger since 1982 and they are committed to the area as evidenced by the recent execution of their second renewal option. The 44,088 square foot property is located within a primary retail trade area along the most heavily trafficked roadway in Ottawa. The property is being offered at a low price per square foot of $78. Kroger is rated investment grade (BBB) by Standard & Poor’s and is one of the nation’s leading grocery store chains.

The property is located along Columbus Street, the primary north-south traffic thoroughfare in the area. Columbus Street experiences traffic volumes in excess of 18,700 vehicles per day and has a full access interchange with Interstate 80 less than one-half mile from the property. Interstate 80 experiences traffic volumes in excess of 24,500 vehicles per day. The property is located in a primary retail trade area featuring a Wal-Mart Supercenter and retail shopping centers leased to major retailers. This retail area is growing as Menard’s has targeted a site, for future development located north of the Kroger. The Kroger property also benefits from multiple signalized points of ingress along Columbus Street. Ottawa is located 80 miles southwest of downtown Chicago and is known as the gateway to Starved Rock Park. Starved Rock Park is an Illinois State Park and experiences more than 2 million visitors annually.

The original twenty five year lease term commenced in 1982 and Kroger recently exercised their second renewal option for an additional five years through August 2017. The lease features four additional 5-year renewal options. Kroger is a publicly traded company on the New York Stock Exchange (KR) with a market capitalization of $13 billion. Kroger is an investment grade rated company with a Standard & Poor’s rating of BBB.

• Long standing tenant since 1982

• Proven location as tenant recently executed second renewal option for five additional years

• Investment grade tenant (S&P: BBB)

• No landlord responsibilities

• Located on the primary north-south traffic thoroughfare

• Located in the primary retail trade area with many regional draws

• Low price per square foot of $78

• Positioned on a traffic light controlled intersection

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY



Price: $3,450,000

Cap Rate: 8.08%

Net Operating Income: $278,866

Renewal Options: Four 5-Year

Lease Commencement Date: September 1, 1982

Lease Expiration Date: August 31, 2017

Year Built: 1982

Tenant: Kroger

Credit Rating: BBB (Standard & Poor’s)

Lease Type: NNN

Rentable Square Feet: 44,088

Land Size: 3.78 Acres

PROPERTY OVERVIEW

PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW



AERIALAERIALAERIALAERIAL

AERIAL



SITE PLANSITE PLANSITE PLANSITE PLAN

SITE PLAN



MAP

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Website: www.thekrogerco.com

Number of Locations: 3,574

Stock Symbol: KR: NYSE

Standard & Poor’s Rating: BBB

Market Capitalization: $13 billion

Employees: 339,000

Kroger (NYSE: KR) is one of the largest grocery retailers in the county. The Kroger Brand operates nearly two dozen subsidiaries and store formats include grocery and multi-department stores, discount, convenience stores and jewelry stores. In 1983, The Kroger Company acquired Dillon Companies grocery chain, along with its subsidiaries King Supers, City Market, Fry’s, Gerbes and the convenience store chain Kwik Shop. Kroger’s largest merger occurred in 1999, when the company merged with Fred Meyer, Inc. As of 2010, Kroger operated, either directly or through its subsidiaries, 3,574 stores, of them 2,435 are supermarkets across 31 states. Kroger’s sales increased over 10% from fiscal year 2010 to $91 billion, and the company is ranked #23 on the Fortune 500. Kroger was founded in 1883 and is headquartered in Cincinnati, Ohio.

TENANT PROFILE

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PopulationPopulationPopulationPopulation 3333----mi.mi.mi.mi. 5555----mimimimi 15151515----mimimimi

Total Population 18,085 23,150 66,270 Total Households 7,497 9,535 26,340

IncomeIncomeIncomeIncome

Median Household Income $45,638 $47,512 $50,861 Average Household Income $56,506 $58,123 $59,408

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT



LOCATION OVERVIEW

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OttawaOttawaOttawaOttawa is the largest city in LaSalle County, Illinois. At the time of the 2010 U.S Census Ottawa had a population of 18,786. LaSalle County is located approximately 80 miles southeast of downtown Chicago. According to the 2010 census, LaSalle County had a population of 113,924. Located in LaSalle County is Starved Rock State Park. Ottawa is known as the scenic gateway to the park which experiences more than 2 million visitors annually.

Ottawa is ideally located at the convergence of the Illinois River and the Fox River; the Illinois River connects Lake Michigan to the Mississippi River, and North America’s 25,000 mile river system. The city of Ottawa plays a large role in the sand and glass industry, and transportation of the sand is facilitated by the Illinois River. The largest employer in Ottawa is Pilkington Glass Works; the plant underwent a $50 million renovation in 2006.

www.cityofottawa.org



666 Dundee Road Suite 1801 Northbrook, IL 60062

Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

CONTACT INFORMATION

CONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATION

Net Lease Kroger For Sale

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