Net Leased Offering
Transcript of Net Leased Offering
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NET LEASED INVESTMENT OFFERI
Save-A-Lot
NEC of E. 63rd Street and Calumet AvenueChicago, IL
CONFIDENTIAL OFFERING MEMORANDUM
www.bouldergroup.com
Representative P
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TABLE OF CONTE
TABLE OF CONTENTS
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Confidentiality & Disclaimer
Executive Summary
Property Overview
Site Plan
Aerial
Maps
Tenant Profile
Demographic Comparison Report
Location Overview
Contact Information
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CONFIDENTIALITY & DISCLAIM
CONFIDENTIALITY & DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to
reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or ent
without the written consent of The Boulder Group. This Marketing Brochure has been prepared to provide summa
unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject prope
The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has
made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subj
property, the future projected financial performance of the property, the size and square footage of the property a
improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State a
Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects
any tenant, or any tenants plans or intentions to continue its occupancy of the subject property. The information contained
this Marketing Brochure has been obtained from sources we believe to be reliable; however, The Boulder Group has n
verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigat
regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of t
information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
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EXECUTIVE SUMMA
EXECUTIVE SUMMARY
Newly renovated grocery building to be completedin early 201110 year lease with increasing renewal optionsCorporately owned Save-A-Lot locationSave-A-Lot has over 1,200 locations withsignificant growth plansLocated in a dense area of ChicagoLess than a quarter mile from two majorinterstates
Directly adjacent to a Chicago Transit AuthorityGreen Line stationDense in-fill areaHigh sales expected as property is located in anarea with limited grocery options
The Boulder Group is pleased to exclusively offer for sale a Save-A-Lot grocery store property in the city of Chicago. The propis tenanted by Save-A-Lot which recently signed a ten year lease in a newly rehabbed building. The property is located less tseven miles south of Downtown Chicago in the Washington Park community. This infill area is one of the most dense heavily populated neighborhoods of Chicago with multiple barriers to entry. The property will benefit from over 27,000 vehipassing the site daily as well as significant pedestrian traffic. The property is located adjacent to a Chicago Transit AuthGreen Line Station which will allow residents of Washington Park and nearby neighborhoods convenient access to grocery. Save-A-Lot tenanted this building as it is located in a food desert and expects to have a high sales volume: Fdeserts are areas that lack access to affordable fruits, vegetables, whole grains, low-fat milk, and other foods that make up
full range of a healthy diet.
The Washington Park neighborhood is an urban infill area with multiple attractions and amenities. The focal point of the area 372 acre park where residents enjoy an abundance of activities. Washington Park is less than a quarter mile from bInterstates I-90 and I-94 which provide steady traffic flow throughout the area. There are over 231,700 vehicles that trthese interstates daily. Washington Park is located just west of The University of Chicago which has over 15,000 students. immediate area is home to national retailers such as Walgreens, AutoZone and McDonalds.
Save-A-Lot has a ten year lease with an expected rent commencement date of February 1, 2011 with increasing reneoptions. The rental rate will increase in each of the five year renewal periods. Save-A-Lot is a wholly owned subsidiarSupervalu which is the nations fourth largest food retailer. Moran Foods (see Tenant Profile section) is the operator of particular location and has been associated with Save-A-Lot since 1977. This is an ideal location for Save-A-Lot due to
areas population densities, the lack of fresh food options, and location across from the neighborhoods elementary school
Investment Highlights
Representative Pho
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PROPERTY OVERV
PROPERTY OVERVIEW
Price:
Cap Rate:
Net Operating Income:
Renewal Options:
Renewal Rent*:
Lease Commencement Date*:
Lease Expiration Date*:
Tenant:
Year Built
Lease Type:
Building Square Footage:
Land Square Footage:
Parking Spaces:
$2,423,500
8.50%
$206,120
Four 5-Year
$224,410 February 1, 2016
$238,700 February 1, 2021
$254,990 February 1, 2026
$254,990 February 1, 2031
February 1, 2011
January 31, 2016
Moran Foods, Inc. d/b/a Save-A-Lot
2011 full rehab of existing building
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16,290
33,132
34 stalls with additional street parking
*All dates are estimates and subject to change, as the improvements are currently under construction.
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SITE P
SITE PLAN
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AER
AERIAL
I-94187,600 VPD
I-90 / I-94231,700 VPD
I-9042,900 VPD
DullesElementary School
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SITE
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MA
MAPS
SITE
SITE
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TENANT PROF
TENANT PROFILE
Website:Number of Locations:Company Origination:Store Operations:Plans:
www.save-a-lot.com1,200197739 statesDouble locations in five years
owned and operated location. Save-A-Lot grocery store network spans from Maine to California, serving morethan 4 million shoppers each week. In 2009, Save-A-Lot hired a former Wal-Mart executive to help the companythrive in this economic time period. The company has a five-year plan to double the number of Save-A-Lotlocations, of which 75% are run by franchisees.
The company procures, distributes and markets a carefully selected assortment of high quality food andhousehold needs, emphasizing their own exclusive brands. The highly efficient supply chain enables Save-A-Lot to sell at prices well below other retailers.
Save-a-Lot was founded in 1977 by Bill Moran and Chase Gabbard and was later acquired by Supervalu in1992. Moran Foods, Inc. is the tenant for the subject asset and has been in the grocery business for over thirtyyears. Despite being an independent retailer using the Save-A-Lot brand, they are an integral part ofSupervalu. Moran Foods has assets over $1 billion and sales that exceed $3 billion.
Save-A-Lot is a wholly owned subsidiary of SUPERVALU INC.,(Fortune 100 company) and one of the largest companies in theUnited States and the fourth largest food retailer. Save-A-Lot isone of the nation's leading extreme value, carefully selectedassortment grocery chains, operating nearly 1,200 value-orientedstores in all types of neighborhoods urban, rural and suburban.More than two-thirds of the stores are licensed; the rest arecompany owned and operated. The subject property is a company
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DEMOGRAPHIC COMPARISON REP
DEMOGRAPHIC COMPARISON REPORT
Population
2009 Total Population
2009 Total Households
2009 Daytime Population
Income
2009 Median Household Income
2009 Average Household Income
1-mile
34,337
12,582
31,991
$40,757
$19,971
3-mile
339,938
127,121
269,542
$50,949
$29,775
5-mile
760,504
267,645
599,075
$53,386
$34,415
Representative Photo
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LOCATION OVERV
LOCATION OVERVIEW
he Washington Park neighborhood is one of Chicagos (only 7 miles from the Loop) most well-defined commu
reas. The neighborhoods central focus is the 372 acre park named Washington Park, stretching east-west f
ottage Grove Avenue to the Dan Ryan Expressway, and north-south from 63rd Street to 51st, and is home of
uSable Museum of African American History. The park was the proposed site of the Olympic Stadium and the Olym
quatics Center in Chicago's bid to host the 2016 Summer Olympics.
ncluding the park, the community area hosts two listings on the National Register of Historic Places. The park in ommunity area was named for President George Washington in 1880. In the 1920s, the University of Chic
reated the community area system of city subdivision with the current names that continue to be used tod
Washington Park is a social center of the South Side and hosts many festivals in the summer, including Chicago's b
rganized cricket league and the terminus of the Bud Billiken Parade and Picnic. The largest 16" softball leagu
hicago is played there on Sundays (called "Sunday's Best Softball League"). There are 34 teams who play on
iamonds. There is also a weekday evening league.
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CONTACT INFORMAT
CONTACT INFORMATION
Randy Blankstein
President
847.562.0003
Jimmy Goodman
Partner
847.562.8500
666 Dundee Road Suite 1801
Northbrook, IL 60062
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