Triple Net Lease for Sale Chicago | The Boulder Group

8/12/2019 Triple Net Lease for Sale Chicago | The Boulder Group

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NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

TABLE OF CONTENTS

TABLE OF CONTENTS

1) Condentiality & Disclaimer

2) Executive Summary

3) Investment Highlights

4) Property Overview

5) Aerials

6) Maps

7) Photographs

8) Tenant Prole

9) Demographic Comparison Report

10) Location Overview

11) Contact Information


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The information contained in the following Offering Memorandum is proprietary and strictly condential. 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, unveried

information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The infor -

mation 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 nancial performance of the property, the size and square footage of the property and improvements,

the presence or absence of contaminating substances, PCBs or asbestos, the compliance with State and Federal regula-tions, the physical condition of the improvements thereon, or the nancial condition or business prospects of any tenant,

or any tenants 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 veried, 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


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The Boulder Group is pleased to exclusively market for sale a rare single tenant net leased trophy property located in the River North neighborhood of downtown

Chicago. The irreplaceable property is located at the northwest corner of the signalized intersection of North LaSalle Street and West Illinois Street. This Ginos

East location is centrally located amongst many high rise hotel and residential buildings in a well-known tourist destination. Ginos East recently elected to

relocate from their previous famous agship location and execute a ten year absolute triple net lease at the subject property. The lease features 10% rental

escalations every ve years. Ginos East is a Chicago institution and one of the original deep dish pizza restaurants which rst opened in 1966. Today, there are

eleven Ginos East restaurants located throughout the Chicago MSA.

The Ginos East property is ideally situated in the heart of Chicagos River North neighborhood. River North is a vibrant submarket in Chicago which hasexperienced tremendous development and redevelopment in the past several years. River North is home to many restaurants, retail shops, hotels and high rise

residential buildings. The property is located at the signalized intersection of North LaSalle Street and West Illinois Street. LaSalle Street experiences trafc

counts of approximately 25,000 vehicles per day and is a main north-south thoroughfare in Chicago. Additionally, the property is benetted from being located

close to Ohio Street and Ontario Street, which are the main entry and exit point for vehicles traveling in and out of the city via Interstate 90/94. Approximately

300,000 vehicles per day travel on Interstate 90/94. There are approximately 90,000 people living within a one mile range of the property earning average

household incomes of approximately $110,000.

The three-story, 17,400 square foot building is constructed of brick, wood and masonry. Ginos East

recently invested $1,000,000 in tenant improvements to the building bringing it to elite twenty-rst

century standards and evidencing their commitment to this location.

Ginos East recently signed a ten year lease that is scheduled to expire in July 2023. The lease features

10% rental escalations and no landlord responsibilities. Ginos East is a privately held company that is

one of the original Chicago-style pizza restaurants. In addition to the eleven locations located throughout

the Chicago MSA, Ginos East operates a mail-order business where patrons from around the country can

order frozen pizzas and have them shipped overnight.

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY


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Located within Chicagos vibrant River North neighborhood

Rare opportunity to acquire a trophy Chicago single tenant property in a core location

Centrally located amongst Chicagos most visited tourist attractions

Ginos East recently signed a 10 year lease

Ginos East is committed to the location as evidenced by the $1,000,000 renovation recently made to the building

Lease features 10% rental escalations every ve years

Ginos East is an iconic Chicago-style pizza chain

Relocation of Ginos East agship location that was previously located three blocks north

No landlord responsibilities

Located along North LaSalle Street less four blocks from the Chicago Loop

Surrounded by high rise residential, hotel, and ofce buildings in a rapidly developing area

Located at a signalized intersection (25,000 VPD)

Three blocks from one of Chicagos main points of entry and exit, the Ohio Street/Ontario Street feeder ramps

Approximately 90,000 people living within a one mile range of the property earning average household incomes of approximately $110,000

INVESTMENT HIGHLIGHTS

INVESTMENT HIGHLIGHTS


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PROPERTY OVERVIEW

PROPERTY OVERVIEW

Price: $7,000,000

Cap Rate: 6.00%

Rent Schedule: NOI Escalation Date

$420,000

$462,000 7/1/2018

$508,200 7/1/2023 (Option 1)

$559,020 7/1/2028 (Option 2)$614,922 7/1/2033 (Option 3)

$676,416 7/1/2038 (Option 4)

$744,060 7/1/2043 (Option 5)

Rental Escalations: 10% Every Five Years

Renewal Options: Five 5-Year

Lease Commencement Date: January 1, 2013

Lease Expiration Date: June 30, 2023Tenant: Ginos East

Year Renovated: 2013

Lease Type: NNN

Rentable Square Feet: 17,400 SF


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AERIALS

AERIALS

OHIO/ONTARIO RAMP

OGILVIE STATION

LAKE MICHIGAN

N

MICHIGANAVENUE

CHICAGO RIVER

THE LOOP


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MAPS

MAPS

MICHIGAN

AVENUE

HANCOCK CENTER

THE SHOPS ATNORTH BRANCH

TRUMP TOWERMERCHANDISE MART

LOYOLA UNIVERSITY


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PHOTOGRAPHS

PHOTOGRAPHS


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TENANT PROFILE

TENANT PROFILE

Ginos East is a Chicago-based restaurant chain, notable for its deep-dish, Chicago-style pizza. The restaurant features deep-dish pizza baked in cast-iron pans, as

well as sandwiches, soups, and salads. The rst Ginos East opened in 1966 by two taxi drivers and a friend. The company subsequently opened other locations

throughout the Chicago Metropolitan Area. Today, there are eleven Ginos East locations throughout Chicago land with four locations in the city of Chicago.

In addition to their restaurant business, Ginos East operates a mail-order business, where patrons from around the country can order frozen pizzas and have

them shipped overnight.


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DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORT

Population 1-mi 3-mi 5-mi

Total Population 89,389 336,576 797,930

Total Households 57,230 180,461 370,342

Income

Median Household Income $73,669 $64,649 $53,098

Average Household Income $108,321 $97,746 $82,348


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LOCATION OVERVIEW

LOCATION OVERVIEW

River Northis a rapidly developing and transforming neighborhood in the city of Chicago. A common denition puts the District in the area north

of the Chicago River and the Merchandise Mart, south of Chicago Avenue, east of the Chicago River and west of Michigan Avenue. River North

has experienced vast changes in the years 1990 - 2012 including the development of vast high rise buildings, nightclubs and restaurants.

River North has become one of Chicagos top neighborhoods for nightlife especially along Franklin Avenue and Hubbard Street. It also hosts

the largest concentration of art galleries in the United States, outside of Manhattan. With its close proximity to Michigan Avenue, the Loop,

Merchandise Mart and the Kennedy Expressway, in addition to a recent increase in the residential population, River North has become a urban

lifestyle destination for fashion, home, ne dining and nightlife.

Chicagois 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, McDonalds, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry,

telecommunications and infrastructure and OHare International Airport is one of busiest airport in the world in terms of volume.

The metro is a major nancial 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 nancial centers based on people, business environment, market access,

infrastructure and general competitiveness.

www.cityofchicago.org


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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 INFORMATION

Triple Net Lease for Sale Chicago | The Boulder Group

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