Triple Net Lease Kohl's For Sale

www.bouldergroup.com

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

Kohl’sKohl’sKohl’sKohl’s 230 East Rollins Road230 East Rollins Road230 East Rollins Road230 East Rollins Road

Round Lake BeachRound Lake BeachRound Lake BeachRound Lake Beach, , , , ILILILIL 60073 60073 60073 60073 ((((ChicagoChicagoChicagoChicago MSA)MSA)MSA)MSA)

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 Kohl’s property located in the Chicago MSA. This is a proven location for Kohl’s since 2000 and they are committed to the area as evidenced by the recent extension of the primary term. The lease features a rental escalation in the primary term and is leased on a triple net basis. Additionally, Kohl’s recently put approximately one million dollars into the property for an extensive renovation. The recent renovation and lease extension solidifies Kohl’s presence at this location through January 2025. Kohl’s is rated Investment Grade (BBB+) by Standard & Poor’s and is a leading department store retailer.

The 87,000 square foot property was built in 2000 and has 13 years remaining on the primary term of the lease. The property is located in the primary retail trade area of Round Lake Beach. The retail trade area is anchored by Kohl’s, Wal-Mart Supercenter, Home Depot, Regal Cinema, LA Fitness, Super Kmart, Jewel-Osco and Garden Fresh Market. The property is located along Rollins Road, the primary east-west thoroughfare experiencing traffic volumes in excess of 28,000 vehicles per day. There are approximately 150,000 people living within five miles of the property with above average household incomes in excess of $94,000 annually.

The original twenty year lease term began in 2000 and Kohl’s recently extended the primary term of the lease for an additional five years through January 2025. The lease features a rental escalation in the primary term as well as seven 5-year renewal options at escalated rents. Kohl’s is a publicly traded company on the New York Stock Exchange (KSS) with a market capitalization of $10 Billion. Kohl’s is an investment grade rated company with a Standard & Poor’s rating of BBB+.

• Located within the Chicago MSA

• Committed to the location since 2000 and tenant recently extended the lease through January 2025

• Kohl’s recently completed an extensive renovation

• Investment grade tenant (S&P: BBB+)

• No Landlord responsibilities

• Rental escalation in the primary term

• Rollins Road has traffic volumes in excess of 28,000 vehicles per day

• Average household income in excess of $94,000 within five miles of the property

• Nearby retailers include Wal-Mart Supercenter, Home Depot, Regal Cinema, LA Fitness, Super Kmart, Jewel-Osco and Garden Fresh Market

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY



Price: $12,231,100

Cap Rate: 6.00%

Rent Schedule: NOI Escalation Date

$ 733,866

$ 752,550 2/1/2020

$ 806,896 2/1/2025 (Option 1)

$ 889,978 2/1/2030 (Option 2)

$ 976,776 2/1/2035 (Option 3)

$ 1,074,453 2/1/2040 (Option 4)

$ 1,181,899 2/1/2045 (Option 5)

$ 1,300,088 2/1/2050 (Option 6)

$ 1,430,097 2/1/2055 (Option 7)

Renewal Options: Seven 5-Year with escalations

Lease Commencement Date: October 25, 2000

Lease Expiration Date: February 1, 2025

Year Built: 2000

Tenant: Kohl’s

Credit Rating: BBB+ (Standard & Poor’s)

Lease Type: NNN

Rentable Square Feet: 87,000 SF

Land Size: 7.81 acres

PROPERTY OVERVIEW

PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW



AERIAL

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SITE PLANSITE PLANSITE PLANSITE PLAN

SITE PLAN



MAP

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Website: www.kohls.com

Number of Locations: 1,134

Stock Symbol: KSS : NYSE

Standard & Poor’s Rating: BBB+

Market Capitalization: $10 Billion

Kohl’s Corporation (NYSE: KSS) operates family-oriented department stores in the United States. Kohl’s stores offer moderately priced products including; private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. Kohl’s stores generally carry a consistent merchandise assortment with some differences attributable to regional preferences and feature quality private and exclusive brands which are found “Only at Kohl’s” as well as national brands. Our apparel and home fashions appeal to classic, modern classic and contemporary customers. As of May 10, 2012, it operated 1,134 stores in 49 states. The company also provides on-line shopping through its Website Kohls.com. Kohl’s is ranked #142 on the Fortune 500 and is the 20th largest retailer in the United States in terms of revenue. Kohl’s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.

TENANT PROFILE

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PopulationPopulationPopulationPopulation 3333----mi.mi.mi.mi. 5555----mimimimi 7777----mimimimi

Total Population 73,668 149,413 202,369 Total Households 23,141 49,784 69,317

IncomeIncomeIncomeIncome

Median Household Income $78,045 $81,395 $81,196 Average Household Income $87,938 $94,814 $96,554

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT

The metro is also 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 envand general competitiveness.

www.cityofchicago.com

Round Lake Beach Round Lake Beach Round Lake Beach Round Lake Beach

Census had a population of 28,175. Lake County is located in the

corner of Illinois. According to the 2010 census, Lake County had a population of

703,462, which was an increase of 9.2% from the 2000 population. Naval Station

Great Lakes is located in the city of North Chicago in Lake County. It is the Uni

States Navy's Headquarters Command for training, and the Navy's only recruit

training center.

http://www.villageofroundlakebeach.com/

Chicago Chicago Chicago Chicago is the most populous city in the Midwestern 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 Un9,580,567 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, 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.



LOCATION OVERVIEW

LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW

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

Round Lake Beach Round Lake Beach Round Lake Beach Round Lake Beach is located within Lake County, Illinois. At the time of the 2010 U.S.

Census had a population of 28,175. Lake County is located in the



Great Lakes is located in the city of North Chicago in Lake County. It is the Uni


training center.

http://www.villageofroundlakebeach.com/

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 Un9,580,567 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, McDonald's, Motorola, Discover Financial

ices 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.

LOCATION OVERVIEW

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

ironment, market access, infrastructure

is located within Lake County, Illinois. At the time of the 2010 U.S.

Census had a population of 28,175. Lake County is located in the northeastern



Great Lakes is located in the city of North Chicago in Lake County. It is the United


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, McDonald's, Motorola, Discover Financial

ices 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



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

Triple Net Lease Kohl's For Sale

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