$13,105,000 | 5.60% CAP ROUND LAKE BEACH, IL (CHICAGO MSA)leec-sd.reapplications.com/filecabinet/Property/078548/Kohl's, Round... · Lee & Associates is pleased to offer for sale

No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice.

Ryan Barr760.448.2446

[email protected]

Ryan Bennett760.448.2449

[email protected]

INVESTMENT OPPORTUNITY

$13,105,000 | 5.60% CAP ROUND LAKE BEACH, IL

(CHICAGO MSA)


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Round Lake Beach, IL(Chicago MSA)

OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY:

Barr & Bennett Net Leased Investmentswww.nnninvestmentgroup.com

Ryan Barr760.448.2446

[email protected] Lic#01338994




Page 3 of 26

DISCLAIMER

Lee & Associates hereby advises all prospective purchasers of Single-Tenant Net-Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a single-tenant property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a single-tenant property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any single-tenant property to determine to your satisfaction withthe suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Lee & Associates Investments and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this single-tenant property.


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INVESTMENT SUMMARY


KOHL’S | 230 East Rollins Road, Round Lake Beach IL

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Investment Summary

Lee & Associates is pleased to offer for sale an absolute triple-net (NNN) leased single tenant Kohl’s located at 230 East Rollins Road in Round Lake Beach, Illinois. THE INVESTMENTThe subject property is comprised of a freestanding 87,000 square foot building that was built in 2000 and is situated on a 7.81 acre parcel. The building is leased to Kohl’s Department Stores, Inc. and guaranteed by Kohl’s Corporation. Kohl’s Corporation has a credit rating of BBB+ by Standard & Poor’s and boasts a market capitalization of over 11 billion. The lease is absolute triple-net (NNN) with 11 years remaining on the primary term and a 2.5% rental escalation in year 20 of the lease. Additionally, Kohl’s has seven (7), 5 year options with rental escalations over 7% in each option period.

STRATEGIC LOCATIONThe subject property is strategically located with pylon signage along Round Lake Beach’s main retail thoroughfare. East Rollins Road boasts 28,000 vehicles per day and is home to both national and regional retailers. These retailers include Home Depot, Hobby Lobby, Walgreens, Office Max, Big K Mart, Regal Cinemas, Famous Footwear, Wendy’s, Panera Bread, Chili’s, Applebee’s, McDonald’s, Joann’s Fabrics, Ace Hardware, KFC, Taco Bell, Firestone, Chipotle, Buffalo Wild Wings, and AutoZone. Additionally, the subject property benefits from its close proximity to the North Central Service commuter rail. The rail stretches from Antioch all the way to Downtown Chicago. Finally, the surrounding area is fairly affluent with an average household income of almost $80,000 within just a three mile radius of the subject property.

NEW DEVELOPMENTThe city of Round Lake Beach is located within the Chicago MSA and lies within Lake County Illinois. The city is known for its extensive retail selection, which has been one of the city’s main draws. The majority of this vast retail selection lies along Rollins Road where the subject property is also located. Recently, the city has seen an increase in traffic along Rollins Road due to the increase demand for the retail in the area. As a result, the city has begun construction on the Rollins Road Gateway Project. The project is expected to improve the speed and efficiency of traffic along Rollins Road. More specifically the project will add new traffic signals as well as new turning lanes to allow cars to move more quickly in and out of the surrounding shopping centers. Additionally, a bridge will be added to accommodate the movement of the commuter train that runs across Rollins Road. The addition of the bridge will serve to reduce traffic flow delays along Rollins Road. In total, the city is investing roughly $31 million into the project and expects the project to be completed by mid-2015.


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INVESTMENT GRADE TENANT & GUARANTEE The lease is guaranteed by Kohl’s Corporation (Standard & Poors Credit Rating: BBB+) which operates over 1,158 department stores throughout the United States. Additionally, the company boasts a market capitalization of over 11 billion with revenue in the past 12 months reaching almost $19 billion.

RARE RENTAL ESCALATIONSThe lease features a rental escalation of 2.5% in year 2020 of the lease. Additionally there are rental escalations of over 7% in each option period.

COMMITMENT TO THE SITE Kohl’s recently executed one of their options early extending the lease out to January of 2025.

STRONG RETAIL CORRIDORThe subject property resides in Round Lake Beach’s main retail corridor. Retailers in the area include Home Depot, Hobby Lobby, Walgreens, Office Max, Big K Mart, Regal Cinemas, Famous Footwear, Wendy’s, Panera Bread, Chili’s, Applebee’s, McDonald’s, Joann’s Fabrics, Ace Hardware, KFC, Taco Bell, Firestone, Chipotle, Buffalo Wild Wings, and AutoZone.

EXCELLENT DEMOGRAPHICSWithin just five miles of the subject property there are over 141,000 people with an average household income exceeding $88,800.

PYLON SIGNAGEAlong East Rollins Road which sees roughly 28,000 vehicles per day, Kohl’s has large pylon sign facing both east and west.

Investment Highlights


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INVESTMENT HIGHLIGHTSPrice: $13,105,000

NOI: $733,866

Cap: 5.60%

PROPERTY OVERVIEWAddress: 230 East Rollins Road, Round Lake Beach, IL 60073

Tenant: Kohl’s Department Stores, Inc.

Guarantor: Kohl’s Corporation (S&P: BBB+)

Building Size: 87,000 SF

Land Size: 7.81 Acres

Ownership: Fee Simple

Year Built: 2000

APN: 06-16-104-001-0000

TERMS, BASE RENT & OPTIONSLease Commencement: October 25, 2000

Lease Expiration: January 28, 2025

Lease Term: 25 Years (11 Years Remaining)

Lease Type: Absolute Triple Net (NNN)

Landlord Responsibilities: None

Investment Highlights


Base Rent Schedule: Term Income Increase OverPrevious Yr

AnnualRent/SF

Monthly Rent/SF

Current - 1/28/20201/29/2020 - 1/28/2025

$733,866$752,550 2.55%

$8.44$8.65

$0.70$0.72

Options: Seven (7), 5 Year Option

Option 1: 1/29/2025-1/28/2030Option 2: 1/29/3030-1/28/2035Option 3: 1/29/2035-1/28/2040Option 4: 1/29/2040-1/28/2045Option 5: 1/29/2045-1/28/2050Option 6: 1/29/2050-1/28/2055Option 7: 1/29/2055-1/28/2060

$806,896$889,978$976,776

$1,074,453$1,184,899$1,300,000$1,430,097

7.22%10.30%9.75%

10.00%10.28%9.72%

10.00%

$9.27$10.23$11.23$12.35$13.62$14.94$16.44

$0.77$0.85$0.94$1.03$1.13$1.25$1.37


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TENANT SUMMARY



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Site Plan


E. Rollins Rd

N. O

rcha

rd L

n

Hook Dr

N

(Not to scale)

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Property Photos


Store Entrances

Loading Docks Visibility & Access from Orchard Ln

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Property Photos


Adjacent Retailers

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Tenant Overview

Kohl’s Corporation is an American department store chain headquartered in the Milwaukee suburb of Menomonee Falls, Wisconsin. It operates 1,158 stores in 49 states (all states except Hawaii). Kohl’s is America’s largest department store chain by the number of stores as of February 2013 surpassing JCPenney. In 1998, it entered the S&P 500 list, and is also listed in the Fortune 500 (#146 in 2012). The chain was the 20th-largest retailer in the United States in 2013 in terms of revenue. As of 2012, Kohl’s is the second largest U.S. department store company by retail sales.

Kohl’s is a family-focused, value-oriented, specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly and exciting. Every year, they continue to build new stores and remodel existing locations to create an inspiring shopping experience.

At Kohl’s, they also strongly believe in supporting the communities they serve. They have an active commitment to improving the health and educational opportunities for children in Kohl’s communities, as well as a dedication to others in need. Kohl’s dedicates their charitable efforts to improving health and educational opportunities for children through their Kohl’s Cares® program.

Kohl’s Cares® is their way of supporting their customers and their communities by improving the lives of children. Kohl’s stores feature nationally recognized brand-name merchandise, exclusive labels, and private-branded goods, virtually the same merchandise mix as traditional department stores. The stores sell a variety of goods, such as apparel, shoes, and accessories for women, children and men, and home products such as small electronics, kitchen electrics, electric shavers, toothbrushes, vacuum cleaners & floor care, bedding, toys, and luggage.

Kohl’s Corp. (Guarantor)

• Founded: 1962

• Headquarters: Menomonee Falls, WI

• Net Worth: $986 Million

• Standard & Poors Credit Rating: BBB+

• Stock Symbol: KSS

• Fortune 500 Rank: #146 (2012)

• Locations: 1,158 Stores in 49 States

• Employees: 40,508

• Website: www.kohls.com


Kohl’s Corp.www.kohl’s.com


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AREA OVERVIEW



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ROUND LAKE BEACH, ILRound Lake Beach is a village in Lake County, Illinois. Development around Round Lake began in the 1920s as a resort attraction for Chicago’s working class. Small, wooded lots with summer cottages were available for as little as $600.00. Owners would live in their cottages during the summer, and board up the windows and doors for the winter. By 1937, Round Lake Beach was incorporated as a village with a population of 200 people. As automobile ownership grew, the Village began to attract year-round residents, who would commute between Round Lake Beach and their jobs in Chicago or nearby suburban communities. By the 1950s, the Village’s population continued to grow, primarily south of Rollins Road.

By the 1980s, agricultural land north of Rollins Road was converted to residential and commercial development. In stark contrast to the grid-pattern “postage stamp” style development south of Rollins Road, development north of Rollins Road has occurred in on wider lots that front on curvilinear streets. Since the 1980s, Rollins Road has acted as a boundary between the Round Lake Beach of new and old. One of the underlying principles of the Village’s past planning efforts has been to unite these two segments of the Village.

Since 2000, the Village has seen continued significant growth in commercial uses in terms of large retail uses through the continued development of the Rollins Crossing Shopping Center and the Orchard Lane Marketplace, the Home Depot completed in 2005, and the newly approved Wal-Mart on the northwest corner of the intersection of Il. Route 83 and Monaville Road. The Village has also had continuing infill commercial development along Il. Route 83, Rollins Road, and Cedar Lake Road.

The most dramatic change in the Village’s variety of land uses has been in terms of public and quasi-public uses. Since 2000, the Village has developed its new Village Hall and Police Station, expanded its Metra facilities, and built a new Village Cultural and Civic Center. The Round Lake Area Park District has also expanded its park holdings within the Village and built its district wide Sports Center in the Village’s Town Center. Round Lake Beach has a station on Metra’s North Central

Service, which provides daily rail service between Antioch and Chicago Union Station. The village of Round Lake Beach does approximately $3 to $4 million in infrastructure improvement per year using TIF and MFT funds.

Over the last few years, the population of Round Lake Beach has leveled off at around 29,000 residents. The Northeastern Illinois Planning Commission (now part of the Chicago Metropolitan Agency for Planning (CMAP)) forecasts that the Village’s population will approach 30,000 by the year 2030. The primary growth area for this new population will be through in-fill development/redevelopment in the neighborhood areas south of Rollins Road.

Area Overview


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KOHL’S | 230 East Rollins Road, Round Lake Beach ILINVESTMENT OPPORTUNITY

Demographics

Demographic Source: Applied Geographic Solutions 11/2013, TIGER Geography page 1 of 1©2014, Sites USA, Chandler, Arizona, 480-491-1112

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SUMMARY PROFILE2000-2010 Census, 2013 Estimates with 2018 ProjectionsCalculated using Proportional Block Groups

Lat/Lon: 42.3816/-88.0767RS1

230 E Rollins Rd1 mi radius 3 mi radius 5 mi radius

Round Lake Beach, IL 60073

POPU

LATI

ON

2013 Estimated Population 14,695 72,814 142,082

2018 Projected Population 15,104 74,858 146,070

2010 Census Population 14,490 71,797 140,096


Projected Annual Growth 2013 to 2018 0.6% 0.6% 0.6%

Historical Annual Growth 2000 to 2013 0.6% 1.4% 1.9%

2013 Median Age 30.7 32.8 34.7

HO

USE

HO

LDS

2013 Estimated Households 4,265 23,139 48,220

2018 Projected Households 4,403 23,880 49,767

2010 Census Households 4,187 22,710 47,328




RAC

E AN

DET

HN

ICIT

Y

2013 Estimated White 70.3% 75.6% 79.2%

2013 Estimated Black or African American 4.1% 3.6% 3.4%

2013 Estimated Asian or Pacific Islander 3.4% 4.1% 5.5%

2013 Estimated American Indian or Native Alaskan 1.1% 0.9% 0.6%

2013 Estimated Other Races 21.0% 15.9% 11.2%

2013 Estimated Hispanic 46.1% 32.9% 22.4%

INC

OM

E 2013 Estimated Average Household Income $69,653 $79,663 $89,933

2013 Estimated Median Household Income $67,045 $75,068 $82,422

2013 Estimated Per Capita Income $20,267 $25,342 $30,552

EDU

CAT

ION

(AG

E 25

+)

2013 Estimated Elementary (Grade Level 0 to 8) 14.0% 9.0% 5.6%

2013 Estimated Some High School (Grade Level 9 to 11) 8.7% 8.5% 6.5%

2013 Estimated High School Graduate 28.7% 26.4% 24.0%

2013 Estimated Some College 22.9% 21.5% 23.3%

2013 Estimated Associates Degree Only 5.8% 5.8% 6.5%

2013 Estimated Bachelors Degree Only 13.4% 18.9% 22.5%

2013 Estimated Graduate Degree 6.5% 9.9% 11.5%

BUSI

NES

S 2013 Estimated Total Businesses 272 1,529 3,706

2013 Estimated Total Employees 2,307 14,368 34,317

2013 Estimated Employee Population per Business 8.5 9.4 9.3

2013 Estimated Residential Population per Business 54.0 47.6 38.3

Demographic Source: Applied Geographic Solutions 11/2013, TIGER Geography page 1 of 1©2014, Sites USA, Chandler, Arizona, 480-491-1112

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SUMMARY PROFILE2000-2010 Census, 2013 Estimates with 2018 ProjectionsCalculated using Proportional Block Groups

Lat/Lon: 42.3816/-88.0767RS1

230 E Rollins Rd1 mi radius 3 mi radius 5 mi radius

Round Lake Beach, IL 60073

POPU

LATI

ON

2013 Estimated Population 14,695 72,814 142,082

2018 Projected Population 15,104 74,858 146,070





2013 Median Age 30.7 32.8 34.7

HO

USE

HO

LDS

2013 Estimated Households 4,265 23,139 48,220

2018 Projected Households 4,403 23,880 49,767





RAC

E AN

DET

HN

ICIT

Y

2013 Estimated White 70.3% 75.6% 79.2%

2013 Estimated Black or African American 4.1% 3.6% 3.4%

2013 Estimated Asian or Pacific Islander 3.4% 4.1% 5.5%

2013 Estimated American Indian or Native Alaskan 1.1% 0.9% 0.6%

2013 Estimated Other Races 21.0% 15.9% 11.2%

2013 Estimated Hispanic 46.1% 32.9% 22.4%

INC

OM

E 2013 Estimated Average Household Income $69,653 $79,663 $89,933

2013 Estimated Median Household Income $67,045 $75,068 $82,422

2013 Estimated Per Capita Income $20,267 $25,342 $30,552

EDU

CAT

ION

(AG

E 25

+)

2013 Estimated Elementary (Grade Level 0 to 8) 14.0% 9.0% 5.6%

2013 Estimated Some High School (Grade Level 9 to 11) 8.7% 8.5% 6.5%

2013 Estimated High School Graduate 28.7% 26.4% 24.0%

2013 Estimated Some College 22.9% 21.5% 23.3%

2013 Estimated Associates Degree Only 5.8% 5.8% 6.5%

2013 Estimated Bachelors Degree Only 13.4% 18.9% 22.5%

2013 Estimated Graduate Degree 6.5% 9.9% 11.5%

BUSI

NES

S 2013 Estimated Total Businesses 272 1,529 3,706

2013 Estimated Total Employees 2,307 14,368 34,317

2013 Estimated Employee Population per Business 8.5 9.4 9.3

2013 Estimated Residential Population per Business 54.0 47.6 38.3BU

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1 Mile 3 Miles 5 Miles

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Location Map


230 East Rollins Road, Round Lake Beach, IL

ROUND LAKE BEACH

Columbus

Cincinnati

Indianapolis

St. Louis

Kansas City

Des Moines

Green Bay

Minneapolis

Cleveland


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INVESTMENT OPPORTUNITY BIRD’S EYE VIEW OF KOHL’S STORE

N

Orchard Ln


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INVESTMENT OPPORTUNITY OVERHEAD SHOT OF KOHL’S STORE

N

ACCES

S PO

INT

E. Rollins Rd (28,000 cpd)

Orc

hard

Ln

ACCES

S POIN

T

ACCESS POINT

Hook Dr


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VIEW OF KOHL’S LOOKING NORTH

N


Orc

hard

Ln

Hook Dr


Barron Rd (18,000 cpd)

Cedar LakeLAKE VILLA

LINDEN-HURST

WAUKEGAN

83


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INVESTMENT OPPORTUNITYVIEW OF KOHL’S LOOKING NORTHEAST

E. Rollin

s Rd (2

8,000 cpd)

Orchard Ln


Grayslake NorthHigh School

Hook Dr

Fourth Lake

NORTH CHICAGO

83

83


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N

VIEW OF KOHL’S LOOKING EASTINVESTMENT OPPORTUNITY

Orchard Ln




Hook Dr

Fourth Lake

83

83

NORTH CHICAGO



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N

INVESTMENT OPPORTUNITYVIEW OF KOHL’S LOOKING SOUTHEAST

Orchard Ln



Hook Dr


RenwoodGolf Course

Highland Lake

Round Lake

Grayslake CentralHigh School

Woodview School

CHICAGO

83


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VIEW OF KOHL’S LOOKING SOUTHWESTINVESTMENT OPPORTUNITY

N


Round Lake

Hook Dr

Orchard Ln

Round LakeHigh School

MageeMiddle SchoolHAINESVILLE ROUND LAKE LONG LAKE


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VIEW OF KOHL’S LOOKING WESTINVESTMENT OPPORTUNITY

N

E. R

ollin

s Rd

(28,

000

cpd)

Orchard Ln


Hook Dr

GrantCommunity

SchoolFox Lake

83


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VIEW OF KOHL’S LOOKING NORTHWESTINVESTMENT OPPORTUNITY

N


Orchard Ln

GrantCommunity

SchoolFox Lake

Hook Dr

RICHMONDFox Lake

Country Club

Lake Villa Township Park

Exclusively Listed by:

Ryan Barr760.448.2446





www.nnninvestmentgroup.com

KOHL’S | 230 East Rollins Road, Round Lake Beach ILINVESTMENT OPPORTUNITY

This property is listed in conjunction with Illinois broker GreatStreet Realty Partners, LLC for out of state licensing purposes

IL Lic#481000377

Documents

$13,105,000 | 5.60% CAP ROUND LAKE BEACH, IL (CHICAGO MSA)leec-sd.reapplications.com/filecabinet/Property/078548/Kohl's, Round... · Lee & Associates is pleased to offer for sale