FRESENIUS MEDICAL CARE 9924 South Vincennes Avenue … · 2017. 11. 28. · The Renaissance at Beverly Ridge is a development of 123 ... TENANT OVERVIEW TENANT OVERVIEW: Fresenius

FRESENIUS MEDICAL CARE 9924 South Vincennes AvenueChicago, Illinois 60643

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

TABLE OF CONTENTS

II. Location Overview Photographs Aerials Site Plan Map

III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

I. Executive Profile Executive Summary Investment Highlights Property Overview Rent Schedule


DISCLAIMERSTATEMENT:

DISCLAIMER STATEMENT

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.


EXECUTIVESUMMARY:

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Fresenius Medical Care property located in Chicago, IL. The property is positioned immediately off of a signalized intersection in a dense in-fill area. The newly signed Fresenius lease is for 15 years and features 10% rental escalations every five years of the primary term and three five year renewal option periods. Unlike many other states, Fresenius Medical Care was required to obtain a Certificate of Need from the State of Illinois in order to open and operate this facility. The Illinois Certificate of Need program promotes the development of quality healthcare facilities. In addition, it encourages health care providers to engage in cost containment, better management and improved planning. A Certificate of Need adds a significant barrier to entry. The property also generates income from a billboard lease to OUTFRONT Media, LLC. The billboard lease runs through December 2034 and features rental escalations of $2,000 in 2025 and 2030.

The Fresenius property is conveniently located just off the intersection of South Vincennes Avenue and West 99th Street in the Washington Heights neighborhood of Chicago. The property has excellent visibility along South Vincennes Avenue, the primary thoroughfare in the area. The property also has frontage along Interstate 57 with access less than one-mile from the property. Interstate 57 experiences traffic counts in excess of 129,400 vehicles per day. The surrounding area is densely concentrated with multiple residential communities, local businesses and schools providing for significant barriers to entry. Less than one-mile from the property is The Renaissance at Beverly Ridge, one of the largest new single-family home developments in Chicago. The Renaissance at Beverly Ridge is a development of 123 single family homes and 50 luxury town homes. Additionally, an Advocate Medical Group clinic is located less than one-mile from the location. Advocate Medical Group, part of the largest health system in Illinois, provides primary care, specialty services, medical imaging and other outpatient services at the location. There are over 228,270 people living within a one mile radius of the property.

Fresenius Medical Care is an industry-leading network of more than 2,200 dialysis facilities, outpatient cardiac and vascular labs, and urgent care centers, as well as the country’s largest practice of hospitalist and post-acute providers. Around the world, Fresenius cares for more than 310,000 renal patients in their global network of more than 3,650 dialysis clinics. Fresenius is publicly traded on the New York Stock Exchange (Symbol: FMS) with a market capitalization in excess of $30.3 billion. Fresenius is an investment grade rated company with a Moody’s rating of Baa3.

OUTFRONT Media is one of the largest out-of-home media companies in North America. Their portfolio includes more than 400,000 digital and static displays, which are primarily located in the most iconic and high-traffic locations throughout the 25 largest markets in the U.S. OUTFRONT Media is a publicly traded company on the New York Stock Exchange using the symbol “OUT”.


INVESTMENT HIGHLIGHTS:

INVESTMENT HIGHLIGHTS

• Located in the city of Chicago

• New Construction (2017)

• Long term 15 year lease

• Minimal landlord responsibilities

• 10% rental escalations every five years in the primary term

• Three 5-year renewal option periods with 10% rental escalations

• Fresenius is an investment grade rated company (Moody’s: Baa3)

• Fresenius is publicly traded on the New York Stock Exchange (Symbol: FMS)

• Fresenius obtained a Certificate of Need from the State of Illinois in order to open and operate this facility

• Significant barriers to entry

• Over 228,270 people living within a one mile radius of the property

• Positioned less than one-mile from Interstate 57 (129,400 VPD) with interchangeable access


PROPERTY OVERVIEW:

PROPERTY OVERVIEW


Price: $4,612,429

Cap Rate: 5.60 %

Net Operating Income: $258,296*

Rental Escalations: 10% Every 5-Years

Renewal Options: Three 5-Year with 10% Escalations

Lease Commencement Date: December 9, 2017

Lease Expiration Date: December 31, 2032

Tenant: Fresenius Medical Care Chicagoland, LLC

Guarantor: Fresenius Medical Care Holdings, Inc. (Moody’s: Baa3)

Year Built: 2017

Lease Type: NN (Roof Replacement & Structure)**

Parking: 32 Spaces

Building Size: 9,396 SF

Land Size: 0.87 Acres

Property Address: 9924-9934 South Vincennes Avenue, Chicago, IL 60643

* NOI includes $14,000 of annual revenue generated from a billboard located on the property. The billboard is leased to OUTFRONT Media LLC and expires December 31, 2034. There are $2,000 rental increases in the billboard income in 2025 and 2030. See the Rent Schedule on the following page.

** Landlord can collect an ‘Administrative Fee’ not to exceed 5% of Base Rent should Tenant elect to have Landlord maintain and make all necessary repairs and replacement to the property.

RENTSCHEDULE::

RENT SCHEDULE

Tenant Square Feet TermMonthly

RentYearly Rent

Increase (%)

Fresenius Medical Care 9,396 SF December 9, 2017 - December 31, 2022 $20,358 $244,296

January 1, 2023 - December 31, 2027 $22,394 $268,726 10.00%

January 1, 2028 - December 31, 2032 $24,633 $295,598 10.00%

Options Option 1 January 1, 2033 - December 31, 2037 $27,097 $325,158 10.00%

Option 2 January 1, 2038 - December 31, 2042 $29,806 $357,674 10.00%

Option 3 January 1, 2043 - December 31, 2047 $32,787 $393,441 10.00%

Tenant Square Feet TermMonthly

RentYearly Rent

Increase (%)

OUTFRONT Media LLC 600 SF January 1, 2015 - December 31, 2024 $1,166.67 $14,000

January 1, 2025 - December 31, 2029 $1,333.33 $16,000 14.29%

January 1, 2030 - December 31, 2034 $1,500.00 $18,000 12.50%

Total Net Operating Income: $258,296


PHOTOGRAPHS


AERIAL


AERIAL


SITE PLAN


MAPMAPMAP

Lake Michigan

DEMOGRAPHICREPORT:

DEMOGRAPHIC REPORT

Population 1-Mile 3-Mile 5-Mile

Total Population 24,498 228,271 569,525

Total Households 8,844 82,517 204,525

Income 1-Mile 3-Mile 5-Mile

Average Household Income $67,610 $63,921 $59,909


MARKET OVERVIEW

MARKETOVERVIEW:

Chicago, IllinoisChicago 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 United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. Chicago has many nicknames, the best-known being the Windy City.

The Chicago metropolitan area is home to the corporate headquarters of 66 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.

The metro is 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 environment, market access, infrastructure and general competitiveness. As of 2016, Chicago had the third largest gross metropolitan product in the United States at $640 billion. The city of Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims two Dow 30 company: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001 and McDonald’s, who’s in the process of moving their headquarters from the Chicago suburbs to the Chicago West Loop. One additional Dow 30 companies, Kraft Foods is in the Chicago suburbs, as are Sears Holdings Corporation and the technology spin-offs of Motorola.

Chicago attracts over 50 million domestic leisure travelers, 11 million domestic business travelers and 1.5 million overseas visitors. These visitors contributed more than $14 billion to Chicago’s economy. Upscale shopping along the Magnificent Mile and State Street, thousands of restaurants, as well as Chicago’s eminent architecture, continue to draw tourists. The city is the United States’ third-largest convention destination. A 2011 study by Walk Score ranked Chicago the fourth most walkable of the fifty largest cities in the United States.

www.cityofchicago.org



TENANT OVERVIEW

TENANT OVERVIEW:


Fresenius Medical CareFresenius Medical Care is an industry-leading network of more than 2,200 dialysis facilities, outpatient cardiac and vascular labs, and urgent care centers, as well as the country’s largest practice of hospitalist and post-acute providers. Fresenius Medical Care provides coordinated health care services at pivotal care points for hundreds of thousands of chronically ill customers throughout the continent. As the world’s only vertically integrated renal company, Fresenius Medical Care also offer specialty pharmacy and laboratory services, as well as manufacturing and distributing the most comprehensive line of dialysis equipment, disposable products and renal pharmaceuticals.

Around the world, Fresenius cares for more than 310,000 renal patients in their global network of more than 3,650 dialysis clinics. At the same time, they operate more than 35 production sites on all continents, to provide dialysis products such as dialysis machines, dialyzers and related disposables.

Fresenius Medical Care’s strategy is geared toward sustainable growth. They aim to continuously improve the quality of life of patients with kidney disease by offering innovative products and treatment concepts of the highest quality.

Fresenius Medical Care’s corporate headquarters is in Bad Homburg, Germany. The North American headquarters is in Waltham, Massachusetts and the Asian-Pacific headquarters is located in Hong Kong.

Fresenius is publicly traded on the New York Stock Exchange (Symbol: FMS) with a market capitalization in excess of $30.3 billion. Fresenius is an investment grade rated company with a Moody’s rating of Baa3.

Website: www.fmcna.com Moody’s Rating: Baa3 (Investment Grade)Stock Symbol: FMS (New York Stock Exchange)Market Capitalization: $30.3 billionNumber of Locations (USA): 2,200+ North American Headquarters: Waltham, Massachusetts


TENANT OVERVIEW


TENANT OVERVIEW

TENANT OVERVIEW:

OUTFRONT MediaOUTFRONT Media is one of the largest out-of-home media companies in North America. From Sunset Boulevard to Times Square, their diverse portfolio includes more than 400,000 digital and static displays, which are primarily located in the most iconic and high-traffic locations throughout the 25 largest markets in the U.S. OUTFRONT Media is also the advertising partner of choice for major municipal transit systems, reaching millions of commuters daily in the largest U.S. cities.

The scope and depth of their presence provides advertisers with the ability to engage with both mass and targeted audiences at many touchpoints throughout the day. OUTFRONT Media’s focus on customers has informed many new platforms including OUTFRONT Insiders, a community of consumers that provide feedback on topics relevant to their advertisers, and OUTFRONT Studios, which is their in-house creative boutique. OUTFRONT Media has displays in over 150 markets across the U.S. and Canada. OUTFRONT Media is a publicly traded company on the New York Stock Exchange using the symbol “OUT”.

Website: www.outfrontmedia.comMoody’s Rating: Ba3Stock Symbol: OUT (New York Stock Exchange)Market Capitalization: $3.3 billionNorth American Headquarters: New York, New York


666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

Randy [email protected]

Jimmy [email protected]

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FRESENIUS MEDICAL CARE 9924 South Vincennes Avenue … · 2017. 11. 28. · The Renaissance at Beverly Ridge is a development of 123 ... TENANT OVERVIEW TENANT OVERVIEW: Fresenius