REGAL CINEMAS LINCOLNSHIRE, IL - Constant Contactfiles.constantcontact.com/011cb4c9501/5b47d2dc-d1a... · In 2016, Regal Cinemas registered more than $3.6 billion in revenue across

R E G A L C I N E M A S

O F F E R I N G M E M O R A N D U M

L I N C O L N S H I R E , I L

T A B L E O F C O N T E N T

C L I C K T O W A T C HRegal C inemas - L inco lnshi re, IL

P L AY

3 I N V E S T M E N T O V E R V I E W

5 F I N A N C I A L O V E R V I E W

9 T E N A N T O V E R V I E W

1 1 A E R I A L S

1 7 D E M O G R A P H I C S

19 M A R K E T O V E R V I E W

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0332179

2

https://vimeo.com/243939228

Marcus & Millichap is pleased to present this trophy, Regal Cinemas in Lincolnshire, Illinois. This affluent Lake County suburb is less than 25 miles northwest of Chicago. Regal Cinemas has been operating at this location since 1997. The tenant demonstrated their commitment by exercising a 12-year extension option early, and investing $3.8 million of their own capital to perform a $5.7 million renovation. The work included: replacing the auditorium seating with luxury recliners, expanding and upgrading concession facilities, remodeling the box office, upgrading and replacing lighting, replacing interior/exterior signage, and much more.

There are more than 11 years remaining on an absolute-net lease with zero landlord responsibilities. The lease is backed by a corporate guaranty from Regal Cinemas, Incorporated. In 2016, Regal Cinemas registered more than $3.6 billion in revenue across 7,315 screens in 561 theatres worldwide. The subject property features 15 screens and one IMAX theatre with luxury-reclining-stadium seating.

The subject property is the entertainment anchor in the CityPark Live-Work-Play Life Style Center, which is situated at the signalized, hard corner intersection of Milwaukee Avenue and Aptakisic Road. More than 60,000 vehicles pass through this intersection daily. Milwaukee Avenue runs direct into Chicago’s West Town neighborhood.

I N V E S T M E N T O V E R V I E W

CityPark represents a dramatic departure from the traditional suburban shopping center. This mixed-use center offers specialty shopping, dining, and entertainment with an exciting, urban atmosphere. With more than 70,000 square feet of class A office space, the CityPark Corporate Center is anchored by Camping World’s (NYSE: CMA) corporate headquarters. The center has more than 75,000 square feet of restaurant and retail space; notable tenants include: Wildfire, Viper Alley (boutique concert venue, restaurant, and private event space), Red Robin, Liquid Fusion Café, and many more. In terms of hospitality, there is a 117-room Hampton Inn and Suites.

While CityPark as a center has been around since the 1990s, significant capital is being invested to expand its residential capacity. 444 Social, which is situated directly adjacent to the Regal Cinemas, is a 300-unit class A multifamily development project. Leasing is expected to begin in the fall of 2018 with completion expected by spring of 2019.

This asset also benefits from affluent demographics. There are more than 178,000 residents with an average household income (AHHI) of $126,000 within five miles. Adlai E Stevenson High School received a U.S. News Best High Schools Gold Rating, making it 6th best high in Illinois. Nationally, the school is ranked among the top 200 high schools. More than 3,800 students are enrolled.

• Trophy Regal Lincolnshire Stadium 15 and IMAX | Affluent Lake County Suburb of Lincolnshire, Illinois | 25 Miles Northwest of Chicago

• Tenant Exercised 12-Year Extension After 19 Years of Operation and Completed $5.7 Million in Capital Improvements in 2016 (More Than 65 Percent Was Tenant’s Capital)

• More Than 11 Years Remaining on Absolute-Net (NNN) Lease | Zero Landlord Responsibilities

• Corporate Guaranty | Regal Cinemas, Incorporated | $3.2 Billion Revenue Company (2016) Across 7,315 Screens in 561 Theatres

• Entertainment Anchor in CityPark Mixed-Use Live-Work-Play Live Style Center | 70,000-Square-Foot, Three-Story Office Complex (Camping World Corporate Headquarters) | 77,000 Square Feet of Restaurant-Retail Space (Wildfire and Viper Alley) | 117-Room Hampton Inn & Suites

• Asset is Directly Adjacent to 444 Social | 300-Unit Class A Multifamily Luxury Development | Received $67 Million Construction Loan in October 2017

• CityPark At Lincolnshire is Situated at the Signalized, Hard Corner Intersection of Milwaukee Avenue and Aptakisic Road | More than 60,400 Vehicles Per Day (VPD)

• Affluent Demographics | The Average Household Income (AHHI) is more than $128,500 Within Three Miles of This Asset | Adlai E Stevenson High School Ranked Number Six in Illinois by U.S. News

I N V E S T M E N T O V E R V I E W I N V E S T M E N T O V E R V I E W



3 4

F I N A N C I A L O V E R V I E W

PRICE $27,357,244

CAP RATE 6.75%

NOI $1,846,614

PRICE PER SQUARE FOOT $362.96

RENT PER SQUARE FOOT $24.50

YEAR BUILT 1996/2016

APPROXIMATE LOT SIZE 11.33 Acres

GROSS LEASEABLE AREA 75,372

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR Regal Cinemas, Incorporated

LEASE TYPE Absolute NNN

ROOF AND STRUCTURE Tenant Responsible

LEASE COMMENCEMENT DATE 10/1/1998

LEASE EXPIRATION DATE 2/19/2029

LEASE TERM 25 Years

TERM REMAINING 11 Years

INCREASES 11-12% in Options

OPTIONS TO RENEW 2, 5-Year

ANNUALIZED OPERATING DATA

BASE RENTANNUAL

RENTMONTHLY

RENTINCREASES PSF

Current 2/19/2029 $1,846,614 $153,885 $24.50

OPTIONS

2/20/2029 2/19/2034 $2,072,730 $172,728 12% $27.50

2/20/2034 2/19/2039 $2,298,846 $191,571 11% $30.50

L E A S E S U M M A R Y

F I N A N C I A L O V E R V I E W L E A S E S U M M A R Y



5 6

Regal Entertainment Group operates one of the largest and most geographically diverse theatre circuits in the United States, consisting of 7,315 screens in 561 theatres in 43 states along with Guam, Saipan, American Samoa and the District of Columbia (DC) as of September 30, 2017. Regal Entertainment Group, a Delaware corporation organized on March 6, 2002 is the parent company of Regal Entertainment Holdings, Incorporated, which is the parent company of Regal Cinemas Corporation and its subsidiaries. Regal Cinemas Corporation’s subsidiaries include Regal Cinemas, Incorporated and its subsidiaries, which include Edwards Theatres, Incorporated and United Artists Theatre Company. The company operates theatres in 48 of the top 50 United States designated market areas. Regal believes that the size, reach and quality of the company’s theatre circuit not only provides its patrons with a convenient and an enjoyable movie-going experience, but is also an exceptional platform to realize economies of scale in theatre operations.

TENANT PROFILE

TENANT TRADE NAME Regal Lincolnshire Stadium 15 & IMAX

OWNERSHIP Public

TENANT Regal Cinemas, Incorporated (Inc.)

LEASE GUARANTOR Regal Cinemas, Incorporated (Inc.)

NUMBER OF LOCATIONS 561 Units

HEADQUARTERED Knoxville, Tennessee

WEB SITE https://www.regmovies.com/

SALES VOLUME $3.2 Billion (2016)

STOCK SYMBOL RGC

BOARD New York Stock Exchange (NYSE)

RANK#2 in Largest Movie Theatre Operator in United States (June 2016)

T E N A N T O V E R V I E W - R E G A L C I N E M A S D E V E L O P M E N T O V E R V I E W - 4 4 4 S O C I A L

Adjacent to Regal Cinemas, 444 Social features a mid-century modern design. Thoughtfully-designed communal spaces create a vibrant and engaging atmosphere. Amenities include: outdoor dining, fire lounges, sun decks, bocce courts, a kayak launch, and a pool. Situated within Lincolnshire’s CityPark Center, 444 Social will consist of over 300 luxury apartments divided between two buildings. The property will have 127 one-bedroom, 126 two-bedroom and 15 three-bedroom units. 444 Social features distinctively designed homes that offer residents a new level of luxury. Functional floor plans are complemented by private balconies in each unit, to provide fresh, outdoor living space. Residents will enjoy the best of everything, with unparalleled amenities, designer interiors, unobstructed views and pet friendly accessibility. Leasing is expected to begin in the fall of 2018 with completion expected by spring of 2019.

As of November 2017, underground plumbing and electrical piping has been installed in much of the north wing of the east residential building. Excellent progress has been made at forming and pouring the concrete foundations and stems walls in the south two wings of the east residential building. Half of the precast panels have been set for the west deck parking garage. If the weather holds, the precast subcontractor hopes to be finished by Thanksgiving, which is ahead of schedule.

T E N A N T O V E R V I E W A D J A C E N T D E V E L O P M E N T O V E R V I E W



9 10

A E R I A L D I R E C T A C C E S S T O C H I C A G O

L i n c o l n s h i r e , I l l i n o i s i s l o c a t e d l e s s t h a n 2 0 m i l e s a w a y f r o m C h i c a g o C i t y C e n t e r .



11 12

C I T Y P A R K C O M P L E X

O V E R V I E W

A E R I A L C I T Y P A R K C O M P L E X O V E R V I E W

T h e C i t y P a r k C o m p l e x , C o m p r i s e s o f F o u r P a r c e l s t h a t E m b o d i e s t h e E a t , L i v e , W o r k , P l a y L i f e s t y l e .

R e g a l C i n e m a s ( O f f e r i n g ) i s a M a j o r D r i v e r w i t h i n C i t y P a r k .



13 14

A E R I A L N O T A B L E C O R P O R A T E T E N A N T S

NOTABLECORPORATE

TENANTSR e g a l C i n e m a s ( O f f e r i n g ) i s L o c a t e d W i t h i n a P r o m i n e n t & E s t a b l i s h e d C o r p o r a t e C o r r i d o r



15 16

D E M O G R A P H I C S

2016 CONSUMER SPENDING 5 MILESPOPULATION 5 MILES

2000 Population 181,444




HOUSEHOLDS 5 MILES

2000 Households 65,849




HOUSEHOLD (HH) INCOME 5 MILES

2017 Average HH Income $125,914

2017 Median HH Income $97,212

2017 Per Capita Income $47,789

$$

2016 CONSUMER SPENDING 5 MILES

$839 ,691 ,685 $308 ,552 ,248

$1 ,831 ,129 ,928 $1 ,193 ,284 ,041

*As of 8/1/2017 per US Census Bureau

Food Away From Home

Enter ta inment/Recreat ion

Appare l & Ser v ices

Persona l Care Products & Ser v ices

A E R I A LD E M O G R A P H I C S

5 MILE RADIUS

3 MILE RADIUS

1 MILE

SITE

41

41

45

45

4145

45

45

12

12

12

12

12

14

14

14

14

94

94

94

94

176

176

176

22

59

22

60

83

53

68

68

62

6259

59 68

53

68

21

43

43

43

43

21

83

83

22

294

Sutton

Glencoe

Kildeer

Mettawa

Ivanhoe

Palatine Winnetka

Wauconda

Deer Park

Wheeling

HighwoodFort Sheridan

Deerfield

Inverness

Mundelein

Riverwoods

Tower Lake

Northfield

Kenilworth

Northbrook

Long Grove

Barrington

Bannockburn

Sylvan Lake

Forest Lake

Island Lake

Lake Forest

Lake Zurich

Vernon Hills

Lincolnshire

Buffalo Grove

Highland Park

Williams Park

HawthornWoods

RollingMeadows

LakeBarrington

PortBarrington

SouthBarrington

Prospect Heights

NorthBarrington

Lake Bluff

ArlingtonHeights



17 18

Lincolnshire is a village in Vernon Township, situated in Lake County. The village is seven miles northeast of Arlington Heights and 26 miles northwest of Chicago. Lake County is the third most populated county in the state, and the 31st wealthiest county in the United States. The Des Plaines River meanders through the eastern part of the village, dividing the town in half vertically at the village hall, while Half Day Road/Illinois Route 22 splits the village in half in an east–west direction. Milwaukee Avenue/United States (US) Route 45 runs in a north–south direction through Lincolnshire, into the village of Buffalo Grove to the south and Vernon Hills to the north.

Lincolnshire has a robust economy representing a number of employers in professional services, retail, hospitality, educational services, real estate, and industrial sectors. Lincolnshire serves as the headquarters of Van Vlissingen & Company, a commercial real estate developer, the global outsourcing Aon Hewitt company, and the stationery products manufacturers Quill and ACCO Brands. Newman/Haas Racing, an auto racing team in the Indy Racing League, is based in the village.

The Marriott Theatre, on the premises of the Marriott Lincolnshire Resort, sells approximately 400,000 tickets each year. The Marriot Lincolnshire Resort is also undergoing a $25 million renovation. The first two phases of the project have been completed, which include significant capital improvements to the resort’s 390-room hotel and elegant pavilion. The third phase also is nearing completion. The project is transforming nearly every aspect of the resort, from introducing two new restaurants, adding a full-service Starbucks Cafe, new spa, as well as renovating all guest rooms. The Bricton Group manages the property known for its 18-hole championship golf course and the Marriott Theatre, which has the largest subscription base of any live musical theater in the country.

A B O U T L I N C O L N S H I R E

L I N C O L N S H I R E , I L L I N O I S L I N C O L N S H I R E O V E R V I E W

The village of Lincolnshire holds an annual summer festival; The Taste of Lincolnshire features and advertises “taste-size” samples of local restaurants and provides local entertainment, including musicians, a raffle, and a local pet show. Since 1993, Lincolnshire has also held the Lincolnshire Art Festival. The event encourages Lake County artists to display their work to the community. As incentives for publicity, entertainment and parking are provided free of charge. Lincolnshire hosts a Fourth of July celebration annually, known as “Red, White, and BOOM!”, a collection of activities centered on the celebration of the American Independence Day. It incorporates live music, a raffle, and a fireworks show at local Spring Lake Park.

L I N C O L N S H I R E T O P E M P L O Y E R S

No. Business NameNumber of Employees

Line of Business

1 Aon Hewit t 3 ,864Global human resources; outsourcing and consul t ing

2Zebra Technologies

1,743Marking, t racking and computer pr int ing technologies

3 CDW 1,250 Technology products and serv ices

4 School Distr ict 125 1,108 Publ ic educat ion

5 HydraForce 670Hydraul ic cartr idge valves and contro l systems

6 Qui l l 425 Off ice products and suppl ies

7 Sedgebrook 376Senior l iv ing and care ret i rement community

8Lincolnshire-Prair ie View School Distr ict 103

373 Publ ic educat ion

9 Marr iot t Resort 312 Resort/enterta inment

10 Sysmex 281 Medical equipment and devices



19 20

MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS:

The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .

As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.

Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .

Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .

L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.

By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.

R E G A L C I N E M A S

B R O K E R O F R E C O R D : S T E V E N W E I N S T O C K | M A R C U S & M I L L I C H A P | O A K B R O O K T E R R A C E , I L 6 0 1 8 1 | L I C E N S E : 4 7 1 . 0 1 1 1 7 5

L I N C O L N S H I R E , I L

3 0 0 P A R K W A Y D R , L I N C O L N S H I R E , I L 6 0 0 6 9

Documents

REGAL CINEMAS LINCOLNSHIRE, IL - Constant Contactfiles.constantcontact.com/011cb4c9501/5b47d2dc-d1a... · In 2016, Regal Cinemas registered more than $3.6 billion in revenue across