7300 duvan dr tinley park, il 60477 · 2019-12-10 · this offering memorandum contains select...

S e r v i c e K i n g , T i n l e y P a r k , I L | 1

SERVICE KING7 3 0 0 D u v a n D r | T i n l e y Pa r k , I L 6 0 4 7 7

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

2 | M a t t h e w s R e a l E s t a t e I n v e s t m e n t S e r v i c e s

CONTENTS0306

1108

EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

EXCLUSIVELY LISTED BY

GARY CHOUSVP & SENIOR DIRECTOR

[email protected] (310) 919-5827MOB (714) 928-8016LIC # 01911222 (CA)

KYLE MATTHEWSBROKER OF RECORDLIC # 471019766 ( IL )

PROPERTY DETAILS

• ± 13.5 years on current lease with Service King

• Offered at an attractive 6.50% Cap rate

• Low price point for collision center only $2,212,985

• Above market 10% every 5 years, great hedge against inflation

• Low Rent/SF - Service King is currently only paying $7.13, below market for comparable spaces and substantially below average collision centers’ rent

LOCATION

• Strategically located next to Harlem Ave with over 38,000 VPD

• This location services Tinley Park and Orland Park

• High Income Market - Average Incomes above $90,000

TENANT

• Service King is one of the largest Collision Repair companies in the United States with over 330 Locations in 24 Different States

• Significant Private Equity Funding - Blackstone Group LP and Carlyle LP backed, with Blackstone Group LP with controlling shares

• Service King is estimated to have over $1 Billion in annual revenue and employs more than 6,000 people

• Service King is capitalizing on the consolidation of the rapidly growing Collision Industry, a $33+ billion industry in US and Canada

• Great hedge against e-commerce

i n v e s t m e n t h i g h l i g h t s

EXECUTIVE SUMMARY


PROPERTY OVERVIEW

7 3 0 0 D u v a n D rT i n l e y P a r k , I L

± 20,171 SF

± 0.68 Acres

27-36-205-027

One

Gross Leasable Area

Lot Size

Year Built

Assessor’s Parcel Number

Number of Stories

1976


FINANCIALOVERVIEW


Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP

Current - 4/30/2023 $11,987.00 $143,844.00 $7.13 6.50%

5/1/2023 - 4/30/2028 $13,185.70 $158,228.40 $7.84 7.15%

5/1/2028 - 4/30/2033 $14,504.27 $174,051.24 $8.63 7.87%

Tenant Summary

Tenant Trade Service King

Type of Ownership Fee Simple

Lease Guarantor Service King Paint and Body, LLC

Lease Type NN

Roof and Structure Landlord Responsible

Lease Expiration 4/30/2033

Term Remaining ± 13.5 Years

Increases 10% Every 5 Years

Options Three, 5-Year Options

S e r v i c e K i n g7300 Duvan DrTinley Park, IL 60477

List Price ................................................................................................. $2,212,985

CAP Rate - Current ..........................................................................................6.50%

Gross Leasable Area ..............................................................................± 20,171 SF

Lot Size .................................................................................................± 0.68 Acres

Year Built ............................................................................................................... 1976


TENANTOVERVIEW


Service King Collision Repair Centers is a national leader in collision repair, operates in 24 states with over 340 locations, and plans to continue growing. Service King Collision Repair Centers offers high-quality repairs with a lifetime warranty, free estimates, on-site rental cars, and an overall superior customer service experience. In 2012, as one of the largest independent operator of collision repair centers in the U.S., global asset manager, The Carlyle Group, closes on its acquisition of majority ownership of Service King Collision Repair Centers. In 2014, after Service King triples its revenue over a two-year period, premier global investment and advisory firm Blackstone purchases majority ownership of the company. The Carlyle Group remains a minority investor as do Service King internal shareholders. In 2015, Service King surpasses $1 billion in annual revenue.

STRATEGY

Service King technicians are rigorously trained and certified to work with every make and model of vehicle on the road. No matter what type of car, the veteran team at Service King is up to the job. The collision repair specialists lead the industry in everything from fender repair to dent repair and everything in between. Many Service King collision repair centers are also certified to perform highly specialized repairs, such as aluminum repair and paintless dent repair.

SERVICE KINGO W N E R S H I PN O N - P U B L I C

P A R E N T C O M P A N Y T R A D E N A M ES E R V I C E K I N G H O L D I N G S , L L C

W E B S I T EW W W . S E R V I C E K I N G . C O M

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H E A D Q U A R T E R E DR I C H A R D S O N , T E X A S

Y E A R F O U N D E D2 0 1 2


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1 0 | M a t t h e w s R e a l E s t a t e I n v e s t m e n t S e r v i c e s

TENANT MAP

DEMOGRAPHICSPOPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 12,146 81,924 192,795

2017 Estimate 11,984 81,673 192,198

2010 Census 11,168 80,654 190,156

Growth 2017-2022 1.35% 0.31% 0.31%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 4,945 30,997 70,672

2017 Estimate 4,879 30,904 70,470

Growth 2017 - 2022 1.35% 0.30% 0.29%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$85,820 $96,274 $94,630

AREA OVERVIEW

TINLEY PARK, ILTinley Park, Illinois - population 58,000 - is located in the dynamic and fast-growing Interstate 80 Corridor of metro Chicago, only 21 miles from the downtown Chicago loop, 13 miles from Chicago Midway Airport, and 27 miles south of Chicago O’Hare Airport. Easy access to a trade area of 600,000 people and a metropolitan market of 9 million make the community an ideal business and residential location. It is one of the fastest growing suburbs south of Chicago and in 2017, Tinley Park was listed as one of the 50 safest cities in America.

Boasting a healthy and diverse business environment including office, corporate headquarters, healthcare, manufacturing, distribution, education, government, entertainment, commercial-retail, and hospitality industries, Tinley Park has one of the strongest and most stable economic climates in the Midwest. Over 4 million people reside within a 25-mile radius. Expanding companies include Panduit, UGN Automotive, Comcast Call Center, Conifer Health Solutions, KVH Navigation Systems, Archer Wire, Goodheart-Willcox Publisher, AmfoTek, and hundreds of other major area employers.

CHICAGOLAND

Situated on the southwestern shore of Lake Michigan, the City of Chicago covers an area of 60,000 hectares and sits 176 meters above sea level. Chicagoland

is an informal name for the metropolitan area SENIOR ASSOCIATEd with the city of Chicago and its suburbs and has no official definition. The region

is often considered to include areas beyond its corresponding MSA, as well as portions of the greater CSA.

Chicago has one of the world’s largest and most diversified economies, with more than four million employees

Chicago generates an annual gross regional product (GRP) of over $575 billion, which is more than countries like Sweden and Norway. Having been listed as an alpha global city by the Global Cities Index, it is a key player in every sector from risk management innovation and information technology to manufacturing and health services.

ECONOMY HIGHER EDUCATION

Chicago has been a world center of higher education and research with several universities inside its city limits. Most notably, Northwestern University and the University of Chicago are two top universities that call the city home.

Northwestern University is a large, private research university based in Evanston with a comprehensive doctoral program. Attracting over $650 million in sponsored research each year, Northwestern has the eighth largest university endowment in the country.

The University of Chicago is one of the world’s leading and most influential institutions of higher learning. Its main campus is located seven miles south of downtown Chicago in the Hyde Park and Woodlawn neighborhoods. The University of Chicago has many prominent alumni, including 92 Nobel laureates that have been affiliated with the university as professors, students, faculty or staff.

The city is an efficient economic powerhouse, home to more than 400 major corporate headquarters, including 31 in the Fortune 500.

As a multicultural city that thrives on the harmony and diversity of its neighborhoods, Chicago embodies the values of America’s heartland integrity. It is this level of diversification that has resulted in Chicago being rated as having the most balanced economy in the United States. Additionally, its central location allows Chicago to be at the center of global trade, transit and data networks.

FORTUNE 500 COMPANIES BASED IN THE AREA

WILLIS TOWER

POINTS OF INTEREST

Still commonly referred to as Sears Tower, the Willis Tower is the second-tallest building in the United States. This bustling community of business, tourism and culture offers breathtaking views of the city from its Skydeck. Visitors can experience the Ledge, all-glass balconies that allow visitors to look through the glass floor to the street 1,353 feet below.

JOHN HANCOCK CENTER

NAVY PIER

Navy Pier is Chicago’s lakefront treasure on the shoreline of Lake Michigan. The pier encompasses more than fifty acres of parks, gardens, shops, restaurants, family attractions and exhibition facilities. Drawing nearly nine million visitors annually, Navy Pier is one of the most visited attractions in the entire Midwest.

Located in the Loop community area of the city, Millennium Park is a 25 acre public park that offers awe-inspiring landscape, breathtaking architecture and an iconic collection of public art, such as the iconic Chicago Bean. It is Chicago’s premier green space and presents dozens of free events for residents.

The John Hancock Center is currently the eighth-tallest building in the country. Equipped with a restaurant and lounge on the 95th floor, the Observatory (360 Chicago), and America’s highest indoor swimming pool, the John Hancock Center appeals to residents and tourists alike. From the restaurant, diners can take in views of the city.

Adjacent to downtown and one block east of Rush Street, the Magnificent Mile is an upscale section of Chicago’s Michigan Avenue, which runs from the Chicago River to Oak Street in the Near North Side. Several of the tallest buildings in the country lie in this district, such as the John Hancock Center and the Trump International Hotel and Tower. Serving as the main thoroughfare between Chicago’s Loop business district and Gold Coast, the Magnificent Mile contains a mixture of high-end department stores, restaurants, luxury retailers, residential and commercial buildings, financial services companies and hotels, primarily catering to tourists and the affluent.

MILLENNIUM PARK

MAGNIFICENT MILE

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Service King located at 7300 Duvan Dr, Tinley Park, IL 60477 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

EXCLUSIVELY LISTED BY

SERVICE KING

GARY CHOUSVP & SENIOR DIRECTOR

[email protected] (310) 919-5827MOB (714) 928-8016LIC # 01911222 (CA)

KYLE MATTHEWSBROKER OF RECORD

LIC # 471019766 ( IL )

7 3 0 0 D u v a n D r | T i n l e y Pa r k , I L

7300 duvan dr tinley park, il 60477 · 2019-12-10 · this offering memorandum contains select...

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