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PANERA BREAD (Corporate|Chicago MSA)5500 West Touhy AvenueSkokie, Illinois 60077

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

TABLE OF CONTENTS

II. Location Overview Photographs Aerial Site Plans Map

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

I. Executive Profile Executive Summary Investment Highlights Property Overview


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 Panera Bread property located within the Chicago MSA in Skokie, Illinois. The property is strategically located along West Touhy Avenue in a dominant retail corridor. The Panera Bread features a drive-thru and has easy access and excellent visibility to the approximately 41,000 vehicles per day that travel along West Touhy Avenue. The corporate guaranteed net lease has more than 14 years remaining and features rental escalations in the primary term and in the three 5-year renewal option periods.

The 4,300 square foot building was constructed in 2016 and is well located within one of the dominant retail destinations of Chicago’s northern suburbs. The Panera Bread has excellent visibility along West Touhy Avenue, the areas primary east-west thoroughfare, which experiences traffic counts of approximately 41,000 vehicles per day. The property is also less than one-half mile west of Interstate-94 with direct on and off access to the approximate 169,500 vehicles per day. There are over 179,000 people living within a three mile radius of the property with average annual household incomes in excess of $93,900.

The Panera Bread is surrounded by a number of major retail developments. Pointe Plaza, a 330,000 square foot development anchored by Walmart, features Ross Dress For Less, Walgreens, Fresh Farms International Market, Dress Barn and Babies R’ Us. Directly across the street is Village Crossing, a 450,000 square foot development that features Dick’s Sporting Goods, AMC Theaters, Best Buy, Michael’s, Bed Bath & Beyond and many other national retailers. Other notable retailers in the immediate vicinity along West Touhy Avenue include Target, Costco, Goodwill and Jewel-Osco. With convenient interstate access and a large variety of strong retailers, this corridor has the unique advantage of drawing consumers from both the city and suburbs of Chicago.

The Panera Bread lease has over 14 years remaining expiring in October 2031. The lease features 10% rental escalations every five years in the primary term and in the four 5-year renewal option periods. Panera Bread is a national bakery-cafe concept with more than 2,000 stores located throughout the United States and Canada. It is a publicly traded company on the Nasdaq Stock Exchange using the symbol “PNRA”.


INVESTMENT HIGHLIGHTS:

INVESTMENT HIGHLIGHTS

• Located within the Chicago MSA

• New construction (2016)

• Drive-thru

• Long term lease with more than fourteen years remaining

• Rental escalations in primary terms and renewal option periods

• Positioned in a retail corridor with exceptional visibility and access to approximately 41,000 vehicles per

day

• Less than one-half mile west of Interstate-94 (169,500 VPD)

• Over 179,000 people living within a three mile radius of the property

• Benefits from its position within a dominant retail destination that features Walmart, Costco, Target, AMC

Theaters and many others

• Dense immediate area providing for high barriers to entry


PROPERTY OVERVIEW:

PROPERTY OVERVIEW


Price: $4,300,000

Cap Rate: 5.00%

Rent Schedule: NOI Escalation Date$215,000$236,500 11/1/2021$260,150 11/1/2026$286,165 11/1/2031 (Option 1)$314,803 11/1/2036 (Option 2)$346,279 11/1/2041 (Option 3)

Rental Escalations: 10% Every 5-Years

Renewal Options: Three 5-Year

Lease Commencement Date: October 13, 2016

Lease Expiration Date: October 31, 2031

Tenant: Panera, LLC

Guarantee: Corporate

Year Built: 2016

Lease Type: NN (Roof & Structure)

Rentable Square Feet 4,300 SF


PHOTOGRAPHS


AERIAL

T O U H Y A V E N U E ( 4 1 , 0 0 0 V P D )


AERIAL


SITE PLAN

W . T O U H Y A V E N U E ( 4 1 , 0 0 0 V P D )

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DRIVE-THRU


SITE PLAN

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SUBJECT PROPERTY

DRIVE-THRU


Lake Michigan

MAP

DEMOGRAPHICREPORT:

DEMOGRAPHIC REPORT


Population 1-Mile 3-Mile 5-Mile

Total Population 14,382 179,890 706,852

Total Households 5,296 69,033 266,214

Income 1-Mile 3-Mile 5-Mile

Average Household Income $118,878 $93,965 $89,066

MARKET OVERVIEW


MARKETOVERVIEW:

Skokie, IllinoisSkokie, located 16 miles northwest of downtown Chicago and 12 miles east of O’Hare International Airport, is home to over 64,000 residents, 24,000 households and 2,400 businesses. For many years, Skokie promoted itself as “The World’s Largest Village”. Skokie’s streets, like that of many suburbs, are largely a continuation of the Chicago street grid, and the village is served by the Chicago Transit Authority, further cementing its connection to the city.

In 1888, the community was incorporated as Niles Centre. The name of the town was changed from “Niles Center” to “Skokie” by referendum in 1940. Skokie comes from a Potawatomi word for “marsh”. The village’s AAA bond rating attests to strong economic health via prudent fiscal management. Skokie was the first community in the entire United States to have nationally accredited Fire, Police and Public Works Departments.

In recent years, the Village of Skokie has encouraged redevelopment in Downtown Skokie that now includes development of the Illinois Science + Technology Park on the 23.4-acre former Searle/Pfizer site. The Village also participated in an expansion and renovation of Westfield Old Orchard, developed the North Shore Center for the Performing Arts in Skokie, renovated the Southeast Industrial area and began improvements to the West Dempster Street corridor.

Money magazine has named Skokie one of the 80 fastest-growing suburbs in the U.S. Chicago magazine continues to rank Skokie near the top in its suburban livability rating, praising the Village’s schools, parks, municipal services and entertainment options.

www.skokie.org


MARKETOVERVIEW:

MARKET OVERVIEW

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, telecom-munications 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 one Dow 30 company: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001. Two more Dow 30 companies, Kraft Foods and McDonald’s are in the Chicago suburbs, as are Sears Holdings Corpo-ration and the technology spin-offs of Motorola. The headquarters of United Continental Holdings, are in the United Building and its operations center and its United Airlines subsidiary are in the Willis Tower in Chicago.

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 fifty largest cities in the United States.

www.cityofchicago.org


Panera BreadPanera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes. The company operates through three segments: Company Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. It operates bakery-cafes under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery & Café names that offer daily baked goods, including freshly baked bagels, breads, muffins, scones, rolls, and sweet goods; made-to-order sandwiches on freshly baked breads; soups; freshly prepared and hand-tossed salads; pasta dishes; and custom roasted coffees and cafe beverages, such as hot or cold espresso and cappuccino drinks and smoothies through on-premise sales, as well as provides catering services. The company also supplies fresh dough, produce, tuna, cream cheese, and proprietary sweet goods items. As of December 27, 2016, it operated 902 company-owned bakery-cafes and 1,134 franchise-operated bakery-cafes in the United States, the District of Columbia, and Ontario.

Panera Bread began in 1981 as Au Bon Pain Company, Incorporated. Founded by Louis Kane and Ron Shaich, the company prospered along the east coast of the United States and internationally throughout the 1980’s and 1990’s and became the dominant operator within the bakery-cafe category. Panera Bread Company is based in Sunset Hills, Missouri, part of the St. Louis Metropolitan Area. It is a publicly traded company on the Nasdaq Stock Exchange using the symbol “PNRA”.

Website: www.panerabread.comFounded: 1986Number of Locations: 2,000+Headquarters: Sunset Hills, MissouriStock Symbol (Nasdaq): PNRAMarket Capitalization: $5.6 Billion

TENANT OVERVIEW

TENANT OVERVIEW:


666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

Randy [email protected]

Jimmy [email protected]

panera bread (corporate|chicago msa) 5500 west …bouldergroup.com/media/pdf/panera bread - skokie,...

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