pr esen ted by - loopnet · 2020. 11. 18. · pr esen ted by steven weins tock regional manager...

P R E S E N T E D B YSteven WeinstockRegional ManagerChicago Oak BrookOne Mid-America PlazaSuite 200Oakbrook Terrace, IL 60181(630) 570-2200Lic. # 471.011175

Offering Memorandum

BURGER KING250 W Virginia Street • Crystal Lake, IL 60014

S P E C I A L CO V I D - 19 N OT I C E

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchas-er. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guar-antees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

BURGER KING Crystal Lake, IL ACT ID ZAB0010679

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of anycorporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates orsubsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information aboutthis listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information hasbeen secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. Referencesto square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

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PROPERTY NAMEBURGER KINGPROPERTY NAMEBURGER KINGPROPERTY NAMEBURGER KINGPROPERTY NAMEBURGER KING

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DESCRIPTION SECTION

The subject property is an attractive Burger King restaurant situated on West Virginia Street, a major thoroughfare that runs through the city of Crystal Lake, Illinois and surrounding communities. The property benefits from excellent street visibility with daily traffic count of approximately 30,000 vehicles. The tenant is an experienced Burger King franchise that operates 130 restaurants situated in 5 states. Approximately 15.5 years remain on an absolute NNN lease, with 7.5% fixed rent increases every 5 years. This location has been a Burger King since 1978 and in 2018 the tenant remodeled the restaurant to reflect Burger King's 2020 design demonstrating their commitment to this location.

Population within a 3-mile radius is reported at 53,151 with an Average Household Income of $114,925 within the same radius.

Consisting of +/- 3,931 sq. ft. of building improvements, this Burger King is situated on +/-.95 acres of land which provides ample on-site parking. The property is adjacent to a Petco/T.J. Maxx anchored shopping center with Crystal Lake Central High School (reported 1,476 students) located just 1.2 miles away.

Crystal Lake is located approximately 45 miles northwest of Chicago and has a reported city population of 39,800. The residents enjoy employment, cultural and recreational opportunities of a major metro city yet live in a pleasant, friendly, small-town atmosphere. One of Crystal Lake's greatest attractions is its parks system. There are over 1,600 acres of parks and open space, as well as 230-acre Crystal Lake for fishing, boating, swimming and skating in the winter.

PROPERTY SUMMARYOFFERING SUMMARY

BURGER KING

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OFFERING SUMMARY

NOTESSeller shall credit Buyer at the close of escrow $609/month until 2/1/2021 when the tenant’s next 7.50% fixed rent increase is scheduled to occur.

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TOMS KingCOMPANY NAME

1954YEAR FOUNDED

Palatine, ILHEADQUARTERS

130LOCATIONS

Fast FoodINDUSTRY

BURGER KING

TENANT OVERVIEW

CLOSE PROXIMITY TO:

250 W Virginia St, Crystal Lake, IL 60014

Over 15.5 years remaining on theabsolute NNN lease Experienced franchisee (130 units) Tenant remodeled restaurant in

2018 Adjacent to Petco/T.J. Maxx,

anchored shopping center

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEBURGER KING

PRICING AND VALUATION MATRIX


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LOCATION OVERVIEW

Property Highlights

Location Highlights

Crystal Lake is located 45 miles northwest of Chicago and enjoys a city population of 39,800. The city is a short drive from O'Hare International Airport with easy access to several major highways.

250 W Virginia St, Crystal Lake, IL 60014LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX


PRICING AND VALUATION MATRIX


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REGIONAL AND LOCAL MAP

PROPERTY PHOTOS

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PROPERTY PHOTOS

BURGER KING

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BURGER KING

PROPERTY PHOTOS

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SITE PLAN

BURGER KING

NOT TO SCALE

BURGER KING

COMPARABLES MAP

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BURGER KING(SUBJECT)

Wendy's

Burger King

Dunkin' Donuts

KFC

Popeye's

SALES COMPARABLES

ON MARKET COMPARABLES

1

2

3

4

5

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SALES COMPARABLES

Avg. 5.80%

Avg. 5.35%

0.0

0.6

1.2

1.8

2.4

3.0

3.6

4.2

4.8

5.4

6.0

Burger King Wendy's(OBR)

Burger King Dunkin'Donuts

KFC Popeye's

Average Cap Rate

Avg. $677.72

Avg. $762.24

$0.00

$90.00

$180.00

$270.00

$360.00

$450.00

$540.00

$630.00

$720.00

$810.00

$900.00

Burger King Wendy's(OBR)

Burger King Dunkin'Donuts

KFC Popeye's

Average Price Per Square Foot

SALES COMPARABLES

ON MARKET COMPARABLES

SALES COMPS AVG

ON MARKET COMPS AVG

PROPERTY NAME

MARKETING TEAM

BURGER KING

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SALES COMPARABLES ON MARKET COMPARABLES

SUBJECT PROPERTY

Asking Price $1,790,000

Price/SF $455.35

CAP Rate 5.85%

GLA 3,931 SF

Lot Size 0.95 acre(s)

Year Built Remodel 2018

Lease Term Remaining 15.5 Years

BURGER KING250 W Virginia St, Crystal Lake, IL, 60014

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NOTESNew 16 year franchisee lease signed at closing with 4% rent increase year 6, then 5% every 5 years thereafter.

Close Of Escrow 7/31/2019

Sales Price $1,950,000

Price/SF $697.67

CAP Rate 5.64%

GLA 2,795 SF


Year Built 2014

WENDY'S 505 North Cunningham, Urbana, IL, 61802

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NOTES19 years remaining on franchisee lease, 7.5% rent increases every 5 years



Price/SF $765.48

CAP Rate 5.9%

GLA 3,100 SF


Year Built 2019

BURGER KING1301 East Chain Of Rocks Road, Pontoon Beach, IL, 62040

PROPERTY NAME

MARKETING TEAM

BURGER KING

SALES COMPARABLES

rentpropertyname1


rentpropertyname1

rentpropertyaddress1 rentpropertyaddress1

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SALES COMPARABLES ON MARKET COMPARABLES

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NOTES11.5 years remaining on franchisee lease with $5,000 fixed rent increases every 5 years.



Price/SF $570.00

CAP Rate 5.85%

GLA 1,800 SF


Year Built 2016

DUNKIN' DONUTS 7370 East State Street, Rockford, IL, 61108

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NOTES17 years remaining on franchisee lease with 7% fixed rent increases every 5 years.

On Market

List Price $1,860,000

Price/SF $845.45

CAP Rate 5.0%

GLA 2,200 SF


Year Built 1996

KFC10200 South Halsted Street, Chicago, IL, 60628

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On Market

List Price $2,105,000

Price/SF $679.03

CAP Rate 5.7%

GLA 3,100 SF


Year Built 1994

POPEYE'S1800 N Richmond Rd, McHenry, IL, 60051

NOTESNew 20-year franchisee lease with 2% annual rent increases starting year 3

MARKET OVERVIEW

OVERVIEWCHICAGO

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Chicago-Naperville-Elgin is one of the largest metros in the nation. Alsoknown as the Greater Chicagoland area, it is bounded to the east by LakeMichigan, expands over a 5,000-square-mile region in northeastern Illinoisand extends into Wisconsin and Indiana. The metro houses 9.6 millionpeople and comprises 14 counties. The city of Chicago contains 2.7 millionresidents. The greatest growth during the past 20 years occurred in thewestern portion of the region. In recent years, however, businesses arerelocating back into the city to attract young workers, supporting thedevelopment of high-rise residential and office towers in the downtownChicago.

MARKET OVERVIEW

METRO HIGHLIGHTS

THIRD-LARGEST METROPOLITAN AREAThe metro population trails only New York City and Los Angeles in size. Growth in the metro has slowed in recent years.

WEALTH OF INTELLECTUAL CAPITALThe number of corporate headquarters in Chicago is second only to New York City. There are 33 Fortune 500 companies based locally.

LARGE, DIVERSE EMPLOYMENT BASEThe Chicago metro employs 4.8 million workers in an array of industries, including the growing tech and logistics sectors.

BURGER KING

MARKET OVERVIEWMARKET OVERVIEW

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TRANSPORTATION

The region’s transit network ranks among the largest and mostefficient in the world.

The vast network of freeways, centralized location, a large rail-truckintermodal facility, and the Port of Chicago contribute to the metro’sposition as a major distribution and logistics hub.

Chicago is the nation’s premier freight rail hub, with four carriers —BNSF, Union Pacific, CSX, and Norfolk Southern — that service theregion.

Amtrak routes originate from Union Station, while the Metracommuter rail and the Chicago L provide passenger servicethroughout the metro area and beyond.

International airports include O’Hare, Midway and Gary/Chicago.Also 16 smaller airports also provide air service for the region.

Roughly OF ILLINOIS RESIDENTS LIVE IN THE SUBURBS OF CHICAGO, MANY OF WHOM COMMUTE INTO THE CITY FOR WORK40%

16.9Million TEUs

MOVED THROUGH METROIN 2018

3CHICAGO HAS

INTERNATIONALAIRPORTS

8FOR FREIGHT, PASSENGER

AND COMMUTER

RAIL LINES

BURGER KING

MARKET OVERVIEW

ECONOMY The metro has one of the biggest economies in the nation and

is buoyed by its distribution, finance, manufacturing operationsand growing high-tech sectors.

Fortune 500 companies headquartered in the metro includeBoeing, Walgreens, Allstate and McDonald’s.

The area is a major global tourist and convention destination.Last year, a record 57.7 million people visited the metro,supporting 500,600 jobs in the leisure and hospitality sector.

Large tech firms such as Amazon, Groupon and Googleattract startup companies.

The workforce is considered one of the most diverse and welltrained among major U.S. metros.

MAJOR AREA EMPLOYERS

Amazon.com, Inc.

Advocate Aurora Health

Walmart

Northwestern University

United Continental Holdings Inc.

American Airlines.

Walgreens Boots Alliance, Inc.

Abbott Labs

JPMorgan Chase

University of Chicago

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* Forecast

BURGER KING

SHARE OF 2019 TOTAL EMPLOYMENT

MANUFACTURING9%

GOVERNMENT

HEALTH SERVICESEDUCATION AND

+OTHER SERVICES

4%LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

20%AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL ANDBUSINESS SERVICES

2%INFORMATION

18%

4%

7%11% 10%

16%

MARKET OVERVIEW

Chicago is the third most populous metro in the U.S. with 9.6 millionresidents. During the next five years, gains will remain below theU.S. rate of growth.

World-class education institutions including Northwestern Universityand the University of Chicago help provide a skilled labor pool.Nearly 36 percent of residents age 25 and older hold a bachelor’sdegree and of these, 14 percent have also earned a graduate orprofessional degree, which is well above the national level.

Younger professionals moving to the market for employment providea skilled workforce and contribute to a median age that is below thatof the U.S. and a household income above the national level.

More people are renting as thousands of new apartments arecompleted. As a result, the local homeownership at 60 percent hasdeclined in recent years.

QUICK FACTS

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* Forecast

DEMOGRAPHICS

BURGER KING

37.52019

MEDIAN AGE:

U.S. Median:38.1

$70,6002019 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:$60,800

3.5M2019

HOUSEHOLDS:

Growth2019-2024*:0.8%

9.6M2019

POPULATION:

Growth2019-2024*:0.2%

MARKET OVERVIEW

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

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QUALITY OF LIFE

The Chicago metro has something to offer every one of its residents and visitors,whether it is legendary blues and jazz music, cultural and educational venues,professional sports, dining, entertainment, shopping or recreational amenities.

The Chicago area’s relative affordability is largely due to its lower housing costs. Themedian home price is significantly less than in other cities of its size and is below that ofmany smaller cities, including Seattle and Denver.

Cultural activities and artistic venues underpin the metro’s cosmopolitan lifestyle. Theregion is home to various well-known museums, including the world-class FieldMuseum, Shedd Aquarium, Art Institute of Chicago and Adler Planetarium. The theaterscene rivals the world’s best, and troupes, dance companies, symphony orchestras andmusic venues abound.

29 MILESOF SHORELINE

$264,600MEDIAN HOME PRICE VARIOUS MUSUEMS

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ARTS & ENTERTAINMENT

BURGER KING

PROPERTY NAME

MARKETING TEAM

BURGER KING

DEMOGRAPHICS

Source: © 2019 Experian

Created on August 2020

POPULATION 1 Miles 3 Miles 5 Miles 2024 Projection

Total Population 10,368 53,134 122,391 2019 Estimate

Total Population 10,290 53,151 121,963 2010 Census

Total Population 10,202 53,326 121,911 2000 Census

Total Population 10,647 50,783 104,717 Current Daytime Population

2019 Estimate 12,621 57,784 109,796HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2024 Projection

Total Households 4,021 18,997 42,253 2019 Estimate

Total Households 3,970 18,890 41,863Average (Mean) Household Size 2.61 2.81 2.92

2010 CensusTotal Households 3,918 18,888 41,696

2000 CensusTotal Households 4,037 17,446 35,088

Occupied Units2024 Projection 4,021 18,997 42,2532019 Estimate 4,227 20,033 44,261

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2019 Estimate

$150,000 or More 11.56% 19.44% 22.53%$100,000 - $149,000 19.06% 24.99% 26.54%$75,000 - $99,999 15.04% 15.50% 16.08%$50,000 - $74,999 19.35% 15.00% 13.94%$35,000 - $49,999 13.88% 9.39% 8.29%Under $35,000 21.12% 15.68% 12.62%

Average Household Income $91,687 $114,925 $123,061Median Household Income $68,666 $90,953 $98,555Per Capita Income $35,414 $40,906 $42,274

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $76,681 $86,286 $89,532 Consumer Expenditure Top 10 Categories

Housing $21,257 $24,319 $25,550Transportation $13,027 $13,859 $13,811Shelter $12,893 $14,896 $15,689Food $7,583 $8,548 $9,006Personal Insurance and Pensions $7,190 $9,118 $9,864Health Care $5,725 $6,444 $6,712Utilities $3,891 $4,270 $4,422Entertainment $2,869 $3,371 $3,562Household Furnishings and Equipment $2,191 $2,458 $2,561

Cash Contributions $1,868 $2,099 $2,110POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2019 Estimate Total Population 10,290 53,151 121,963Under 20 25.58% 26.77% 28.11%20 to 34 Years 20.33% 18.17% 16.68%35 to 39 Years 6.46% 6.01% 6.36%40 to 49 Years 11.78% 13.45% 14.84%50 to 64 Years 20.20% 22.56% 22.26%Age 65+ 15.64% 13.04% 11.75%Median Age 38.10 39.21 39.11

Population 25+ by Education Level2019 Estimate Population Age 25+ 7,005 35,547 80,384Elementary (0-8) 3.43% 2.09% 1.80%Some High School (9-11) 3.70% 3.35% 3.26%High School Graduate (12) 22.21% 21.87% 22.16%Some College (13-15) 25.20% 23.79% 22.95%Associate Degree Only 9.91% 9.36% 9.47%Bachelors Degree Only 24.01% 25.71% 26.74%Graduate Degree 10.78% 13.03% 12.87%

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IncomeIn 2019, the median household income for your selected geography is$68,666, compare this to the US average which is currently $60,811.The median household income for your area has changed by 18.31%since 2000. It is estimated that the median household income in yourarea will be $80,933 five years from now, which represents a changeof 17.86% from the current year.

The current year per capita income in your area is $35,414, comparethis to the US average, which is $33,623. The current year averagehousehold income in your area is $91,687, compare this to the USaverage which is $87,636.

PopulationIn 2019, the population in your selected geography is 10,290. Thepopulation has changed by -3.35% since 2000. It is estimated that thepopulation in your area will be 10,368.00 five years from now, whichrepresents a change of 0.76% from the current year. The currentpopulation is 48.92% male and 51.08% female. The median age of thepopulation in your area is 38.10, compare this to the US averagewhich is 38.08. The population density in your area is 3,268.89 peopleper square mile.

HouseholdsThere are currently 3,970 households in your selected geography. Thenumber of households has changed by -1.66% since 2000. It isestimated that the number of households in your area will be 4,021five years from now, which represents a change of 1.28% from thecurrent year. The average household size in your area is 2.61persons.

EmploymentIn 2019, there are 3,969 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that66.02% of employees are employed in white-collar occupations in thisgeography, and 33.35% are employed in blue-collar occupations. In2019, unemployment in this area is 5.20%. In 2000, the average timetraveled to work was 30.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:87.00% White, 1.35% Black, 0.03% Native American and 1.64%Asian/Pacific Islander. Compare these to US averages which are:70.07% White, 12.87% Black, 0.19% Native American and 5.66%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 19.97% of the current yearpopulation in your selected area. Compare this to the US average of18.17%.

PROPERTY NAME

MARKETING TEAM

BURGER KING

HousingThe median housing value in your area was $198,549 in 2019,compare this to the US average of $212,058. In 2000, there were2,990 owner occupied housing units in your area and there were 1,047renter occupied housing units in your area. The median rent at thetime was $710.

Source: © 2019 Experian

DEMOGRAPHICS

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www.MarcusMillichap.com

P R E S E N T E D B Y

Steven WeinstockRegional ManagerChicago Oak BrookOne Mid-America PlazaSuite 200Oakbrook Terrace, IL 60181(630) 570-2200Lic. # 471.011175

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Covif.pdf4._OM.pdfBurger King - Crystal Lake, MN Master Proposal (2).pdfSlide Number 1Slide Number 2Slide Number 41Slide Number 42Slide Number 43Slide Number 45Slide Number 46Slide Number 48

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pr esen ted by - loopnet · 2020. 11. 18. · pr esen ted by steven weins tock regional manager...

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