starbucks anchored retail condo - constant...

3045 North Greenview Avenue - CHICAGO, ILLINOIS 60657

Starbucks Anchored Reta i l Condo

ACTUAL PROPERTY

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

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 © 2017 Marcus & Millichap. Activity ID: Y0331742 1


Financia l Overv iew

TENANT PROFILES

TENANT GUARANTOR GLA % OF GLALEASE

COMMENCELEASE EXPIRE

TERM REMAINING

ANNUAL RENT

RENT(PSF) INCREASES LEASE TYPE

RENEWAL OPTIONS

STARBUCKSSTARBUCKS CORPORATION

2,325* 42.78% 7/1/2001 7/31/2021 4 YEARS $56,787 $24.4215% IN

OPTIONSNN 4, 5-Year

MIKE & YOLI AT HOME

PERSONAL GUARANTEE 1,376 25.32% 7/18/2017 7/31/2022 5 YEARS $34,400 $25.003%

ANNUALLYNN 1, 3-Year

D'APRILE PROPERTIES

D'APRILE PROPERTIES, LIMITED LIABILITY COMPANY (LLC)

1,734 31.90% 5/2/2016 5/31/2023 6 YEARS $47,920 $27.64LESSER OF 2%

OR CPINN 2, 5-Year

TOTAL 5,435 100.00% $139,107

Base Rent $139,107

Recoveries

Real Estate Taxes $37,212

Insurance $2,924

CAM $8,816

Management Fee $350

Total Expense Reimbursements $49,302

Effective Gross Income $188,408

Expenses

Real Estate Taxes $14,080

Insurance $2,437

CAM $9,360

Total Expenses $25,877

Net Operating Income $162,531

PRICE: $2,273,000

CAP RATE: 7.15%

NOI: $162,531

PRICE PER SQUARE FOOT: $418.21

RENT PER SQUARE FOOT: $25.59

YEAR BUILT: 1909

RENOVATED: 1999/2017

APPROXIMATE LOT SIZE: 0.24 Acres

GROSS LEASEABLE AREA: 5,435

TYPE OF OWNERSHIP: Fee Simple

OFFERING SUMMARY

*400 Square Feet is Storage Space in the Basement of the Bui ld ing

ACTUAL PROPERTY



Investment Overv iew

• Reliable Loft Retail Condominium in Lakeview Neighborhood of Chicago | Number Three in Money Magazine’s Top 10 Big-City Neighborhoods for Best Places to Live in 2013

• Tenants Operating Under Net Leases | Fully Reimbursing for Real Estate Taxes, Insurance, Common Area Maintenance, and Condominium Assessments

• Anchored by Strong National Credit | Starbucks Corporation Guarantees More Than 42 Percent | NASDAQ: SBUX | Standard & Poor (S&P): A | Number 171 on June 2017 Fortune 500 List

• Starbucks Demonstrates Commitment | More Than 15-Year Operating History | Executed 10-Year Lease Extension Early in 2011

• Strong Rent Increases | D’Aprile and Mike & Yoli at Home Leases Feature Annual Rent Increases | Starbucks Has 15 Percent Rent Increase in Next Renewal Option

• Signalized, Six-Way Intersection | North Lincoln Avenue-North Greenview Avenue-West Barry Avenue

• “Walkers Paradise” | Redfin WalkScore: 95 | Less Than Half A Mile from Paulina Station CTA Brown Line

• Strong Credit Tenants Committing More Than $10 Million in Capital to Lakeview | Target Corporation, Standard & Poor (S&P): A | Whole Foods Market, Incorporated, Standard & Poor (S&P): A+

• Less Than One and A Half Miles from Wrigley Field | 41,000-Seat Stadium Home to Chicago Cubs | 2016 World Series Champions

• Strong Demographics | Average Household Income is More Than $140,000 in the One-Mile Radius

Marcus & Millichap is pleased to present the Reliable Loft Retail Condominium in the Lakeview Neighborhood of Chicago. Lakeview was ranked number three in Money Magazine’s Top 10 Big-City Neighborhoods for Best Places to live in 2013. This Starbucks-anchored condominium is accompanied by residential brokers D’Aprile Properties and home decors Mike & YoLi.

The tenants are operating under net leases fully reimbursing for real estate taxes, insurance, common area maintenance, and condominium assessments. More Than 42 percent of the asset is backed by Starbucks Corporation, which was ranked number 171 on the June 2017 Fortune 500 List. Starbucks has demonstrated a strong commitment, operating at this location for more than 15 years. Additionally, Starbucks executed a 10-year extension option early, in 2011. Both the D’Aprile Properties and Mike & Yoli leases feature annual rent increases. D’Aprile’s rent will increase by the lesser of 2 percent or the Consumer Price Index (CPI) increase. Mike & Yoli have 3 percent rent increases every year.

The subject property is situated at the signalized, six-way intersection of North Lincoln Avenue, North Greenview Avenue, and West Barry Avenue. This asset received a 95 Walk Score and 74 Transit Score from Redfin, making this a “Walker’s Paradise” with “Excellent Transit”. The subject property is less than half a mile from Paulina Station (CTA Brown Line) and is less than one mile from Wellington Station (CTA Red Line). Also less than one and a half miles is Wrigley Field, home to the Chicago Cubs and 2016 World Series Champions.

Additionally, a brand new 75,000-square foot, $12.5 million Whole Foods just opened one block north of the subject property at the intersection of North Lincoln Avenue and West Belmont Avenue. This Whole Foods is a relocation store from its old space, just another block north at the intersection of West School Street and Ashland Avenue. After investing in a $1.2 million renovation, Target (NYSE: TGT) took over the old Whole Foods space, which opened in July 2017.

ACTUAL PROPERTY



Tenant Overv iew - Starbucks

Wake up and smell the coffee - Starbucks is everywhere. The world’s number one specialty coffee retailer, Starbucks has more than 25,000 coffee shops in about 60 countries. The outlets offer coffee drinks and food items, as well as roasted beans, coffee accessories, and teas. Starbucks operates more than 12,700 of its own shops, which are located mostly in the United States, while licensees and franchisees operate roughly 12,300 units worldwide (including many locations in shopping centers and airports). In addition, Starbucks markets its coffee through grocery stores, food service customers, and licenses its brand for other food and beverage products. Starbucks ranks number 146 in Fortune 500 and is traded on the NASDAQ under the symbol “SBUX”. In 2016 Starbucks had sales of $21.3 billion and a net worth of $5.88 billion.

TENANT PROFILE

TENANT TRADE NAME Starbucks

OWNERSHIP Public

TENANT Corporate Store

LEASE GUARANTOR Corporate Guaranty

NUMBER OF LOCATIONS 25,000+

HEADQUARTERED Seattle, Washington

WEB SITE www.starbucks.com

SALES VOLUME $21.3 Billion (2016)

NET WORTH $5.88 Billion (2016)

STOCK SYMBOL SBUX

BOARD NASDAQ

CREDIT RATING A

RATING AGENCY Standard & Poor (S&P)

RANK Number 146 in Fortune 500 (June 2016)

ACTUAL PROPERTY

ACTUAL PROPERTYThis 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 © 2017 Marcus & Millichap. Activity ID: Y0331742 4


Tenant Overv iew - Mike & Yol i | D’Apr i le Propert ies

Mike & YoLi At Home™ is a Home Decor Retail Space that carries Home Fragrances and Decor co-produced by husband and wife team Miguel and Yolanda DeLaMora. Both being artists, they also throw fabulous Corporate Paint Parties. The retail space carries vendors that produce Tabletop, Soft-lines, Wine and Pre-Packaged Gourmet Foods.

Miguel De La Mora has over 25 years of experience in the fashion and design industry making him the best candidate for up to date trends in home decor mimicking the fashion industry. He has assisted in wardrobe and styling for various tv and movies sets that include Fox’s Empire, APB, The Exorcist, Chicago PD, Chicago Justice, The Patriot and various others.

Yolanda DeLaMora has been in the Lifestyle Business for over 20 years and is a known and recognized Leader in the Industry. Her commitment to Customer Service Excellence and Community Involvement has earned her the ability to be one of the fastest growing, most ‘likable’ and influential brands in the area. Her Signature Style of service and her unique eye for detail stemming from years of experience is what makes her style so unique. Her primary services include Creating and Designing Trendy Home Decor along with Interior Design Services. She also holds a very entertaining wine education class. Over the years she has built her brand, respectfully named, Yolanda De La Mora and it embraces everything that she loves while also allowing her the opportunity to share by giving back to the community.

TENANT PROFILE

TENANT TRADE NAME D’Aprile Properties

TENANTD’Aprile Properties, Limited Liability

Company (LLC)

LEASE GUARANTORD’Aprile Properties, Limited Liability

Company (LLC)

NUMBER OF OFFICES 9 Units

HEADQUARTERS Chicago, Illinois

SALES VOLUME $5.7 Million (2015)

RANK Number 920 Fastest Growing Company

Inc Magazine (2015)

TENANT PROFILE

TENANT TRADE NAME Mike & YoLi

TENANTMike and YoLi At Home, Limited Liability

Company (LLC)

LEASE GUARANTOR Personal Guarantee

D’Aprile Properties is one of the Midwest’s fastest growing real estate brokerages. Their growing team serves clients throughout Illinois, Indiana, Michigan and Wisconsin. They know that polished marketing, a full-service experience and community connection are key factors to success. D’Aprile markets properties throughout Chicagoland and in Chicago’s most popular second home markets in Indiana, Michigan, and Wisconsin, and have a proven system to connect buyers and sellers throughout those areas.

D’Aprile’s storefront locations promote their exclusive listings. Each office location showcases beautiful property listings through flat-screen displays. Each office location offers a functional space, where agents are inspired to do their best work. Every office location is accessible by all agents, 24/7. Agents have access to all the tools and resources of a fully operational office whenever needed, regardless of the time of day.

ACTUAL PROPERTY




Lakeview, Neighborhood of Chicago, was ranked number three in Money Magazine’s Top 10 Big-City Neighborhoods for Best Places to live in 2013.

Situated at the signalized, six-way intersection of North Lincoln Avenue, North Greenview Avenue, and West Barry Avenue.

This asset received a 95 Walk Score and 74 Transit Score from Redfin, making this a “Walker’s Paradise” with “Excellent Transit”.

Starbucks has demonstrated a strong commitment, operating at this location for more than 15 years. Recently executing a 10-year extension option early, in 2011

*ACTUAL SIGNAGE IN PROCESS



Aer ia l Overv iew



Area Overview & Demographics

1-Mile 2-Mile 3-Mile

P o p u l a t i o n2000 Population 66,003 250,185 540,967

2010 Population 69,935 250,418 509,364

2017 Population 66,315 255,931 506,910

2021 Population 65,590 256,617 505,986


H o u s e h o l d s


H o u s e h o l d ( H H ) I n c o m e s2000 Households 33,810 132,193 249,486

2010 Households 33,944 131,351 248,738

2017 Households 31,359 132,845 245,538

2021 Households 30,840 132,979 244,720

2017 Average HH Income $141,938 $113,025 $102,456

2017 Median HH Income $112,777 $83,102 $73,332

2017 Per Capita Income $67,120 $58,667 $49,628



Market Overview - Chicago, I l l inois

Chicago is the third-most populous city in the United States. With over 2.7 million residents, it is also the most populous city in both the state of Illinois and the Midwestern United States. The Chicago metropolitan area – “Chicagoland” – has nearly 10 million people, and is the third-largest metropolitian area in the United States. Chicago has also been called a global architecture capital. In terms of wealth and economy, Chicago is considered one of the most important business centers in the world.

Positioned along Lake Michigan, the city is an international hub for finance, commerce, industry, technology, telecommunications, and transportation: O’Hare International Airport is the second-busiest airport in the world in terms of aircraft traffic, and the region also has the largest number of United States highways and rail road freight lines. The city has one of the world’s largest and most diversified economies with no single industry employing more than 14 percent of the workforce.

In 2016, Chicago hosted over 54 million domestic and international visitors, a new record making it one of the top visited cities in the nation. Landmarks in the city include Millennium Park, Navy Pier, the Magnificent Mile, Art Institute of Chicago, Museum Campus, the Willis (Sears) Tower, Museum of Science and Industry, and Lincoln Park Zoo. Chicago’s culture includes the visual arts, novels, film, theater, especially improvisational comedy, and music, particularly jazz, blues, soul, hip-hop, gospel, and house music. There are many colleges and universities in the Chicago area: Northwestern University, University of Chicago, and the University of Illinois at Chicago, which are classified as “highest research” doctoral universities.

Anchored by a beautiful stretch of shoreline to the east and dotted with train stops from two ‘L’ lines, Lakeview is one of Chicago’s liveliest and most accessible neighborhoods. Several distinct areas — East Lakeview, Central Lakeview, Boystown and Wrigleyville — meld together to form a lakefront community that celebrates diversity and boasts something for every type of visitor.

The bustling commercial districts along Belmont Avenue, Lincoln Avenue, Southport Avenue, Clark Street, Halsted Street and Broadway Street offer great shopping and night life — be it for vintage frocks, designer jeans or leather biker gear — or live it up with the locals at the seemingly endless options for bars and pubs, and the dozens of celebrated restaurants in between.

Arts and culture come in the form of live music venues, several summer street festivals and a thriving scene for theater, dance and comedy. Belmont Theater District is a stellar collection of nearly 20 independent companies.

Not to be outdone by its extraordinary entertainment landscape, Lakeview makes full use of its slice of Lincoln Park, a 1,200-acre oasis dedicated to the outdoors. Here you will find the scenic Lakefront Trail, a golf course and driving range, a boat harbor, a bird sanctuary, tennis courts and grassy playing fields that are also perfect for picnics or just soaking in the views.


Marcus & Mi l l ichap hereby advises al l prospect ive purchasers of Net Leased property as fol lows:

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.


Brokers Of RecordSteven Weinstock

OAK BROOKOak Brook Ter race, IL 60181

Te l : (630)570-2250L icense: 471.011175


starbucks anchored retail condo - constant...

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