OFFERING MEMORANDUM U.S. Cellular Hair Cuttery 8809-8811 N. Allen Road Peoria, IL
CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. NON-ENDORSEMENT NOTICE Marcus & Millichap Real Estate Investment Services, Inc. ( M&M ) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Offered Exclusively by Dominic Sulo Associate Vice President Investments CHICAGO OAKBROOK Tel: (630) 570-2171 Fax: (630) 570-2210 DSulo@marcusmillichap.com License: IL 475.134920 Matthew Wenger Associate CHICAGO OAKBROOK Tel: (630) 570-2170 Fax: (630) 570-2210 MWenger@marcusmillichap.com License: IL 475.159226 Chad Lieber Associate CHICAGO OAKBROOK Tel: (630) 570-2265 Fax: (630) 570-2210 CLieber@marcusmillichap.com License: IL 475.163385 Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation 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 or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Marcus & Millichap 1 Mid America Plaza #200 Oakbrook Terrace, IL 60181 P: +1 630-570-2200 U.S. Cellular Hair Cuttery Peoria, IL 2 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
THE OFFERING Price: $2,107,000 Cap Rate: 7.65% Property Address Offering Summary Gross Leasable Area (GLA) U.S. Cellular Hair Cuttery 8809-8811 N. Allen Road Peoria, IL 61615 5,100 Sq Ft INCOME CURRENT Base Rent Occupied Space $161,200 $31.61 Vacant Space GROSS POTENTIAL RENT $161,200 $31.61 Price / Sq Ft $407.84 Annual Income $161,200 Year Built 2013 Lot Size +/- 1.03 Acres Expense Reimbursements $33,248 $6.52 EFFECTIVE GROSS INCOME $194,448 $38.13 EXPENSES Ownership Type Fee Simple Real Estate Taxes $23,040 $4.52 Insurance $1,439 $0.28 CAM $7,625 $1.50 Management Fee (15% of CAM) $1,144 $0.22 TOTAL EXPENSES $33,248 $6.52 NET OPERATING INCOME $161,200 $31.61 U.S. Cellular Hair Cuttery Peoria, IL 3 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
RENT ROLL Rent Schedule SUITE TENANT GLA % OF GLA RENT COMM. LEASE EXP. ANNUAL RENT RENT/SF OPTIONS CHANGES ON CHANGES TO LEASE TYPE 8809 US Cellular 3,500 68.63% 9/1/2013 8/31/2023 $126,000 $36 Two, Five-Year Net 9/1/2018 $138,600 Option 1 9/1/2023 $152,460 Option 2 9/1/2028 $167,720 8811 Hair Cuttery 1,600 31.37% 2/1/2014 1/31/2019 $35,200 $22 Two, Five-Year Net Option 1 2/1/2019 $38,400 Option 2 2/1/2024 $40,000 OCCUPIED 5,100 $161,200 $31.61 VACANT TOTAL 5,100 $161,200 $31.61 U.S. Cellular Hair Cuttery Peoria, IL 4 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
LOCATION OVERVIEW Investment Highlights Newer 2013 Construction - The subject property was built in 2013 and is 100 percent leased to U.S. Cellular and Hair Cutter. Both tenants are operating under triple-net lease and reimbursing for their pro rata share of CAM, Taxes, and Insurance. Relocation Stores for both Tenants - Both US Cellular and Hair Cuttery relocated to this center in 2013. U.S. Cellular relocated two existing stores into this one location and Hair Cuttery relocated from another center 1.5 miles away. These relocations demonstrate both tenants commitment and desire to be in this location in front of a Walmart Supercenter. Strategically Located as Outparcel to Walmart Supercenter - The property sits on a large 1.03-acre lot and is positioned as an outparcel to a Walmart Supercenter. Other nationally known tenants in the immediate area include: Menards, Aldi, AutoZone, Arby s, KFC, Bob Evan s, Game Stop, and more. Good Traffic Counts and Population Demographics - Located along Allen Road, the property benefits from more than 19,000 cars passing by daily. In addition, there are more than 71,000 people located within five miles. Peoria is the Third Largest Metropolitan Area in Illinois - Peoria is located in central Illinois and is situated between Chicago, St. Louis, Indianapolis, and the Quad cities. The metropolitan area consists of more than 373,000 residents and the total trade area is more than 750,000 people. Peoria Area Overview Peoria, Illinois is a dynamic and thriving city situated between Chicago, St. Louis, Indianapolis, and the Quad cities. The Peoria metropolitan area is the third largest metro area in Illinois with a population of more than 373,590 and a trade area of 753,953. Peoria is home to the world headquarters of Caterpillar, Incorporated, which is one of the 30 companies that make up the Dow Jones Industrial average. Peoria is also home to three major hospitals, Bradley University, and the University of Illinois College of Medicine. The downtown area and its riverfront should be your first stop when visiting Peoria. The new Peoria Riverfront Museum and the Caterpillar Visitor Center. The riverfront hosts a myriad of festivals and events throughout the year such as: Erin Feis and the Taste of Peoria, and the year-round attractions are just as enticing. The Spirit of Peoria is a turn-of-the-century paddle wheeler available for sightseeing, theme cruises, private charters and one-five day overnight excursions to Starved Rock and the St. Louis riverfront. Riverfront restaurants like Rhythm Kitchen and Kelleher's Irish Pub & Eatery offer great dining options, and students from Illinois Central College and Bradley University love spending weekend night s downtown at hotspots like Ulrich's Rebellion Room. It's easy to spend the entire day downtown with everything Peoria s riverfront has to offer. The Peoria area is served by three Interstate highways. Interstate 74 runs northwest to southeast through the downtown area. Interstate 474 is a southern bypass of Interstate 74 runs through portions of Peoria and the surrounding suburbs of Bartonville and Creve Coeur, and Interstate 155 which runs south from Interstate 74 in Morton to Interstate 55 in Lincoln which connects Springfield and Saint Louis. U.S. Cellular Hair Cuttery Peoria, IL 5 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
TENANT SUMMARIES United States Cellular Corporation provides wireless telecommunications services in the United States. Its wireless services include postpaid and prepaid service plans with voice, messaging, and data services; and smartphone messaging, data, and Internet services, which allow the customer to access the Web, social network sites, email, text, picture, and video messaging, as well as to utilize GPS navigation, and browse and download various applications. As of December 31, 2015, it operated 270 retail stores and kiosks. The company was founded in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Incorporated. CAM Tenant to pay tenant s pro rata share of CAM, Taxes, and Insurance. Tenant reimburses for management fee in amount not to exceed 15 percent of common area costs, exclusive of taxes and insurance. In 1973, newlyweds Dennis and Ann were having dinner at a restaurant when the conversation turned to their jobs. Dennis had been working for his father s chain of Washington area beauty parlors, Louis Creative Hairdressers, but he was ready to venture out on his own. Ann was uninspired by the conservative cuts at the downtown Washington beauty salon where she was a Stylist. The couple agreed, it was time to break free. Together, Dennis and Ann drew up a rough business plan on a napkin detailing a new kind of hair salon where you could walk in without an appointment and get great service for the whole family for a fraction of the cost. Unsure their idea would fly in a generation conditioned to fussy beauty parlors and clubby barber shops, the Ratners opened the first Hair Cuttery in Virginia. Before the year was over, they opened two more. We knew we wanted to change the industry, Dennis says, and there was nothing holding us back. The first Hair Cuttery was born in West Springfield, Virginia in 1974. Today, it represents the largest, privately-held salon chain in North America. The brainchild of Dennis and Ann Ratner, Hair Cuttery now encompasses approximately 12,000 associates with over 750 salons in 16 states. The phenomenal growth of the company can be traced back to its original business model which consisted of three concepts: convenience, price and consistency. CAM Tenant to reimburse for tenants pro rata share of CAM, taxes, and insurance. Tenant reimburses for management fee in amount not to exceed 15 percent of common area costs, exclusive of taxes and insurance. U.S. Cellular Hair Cuttery Peoria, IL 6 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
PROPERTY PHOTOS U.S. Cellular Hair Cuttery Peoria, IL 7 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
SITE PLAN N ALLEN RD 19,400 Daily Dumpster WALTON RD N SITE PLAN KEY Parcel Outline: Land Area: 1.03 Acres Leasable Area: 5,100 Sq Ft Ingress/Egress: U.S. Cellular Hair Cuttery Peoria, IL 8 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
AERIAL N Mt Hawley Auxiliary Airport 6 19,400 CPD N Allen Rd U.S. Cellular Hair Cuttery Peoria, IL 9 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
DEMOGRAPHICS POPULATION 3-MILE 5-MILE 10-MILE 2010 Population 34,432 70,919 180,268 N 2014 Population 34,970 71,794 181,245 2019 Population 37,683 75,265 184,556 Galesburg 47.2 Miles 47 Min HOUSEHOLDS 3-MILE 5-MILE 10-MILE 2010 Housholds 14,648 30,929 73,209 2014 Households 14,947 31,361 73,776 46.5 Miles 53 Min 2019 Households 16,184 32,972 75,607 Bloomington INCOME 3-MILE 5-MILE 10-MILE 2014 Median Household Income $71,531 $64,731 $52,613 2014 Per Capita Income $43,468 $39,738 $30,445 2014 Average Household Income $101,437 $90,400 $73,866 U.S. Cellular Hair Cuttery Peoria, IL 10 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