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WISHING WELL PLAZA816 Elmhurst Rd • Des Plaines, IL 60016
OFFERING MEMORANDUM
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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
Confidentiality and DisclaimerThe 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 andshould 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, unverifiedinformation 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 duediligence 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, thefuture 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 orasbestos, 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 anytenant'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 bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures toverify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & 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 orname 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.
WISHING WELL PLAZADes Plaines, ILACT ID Z0370362
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Location Overview
Regional Map
Local Map
Aerial Photo
Site Plan
FINANCIAL ANALYSIS 02Tenant Summary
Lease Expiration Chart
Operating Statement
Notes
Pricing Detail
Acquisition Financing
MARKET OVERVIEW 03Market Analysis
Demographic Analysis
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INVESTMENT
OVERVIEW
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EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Dominicks 18,050
Graphic Packaging Intl Inc 8,709ADVOCATE LUTHERAN GENERAL HOSP 4,800
Schneider Elc Holdings Inc 4,619
Tecta Holding Inc 4,000
E R M 3,500
Agilent Technologies Inc 3,275
Honeywell 3,045
Ciba Vision Inc 2,820
Alexian Brothers Medical Ctr 2,802
A B H S 2,800
NCH 2,800
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2017 Estimate Pop 18,991 112,324 259,375
2010 Census Pop 18,679 110,615 255,550
2017 Estimate HH 7,407 44,266 101,801
2010 Census HH 7,265 43,420 99,924
Median HH Income $58,353 $66,698 $68,535
Per Capita Income $32,243 $35,626 $37,253
Average HH Income $82,664 $90,184 $94,653
VITAL DATA
YEAR 1 YEAR 2
Price $1,585,000 CAP Rate 8.50% 13.05%
Down Payment 30% / $475,500 Net Operating Income $134,764 $206,835
Loan Amount $1,109,500 Net Cash Flow After Debt Service 10.54% / $50,128 25.70% / $122,199
Loan Type Proposed New Total Return 15.18% / $72,189 30.59% / $145,446
Interest Rate / Amortization 5.25% / 25 Years
Gross Leasable Area (GLA) 18,302 SF
Price/SF $86.60
Current Occupancy 76.39%
Year Built / Renovated 1967 / 2011
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MAJOR TENANTS
TENANT GLA LEASE EXPIRATION LEASE TYPE
Dunkin' Donuts 2,735 6/18/2022 NNN
Foremost Liquor 4,930 4/30/2023 NNN
OP Nails 1,702 4/30/2022 NNN
Boost Mobile 1,480 12/31/2023 NNN
WISHING WELL PLAZA
OFFERING SUMMARY
Rare opportunity to acquire a value-add retail center with a stabilized rent roll on
over 76% of the space.
Priced below replacement cost, with an over 10% cash on cash return at list price
Anchored by a corporate guaranteed Dunkin' Donuts
Dunkin' Donuts has operated out of this location since 1967, all but one tenant has
exercised renewal options over the years
Shares access with a recently remodeled Burger King, driving additional traffic to
Wishing Well
Multiple points of ingress and egress, full access onto Elmhurst Road, as well as
pylon signage and full access from Dempster
INVESTMENT HIGHLIGHTS
Marcus & Millichap is excited to offer the fee simple interest in Wishing Well Plaza, an approximately 18,300 square foot retail center located on Elmhurst Road on the
border of Des Plaines and Mount Prospect. The property benefits from visibility to well over 31,000 vehicles per day, most of which are either on their way to, or emerging
from, a brand new construction cloverleaf ramp on I-90. Wishing Well Plaza also has a second pylon sign on Dempster Street, with full access to the plaza via Dempster
as well, adding another 12,000 cars per day to the traffic counts, for a total of 43,000 vehicles per day with visibility to Wishing Well and its signage.
Wishing Well has been held by the family that originally developed the property for about 50 years, and the retail center has been a steady and reliable source of income
across generations. The roof was replaced in 2011 and there is a transferable 15 year warranty.
Dunkin' Donuts is the anchor tenant at Wishing Well, and they have been there from the beginning – first signing their lease in 1967. Dunkin's lease features a corporate
guaranty, and considering that a new construction, single tenant Dunkin' would command nearly triple the rent this location is currently paying, the likelihood they will
relocate at the end of their current lease is not probable.
A new investor can double their in place cash-on-cash return to over 25% by leasing up the 4,000 sf endcap space at even a modest, below market rent. This unit can
also be demised into smaller shop space or leased to one user.
The retail fundamentals of the site are considerable -- with prominent sighting, easy access, three points of ingress and egress, as well as strong traffic drivers within
Wishing Well and in the immediate vicinity. This is an opportunity to acquire a value add retail asset, occupied by long-term tenants who have exercised multiple renewal
options, at below replacement cost.
INVESTMENT OVERVIEW
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SITE PLAN
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#
LOCATION OVERVIEW
CLOSE PROXIMITY TO:
816 Elmhurst Rd, Des Plaines, IL 60016
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEWISHING WELL PLAZA
PRICING AND VALUATION MATRIX
PROPERTY NAMEWISHING WELL PLAZA
LOCATION OVERVIEW
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REGIONAL MAP
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LOCAL MAP
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PROPERTY SUMMARY
OFFERING SUMMARY
PROPOSED FINANCING
First Trust Deed
Loan Amount $1,109,500
Loan Type Proposed New
Interest Rate 5.25%
Amortization 25 Years
Loan Term 5 Years
Loan to Value 70%
Debt Coverage Ratio 1.69
THE OFFERING
Property Wishing Well Plaza
Price $1,585,000
Property Address 816 Elmhurst Rd, Des Plaines, IL
Assessors Parcel Number 08-24-100-003-0000
Zoning Commercial
SITE DESCRIPTION
Number of Stories One
Year Built/Renovated 1967
Ownership Fee Simple
Lot Size 1.37 AC
Topography Flat
Access Points Three
MECHANICAL
HVAC per tenant
Fire Protection per tenant
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FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
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TENANT SUMMARY
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TENANT SUMMARYFINANCIAL ANALYSIS
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FINANCIAL ANALYSIS
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OPERATING STATEMENT
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FINANCIAL ANALYSIS
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NOTES
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FINANCIAL ANALYSIS
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PRICING DETAIL
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TENANT PROFILE
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Dunkin' Donuts
General Information
Tenant Name Dunkin' Donuts
Website dunkindonuts.com
Parent Company Dunkin' Brands
Headquartered Canton, MA
Rentable Square Feet 2,735 SF
Lease Expiration 6/18/2022
No. of Locations 12,000
Dunkin' Donuts, colloquially known as Dunkin', is an American multinational quick
service restaurant chain based in Canton, Massachusetts. It was founded in 1950 by
William Rosenberg in Quincy, Massachusetts, and is one of the largest coffee and
baked goods chains in the world, with more than 12,000 restaurants in 36 countries.
The chain's products include donuts, bagels, other baked goods, and a variety of
hot and iced beverages.
MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.
We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.
Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.
National platform operating
within the firm’s brokerage
offices
$5.63 billion total national
volume in 2017
Access to more capital sources than any other firm in the industry
Optimum financing solutions to enhance value
Our ability to enhance buyer pool by expanding finance options
Our ability to enhance seller control
• Through buyer qualification support
• Our ability to manage buyers finance expectations
• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings
• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file
WHY MMCC?
Closed 1,707 debt and equity
financings in 2017
ACQUISITION FINANCING
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MARKET
OVERVIEW
MARKET OVERVIEW
OVERVIEWCHICAGO
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Chicago-Naperville-Elgin is one of the largest metros in the nation.Also know as the greater Chicagoland area, it is bounded to the eastby Lake Michigan, expands over a 5,000-square-mile region innortheastern Illinois and extends into Wisconsin and Indiana. Themetro houses 9.6 million people and comprises 14 counties. The cityof Chicago contains 2.7 million residents. The greatest growth duringthe past 20 years occurred in the western portion of the region. Inrecent years, however, businesses are relocating back into the city toattract young workers, supporting the development of high-riseresidential towers in the downtown Chicago.
MARKET OVERVIEW
METRO HIGHLIGHTS
THIRD-LARGEST METROPOLITAN AREAThe metro population trails only New York City and Los Angeles in size. It will expand to nearly 9.9 million residents by 2023.
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 more than 4.7 million individuals in an array of industries, including a growing tech sector.
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MARKET OVERVIEWMARKET OVERVIEW
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TRANSPORTATION
The region’s transit network ranks among the largest and most efficient in the world.
The vast network of freeways, centralized location, largest rail-truck intermodal facility in the U.S., and the Port of Chicago contribute to the metro’s position 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 the region.
Amtrak routes originate from Union Station, while the Metra commuter rail and the Chicago L provide passenger service throughout the metro area and beyond.
International airports include O’Hare, Midway and Gary/Chicago. Seven smaller airports also provide air service for the region.
MORE THAN OF ILLINOIS RESIDENTS LIVE IN THE SUBURBS OF CHICAGO, MANY OF WHOM COMMUTE INTO THE CITY FOR WORK40%
16.3Million TEU’s
MOVED THROUGH METROIN 2016
3CHICAGO HAS
INTERNATIONALAIRPORTS
7FOR FREIGHT, PASSENGER
AND COMMUTER
RAIL LINES
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• Employers added 18,900 workers to their staffs during the past 12 months, keeping the unemployment rate at 4.7 percent, about 60 basis points above the national average.
• The government sector led hiring with the creation of 8,000 positions during this time. Manufacturing followed as more than 7,000 jobs were added.
EMPLOYMENT
• Urban: Roughly 465,000 square feet was completed during the past 12 months, down slightly from the 537,000 square feet delivered the prior year.
• Suburban: The majority of completions were concentrated in the suburbs, with 1.7 million square feet placed into service. The East-West Corridor submarket received the largest supply.
CONSTRUCTION
• Urban: Supply outpaced demand during the past four quarters, ticking vacancy up 20 basis points to 4.8 percent in March.
• Suburban: Net absorption of 3.8 million square feet drove vacancy improvement in the suburbs. The rate fell 60 basis points to 6.8 percent during this same time. The prior year, a 50-basis-point decrease was recorded.
VACANCY
• Urban: Rents slipped in the first quarter with the average asking rent resting at $26.00 per square foot after a drop of 2.9 percent year over year.
• Suburban: Healthy net absorption is aiding rent growth, with the average rate ticking up 3.9 percent during the past 12 months, to $15.60 per square foot in March.
RENTS
CHICAGO METRO AREA
increase in the average asking rent Y-O-Y
1.5%basis point decrease in vacancy Y-O-Y40square feet
completed Y-O-Y
2.1 millionincrease in total employment Y-O-Y
0.4%
* Forecast
1Q18 - 12-Month Trend
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Private Investors Increase Bidding for Single-Tenant Properties
Outlook: Rising interest rates may placepressure on properties with lower caprates, particularly for credit single-tenantassets and likely slowing sales. As aresult, buyers may shift to higher yieldingmulti-tenant buildings.
VacancyRate
Y-O-YBasisPoint
ChangeSubmarket
AskingRent
Y-O-Y %Change
Jasper County 1.1% -110 $7.25 -21.2%
West Loop 2.1% -160 $36.14 4.2%
Gold Coast-Old Town 2.2% 10 $22.23 -22.8%
Newton County 2.9% 0 $12.00 54.4%
Lincoln Park 3.7% -50 $31.68 -1.0%
Grundy County 4.5% 10 $14.60 -7.7%
Northwest City 4.7% 50 $21.61 6.1%
O'Hare 4.8% -110 $18.03 13.3%
Kenosha County 4.9% -10 $11.09 3.1%
River North 4.9% 130 $40.62 28.7%
South Chicago 5.1% -70 $18.43 0.9%
Overall Metro 6.5% -40 $17.40 1.5%
Submarket Trends
Lowest Vacancy Rates 1Q18
Sales Trends
CHICAGO METRO AREA
• Multi-Tenant: The number of multi-tenant transactions has held steady, withcompetition driving the average price up 4 percent to $252 per square foot.
• Single-Tenant: Overall, single-tenant sales slowed nearly 4 percent during the past 12months, with fewer institutional buyers active. Sales did pick up in the $1 million to$10 million price tranche.
* Trailing 12 months through 1Q18 over previous time periodPricing trend sources: CoStar Group, Inc.; Real Capital Analytics
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* Forecast **2017-2022
PROPERTY NAME
MARKETING TEAM
WISHING WELL PLAZA
DEMOGRAPHICS
Source: © 2017 Experian
Created on October 2018
POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection
Total Population 18,781 113,853 261,773
2017 Estimate
Total Population 18,991 112,324 259,375
2010 Census
Total Population 18,679 110,615 255,550
2000 Census
Total Population 19,307 110,487 259,448
Current Daytime Population
2017 Estimate 16,333 155,694 368,768
HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection
Total Households 7,319 45,223 103,424
2017 Estimate
Total Households 7,407 44,266 101,801
Average (Mean) Household Size 2.56 2.54 2.53
2010 Census
Total Households 7,265 43,420 99,924
2000 Census
Total Households 7,834 43,507 101,486
Occupied Units
2022 Projection 7,319 45,223 103,424
2017 Estimate 7,851 46,238 106,512
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate
$150,000 or More 9.46% 11.54% 13.57%
$100,000 - $149,000 14.96% 17.21% 17.13%
$75,000 - $99,999 13.07% 15.30% 14.82%
$50,000 - $74,999 20.69% 18.85% 18.67%
$35,000 - $49,999 16.03% 12.47% 12.43%
Under $35,000 25.81% 24.61% 23.39%
Average Household Income $82,664 $90,184 $94,653
Median Household Income $58,353 $66,698 $68,535
Per Capita Income $32,243 $35,626 $37,253
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $74,020 $79,023 $80,154
Consumer Expenditure Top 10 Categories
Housing $20,671 $21,924 $22,121
Transportation $13,398 $14,551 $14,807
Shelter $12,840 $13,548 $13,648
Food $7,641 $8,058 $8,164
Personal Insurance and Pensions $6,687 $7,312 $7,434
Health Care $5,346 $5,848 $5,989
Utilities $3,787 $3,983 $4,029
Entertainment $3,040 $3,255 $3,304Household Furnishings and Equipment $2,002 $2,186 $2,220
Apparel $1,973 $2,134 $2,162
POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age
2017 Estimate Total Population 18,991 112,324 259,375
Under 20 22.40% 22.71% 22.63%
20 to 34 Years 22.28% 19.41% 18.80%
35 to 39 Years 7.85% 6.94% 6.50%
40 to 49 Years 13.06% 13.35% 13.29%
50 to 64 Years 19.14% 20.52% 21.31%
Age 65+ 15.30% 17.07% 17.48%
Median Age 38.32 40.70 41.61
Population 25+ by Education Level
2017 Estimate Population Age 25+ 13,690 80,848 186,823
Elementary (0-8) 4.72% 4.69% 4.36%
Some High School (9-11) 7.10% 5.86% 5.61%
High School Graduate (12) 28.91% 25.45% 24.23%
Some College (13-15) 17.63% 18.94% 19.20%
Associate Degree Only 8.22% 7.47% 7.37%
Bachelors Degree Only 21.18% 23.72% 24.30%
Graduate Degree 10.33% 12.39% 13.46%
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IncomeIn 2017, the median household income for your selected geography is$58,353, compare this to the US average which is currently $56,286.The median household income for your area has changed by 14.27%since 2000. It is estimated that the median household income in yourarea will be $67,412 five years from now, which represents a changeof 15.52% from the current year.
The current year per capita income in your area is $32,243, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $82,664, compare this to the USaverage which is $81,217.
PopulationIn 2017, the population in your selected geography is 18,991. Thepopulation has changed by -1.64% since 2000. It is estimated thatthe population in your area will be 18,781.00 five years from now,which represents a change of -1.11% from the current year. Thecurrent population is 49.88% male and 50.12% female. The medianage of the population in your area is 38.32, compare this to the USaverage which is 37.83. The population density in your area is6,033.06 people per square mile.
HouseholdsThere are currently 7,407 households in your selected geography. Thenumber of households has changed by -5.45% since 2000. It isestimated that the number of households in your area will be 7,319five years from now, which represents a change of -1.19% from thecurrent year. The average household size in your area is 2.56 persons.
EmploymentIn 2017, there are 5,746 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that65.67% of employees are employed in white-collar occupations inthis geography, and 34.56% are employed in blue-collar occupations.In 2017, unemployment in this area is 4.83%. In 2000, the averagetime traveled to work was 30.00 minutes.
Race and EthnicityThe current year racial makeup of your selected area is as follows:65.88% White, 3.21% Black, 0.03% Native American and 19.73%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.
People of Hispanic origin make up 19.05% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.
PROPERTY NAME
MARKETING TEAM
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HousingThe median housing value in your area was $258,244 in 2017,compare this to the US average of $193,953. In 2000, there were4,230 owner occupied housing units in your area and there were3,604 renter occupied housing units in your area. The median rent atthe time was $732.
Source: © 2017 Experian
DEMOGRAPHICS
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DEMOGRAPHICS
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www.MarcusMillichap.com
Mitchell Kiven
Associate
Member - National Retail GroupChicago Downtown OfficeTel: (312) 624-7006
Fax: (312) 327-5410
License: IL 475.164486
E X C L U S I V E L Y L I S T E D B Y
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