Net Lease LongHorn Steakhouse For Sale

LONGHORN STEAKHOUSE (Ground Lease) 2650 US Route 34Oswego, IL 60543 (Chicago MSA)

NET LEASE INVESTMENT OFFERING

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TABLE OF CONTENTS

TABLE OF CONTENTS

II. Location Overview Photographs Aerial Site Plan 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 new single tenant LongHorn Steakhouse ground lease located in Oswego, Illinois. The property is located along the Route 34 corridor, one of the largest commercial centers in the Fox Valley area offering over 2.8 million square feet of commercial space and featuring big box retailers such as Walmart Supercenter, Target and The Home Depot, to name a few. The ground lease has an initial primary term of ten years. The absolute net lease features a 10% rental escalation in the sixth year and in each of the four 5-year renewal option periods. LongHorn Steakhouse has more than 480 restaurants across 40 states. The tenant will be RARE Hospitality International, Inc., a wholly owned subsidiary of Darden Restaurants, Inc. (NYSE: DRI), doing business as LongHorn Steakhouse.

The 1.6 acre property is strategically located in a dominant regional retail corridor along Route 34. Route 34 is a primary north-south thoroughfare in the area that experiences traffic counts in excess of 26,000 vehicles per day. The LongHorn Steakhouse is an outparcel to Prairie Market, a 678,888 square foot retail property anchored by Best Buy, Dick’s Sporting Goods, Hobby Lobby, Kohl’s and Walmart Supercenter. Other retailers in the development include DSW Designer Shoe Warehouse, ALDI, Pier 1 Imports and a number of national quick service restaurants. There are over 210,000 people living within a five mile radius of the property earning an average household income of roughly $90,000.

There are ten years on the LongHorn Steakhouse ground lease expected to commence upon the earlier of opening or August 28, 2017. The lease will feature a 10% rental escalation in year six of the primary term and in all four 5-year renewal option periods. The tenant will be RARE Hospitality International, Inc., a wholly owned subsidiary of Darden Restaurants, Inc. (NYSE: DRI), doing business as LongHorn Steakhouse.


INVESTMENT HIGHLIGHTS:

INVESTMENT HIGHLIGHTS

• Brand new construction

• Located within the Chicago MSA

• 10 year initial lease term

• 10% rental escalation in initial term and four 5-year renewal options

• No landlord responsibilities

• Corporate lease

• Located in a dominant regional retail corridor as an outparcel to a Best Buy, Dick’s Sporting Goods,

Hobby Lobby, Kohl’s and Walmart Supercenter anchored development

• Additional retailers located in the development include DSW Designer Shoe Warehouse, ALDI, Pier 1

Imports and a number of national quick service restaurants

• Over 210,000 people located within a five mile radius


PROPERTY OVERVIEW:

PROPERTY OVERVIEW

Price: $2,647,059

Cap Rate: 5.10%

Net Operating Income: $135,000

Rental Escalations: 10% Every 5-Years; Including Renewal Options

Renewal Options: Four 5-Year

Lease Commencement Date: Earlier of Opening or August 28, 2017

Tenant: RARE Hospitality International, Inc. d/b/a LongHorn Steakhouse (Wholly owned subsidiary of Darden Restaurants, Inc.)

Year Built: 2017

Lease Type: Ground Lease (No Landlord Responsibilities)

Rentable Square Feet: 5,600 SF

Lot Size: 1.6 Acres



PHOTOGRAPHS

Exterior Elevations


AERIAL

( 2 6 , 3 0 0 V P D )


SITE PLAN

( 2 6 , 3 0 0 V P D )


MAPS

Lake Michigan

DEMOGRAPHICREPORT:

DEMOGRAPHIC REPORT

Population 1-Mile 3-Mile 5-Mile

Total Population 9,049 68,273 210,949

Total Households 3,013 22,096 63,893

Income 1-Mile 3-Mile 5-Mile

Average Household Income $104,438 $87,422 $89,811


MARKETOVERVIEW:

MARKET OVERVIEW

Oswego, IllinoisOswego is a village in Kendall County, Illinois. The village population, as of January 2017, is 32,901. Its population has more than doubled since the 2000 census count of 13,326. With that growth, Oswego is the largest municipality located completely within Kendall County.

Located about 50 miles west of Chicago at the confluence of Waubonsie Creek and the Fox River, Oswego was settled, at least in part, for its transportation potential. The first permanent settlers came to the area in 1833 and it was formally incorporated in 1852. It is a home rule community as defined by the Illinois Constitu-tion and as such is empowered to levy a property tax, at the rate it deems appropriate on all property located within its boundaries.

The Village is a regional shopping and dining destination as national retailers and restaurants have located there. Approximately 60% of all retail sales are from consumers who reside outside of Oswego. The Route 34 corridor is one of the largest commercial centers in the Fox Valley area now offering over 2.8 million square feet of commercial space. Anchor stores include Best Buy, Dick’s Sporting Goods, Hobby Lobby, The Home Depot, Kohl’s, Meijer, Target, Wal-Mart and Sears Home Appliance. Many well-known chain restaurants have also located within the shopping centers, such as LongHorn Steakhouse.

Oswego is known to some Chicago area residents for the town dragstrip, open from 1955 until 1979, where muscle cars were raced by drivers from all over the Midwest. The drag days are celebrated today even though the strip has been closed for decades.

As Oswego continues to grow, its location on two rail lines, three state highways, and two U.S. highways, along with its continuing economic development and growth, the village is experiencing a period of rapid economic and population growth. Oswego was ranked #58 on CNN/Money Magazine’s Top 100 Best Towns to live. CNN Money ranks these towns based on their job opportunities, schools, safety, economic strength, and other qualities. Strong economic development and renewed interest in residential & commercial building all point to the continued growth of the Village for years to come.

www.oswegoil.org


LongHorn SteakhouseLongHorn Steakhouse is known for fresh, boldly seasoned and expertly grilled steaks – like the signature bone-in Outlaw Ribeye® – all served in a relaxed, warm atmosphere inspired by a rancher’s home. Founded in 1981 in Atlanta, Georgia, the restaurant began with one man’s passion for perfect steak but had very few guests to convince. Then a freak snowstorm hit Atlanta in 1982, stranding motorists and drawing them to one of the only hospitable places available - a restaurant then called LongHorn Steaks Restaurant & Saloon. Tales of expertly grilled steaks soon spread like wildfire, and the legend of LongHorn was born.

By 1990, the restaurant had spread throughout the East, Midwest and Southwest United States and Puerto Rico. In 2007, the restaurant, now called LongHorn Steakhouse, was purchased by Darden Restaurants, Inc. (NYSE: DRI). Today, LongHorn Steakhouse is headquartered in Orlando, Florida and has more than 480 restaurants across 40 states.

Website: www.longhornsteakhouse.comNumber of Locations: 480+Founded: 1981Headquarters: Orlando, FloridaParent Company: Darden Restaurants, Inc. (NYSE: DRI)

RARE Hospitality International, Inc.RARE Hospitality International, Inc. (RARE) is a wholly-owned subsidiary of Darden Restaurants, Inc. It owns and operates substantially all of Darden’s LongHorn Steakhouse and The Capital Grille restaurants, either directly, or through subsidiaries, including RARE Hospitality Management, Inc. (RHM), a wholly-owned subsidiary of RARE, and Capital Grille Holdings, Inc., a wholly-owned subsidiary of RHM. RARE has other direct and indirect subsidiaries that own and operate certain restaurants and were formed primarily for purposes of complying with state liquor licensing laws, for management of overhead and other corporate expenses.

Darden Restaurants, Inc. Darden Restaurants, Inc. (NYSE: DRI) is a premier full-service restaurant company featuring a portfolio of category-leading brands that include Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s and Yard House. Each of its brands enjoys industry-leading average unit volumes that together generate $6.8 billion in annual sales across more than 1,500 company-owned and operated locations. Headquartered in Orlando, Fla., Darden employs 150,000 team members who serve more than 320 million meals annually. Darden is investment grade rated with a Standard & Poor’s rating of BBB.

TENANT OVERVIEW

TENANT OVERVIEW:


666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

Randy [email protected]

Jimmy [email protected]

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Net Lease LongHorn Steakhouse For Sale