NNN Property For Sale

Randy Blankstein | President

847.562.0003

[email protected]

Jimmy Goodman |Partner

847.562.8500

[email protected]

www.bouldergroup.com

Burger King (Ground Lease)

630 Machesney Road

Machesney Park, IL 61115

(Rockford MSA)

Representative Rendering

NET LEASED INVESTMENT OFFERING


847.562.0003

[email protected]


847.562.8500

[email protected]


CONFIDENTIALITY & DISCLAIMER

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.

CONFIDENTIALITY & DISCLAIMER

NET LEASE OPPORTUNITY


847.562.0003

[email protected]


847.562.8500

[email protected]


BURGER KING (GROUND LEASE) - MACHESNEY PARK, IL (ROCKFORD MSA) 630 Machesney Road, Machesney Park, IL 61115

EXECUTIVE SUMMARY

BURGER KING (GROUND LEASE)

MACHESNEY PARK, IL (ROCKFORD MSA)

The Boulder Group is pleased to exclusively market for sale a single tenant Burger King ground lease located in the Rockford MSA. Rockford

is the third largest city in Illinois and the largest city outside of the Chicago MSA.. The 1.34 acre property is located at a signalized

intersection along Rockford’s primary north-south thoroughfare. The newly signed Burger King ground lease has over 19 years remaining and

features 10% rental escalations every five years. The franchisee has successfully operated at this location since 1986.

The property is located at the signalized intersection of North 2nd Street and Machesney Road. North 2nd Street is the primary north-south

thoroughfare in Rockford and experiences traffic counts in excess of 20,000 vehicles per day. There are over 110,000 people living within 5

miles of the Burger King. Retailers located in the immediate vicinity include Associated Bank, Big Lots, Bergner’s, Burlington Coat Factory,

CVS, O’Reilly Auto Parts, and Family Dollar.

Burger King’s ground lease is for twenty years and expires August 30, 2033. The lease features 10% rental escalations every five years

throughout the primary term of the lease. This Burger King is operated by a franchisee who has operated at this location since 1986 and also

operates other Burger King locations. Burger King operates 13,000 restaurants in 79 countries and employs over 34,000 people.



847.562.0003

[email protected]


847.562.8500

[email protected]


Price:

Cap Rate:

Average Cap Rate:

Type:

Building Size:

Site Size:

Year Built:

Lease Start Date:

Lease Expiration:

$880,000

6.25%

7.30%

Ground Lease

3,501 SF

1.34 Acres

1986

September 1, 2013

August 30, 2033

Rent Schedule:

Renewal Options:

Landlord Obligations:

$55,000

$60,500

$66,550

$73,205

None

None

9/1/2018

9/1/2023

9/1/2028

Representative Rendering

Escalation Date

PROPERTY OVERVIEW




5-MILE

110,804

44,448

$63,563

Population:

Total Households

Avg. Household Income:

1-MILE

9,576

3,649

$50,667

3-MILE

46,539

18,574

$56,697


847.562.0003

[email protected]


847.562.8500

[email protected]


PROPERTY HIGHLIGHTS

Long term ground lease with over 19 years remaining

10% rental escalations every five years

Newly signed lease with no landlord responsibilities

Rockford is the largest city in Illinois outside of the Chicago

MSA

Tenant has successfully operated at this location since 1986

Building was recently renovated

Located along the primary north-south thoroughfare in Rockford

Located at the corner of a signalized intersection that experiences

traffic counts in excess of 25,000 vehicles per day

Other retailers in the immediate vicinity include Associated Bank,

Big Lots, Bergner’s, Burlington Coat Factory, CVS, O’Reilly Auto

Parts, and Family Dollar

DEMOGRAPHICS





847.562.0003

[email protected]


847.562.8500

[email protected]


TENANT OVERVIEW

Burger King (NYSE: BKW) is a global chain of hamburger fast food restaurants. At the end of fiscal

year 2012, Burger King operated over 7,400 locations in the United States and over 12,900

locations worldwide. Burger King primarily sells hamburgers, cheeseburgers, chicken, french fries

and is famous for their signature menu item, the Whopper. Burger King offers customers counter

service as well as drive-thru service. As an effort to enhance cash flow and strengthen

relationships with key franchisees, Burger King is working towards a 100% franchised business

model. In 2012, Burger King refranchised 871 restaurants worldwide bringing their total to 97%

franchised.



Website: www.bk.com

Number of Locations: 12,997

Stock Symbol: BKW : NYSE

Market Capitalization: $6.8 billion



847.562.0003

[email protected]


847.562.8500

[email protected]


LOCATION OVERVIEW

Machesney Park is located in Winnebago County in the state of Illinois. The population at the

2010 census was 23,499. Machesney Park is located directly north of Rockford, Illinois. With the

addition of The Gateway, Machesney Park is becoming a major retail area for the surrounding

trade area. Machesney Park is within an hour’s drive of Chicago, Madison and Milwaukee and at

the crossroads of Interstates 90 & 39, Illinois State Highway 173 and US Highway 20.

Rockford is the third largest city in Illinois and is the primary city in the Rockford MSA. At the time

of the 2010 census Rockford had a population of 152,871 and the metropolitan area had a

population of 339,178. The largest employers in the MSA include the Rockford Public School

District, Rockford Health System, Swedish American Hospital, Wal-Mart Stores, OSF Saint

Anthony Medical Center, Hamilton Sundstrand and Chrysler.



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