POPEYES LOUISIANA KITCHEN | 14 YR. ABSOLUTE NNN - OFFERING MEMORANDUM 1127 WEST LINCOLN HIGHWAY, DEKALB (CHICAGO MSA), IL 60115 - LOOPNET
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OFFERING MEMORANDUM
1127 West Lincoln Highway, DeKalb (Chicago MSA), IL 60115
ACTUAL SITE
Popeyes Louisiana Kitchen | 14 Yr. Absolute NNN
BRAND NEW CONSTRUCTION – WITHIN NORTHERN ILLINOIS UNIVERSITY CAMPUS AREA
CONFIDENTIALITY AGREEMENT
The information contained in the following offering memorandum is
NET LEASED DISCLAIMER proprietary and strictly confidential. It is intended to be reviewed only
by the party receiving it from Marcus & Millichap and it should not be
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: made available to any other person or entity without the written consent
The information contained in this Marketing Brochure has been obtained from sources we believe of Marcus & Millichap. By taking possession of and reviewing the infor-
to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor mation contained herein the recipient agrees to hold and treat all such
has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap information in the strictest confidence. The recipient further agrees that
makes no guarantee, warranty or representation whatsoever about the accuracy or completeness recipient will not photocopy or duplicate any part of the offering mem-
of any information provided. As the Buyer of a net leased property, it is the Buyer's responsibility orandum. If you have no interest in the subject property at this time,
to independently confirm the accuracy and completeness of all material information before com- please return this offering memorandum to Marcus & Millichap.
pleting any purchase. This Marketing Brochure is not a substitute for your thorough due diligence
investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation This offering memorandum has been prepared to provide summary,
to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, unverified financial and physical information to prospective purchas-
assumptions or estimates used in this Marketing Brochure are for example only and do not rep- ers, and to establish only a preliminary level of interest in the subject
resent the current or future performance of this property. The value of a net leased property to property. The information contained herein is not a substitute for a
you depends on factors that should be evaluated by you and your tax, financial and legal advisors. thorough due diligence investigation. Marcus & Millichap has not made
any investigation, and makes no warranty or representation with respect
Buyer and Buyer's tax, financial, legal, and construction advisors should conduct a careful, in- to the income or expenses for the subject property, the future projected
dependent investigation of any net leased property to determine to your satisfaction with the financial performance of the property, the size and square footage of the
suitability of the property for your needs.Like all real estate investments, this investment carries property and improvements, the presence or absence of contaminating
significant risks. Buyer and Buyer's legal and financial advisors must request and carefully review substances, PCBs or asbestos, the compliance with local, state and federal
all legal and financial documents related to the property and tenant. While the tenant's past per- regulations, the physical condition of the improvements thereon, or the
formance at this or other locations is an important consideration, it is not a guarantee of future financial condition or business prospects of any tenant, or any tenant's
success. Similarly, the lease rate for some properties, including newly-constructed facilities or plans or intentions to continue its occupancy of the subject property. The
newly-acquired locations, may be set based on a tenant's projected sales with little or no record information contained in this offering memorandum has been obtained
of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant from sources we believe to be reliable; however, Marcus & Millichap has
and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with not verified, and will not verify, any of the information contained herein,
other material terms of the lease; cash flow may be interrupted in part or in whole due to market, nor has Marcus & Millichap conducted any investigation regarding these
economic, environmental or other conditions. Regardless of tenant history and lease guarantees, matters and makes no warranty or representation whatsoever regarding
Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic the accuracy or completeness of the information provided. All potential
value of the property and the value of any long-term lease, including the likelihood of locating a buyers must take appropriate measures to verify all of the information
replacement tenant if the current tenant should default or abandon the property, and the lease set forth herein. Prospective buyers shall be responsible for their costs
terms that Buyer may be able to negotiate with a potential replacement tenant considering the and expenses of investigating the subject property.
location of the property, and Buyer's legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Invest- All property showings are by appointment only.
ment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of Please consult your Marcus & Millichap agent for more details.
your investigation and/or purchase of this net leased property.
EXCLUSIVELY LISTED BY Andrew Kim A & I Investments Senior Member National Retail Group CA BRE License #01947008 213.943.1894 direct 213.943.1800 main andrew.kim@marcusmillichap.com Marcus & Millichap 515 S. Flower Street Suite 500 Los Angeles, CA 91106 213.943.1800 213.943.1810 fax marcusmillichap.com Activity ID:
Student Housing
Subject
Property Proposed
Development
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 inform
footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate In
Executive Summary
INVESTMENT HIGHLIGHTS
» Brand New 2016 Construction - Featuring an Absolute
Net Lease with 10% Rental Increases Every 5 Years
throughout the Initial Term and Options
» Features Easy Access and Excellent Visibility
Along West Lincoln Highway 14 Year Absolute NNN
» Excellent Signage and Daily Traffic Counts in
Excess of 23,200+ Vehicles The subject property is a brand new 2016 construction
2,695-square foot Popeyes Louisiana Kitchen located in
» 60 Miles West from Downtown Chicago and 35 Miles DeKalb (Chicago MSA), Illinois. Popeyes signed a fifteen
Southeast of Rockford, Illinois – the Next Nearest year absolute net lease (zero landlord responsibilities)
Popeyes Location is 28 Miles East in the Neighboring featuring ten percent (10%) rental increases every five years
Aurora City throughout the initial term and three 5-year option periods.
» Excellent Centralized Location – Within Northern
Illinois University Campus Area (Over 20,130 Students) DeKalb Chicken, LLC is a franchisee of Popeyes, a long-
standing American Multinational Chain of Fried Chicken
» Within a Strong Retail Trade Corridor – Surrounded by Fast Food Quick-Service Restaurants Founded in 1972 with
Numerous National Major Retailers Including a Distinguished "New Orleans" Style Menu and flavorful
Starbucks, Chipotle, Burger King, McDonald's, CVS,
authentic food. The lease is guaranteed by five stores and
Taco Bell, Dunkin' Donuts, and Many More
holds two personal guarantees by experienced operators
» Surrounded by Residential Neighborhoods/Student with more than 100 Popeyes Louisiana Kitchen Restaurants.
Housing Facilities – Near Numerous Attractions and
Amenities
» Numerous Schools within a 5-Mile Radius
» Strong Population Growth – 15% Increase Since 2000
5
mation. References to square
nvestment Services, Inc. ©
Financial Analysis
SITE DESCRIPTION PRICE: $2,000,000
Property Address: 1127 West Lincoln Highway
CAP RATE: 5.50%
DeKalb, IL NOI: $110,000
Gross Leasable Area: 2,695 SF PRICE/SF: $742.12
Year Built: 2016
Lot Size: ± 0.76 Acres
ANNUALIZED OPERATING DATA
Lease Term: Annual Rent
LEASE SUMMARY Current - 10/31/2021: $110,000
Tenant Trade Name: Popeyes 11/1/2021 - 10/31/2026: (10% Increase) $121,000
Initial Lease Term: 15 Years 11/1/2026 - 10/31/2031: (10% Increase) $133,100
Guarantors: 7 (2 Personal*; 5 Stores) Options 1 - 3 (5 Years Each): 10% Increase at Each Option
Lease Type: Absolute Net Base Rent: $110,000
Roof & Structure Responsibility: Tenant Responsible
TENANT SUMMARY
Rent Commencement Date: October 20, 2016
Expiration Date: October 31, 2031 Tenant: DeKalb Chicken, LLC
Renewal Options: Three 5-Year Ownership: Private (Franchise)
Increases: 10% Increase Every 5 Years Headquarters: DeKalb, IL
*The two personal guarantees will be released effective
10/31/2018.
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. © 2017 Marcus & Millichap Activity ID: Y014XXXX
Company Overview
SUMMARY
Popeyes Louisiana Kitchen - DeKalb Chicken, LLC is a
Tenant Trade Name: Popeyes franchisee of Popeyes. The owners are experienced operators
with more than 100 Popeyes Louisiana Kitchen Restaurants
across twelve states and is looking to get into Arby's franchises.
Ownership: Public
The Popeyes brand was founded in New Orleans, Louisiana
Annual Revenue: $259 Million in 1972 and is the world's second largest quick-service chicken
Market Cap as of 10/21/2016: 1.11 Billion concept (based on the number of units). Within the QSR
Ticker Symbol: PLKI industry, Popeyes distinguishes itself with a unique "New
Orleans" style menu that features spicy chicken, chicken
Number of Locations: 2,379+
tenders, fried shrimp and other seafood, as well as jambalaya,
Headquarters: Atlanta, GA Red Beans and Rice and other regional items. Popeyes is a
Website: www.popeyes.com highly differentiated QSR brand with a passion for its Louisiana
heritage and flavorful authentic food. Popeyes serves food
the world craves and is continuing to expand its global reach.
The Company operates and franchises over 2,379+ Popeyes
restaurants worldwide. Of the 1,600 domestic franchised
restaurants, approximately 70% are concentrated in Texas,
California, Louisiana, Florida, Illinois, Maryland, New York,
Georgia, Virginia and Mississippi. Of the nearly 400 international
franchised restaurants, approximately 55% are located in Korea,
Canada and Turkey. More than 90% of the company-operated
restaurants are concentrated in Louisiana and Tennessee.
7
Location Overview
Located along West Lincoln Highway, the site features easy Center, Market Place Theatre, Egyptian Theatre, hotels,
access and excellent visibility to daily traffic counts in excess DeKalb Taylor Municipal Airport, and more. The population
of 23,200+ vehicles. The site is a short distance from the I-88 has increased 15% since 2000 demonstrating a strong
(28,000+ vehicles per day). The site is in an excellent centralized population growth.
location adjacent to Northern Illinois University featuring
over 20,130+ students. The site is less than a mile from Husky DeKalb is a city in DeKalb County, Illinois, and is part of
Stadium, a 24,000-seating capacity stadium home to Northern the Chicago-Naperville-Elgin metropolitan statistical area.
Illinois' NCAA football games, soccer, cross country and DeKalb offers a unique blend of offerings from events offered
numerous other events. The site is within a strong retail trade from Northern Illinois University (NIU), which is a huge part
corridor surrounded by numerous national major retailers of the community, to local historical and cultural activities to
including Starbucks, Chipotle, Burger King, McDonald's, CVS, local hidden treasures. DeKalb has a collegiate, leisure and
Taco Bell, Dunkin' Donuts (adjacent to the west), and many business atmosphere and is a City rich in history and full
more. The site is surrounded by numerous regional stores, of opportunities. Events such as Corn Fest (50,000 visitors
restaurants, retailers, pubs and more providing additional during the last weekend of August alone), Kite Fest, band
foot traffic into the area. The site is surrounded by residential concerts and numerous events at the 10,000 seat premier
neighborhoods and student housing facilities including multiple multipurpose venue, the NIU Convocation Center. The boom
apartment complexes and dorms. The site is near numerous of new retailers and restaurants offers shopping and dining
attractions and amenities including Prairie Park, Lions Park, River for almost any taste, and the heart of Route 23 is home to the
Heights Golf Course, Ellwood House Museum, NIU Convocation county's modern health care corridor.
8
Low Aerial
Holmes Student Center Catering
Burger McDonald's
King
Subject
Property
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 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 Marcus & Millichap Real Estate Investment Services, Inc. ©
2016 Marcus & Millichap. All rights reserved.Retail Map
Aerial
7600 Reseda Boulevard
Subject Property
Target Upstream Distribution Center
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 to squa
footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. ©
2016 Marcus & Millichap. All rights reserved.Regional Map
Subject Property
11Demographics
1 Mile 3 Miles 5 Miles
2000 Population 1,063 9,266 37,582
2014 Population 16,961 44,019 55,244
2019 Population 17,600 46,144 58,396
2000 Households 423 3,120 13,085
2014 Households 4,715 15,594 19,967
2019 Households 4,953 16,515 21,290
2014 Daytime Population 2,848 7,465 30,292
2014 Median Household Income $30,264 $38,037 $42,783
2014 Average Household Income $45,175 $55,093 $59,048
12SUMMARY – 5 MILE RADIUS
POPULATION HOUSEHOLDS INCOME
In 2014, the population in your selected geography is There are currently 19,966 households in your In 2014, the median household income for your
55,243. The population has changed by 14.95% since selected geography. The number of households has selected geography is $42,782. The median
2000. It is estimated that the population in your area changed by 19.16% since 2000. It is estimated that household income for your area has changed by
will be 58,395 five years from now, which represents the number of households in your area will be 21,290 12.51% since 2000. It is estimated that the median
a change of 5.70% from the current year. The current five years from now, which represents a change of household income in your area will be $52,081 five
population is 49.83% male and 50.16% female. The 6.62% from the current year. The average household years from now, which represents a change of
median age of the population in your area is 24.6, size in your area is 2.45 persons. 21.73% from the current year. The current year per
compare this to the Entire US average which is 37.3. capita income in your area is $22,848. The current
The population density in your area is 702.02 people year average household income in your area is
per square mile. $59,047.
RACE AND ETHNICITY HOUSING EMPLOYMENT
The current year racial makeup of your selected In 2000, there were 7,769 owner occupied housing In 2014, there are 30,292 employees in your selected
area is as follows: 75.79% White, 11.98% Black, 0.05% units in your area and there were 8,985 renter area, this is also known as the daytime population.
Native American and 3.99% Asian/Pacific Islander. occupied housing units in your area. The median The 2000 Census revealed that 63.08% of employees
Compare these to Entire US averages which are: rent at the time was $507. are employed in white-collar occupations in this
71.60% White, 12.70% Black, 0.18% Native American geography, and 36.99% are employed in blue-collar
and 5.02% Asian/Pacific Islander. People of Hispanic occupations. In 2014, unemployment in this area is
origin are counted independently of race. People of 9.54%. In 2000, the average time traveled to work
Hispanic origin make up 12.68% of the current year was 23.9 minutes.
population in your selected area. Compare this to
the Entire US average of 17.13%.
Demographic data © 2012 by Experian. 13EXCLUSIVELY LISTED BY
Popeyes Louisiana Kitchen Andrew Kim
BRAND NEW CONSTRUCTION – WITHIN NORTHERN ILLINOIS UNIVERSITY CAMPUS AREA A & I Investments
Senior Member
National Retail Group
CA BRE License #01947008
213.943.1894 direct
213.943.1800 main
andrew.kim@marcusmillichap.com
Marcus & Millichap
515 S. Flower Street
Suite 500
Los Angeles, CA 91106
213.943.1800
213.943.1810 fax
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