SHERWIN WILLIAMS OFFERING MEMORANDUM - 5338 159th St. Oak Forest, IL
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
SHERWIN WILLIAMS
OFFERING MEMORANDUM
5338 159th St. Oak Forest, IL
Click Here for
Property Video
™
EXCLUSIVELY LISTED BY Michael Moreno Aron Cline Rahul Chhajed Broker of Record Senior Associate SVP & Senior Director Senior Associate Kyle Matthews michael.moreno@matthews.com aron.cline@matthews.com rahul.chhajed@matthews.com LIC # 471.019766 (IL) DIR (949) 432-4511 DIR (949) 432-4509 DIR (949) 432-4513 MOB (818) 522-4497 MOB (818) 632-0233 MOB (818) 434-1106 LIC # 01982943 LIC # 01904371 (CA) LIC # 01986299 (CA)
EXECUTIVE OVERVIEW
INVESTMENT HIGHLIGHTS
PROPERTY DETAILS
• Brand New High Quality Construction – Build-To-Suit Sherwin-Williams building opened its doors for business in 2018
• Inflation Protected Lease Structure – Attractive 10% Rental Increases Every Five Years provides investors with a very strong
hedge against future inflation
• Extremely Passive Investment – Minimal Landlord Responsibilities – Roof & Structure are sole Landlord Responsibilities
• Ideal Sherwin-Williams Building – Property is directly in line with tenant’s latest prototypical building
• Perfect 1031 Exchange Property – This net leased property provides a future landlord a brand-new investment with 10%
rental increases every 5 years, leased to one of the strongest tenants in the entire retail industry
LOCATION
• High Density Market – Population within a 5-mile radius of the property exceeds 230,000
• Strong Consumer Demographics – Average resident income within a 1-mile radius is greater than $84,000
• Excellent Street Visibility – The property is strategically located off the intersection of Central Ave and 159th St, which
features over 38,000 vehicles in Average Daily Traffic
• Highly Visited Location – Sherwin-Williams is located in a retail corridor with a national tenant lineup that features The Home
Depot, Menards, Walmart, Target, Lowe’s, Jewel-Osco, McDonald’s, Fresenius Medical Care, Jiffy Lube, Walgreens, Circle K,
Dunkin’ Donuts, Starbucks, and CVS amongst many others
TENANT
• Investment Grade Credit Tenant – Sherwin-Williams is a Fortune 200 company with a market cap of $38.52 Billion
• High Growth Tenant – Sherwin-Williams is continuing to expand their national and international footprint, especially with the
recent acquisition of Valspar Paint
• Market Leader – Sherwin-Williams is the global leader in the paints and coating industry
| 3
4 |
FINANCIAL OVERVIEW
FINANCIAL OVERVIEW
ANNUALIZED OPERATING DATA
Lease Commence Monthly Rent Annual Rent Rent PSF CAP
LIST PRICE CAP RATE TERM REMAINING Base Term - 2018-2023 $8,750.00 $105,000.00 $30.00 5.70%
Base Term - 2023-2028 $9,625.00 $115,500.00 $33.00 6.27%
$1,842,105 5.70% ±9.75 Years
Option 1 - 2028-2033 $10,587.50 $127,050.00 $36.30 6.90%
Option 2 - 2033-2038 $11,646.25 $139,755.00 $39.93 7.59%
TENANT SUMMARY
The Sherwin Williams
Tenant Trade Name
Company
Type of Ownership Fee Simple
EXECUTIVE SUMMARY
Lease Guarantor Corporate
Lease Type NN Property Name Sherwin Williams
Roof & Structure Landlord Responsible 5338 159th Street
Address
Oak Forest, IL 60452
Original Lease Term 10 Years
Year Built 2018
Rent Commencement Date 2/23/2018
GLA ±3,500 SF
Lease Expiration Date 2/29/2028
Lot Size ±0.77 AC
Term Remaining ±9.75 Years
Increases 10% Every 5 Years
Options Two, 5-Year Options
| 5
6 |
TENANT OVERVIEW
SHERWIN WILLIAMS
Sherwin-Williams is one of the top paint manufacturers in the
US and worldwide, along with Akzo-Nobel, PPG Industries, and
Henkel. The company’s products include a variety of paints,
finishes, coatings, applicators, and varnishes sold under brands
such as Dutch Boy, Krylon, Sherwin-Williams, Thompson’s
WaterSeal, Ronseal, Sayerlack, and Minwax. Additionally, it sells
automotive finishing and refinishing products through wholesale
branches worldwide. Other outlets include mass merchandisers,
home centers, independent dealers and automotive retailers.
PARENT COMPANY
STRATEGY TRADE NAME
Sherwin-Williams focuses on enhancing its operations and The Sherwin
growing market share. As part of its strategy, Sherwin-Williams Williams Company
invests more than $100 million per year in research, development,
and commercialization of new product technologies. Acquisitions NO. OF LOCATIONS
are also key to the company’s strategy for growth, such as that of
the pending acquisition of rival Valspar, as well as for the addition ±4,340
of new technologies.
OPERATIONS NO. OF EMPLOYEES
Sherwin-Williams has expanded its operating segments from
three to four because of growth in sales, geographic reach, and ±40,706
product lines. It added a Latin American Coatings Group to its
Paint Stores Group, Global Finishes Group, and Consumer Group
HEADQUARTERED
segments. Subsidiaries of the company include Comex North
America, Inc., Contract Transportation Systems Co, Oy Sherwin-
Cleveland, Ohio
Williams Finland Ab, Sherwin-Williams Bel, Sherwin-Williams
(Belize) Limited, and Sherwin-Williams France Finishes SAS.
YEAR FOUNDED
GEOGRAPHIC REACH
With a customer base in more than 100 countries, Sherwin- 1866
Williams has operations in the Asia/Pacific, Canada, Caribbean,
Europe, and the Americas.
| 7
PARCEL MAP
159TH STREET ±38,000 VPD
8 |
SURROUNDING AREA
159TH STREET
±38,000 VPD
| 9
AREA OVERVIEW
CHICAGOLAND
Situated on the southwestern shore of Lake Michigan, the City of Chicago covers an area of 234 square miles.
Chicagoland is an informal name for the metropolitan area associated with the city of Chicago and its suburbs. The
region is often considered to include areas beyond its corresponding MSA, as well as portions of the greater CSA.
Chicago has one of the world’s largest and most diversified economies, with more than four million employees and
generating an annual gross regional product (GRP) of over $575 billion, which is more than countries like Sweden and
Norway. Having been listed as an alpha global city by the Global Cities Index, it is a key player in every sector from risk
management, innovation and information technology to manufacturing and health services.
Over $575 billion 2,695,598 Over 40 Million
Gross regional product Residents annual visitors
(GRP)ECONOMY H I G H ER ED UCATION
The city is an efficient economic powerhouse, home to more than 400 major Chicago has been a world center of higher education and research with
corporate headquarters, including 31 in the Fortune 500. Boeing, United several universities inside its city limits. Most notably, Northwestern University
Continental Holdings, Inc., Exelon Corporation, R. R. Donnelley & Sons Company, and the University of Chicago are two top universities that call the city home.
and Archer Daniels Midland are just a few of the Fortune 500 companies based
in the area. Motorola Solutions, Inc. intends to move their headquarters from Northwestern University is a large, private research university based in
Schaumburg, IL to Chicago in the coming future. McDonald’s has become the Evanston with a comprehensive doctoral program. Attracting over $650
latest Fortune 500 company to establish its presence in Chicago as it is preparing million in sponsored research each year, Northwestern has the eighth largest
to move its headquarters from Oak Brook, IL to the windy city by early 2018. university endowment in the country.
As a multicultural city that thrives on the harmony and diversity of its neighborhoods, The University of Chicago is one of the world’s leading and most influential
Chicago embodies the values of America’s heartland integrity. It is this level institutions of higher learning. Its main campus is located seven miles south
of diversification that has resulted in Chicago being rated as having the most of downtown Chicago in the Hyde Park and Woodlawn neighborhoods.
balanced economy in the United States. Additionally, its central location allows The University of Chicago has many prominent alumni, including 92 Nobel
Chicago to be at the center of global trade, transit and data networks. laureates that have been affiliated with the university as professors, students,
faculty or staff.G E TTING AROU N D
O’HARE INTERNATIONAL CHICAGO TRANSIT
AIRPORT AUTHORITY
Chicago O’Hare International Airport is The Chicago Transit Authority (CTA)
located on the far northwest side of the operates an extensive network of buses
city, about 17 miles northwest of the Loop. and the “L” rapid transit system, which
It is the primary airport of the Chicago provide service to Chicago and forty
metropolitan area. As the fourth-busiest surrounding suburbs. On an average
airport in the world by passenger traffic, weekday, CTA offers 1.7 million rides on
O’Hare is a major hub for American buses and trains. As one of the city’s
Airlines, United Airlines and Air Choice distinguishing features, the “L” has been
One. With eight runways, more than any credited with fostering the growth of
major international airport, O’Hare has Chicago’s dense city core.
direct service to 210 destinations.
MIDWAY INTERNATIONAL METRA
AIRPORT
Eight miles from the Loop on the Metra is the second-most used passenger
southwest side of Chicago, Chicago regional rail network in the country, which
Midway International Airport is the operates 241 station on 11 different rail
second-largest passenger airport in lines. This commuter railroad services
Chicagoland. Southwest Airlines is the passengers through stations throughout
dominant carrier at Midway, offering the Chicago metropolitan area. Metra’s
around 250 daily departures to sixty Electric Line shares its trackage with
nonstop destinations. Passengers enjoy Northern Indiana Commuter
easy access to downtown thanks to the Transportation District’s South Shore
services provided by the CTA. Line, which provides commuter service
between South Bend and Chicago.
12 |POINTS OF I N T E R E ST
N AV Y PI ER
Navy Pier is Chicago’s lakefront treasure on the shoreline of Lake
Michigan. The pier encompasses more than fifty acres of parks, gardens,
shops, restaurants, family attractions and exhibition facilities. Drawing
nearly nine million visitors annually, Navy Pier is one of the most visited
attractions in the entire Midwest.
MAGNI F I CEN T MI LE W I L L I S TOW ER J OHN HA NCOCK CE NTE R
Adjacent to downtown and one block east of Rush Street, the Magnificent Mile Still commonly referred to as Sears Tower, The John Hancock Center is currently the eighth-
is an upscale section of Chicago’s Michigan Avenue, which runs from the the Willis Tower is the second-tallest building tallest building in the country. Equipped with a
Chicago River to Oak Street in the Near North Side. Several of the tallest in the United States. This bustling community restaurant and lounge on the 95th floor, the
buildings in the country lie in this district, such as the John Hancock Center and of business, tourism and culture offers Observatory (360 Chicago), and America’s
the Trump International Hotel and Tower. Serving as the main thoroughfare breathtaking views of the city from its highest indoor swimming pool, the John
between Chicago’s Loop business district and Gold Coast, the Magnificent Skydeck. Visitors can experience the Ledge, Hancock Center appeals to residents and
Mile contains a mixture of high-end department stores, restaurants, luxury all-glass balconies that allow visitors to look tourists alike. From the restaurant, diners can
retailers, residential and commercial buildings, financial services companies through the glass floor to the street 1,353 take in views of the city.
and hotels, primarily catering to tourists and the affluent. feet below.
| 13OA K FOREST, I L The suburban city of Oak Forest sits approximately 24 miles southeast of Chicago. Oak Forest is very conveniently located with easy access to Interstates 57, 80, and 294. Oak Forest is surrounded by the Cook County Nature Preserves, which create a beautiful landscape for residents and visitors to enjoy. The Nature Preserves are one of the most popular attractions in the area, spanning approximately 640 acres. Over 20 miles of recreational trails connect the nature preserves. Another popular attraction is the Chicago Gaelic Park, one of the nation’s largest Irish Cultural Centers. The park sits on 50 acres of land and holds events year-round. The George Dunne National Golf Course in Oak Forest was recognized by Golf Digest as the best public golf course in the region. With average median household income and estimated median home values well above the state and national averages, Oak Forest has a thriving economy. The largest industries in Oak Forest are healthcare, manufacturing, and education. The unemployment rate in Oak Forest is also well below the national average, and the city has seen promising recent job growth. Future job growth in the area is projected to be 36.89% over the next 10 years. Known for its family-friendliness and top-notch public schools, Oak Forest is a great place to raise a family. Crime rates in the city are well below the national average, and it is ranked amongst the suburbs with the lowest cost of living in Illinois. Oak Forest is also a great place for young people, being ranked on the list of Best Suburbs for Millennials in the state in 2018. The city has great nightlife, with plenty of taverns, bars, and fun restaurants throughout the area. 14 |
MEDI A N H O U SE H O L D IN CO M E UN EM PLOYM E NT R ATE
Oak Forest: $84,3 4 6 Oak Forest: 4.5%
Illinois Average: $ 6 0 ,9 6 0 Illinois Average: 5.1%
National Average: $ 6 5 ,4 4 3 National Average: 5.2%
REAL E STAT E I N OA K FO RES T A REA DE M OG R A PHICS
POPULATION 1-Mile 3-Mile 5-Mile
Median home value in Oak
Forest is $192,9 4 2 , well 2018 Estimate 10,712 81,893 230,247
above Illinois and National HOUSEHOLDS 1-Mile 3-Mile 5-Mile
averages. 2018 Estimate 4,171 31,242 85,628
INCOME 1-Mile 3-Mile 5-Mile
Average Household
$87,341 $85,073 $85,661
Income 2018
| 15C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T
This Of f er ing Me m o r a n du m co n t a i n s s e l e ct i nform ati on pertai ni ng to the busi ness and affai rs of Sherwin Williams located at 5338 159th St Oak Forest, IL
60452 ( “ P r o p er t y”) . It h a s be e n p r e p a r e d by Matthews Retai l Advi sors. Thi s O fferi ng Mem orandu m may n ot b e all-in clu s ive or con t ain all of t h e
inf orma t io n a p r o s p e ct i v e p u r ch a s e r m a y de si re. The i nform ati on c ontai ned i n thi s O fferi ng Mem oran d u m is con fid en t ial an d fu rn is h ed s olely for t h e
p urp o se o f a r ev ie w by a p r o s p e ct i v e p u r ch aser of the Property. It i s not to be used for any othe r pu rpos e or mad e availab le t o an y ot h er pers on
with o ut t he w r it t e n co n s e n t o f S e l l e r o r M a t t hews Retai l Advi sors. The m ateri al i s based i n part upon in format ion s u pplied b y t h e Seller an d in part
upon f ina nc ia l info r m a t i o n o bt a i n e d f r o m s ourc es i t deem s rel i abl e. O wner, nor thei r offi c ers, employees , or agen t s makes an y repres en t at ion or
warra nt y, ex p r e s s o r i m p l i e d, a s t o t h e a ccu r ac y or c om pl eteness of thi s O fferi ng Mem orandum or a n y of it s con t en t s an d n o legal liab ilit y is as s u med
o r sh a ll b e imp lied w i t h r e s p e ct t h e r e t o. P r o s pec ti ve purc hasers shoul d m ake thei r own proj ec ti ons an d form t h eir own con clu s ion s wit h ou t relian ce
upon t he ma t er ia l co n t a i n e d h e r e i n a n d co n d uc t thei r own due di l i genc e.
By a c kno w le d g ing y o u r r e ce i p t o f t h i s O f f e r ing Mem orandum for the Property, you agree:
1. T he Of f er in g M e m o r a n du m a n d i t s co ntents are c onfi denti al ;
2. Yo u w ill hol d i t a n d t r e a t i t i n t h e s t r i c test of c onfi denc e; and
3. Yo u w ill no t , di r e ct l y o r i n di r e ct l y, di sc l ose or perm i t anyone el se to di sc l ose thi s O fferi n g M emoran d u m or it s con t en t s in an y fas h ion or
ma nner d e t r i m e n t a l t o t h e i n t e r e s t o f the Sel l er.
Owne r a nd Ma t t he w s Re t a i l A dv i s o r s e x p r e s sl y reserve the ri ght, at thei r sol e di sc reti on, to rej ect an y an d all expres s ion s of in t eres t or offers t o
p urc ha s e t he P r o p e r t y a n d t o t e r m i n a t e di s c ussi ons wi th any person or enti ty revi ewi ng thi s O fferin g M emoran d u m or makin g an offer t o pu rch as e
th e P r o p er t y unle s s a n d u n t i l a w r i t t e n a g r e e m ent for the purc hase and sal e of the Property has been fu lly execu t ed an d d elivered .
If y ou w ish no t t o p u r s u e n e g o t i a t i o n s l e a di n g to the ac qui si ti on of the Property or i n the future you d is con t in u e s u ch n egot iat ion s , t h en you agree
to p ur g e a ll ma t e r i a l s r e l a t i n g t o t h i s P r o p e rty i nc l udi ng thi s O fferi ng Mem orandum .
A p r o s p ec t iv e p ur ch a s e r ’s s o l e a n d e xcl u s i v e ri ghts wi th respec t to thi s prospec ti ve transac ti on, th e Propert y, or in format ion provid ed h erein or in
con ne c t io n w it h t h e s a l e o f t h e P r o p e r t y s h a ll be l i m i ted to those expressl y provi ded i n an exec uted Pu rch as e Agreemen t an d s h all b e s u b ject t o t h e
terms t he r eo f. I n n o e v e n t s h a l l a p r o s p e ct i ve purc haser have any other c l ai m s agai nst Sel l er or M at t h ews Ret ail Ad vis ors or an y of t h eir affiliat es
o r any o f t heir r es p e ct i v e o f f i ce r s , Di r e ct o r s , sharehol ders, owners, em pl oyees, or agents for any d amages , liab ilit y, or cau s es of act ion relat in g t o
th is so lic it a t io n p ro ce s s o r t h e m a r ke t i n g o r sal e of the Property.
This Of f e r ing Me m o r a n du m s h a l l n o t be de e m ed to represent the state of affai rs of the Property or con s t it u t e an in d icat ion t h at t h ere h as b een n o
ch ang e in t he s t a t e o f a f f a i r s o f t h e P r o p e r t y si nc e the date thi s O fferi ng Mem orandum .SHERWIN WILLIAMS 5338 159th St. Oak Forest, IL OFFERING MEMORANDUM EXCLUSIVELY LISTED BY Michael Moreno Aron Cline Rahul Chhajed Broker of Record Senior Associate SVP & Senior Director Senior Associate Kyle Matthews michael.moreno@matthews.com aron.cline@matthews.com rahul.chhajed@matthews.com LIC # 471.019766 (IL) DIR (949) 432-4511 DIR (949) 432-4509 DIR (949) 432-4513 ™ MOB (818) 522-4497 MOB (818) 632-0233 MOB (818) 434-1106 LIC # 01982943 LIC # 01904371 (CA) LIC # 01986299 (CA)
You can also read
