TERRACE HILL GOLF COURSE - Offering Memorandum - LoopNet

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TERRACE HILL GOLF COURSE - Offering Memorandum - LoopNet
Offering Memorandum

TERRACE HILL GOLF COURSE
 4015 W Algonquin Rd • Algonquin, IL 60102
TERRACE HILL GOLF COURSE - Offering Memorandum - LoopNet
NON-ENDORSEMENT AND DISCLAIMER NOTICE

                           Non-Endorsements
                           Marcus & 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 or name 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.

                           Disclaimer
                           This information has been secured from sources we believe to be reliable, but we make no representations or
                           warranties, express 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 service
                           mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

TERRACE HILL GOLF COURSE
Algonquin, IL
ACT ID Y0670295
TERRACE HILL GOLF COURSE - Offering Memorandum - LoopNet
TERRACE HILL GOLF COURSE

    INVESTMENT
    OVERVIEW

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TERRACE HILL GOLF COURSE - Offering Memorandum - LoopNet
TERRACE HILL GOLF COURSE

                                                                                                                          PROPERTY OVERVIEW
PROPERTY OVERVIEW

Marcus & Millichap is pleased to present for sale the Terrace Hill Golf Course on 138.35 acres and contiguous 6 improved single-family lots on 2.63
acres in the Village of Algonquin, IL. The 6 improved single-family lots range in size from 18,722 to 18,900 square feet.

These residential development parcels are surrounded by fully developed single-family home subdivisions. There is strong market demand to
redevelop the golf course into a prime residential subdivision. In the alternative, you can buy and hold onto the golf course and reap the future
upside in land value while selling the improved single-family lots today to lower your cost basis.

The Charles Maddox designed 18-hole 6,600-yard par 72 course was established in 1985. The course is very active with over 15,000 rounds
played in 2016 and it operates at a profit.

The location enjoys proximity to the Randall Road Entertainment & Shopping Corridor, downtown Algonquin and recreation along the Fox River.
Within a 15-minute drive, there is over 3.2 million gross leasable square feet of retail and within a 25-minute drive, there is over 17,000 businesses
that employ over 228,000 people. Demographics are excellent with an average household income of over $125,500 within 1 mile of the property.

The parcels are annexed zoned R1-E in the Village of Algonquin, allowing for 18,000 square foot minimum single-family lots. Algonquin’s future
land use plan designates the site as “Open Space”, undoubtedly due to the current land use. However, the designation surrounding the property is
“Low Density Suburban Residential 2 D.U./Acre”. The Village staff is supportive of subdividing the parcels thru a Planned Development with
smaller, clustered single-family lots while achieving an overall density of up to 2 D.U./acre. Public utilities are at the parcels. The property has
approximately 17 acres located in a floodplain.

                                                                              PROPERTY OVERVIEW

                                                                                All utilities to site
                                                                                Rolling Topography
                                                                                First & Second Move-Up Home Market
                                                                                Excellent Schools
                                                                                Progressive Community
                                                                                Signalized ingress and egress
                                                                                No significant off-site improvements
                                                                                Near major employment
                                                                                Near major commercial & entertainment

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TERRACE HILL GOLF COURSE - Offering Memorandum - LoopNet
TERRACE HILL GOLF COURSE

                                                                                                          FINANCIAL ANAYLSIS

PRICE
Total price                                                                              $3,500,000

Total number of acres, golf course & 6 improved single-family lots                               140.98
                                                                      All utilities to site
Price per acre                                                                       $24,831.50
                                                                      Rolling Topography
                                                                      Luxury Hoe Market
                                                                      Excellent Schools
PRICE ANALYSIS                                                        Progressive Community

Total price                                                                              $3,500,000

Market value of 6 single-family lots on 2.62 acres                                             $360,000

Residual value for the golf course                                                       $3,140,000

Golf course number of acres                                                                      138.36

Residual value for the golf course on a per acre basis                                   $22,694.42

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TERRACE HILL GOLF COURSE - Offering Memorandum - LoopNet
TERRACE HILL GOLF COURSE

                                 VILLAGE OF ALGONQUIN OVERVIEW

                            r

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TERRACE HILL GOLF COURSE - Offering Memorandum - LoopNet
PROPERTYHILL
TERRACE  NAMEGOLF COURSE

                                           PRICING
                                           PRICING AND
                                                   AND TENANT SUMMARY
                                                     LOCATION OVERVIEW
                                                       VALUATION
                                                       VALUATION MATRIX
                                                                 MATRIX

                                                       CLOSE PROXIMITY TO:
4015 W Algonquin Rd, Algonquin, IL 60102

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TERRACE HILL GOLF COURSE - Offering Memorandum - LoopNet
TERRACE HILL GOLF COURSE

                                LOCAL AERIAL MAP

                           Algonquin Road

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TERRACE HILL GOLF COURSE

                           LOCAL RETAIL & SCHOOLS MAP

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TERRACE HILL GOLF COURSE

                           MAJOR SHOPPING CENTER MAP

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                           FLOODPLAIN

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                           TOPOGRAPHY

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                           LOT SIZES IN SQ. FT.

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                           ZONING MAP • 2/17/17

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                           FUTURE LAND USE MAP • JANUARY 2008

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                           SCHOOL DISTICT MAP

 UNIT DIST
   158

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PROPERTYHILL
 TERRACE  NAMEGOLF COURSE

                                     PRICING
                                     PRICING AND
                                             AND  TRAFFIC
                                               LOCATION
                                                 TENANT
                                                 VALUATIONCOUNTS
                                                        SUMMARY
                                                         OVERVIEW
                                                  MARKETING
                                                 VALUATION MATRIX
                                                             PLAN
                                                           MATRIX
                TRAFFIC COUNT
           YEAR            COUNT

            2015            30,202

            2013            28,500

            2013            26,700

Source: © 2016 Experian

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TERRACE HILL GOLF COURSE

    AREA HOUSING
    ANALYSIS

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                           2016 PERMITS • AREA MUNICIPALITIES

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                           6 MON.* SF HOME RESALES, BUILT 2012-2017 ,

                                                    *January-June 2017

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                           COMPETING DEVELOPMENTS

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                           VILLAGE OF ALGONQUIN IMPACT FEES

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    DEMOGRAPHICS

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PROPERTYHILL
  TERRACE  NAMEGOLF COURSE

                                                                                                          DEMOGRAPHICS
                                                                                                         MARKETING TEAM

  POPULATION                         1 Miles   3 Miles   5 Miles   HOUSEHOLDS BY INCOME        1 Miles    3 Miles      5 Miles

  2021 Projection                                                  2016 Estimate

     Total Population                  8,382   78,931    144,994      $250,000 or More          5.46%      4.14%        4.15%

  2016 Estimate                                                      $200,000 - $249,999       3.81%      3.47%        3.40%

     Total Population                  7,083   71,369    132,195      $150,000 - $199,999      14.24%     11.26%        9.74%

  2010 Census                                                        $125,000 - $149,999      10.30%     10.30%        9.23%
     Total Population                  7,085   71,416    131,112
                                                                      $100,000 - $124,999      16.24%     16.23%       15.04%
  2000 Census
                                                                      $75,000 - $99,999        19.45%     19.69%       17.72%
     Total Population                  4,282   51,477     96,755
                                                                      $50,000 - $74,999        15.30%     15.68%       16.76%
  Daytime Population
                                                                      $35,000 - $49,999         6.46%      8.22%        9.91%
     2016 Estimate                     7,410   47,826    100,475
                                                                      $25,000 - $34,999         2.78%      4.47%        5.74%
  HOUSEHOLDS                         1 Miles   3 Miles   5 Miles
                                                                      $15,000 - $24,999         2.74%      3.38%        4.65%
  2021 Projection
                                                                      Under $15,000             3.22%      3.17%        3.66%
     Total Households                  2,828   25,656     49,929
                                                                   Average Household Income   $125,572   $113,301     $108,476
  2016 Estimate
                                                                   Median Household Income    $100,065    $94,107      $88,006
     Total Households                  2,385   23,195     45,353
                                                                   Per Capita Income           $42,278    $36,823      $37,221
     Average (Mean) Household Size      3.11      3.06      2.91

  2010 Census

     Total Households                  2,375   23,119     44,758

  2000 Census

     Total Households                  1,390   16,635     32,559
                                                                                                             Created June 2017

Source: © 2016 Experian

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PROPERTYHILL
  TERRACE  NAMEGOLF COURSE

                                                                                                            DEMOGRAPHICS
                                                                                                           MARKETING TEAM

  POPULATION PROFILE         1 Miles   3 Miles   5 Miles   POPULATION PROFILE                    1 Miles   3 Miles      5 Miles

  Population by Age                                        Population 25+ by Education Level

     0 to 4 Years             5.71%     6.00%     5.98%       2016 Estimate Population Age 25+     4,483   44,709        85,536

     5 to 14 Years           18.21%    17.55%    16.30%
                                                              Elementary (0-8)                    1.12%     1.28%        1.71%

     15 to 17 Years           5.62%     5.60%     5.05%
                                                              Some High School (9-11)             3.16%     3.10%        3.72%

     18 to 19 Years           2.69%     2.83%     2.62%
                                                              High School Graduate (12)          21.18%    21.70%       22.87%
     20 to 24 Years           4.48%     5.39%     5.35%
                                                              Some College (13-15)               20.40%    23.66%       24.05%
     25 to 29 Years           3.31%     4.34%     4.53%
                                                              Associate Degree Only              11.05%    10.77%       10.21%
     30 to 34 Years           4.86%     5.83%     5.88%

                                                              Bachelors Degree Only              30.01%    27.21%       25.30%
     35 to 39 Years           7.06%     7.40%     7.14%

     40 to 49 Years          19.79%    18.69%    17.21%       Graduate Degree                    12.62%    11.69%       11.61%

     50 to 59 Years          13.90%    14.41%    14.50%

     60 to 64 Years           4.51%     4.33%     4.89%

     65 to 69 Years           4.01%     3.05%     3.84%

     70 to 74 Years           3.04%     2.11%     2.89%

     75 to 79 Years           1.46%     1.13%     1.76%

     80 to 84 Years           0.85%     0.76%     1.13%

     Age 85+                  0.50%     0.60%     0.94%

     Median Age                38.78     36.80     38.12
                                                                                                              Created June, 2017

Source: © 2016 Experian

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TERRACE HILL GOLF COURSE

    CHICAGO MARKET
    OVERVIEW

                           26
TERRACE HILL GOLF COURSE

                                                                         MARKET OVERVIEW

                                                   CHICAGO
                                                      OVERVIEW

Chicago-Naperville-Elgin is one of the largest metros in the nation.
Also know as the greater Chicagoland area, it is bounded to the east
by Lake Michigan, expands over a 5,000-square-mile region in
northeastern Illinois and extends into Wisconsin and Indiana. The
metro houses 9.6 million people and comprises 14 counties. The city
of Chicago contains 2.7 million residents. The greatest growth during
the past 20 years occurred in the western portion of the region. In
recent years, however, businesses are relocating back into the city to
attract young workers, supporting the development of high-rise
residential towers in the downtown Chicago.

METRO HIGHLIGHTS

               THIRD-LARGEST METROPOLITAN AREA
               The metro population trails only New York City and
               Los Angeles in size, expanding to nearly 10 million
               residents.

               WEALTH OF INTELLECTUAL CAPITAL
               The number of corporate headquarters in Chicago is
               second only to New York City. There are 32 Fortune
               500 companies based locally.

               LARGE, DIVERSE EMPLOYMENT BASE
               The Chicago metro employs more than 4.6 million
               individuals in an array of industries, including a
               growing tech sector.

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TERRACE HILL GOLF COURSE

                                                                                 MARKET OVERVIEW

                    TRANSPORTATION
    The region’s transit network ranks among the largest and most
     efficient in the world.
    The vast network of freeways, centralized location, the largest rail-
     truck intermodal facility in the U.S., as well as 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, Norfolk Southern, servicing 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.

      Million TEU’s           CHICAGO HAS                  RAIL LINES

    17.2
    MOVED THROUGH METRO
           IN 2015
                                    3
                                 INTERNATIONAL
                                    AIRPORTS
                                                               7
                                                        FOR FREIGHT, PASSENGER
                                                            AND COMMUTER

     MORE THAN                OF ILLINOIS RESIDENTS LIVE IN
                              THE SUBURBS OF CHICAGO,

     40%                      MANY OF WHOM COMMUTE INTO
                              THE CITY FOR WORK

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TERRACE HILL GOLF COURSE

                                                                                                                                  MARKET OVERVIEW

                 ECONOMY                                                        MAJOR AREA EMPLOYERS
                                                                           Abbott Labs
   The metro has one of the biggest economies in the nation
                                                                           Advocate Healthcare
    and is buoyed by its distribution, finance, manufacturing
    operations and growing high-tech sectors.                              Wal-Mart

   There are 32 Fortune 500 companies headquartered in the                Motorola Solutions Inc.
    metro including Boeing, Walgreens and McDonald’s.                      United Continental Holdings Inc.
   The area is a major global tourist and convention destination.         Allstate Corp.
    Last year, a record 54.1 million people visited the metro              Walgreens Co.
    spending $15 billion and supporting 145,000 jobs.
   Large tech firms such as Amazon, Groupon and Google
                                                                           Target Corp.                              * Forecast

    attract startup companies.                                             JPMorgan Chase

   The workforce is considered one of the most diverse and well           AT&T
    trained among major U.S. metros.

SHARE OF 2016 TOTAL EMPLOYMENT

                       9
               MANUFACTURING
                             %                  18
                                          PROFESSIONAL AND
                                                            %              12
                                                                            GOVERNMENT
                                                                                            %                 10       %
                                                                                                 LEISURE AND HOSPITALITY
                                                                                                                                             6    %
                                                                                                                                  FINANCIAL ACTIVITIES
                                          BUSINESS SERVICES

                 20
      TRADE, TRANSPORTATION
                             %                        4
                                               CONSTRUCTION
                                                            %        +     15
                                                                          EDUCATION AND
                                                                                            %                    2     %
                                                                                                              INFORMATION
                                                                                                                                             4     %
                                                                                                                                      OTHER SERVICES
                AND UTILITIES                                            HEALTH SERVICES

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                                                                                                                           MARKET OVERVIEW

                 DEMOGRAPHICS                                              QUICK FACTS
   Chicago is the third most populous metro in the U.S. and is
    expected to grow by approximately 275,000 people during the next              2016          2016           2016               2016 MEDIAN
                                                                               POPULATION:   HOUSEHOLDS:    MEDIAN AGE:        HOUSEHOLD INCOME:
    five years.
   Younger professionals moving to the area for employment provide a
                                                                               9.6M          3.5M            36.8              $62,100
                                                                                 Growth         Growth
                                                                                                            U.S. Median:          U.S. Median:
    skilled workforce and contribute to the median age of 36.8 years,          2016-2021*:    2016-2021*:
                                                                                                              37.7                $54,500
                                                                                 2.9%          3.5%
    below that of the nation.
   World class education institutions including Northwestern University
    and the University of Chicago help provide a skilled labor pool.
    Nearly 35 percent of residents age 25 and older hold a bachelor’s
    degree and of these, 13 percent have also earned a graduate or
    professional degree.
   Local homeownership of 65 percent is slightly above the national
    rate of 64 percent.

    * Forecast

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                                                                                                                MARKET OVERVIEW

                   QUALITY OF LIFE

The Chicago metro has something to offer every one of its residents and visitors,
whether it is legendary blues and jazz music, cultural and educational venues,
professional sports, dining, entertainment, shopping or recreational amenities.

The Chicago area’s relative affordability is largely due to its lower housing costs. The
median home price is significantly less than in other cities of its size and is below that
of many smaller cities, including Seattle and Denver.

Cultural activities and venues underpin the metro’s cosmopolitan lifestyle. The region
is home to various well-known museums, including the world-class Field Museum,
Shedd Aquarium, Art Institute of Chicago and Adler Planetarium. The theatre scene
rivals the world’s best, and troupes, dance companies, symphony orchestras and
music venues abound.

        $237,400                               70                   29 MILES
       MEDIAN HOME PRICE              VARIOUS MUSUEMS                   OF SHORELINE

                                                                                                      ARTS & ENTERTAINMENT

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune;
Moody’s Analytics; U.S. Census Bureau

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PRESENTED BY
 Rick Gordon                       Richard Kozarits                       Alexander Novak
 Senior Associate                  Senior Associate                       Associate
 Director, National Land Group     Director, National Land Group          Chicago Oak Brook Office
 Chicago Oak Brook Office          Chicago Oak Brook Office               Tel: (630) 570-2150
 Tel: (630) 570-2200               Tel: (630) 570-2221                    Fax: (630) 570-2210
 Fax: (630) 570-2210               Fax: (630) 570-2210                    alex.novak@marcusmillichap.com
 rick.gordon@marcusmillichap.com   richard.kozarits@marcusmillichap.com   License: IL 475.175297
 License: IL 471.014823            License: IL 471.013640

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