Top Performing
Location
Strong Sales
History
FILE PHOTO
Exclusive OFFERING | $5,228,000 – 6.15% cAp
CHILI’S – ABSOLUTE NNN LEASE
1510 West Lane RD, Machesney PARK, IL
214.915.8890
RUSSELL SMITH
[email protected]
JOE CAPUTO
[email protected]
ALEX TOWER
[email protected]
Property. 5,693+ SF building on 1.28+ acre site. Outparcel to Target Anchored Shopping Center. Top performing location, strong sales history.
Tenant. Lessee: ERJ Dining IV, LLC | 365+ Restaurants (125+ Chili’s & 240+ Wendy’s)
Lease structure. 20-year, absolute NNN lease, with 10+ years remaining and 1.50% annual increases in primary terms and options.
Location. Chili’s is located along West Lane Rd. (18,000 VPD) just west of Highway 251 (25,000 VPD) in Machesney Park, IL. The corridor of Highway 251 and
West Lane Rd. is the main retail hub of the Machesney Park area. The subject property is an outparcel to a Target anchored shopping center, with notable
national credit tenants including Home Depot, Office Depot, Pier 1, and PetSmart. Additional retailers in the area include Kohl’s, Walgreens, Lowe’s Aldi, Menards,
Bed Bath and Beyond, TJ-Maxx, Michaels, Maurice's, Anytime Fitness, Starbucks, Panera, Chipotle, KFC, Panda Express, Buffalo Wild Wings, Pizza Hut, Jersey
Mikes, McDonalds, Taco Bell, and many more.
Table of contents | Disclaimer
CHILI’S
1510 West Lane RD, Machesney PARK, IL
PAGE 1:
Disclaimer
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4:
IN THE NEWS
PAGE 5-6:
AERIAL PHOTOS
PAGE 7-8:
LOCATION OVERVIEW
PAGE 9-10:
LOCATION MAPS
PAGE 11:
DEMOGRAPHICS
SUBJECT PROPERTY
Trivanta (“Agent”) has been engaged as an agent for the sale of the property located at
1510 West Lane Rd., Machesney Park, IL the owner of the Property (“Seller”). The
Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent
make no representations or warranties as to the accuracy of the information contained in
this Offering Memorandum. The enclosed materials include highly confidential information
and are being furnished solely for the purpose of review by prospective purchasers of the
interest described herein. The enclosed materials are being provided solely to facilitate the
prospective investor’s own due diligence for which it shall be fully and solely responsible.
The material contained herein is based on information and sources deemed to be reliable,
but no representation or warranty, express or implied, is being made by Agent or Seller or
any of their respective representatives, affiliates, officers, employees, shareholders,
partners and directors, as to the accuracy or completeness of the information contained
herein. Summaries contained herein of any legal or other documents are not intended to be
comprehensive statements of the terms of such documents, but rather only outlines of
some of the principal provisions contained therein. Neither the Agent nor the Seller shall
have any liability whatsoever for the accuracy or completeness of the information contained
herein or any other written or oral communication or information transmitted or made
available or any action taken or decision made by the recipient with respect to the Property.
Interested parties are to make their own investigations, projections and conclusions without
reliance upon the material contained herein. Seller reserves the right, at its sole and
absolute discretion, to withdraw the Property from being marketed for sale at any time and
for any reason. Seller and Agent each expressly reserves the right, at their sole and
absolute discretion, to reject any and all expressions of interest or offers regarding the
Property and/or to terminate discussions with any entity at any time, with or without notice.
This offering is made subject to omissions, correction of errors, change of price or other
terms, prior sale or withdrawal from the market without notice. Agent is not authorized to
make any representations or agreements on behalf of Seller. Seller shall have no legal
commitment or obligation to any interested party reviewing the enclosed materials,
performing additional investigation and/or making an offer to purchase the Property unless
and until a binding written agreement for the purchase of the Property has been fully
executed, delivered, and approved by Seller and any conditions to Seller’s obligations
hereunder have been satisfied or waived. By taking possession of and reviewing the
information contained herein, the recipient agrees that (a) the enclosed materials and their
contents are of a highly confidential nature and will be held and treated in the strictest
confidence and shall be returned to Agent or Seller promptly upon request; and (b) the
recipient shall not contact employees or tenants of the Property directly or indirectly
regarding any aspect of the enclosed materials or the Property without the prior written
approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied
or otherwise reproduced without the prior written authorization of Seller and Agent.
Listed in association with Illinois broker of record:
Matt Chambers | Peak Group, LLC | License #481.000413
2
Investment overview
CHILI’S
1510 West Lane RD, Machesney PARK, IL
Lease overview
Initial Lease Term:
20-Years, Plus (4) 5-Year Options to Renew
Rent Commencement:
October 2007
Lease Expiration:
October 2027
Lease Type:
Absolute NNN
PRICE | CAP RATE:
$5,228,000 | 6.15%
NET OPERATING INCOME:
$321,515 *
BUILDING AREA:
5,693+ Square Feet
LAND AREA:
1.28 + Acres
Rent Increases:
1.50% Annual Increases in Primary term & Options
YEAR BUILT:
2003
Annual Rent Year 10 (Current):
$316,763
LANDLORD RESPONSIBILITY:
None
Annual Rent Year 11:
$321,515 *
Annual Rent Year 16:
$346,362
OCCUPANCY:
100%
Annual Rent Year 12:
$326,337
Annual Rent Year 17:
$351,558
Annual Rent Year 13:
$331,232
Annual Rent Year 18:
$356,558
Annual Rent Year 14:
$336,201
Annual Rent Year 19:
$362,184
Annual Rent Year 15:
$341,244
Annual Rent Year 20:
$367,617
Option Terms: Continued 1.50% Annual Rent Increases
* Pricing is based on rent increase ($321,515) in November 2017.
Tenant overview
Lessee: ERJ Dining IV, LLC
ERJ DINING IV, LLC | www.chilis.com
ERJ Dining is a subsidiary of Bridgeman Foods, one of the largest Chili's and Wendy's Franchise operators in the nation. Grossing nearly $800
million in sales during 2015 alone. Bridgeman operates over 125 Chili's and 240 Wendy's locations. Today, ERJ Dining is one of the largest and
most successful Chili's operators, with continued plans for expansion on growth in the coming years.
SUBJECT PROPERTY
PRIOR TO PANDA EXPRESS EXPANSION
BRINKER INTERNATIONAL
Brinker International owns, operates or franchises more than 1,600 restaurants under the names Chili's Grill & Bar and Maggiano's Little Italy.
Chili's Grill & Bar is the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT), a recognized leader in casual dining. Dallas-based
Brinker International, Inc. traces its roots back to 1975, when Chili's Grill & Bar first opened its doors in Dallas, Texas. As of June 29, 2016, it had
1,660 company-owned and franchised restaurants comprising 1,609 restaurants under the Chili's Grill & Bar brand name; and 51 restaurants
under the Maggiano's Little Italy brand name. With more than 1,660 restaurants and 100,000 team members, Chili's is one of the world's leading
casual dining brands. Every day, the company welcomes more than a million guests to its restaurants in dozens of countries
3
IN THE NEWS
CHILI’S
1510 West Lane RD, Machesney PARK, IL
Click Here FOR ARTICLE
Chili's Has Installed More Than 45,000 Tablets in Its Restaurants
By: Megan Garber | The Atlantic
The tablets let your order your meal—and pay for it—through a screen, as you would with online ordering. (They also, as a bonus, offer games for kids and news
offerings from USA Today.) Chili's just completed what it's calling "the largest rollout of tabletop tablets in the U.S."—which includes the installation of more than 45,000
tablets across 823 Chili's restaurants. "By this fall," Austen Mulinder, Ziosk's CEO, said in a press release, "guests at nearly every Chili's in the country can place orders,
play games and pay their checks from our tabletop tablets.“
That doesn't necessarily herald the end of human-centered food service; Chili's still requires people, of course, to do the actual delivery of the food customers order.
There are still servers doing the serving at Chili's. What the transition does indicate, though, is an active attempt to minimize the interaction Chili's customers have with
humans.
And here's the intriguing thing: Chili's is doing all that because de-humanizing the restaurant is, it turns out, good business. In 2013, in a pilot program, Chili's installed
tablets at nearly 200 of its stores. And the chain found, Bloomberg Businessweek reported, that the presence of the tablets could "reliably increase the size of the
average check." By, often, a fairly large margin.
That's in part because the tablets set defaults for tip amounts. The machines automatically suggest a tip of 20 percent; you can go lower than that (or higher), but you'll
need to actively decide to make that change. Chili's is finding the same thing that New York City taxis have: Default settings are, behavioral economics-wise, powerful.
You could also attribute the financial benefits of mechanized menus to screen-based ordering's immediacy. Not having to wait for servers to come and go can expedite
the overall dining experience—shaving, Ziosk estimates, up to five minutes off each meal. And quicker table turnarounds mean the ability to serve more customers—
especially helpful during peak hours.
But the most intriguing finding takes us back to the whim thing. Ziosk has found that eliminating the wait for a human server can boost impulse orders of appetizers at the
beginning of a meal—orders that seem to be encouraged by the digital menus' large images. If you come hungry and you don't have to wait for a server and you're
looking at an enormous picture of gooey nachos... there's a good chance you will order those nachos. Ziosk claims to have found a 20-percent increase in appetizer
sales, as compared with standard, server-based ordering strategies.
And the bump translates to post-dinner offerings, as well. The Chili's version of the Ziosk menus is programmed to have images of dessert (a molten chocolate cake, say)
pop up while customers are still eating their main courses. This has led, Chili's says, to a 20-percent increase in dessert sales. (Ziosk claims a 30-percent dessert-sale
bump for its clients overall.) Coffee sales are apparently up, too. The digital menus are constantly present at the table—constantly reminding, constantly beckoning. And
constantly promising, even and especially if you order that molten chocolate cake, not to judge.
Source: Garber, Megan. "Chili's Has Installed More Than 45,000 Tablets in Its Restaurants." The Atlantic. Atlantic Media Company, 16 June 2014. Web. 29 Mar. 2017.
4
AERIAL PHOTO
CHILI’S
1510 West Lane RD, Machesney PARK, IL
National
Guard
US Army
Reserve Center
Northwest Bank
Attitudes
Bar & Grill
Rockford
Speedway
Forrest Hills Rd (10,000 VPD)
Love’s
Park Auto
Parts
Harlem High School
5
AERIAL PHOTO
CHILI’S
1510 West Lane RD, Machesney PARK, IL
6
Location overview
CHILI’S
1510 West Lane RD, Machesney PARK, IL
IMMEDIATE TRADE AREA
Chili’s is located along West Lane Rd. (18,000 VPD) just west of Highway
251 (25,000 VPD) in Machesney Park, IL. The corridor of Highway 251 and
West Lane Rd. is the main retail hub of the Machesney Park area. The
subject property is an outparcel to a Target anchored shopping center,
with notable national credit tenants including Home Depot, Office Depot,
Pier 1, and PetSmart. Additional retailers in the area include Kohl’s,
Walgreens, Lowe’s Aldi, Menards, Bed Bath and Beyond, TJ-Maxx,
Michaels, Maurice's, Anytime Fitness, Starbucks, Panera, Chipotle, KFC,
Panda Express, Buffalo Wild Wings, Pizza Hut, Jersey Mikes, McDonalds,
Taco Bell, and many more.
MACHESNEY PARK, IL
The Village of Machesney Park is a growing, family friendly community of
more than 23,000 residents the north side of the Rockford region. The
area is well known for its attractive residential setting along the Rock River.
Situated in what is known as the Illinois Stateline region, the Village is well
positioned for convenient access to Chicago, Madison and Milwaukee, via
the I-90, I-39, IL Route 173, and IL Route 2, all of which meet in
Machesney Park. Machesney Park is known for its friendly expanding
business community, reputable schools, access to recreation (including
Rock Cut State Park), and access to regional transportation with a newly
constructed interchange at I-39/90 and expansion of IL Route 173 to four
lanes.
While the Machesney Park area is rooted in history, the Village is relatively
young only having incorporated into a Village in 1981. Its neighborhoods
range from modest post WWII era housing, to newly constructed waterfront
homes with boat access to the Rock River. The Village has experienced
great success with a newly developed commercial corridor along IL-173 &
IL-251, which includes several big box retailers, as well as smaller retailers
and various local businesses.
Machesney Park has two primary commercial areas located along IL-251
and IL-173. These areas have seen a substantial amount of commercial
development and redevelopment in recent years. These commercial areas
are intended primarily for retail, but also include restaurant and office uses.
Development of commercial uses along the eastern end of Machesney
Park’s IL-173, towards the I-90 interchange, should only continue as
growth and development of other uses continue to work their way east
down IL-173. The I-90 interchange provides excellent access to a regional
transportation network and visibility to thousands of vehicles travelling
along I-90 and IL Route 173. Given this favorable location in the Village
and region, this area is well suited for several different types of land uses,
including both industrial (i.e. business parks, logistics/distribution, and
warehousing) and commercial (i.e. hotels, restaurants, and retail).
Machesney Park is one of the hottest areas in the Rockford Region
for business and industrial development as it has been occurring at a
substantial rate over the last 10 years. With affordability of the community,
low taxes, easy access to the interstate highways, and a steady population
growth, Machesney Park will remain a competitor in the stateline region for
new business and industry for many years to come.
7
Location overview
CHILI’S
1510 West Lane RD, Machesney PARK, IL
CHICAGO, IL
Chicago is located in northeastern Illinois along the shore of Lake Michigan. The city currently has a population of 2,720,546 making it the third largest city in the US.
The economy of Chicago is the third largest metropolitan economy in the United States measured by gross metropolitan product (GMP). In 2016 the GMP was
approximately $644 billion falling only behind New York City and Los Angeles. Due to the city’s economic diversification it is voted regularly as the most balanced
economy in the United States. It ranks seventh on the world global cities index and is listed as an Alpha World City by the Globalization of World Cities Research
Network. The area also recorded the greatest number of new or expanded corporate facilities in the United States in six out of seven years from 2001 to 2008.
Recently, Chicago was named the ninth most economically powerful cities in the world. In 2016, Chicago ranked as the eighth wealthiest city in the world.
Chicago is a major world financial center, with the second largest central business district in the United States. The city is the headquarters of the Federal Reserve
Bank of Chicago the Seventh District of the Federal Reserve). The city is also home to major financial and futures exchanges, including the Chicago Stock
Exchange, the Chicago Board Options Exchange (CBOE), and the Chicago Mercantile Exchange (the "Merc"), which is owned, along with the Chicago Board of
Trade (CBOT) by Chicago's CME Group.The CME Group, in addition, owns the New York Mercantile Exchange (NYMEX), the Commodities Exchange Inc.
(COMEX) and the Dow Jones Indexes. Perhaps due to the influence of the Chicago school of economics, the city also has markets trading unusual contracts such as
emissions (on the Chicago Climate Exchange) and equity style indices (on the U.S. Futures Exchange). Chase Bank has its commercial and retail banking
headquarters in Chicago's Chase Tower.
The tourism and convention industry contributes significantly to the local economy. The city is the United States' second top meeting destination. Chicago attracted
32.4 million domestic leisure travelers, 11.7 million domestic business travelers and 1.3 million overseas visitors. These visitors contributed more than US$11.8 billion
to Chicago's economy.
Manufacturing, printing, publishing and food processing also play major roles in the city's economy. Moreover, the construction of the Illinois and Michigan Canal,
which helped move goods from the Great Lakes south on the Mississippi River, and of the railroads in the 19th century made the city a major transportation center in
the United States.
The city and its surrounding area are home to the third largest labor pool in the US with approximately 4.48 million workers. A high number of Fortune 1000, Fortune
Global 500, and Financial Times 500 companies operate within Chicago in order to capitalize on this labor pool. These companies include, Boeing, which moved its
headquarters from Seattle to Chicago in 2001, McDonald’s, Kraft Foods, and Sears Holding Corporation. Additionally, United Continental Holdings (United Airlines),
Baxter International, and Abbot Laboratories are headquartered in the Chicago area.
8
Location map
CHILI’S
1510 West Lane RD, Machesney PARK, IL
9
Location map
CHILI’S
1510 West Lane RD, Machesney PARK, IL
,
10
Demographics
CHILI’S
1510 West Lane RD, Machesney PARK, IL
1510 West Lane Rd
1510 West Lane Rd
1 mi radius 3 mi radius 5 mi radius
1 mi radius 3 mi radius 5 mi radius
82,522
79,868
2016 Est. Labor Population Age 16 Years or Over
3,333
28,176
66,605
2016 Est. Civilian Employed
65.2%
65.0%
63.1%
2.7%
4.2%
3.8%
2016 Est. in Armed Forces
2016 Est. not in Labor Force
32.1%
30.8%
33.2%
2016 Labor Force Males
2016 Labor Force Females
49.6%
50.4%
49.2%
50.8%
47.9%
52.1%
2016 Est. Civilian Unemployed
36,076
85,471
4,148
-0.7%
32,743
-0.7%
75,770
-0.6%
Historical Annual Growth 2000 to 2016
-0.1%
0.5%
0.6%
2016 Estimated Households
1,555
13,945
33,796
2021 Projected Households
2010 Census Households
1,571
1,555
14,126
13,795
34,241
33,724
2010 Occupation: Population Age 16 Years or Over
2,149
17,675
40,615
2010 Mgmt, Business, & Financial Operations
13.8%
10.8%
12.7%
2000 Census Households
1,465
12,215
29,034
Projected Annual Growth 2016 to 2021
Historical Annual Growth 2000 to 2016
0.2%
0.4%
0.3%
0.9%
0.3%
1.0%
2010 Professional, Related
2010 Service
15.3%
14.3%
16.3%
14.9%
19.5%
16.3%
2010 Sales, Office
11.0%
11.9%
11.5%
2016 Est. Population 10 to 19 Years
12.7%
13.0%
12.8%
2016 Est. Population 20 to 29 Years
2016 Est. Population 30 to 44 Years
11.3%
18.1%
12.0%
18.8%
11.5%
18.0%
2016 Est. Population 45 to 59 Years
23.0%
21.3%
21.3%
2016 Est. Population 60 to 74 Years
2016 Est. Population 75 Years or Over
18.7%
5.2%
17.0%
5.8%
17.0%
7.9%
41.6
39.6
41.3
2016 Est. Male Population
2016 Est. Female Population
49.9%
50.1%
49.5%
50.5%
48.5%
51.5%
2016 Est. Never Married
31.0%
27.3%
27.4%
2016 Est. Now Married
55.4%
51.3%
51.0%
2016 Est. Separated or Divorced
2016 Est. Widowed
10.3%
3.2%
15.5%
5.8%
15.1%
6.5%
2016 Est. HH Income $200,000 or More
1.4%
2.8%
4.3%
2016 Est. HH Income $150,000 to $199,999
4.4%
3.3%
4.8%
2016 Est. HH Income $100,000 to $149,999
2016 Est. HH Income $75,000 to $99,999
15.2%
19.5%
12.9%
16.4%
13.4%
15.3%
2016 Est. HH Income $50,000 to $74,999
2016 Est. HH Income $35,000 to $49,999
25.5%
10.1%
22.5%
13.7%
19.6%
13.0%
2016 Est. HH Income $25,000 to $34,999
8.5%
12.4%
10.8%
2016 Est. HH Income $15,000 to $24,999
2016 Est. HH Income Under $15,000
5.2%
10.1%
8.0%
7.9%
8.9%
9.9%
2016 Est. Average Household Income
$71,073
$70,212
$74,944
2016 Est. Median Household Income
2016 Est. Per Capita Income
$66,111
$27,233
$59,328
$27,891
$60,444
$30,781
TRANSPORTATION
TO WORK
2016 Est. Population Under 10 Years
OCCUPATION
4,225
2000 Census Population
Projected Annual Growth 2016 to 2021
TRAVEL TIME
MARITAL STATUS
& GENDER
35,138
33,996
2010 Census Population
2016 Est. Median Age
INCOME
4,061
3,918
CONSUMER EXPENDITURE
POPULATION
HOUSEHOLDS
AGE
2016 Estimated Population
2021 Projected Population
LABOR FORCE
Machesney Park, IL 61115
Machesney Park, IL 61115
28.6%
29.1%
27.7%
2010 Farming, Fishing, Forestry
2010 Construction, Extraction, Maintenance
8.1%
0.1%
8.4%
7.2%
2010 Production, Transport, Material Moving
19.9%
20.5%
16.6%
2010 White Collar Workers
2010 Blue Collar Workers
57.7%
42.3%
56.2%
43.8%
59.9%
40.1%
2010 Drive to Work Alone
88.0%
86.7%
86.1%
2010 Drive to Work in Carpool
7.8%
8.5%
7.4%
2010 Travel to Work by Public Transportation
2010 Drive to Work on Motorcycle
0.5%
-
0.6%
0.2%
0.9%
0.1%
2010 Walk or Bicycle to Work
2010 Other Means
1.3%
0.4%
1.0%
0.3%
1.4%
0.6%
2010 Work at Home
2.1%
2.8%
3.4%
2010 Travel to Work in 14 Minutes or Less
28.2%
28.3%
30.4%
2010 Travel to Work in 15 to 29 Minutes
2010 Travel to Work in 30 to 59 Minutes
49.6%
14.8%
48.7%
17.6%
47.6%
16.4%
2010 Travel to Work in 60 Minutes or More
7.5%
5.4%
5.7%
2010 Average Travel Time to Work
20.2
20.0
19.4
2016 Est. Total Household Expenditure
2016 Est. Apparel
$86.5 M
$3.02 M
$769 M
$26.7 M
$1.94 B
$67.5 M
2016 Est. Contributions, Gifts
$5.59 M
$49.6 M
$131 M
2016 Est. Education, Reading
$3.16 M
$27.6 M
$73.7 M
2016 Est. Entertainment
$4.87 M
$43.1 M
$109 M
2016 Est. Food, Beverages, Tobacco
$13.4 M
$119 M
$298 M
2016 Est. Furnishings, Equipment
2016 Est. Health Care, Insurance
$3.00 M
$7.59 M
$26.3 M
$68.4 M
$66.9 M
$171 M
2016 Est. Household Operations, Shelter, Utilities
2016 Est. Miscellaneous Expenses
$26.7 M
$1.27 M
$238 M
$11.4 M
$601 M
$28.7 M
2016 Est. Total Businesses
520
1,284
3,297
2016 Est. Personal Care
$1.13 M
$10.0 M
$25.2 M
2016 Est. Total Employees
6,152
13,286
37,382
2016 Est. Transportation
$16.9 M
$149 M
$371 M
11