BEST BUY PEORIA, ILLINOIS
BEST BUYPEORIA, ILLINOIS
BEST BUY
9.00%CAP
$8,177,191PRICE
LEASEABLE SF46,432 SF
LAND AREA6.05 AC
LEASE TYPE* CORPORATE NN
LEASE EXPIRATION7/31/2025
YEAR BUILT 2003
ONGOING CO-TENANCIESNONE
5001 N BIG HOLLOW RD, PEORIA, IL 61615
Corporate guaranteed lease, with 15 years of operating history at this site
Proven store – Best Buy just renewed for 7 years
All major tenants in the center recently invested millions into renovationsor renewed their lease
Investment Grade Rating – (BBB-) – Net worth over $4.35 billion
Located in the dominant trade area of town – Target & Lowe’s Anchored
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. Buyer must verify the information and bears all risk for any inaccuracies.
Overview
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*Landlord responsible for roof & structure
THE OFFERING provides the opportunity to acquire a net-lease Best Buy property located within the Target and Lowe’s anchored Glen Hollow Shopping Center in Peoria, Illinois. Target owns their site and is currently under construction on a multi-million dollar interior and exterior renovation. Lowe’s invested over $1M into a remodel of their store and Petsmart and Barnes & Noble just renewed their leases, attesting that each of the anchors in the center is performing well based on their 15+ year histories at this location.
The subject property is located along and is visible from U.S. Route 150, which benefits from traffic counts that exceed 40,000 VPD, and is just north of Interstate 74, a primary thoroughfare in Peoria. Glen Hollow Shopping Center is flanked by two recently modernized pylon signs with tenant directories on U.S. Route 150, further boosting the center’s visibility.
THE RETAIL MARKET – Best Buy’s North Big Hollow Road location is within a dense retail area, and is just north of the Westlake Shopping Center and Northwoods, a 694,000 square foot mall that features 90 national and regional retailers. The Glen Hollow Shopping Center and adjacent strip centers have diverse tenant mixes of internet-resistant and investment grade retailers, which include Target, Lowe’s, PetSmart, Five Below, and Steak ‘n Shake.
IN 2017, BEST BUY’S ONLINE SALES GREW BY 24.1%, ESTABLISHING THEM AS #10 ON THE INTERNET RETAILER 2017 LIST
Investment Highlights
JOHN [email protected]: 415.274.2715CA DRE# 01440360
Contact the team
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. Buyer must verify the information and bears all risk for any inaccuracies.
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IN CONJUNCTION WITH IL LICENSED BROKER: Shai Town Realty Group Inc.Shai Wolkowicki PH: 773-382-0591
SURROUNDING RETAIL
JUSTIN [email protected]: 415.274.7392CA BRE# 01895013
74
74
74
150
150
150
8
8
N STERLING AVENUE
W F
ARM
ING
TON
RO
AD
W G
LEN
AV
ENU
E
N UNIVERSITY STREET
W M
AIN
STR
EET
MAIN STREET
N BI
G HO
LLOW
RO
AD
N ROCKWOOD DRIVE
ST. PHILOMENA CATHOLIC SCHOOL
STERLING MIDDLE SCHOOL
QUEST ACADEMY
HIGH SCHOOL
FRANKLIN PRIMARY SCHOOL
ROLLING ACRES
MIDDLE SCHOOL
ROBERT A. JAMIESON SCHOOL
PLEASANT VALLEY MIDDLE SCHOOL
HOLY FAMILY
SCHOOL
NEWMAN GOLF
COURSE
CALVIN COOLIDGE SCHOOL
THOMAS JEFFERSON
PRIMARY SCHOOLPEORIA
HIGH SCHOOL
HINES PRIMARY SCHOOL
PEORIA NOTRE
DAME HIGH SCHOOL
WEAVER RIDGE
GOLF CLUB
ILLINOIS CENTRAL COLLEGE-
PEORIA CAMPUS
UNITY HEALTH-
PROCTOR HOSPITALUNIVERSITY
POINT HEALTH
METHODIST HOSPITAL
BRADLEY UNIVERSITY
UNIVERSITY OF ILLINOIS COLLEGE OF MEDICINE AT
PEORIA
®
23,500 VPD
30,000 VPD
40,900 VPD
62,100 VPD
22,500 VPD
62,100 VPD
CHICAGO160 MILES
Zoomed-Out Aerial
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NORTHWOODS MALL
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. Buyer must verify the information and bears all risk for any inaccuracies.
N ROCKWOOD DRIVE
W G
LEN
AV
ENU
E
W G
LEN
AV
ENU
EN STERLING AVENUE
W WAR MEMORIAL DRIVE
W WAR MEMORIAL DRIVE
N BIG HOLLOW
ROAD
74
74
150
150
150
150
®
CONCORDIA LUTHERAN
SCHOOL
ILLINOIS CENTRAL COLLEGE-
PEORIA
10,400 VPD
8,800 VPD
22,500 VPD
23,500 VPD
62,100 VPD
40,900 VPD
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NORTHWOODS MALL
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. Buyer must verify the information and bears all risk for any inaccuracies.
Zoomed-In Aerial
CHICAGO160 MILES
Surrounding Retail
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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. Buyer must verify the information and bears all risk for any inaccuracies.
PRICE $8,177,191 Price Per Square Foot: $176.11
Capitalization Rate: 9.00%
Total Rentable Area (SF): 46,432
Lot Size (AC): 2.12
STABILIZED INCOME PSFScheduled Rent $15.85 $735,947
Effective Gross Income $15.85 $735,947
LESS PSFTaxes NNN $0.00
Insurance NNN $0.00
Total Operating Expenses NNN $0.00
NET OPERATING INCOME $735,947
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Income & Expense
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. Buyer must verify the information and bears all risk for any inaccuracies.
TENANT INFO LEASE TERMS RENT SUMMARY
TENANT NAME SQ. FT. CURRENT RENT
MONTHLY RENT
YEARLYRENT
MONTHLY RENT/FT
YEARLYRENT/FT
Best Buy 46,432 10/24/03 01/31/09 $71,583 $858,992 $1.54 $18.50
02/01/09 01/31/14 $74,485 $893,816 $1.60 $19.25
02/01/14 01/31/18 $77,387 $928,640 $1.67 $20.00
02/01/18 07/31/25 $735,947 $61,329 $735,947 $1.32 $15.85
Option 1 08/01/25 07/31/30 $64,231 $770,771 $1.38 $16.60
Option 2 08/01/30 07/31/35 $67,133 $805,595 $1.45 $17.35
Option 3 08/01/35 07/31/40 $70,035 $840,419 $1.51 $18.10
TOTALS: 46,432 $735,947 $61,329 $735,947 $1.32 $15.85
*Tenant just right sized their rent to market from $20/ft. to $15.85/ft. which is where recent junior box leases have been signed in the trade area.
**There are no ongoing co-tenancy clauses.
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Rent Roll
BASE RENT
DATE RANGE MONTHLY RENT ANNUAL RENT
10/24/03 - 01/31/09 $71,583 $858,99202/01/09 - 01/31/14 $74,485 $893,81602/01/14 - 01/31/18 $77,387 $928,64002/01/18 - 07/31/25 $61,329 $735,947
OPTION RENTS
DATE RANGE MONTHLY RENT ANNUAL RENT
#1. 08/01/25 - 07/31/30 $64,231 $770,771#2. 08/01/30 - 07/31/35 $67,133 $805,595#3. 08/01/35 - 07/31/40 $70,035 $840,419
RENT
TENANT Best Buy Stores, L.P.GUARANTOR Best Buy Co., Inc.BUILDING SF 46,432 SFLEASE TYPE Corporate NNRENT COMMENCEMENT 10/24/2003RENT EXPIRATION 07/31/2025OPTIONS REMAINING Two 5-year options (Option 1 exercised)
TAXES - Tenant shall reimburse Landlord for the ad valorem taxes payable with respect to the Property.
TENANT’S OBLIGATIONS - Tenant is responsible for the repairs and maintenance of all non-structural portions of the Premises including HVAC, common area maintenance parking lot repairs, and parking lot maintenance.
LANDLORD’S OBLIGATIONS - Landlord is responsible for the repairs and maintenance of the roof and structure.
INSURANCE - Tenant shall maintain commercial general liability insurance with a combined single limit of $3 million per occurrence, naming Landlord as additional insured. Landlord shall maintain the following insurance policies: (1) Fire and extended coverage insurance on a replacement cost basis; and (2) public liability insurance covering the common areas with a combined single limit no less than $3 million, naming Tenant as additional insured. Tenant shall pay its pro-rata share of Landlord’s insurance costs.
UTILITIES - Tenant is responsible for direct payment of all utilities to the appropriate billing authority, as well as for Tenant’s pro-rata share of common area utility charges.
ON-GOING CO-TENANCIES - None.
ESTOPPEL - Each party shall deliver an executed Estoppel within 30 days of written notice from the other party.
EXPENSES
LEASEPROVISIONS
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. Buyer must verify the information and bears all risk for any inaccuracies.
Lease Abstract
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150W
WAR M
EMO
RIAL DRIVE
GLEN HOLLOW
N BIG HOLLOW ROAD
W GLEN AVENUE
NOT A PART
10,400 VPD
40,000 VPD
22,500 VPD
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INTERIOR AND EXTERIOR REMODEL
UNDERWAYENTIRE REMODEL COMPLETED 2 YEARS AGO
LEASE RENEWED FOR
10 YEARS
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. Buyer must verify the information and bears all risk for any inaccuracies.
UNDER REDEVELOPMENT - 3 NEW NATIONAL
TENANTS
RECENTLY
RENEWED LE
ASE
Site Plan
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. Buyer must verify the information and bears all risk for any inaccuracies.
Best Buy Co. Inc. (NYSE: BBY) is an American multinational consumer electronics corporation with over 1,400 locations and 125,000 employees. As a leading provider of technology products, services and solutions, the company reported total revenue of $39.53 billion, net income of $897 million, and a net worth of $4.38 billion in FY2017. Best Buy is an investment grade credit tenant and holds an S&P credit rating of BBB-/Stable.
In 2017, their online sales grew by 24.1%, establishing them as #10 on the Internet Retailer 2017 List. Their Q4 2017 online sales surpassed $6 billion, up $4.85 billion from the year before. Their overall sales in 2017 surpassed $39 billion, and their 2018 sales are projected to surpass $42 billion. EBITDA is over $2.5 billion.
ABOUT BEST BUY
Tenant Overview
S&P RATINGBBB-
FISCAL 2018REVENUE
(ESTIMATED)$42 Billion
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POPULATION
1-MILE 3-MILES 5-MILES
2018 7,238 60,499 121,230
2018 HH INCOME
1-MILE 3-MILES 5-MILES
Average $74,245 $80,573 $73,469
PEORIA
THE AVERAGE HOUSEHOLD INCOME WITHIN A 3-MILE RADIUS
IS OVER $80K
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. Buyer must verify the information and bears all risk for any inaccuracies.
Demographics
CHICAGO(2 HR 30 MIN, 160 MILES)
GREATER PEORIA TOP EMPLOYERS
EMPLOYER # OF EMPLOYEES
Caterpillar Inc.* 13,100
OSF St. Francis Medical Center 6,000
UnityPoint Health 3,283
Keystone Steel and Wire 1,300
Advanced Technology Services 1,073
*Caterpillar Inc. just invested $30M into their HQ in 2018
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PEORIA, ILLINOIS
PEORIA, the county seat of Peoria County, is located in central Illinois along the Illinois River. The city has a riverfront museum with a planetarium, sculpture garden, and a collection of fine art. Peoria’s downtown area includes corporate, governmental, convention, educational, medical facilities and plenty of leisure activities for residents and visitors to enjoy. Peoria is also home to the Peoria Civic Center, Theatres, and Dozer Park, as well as an arts, dining, and entertainment area near the riverfront. Peoria has a very developed educational system with four k-12 districts, several private schools districts and seven colleges including Bradley University, Midstate College, Methodist College, OSF St. Francis College of Nursing, the University of Illinois College of Medicine at Peoria, the Downtown and North campuses of Illinois Central College, and the Peoria campus of Robert Morris University.
GREATER PEORIA has a thriving economy, with $1 billion spent annually in research and development, 3 major hospitals, 40 million tons of freight passing
though the county and a workforce of over 195,000. As the 30th largest economy in the U.S., and growing, Greater Peoria’s employment increased by 3,374 workers through 2017 and 5 of the 8 major industries in Peoria’s MSA saw employment increases from Q4 2016 to Q4 2017.
PEORIAMSA
373,590
PEORIA MSA POPULATION (ESTIMATED)
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. Buyer must verify the information and bears all risk for any inaccuracies.
Location Overview
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We’d love to hearfrom you.
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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. Buyer must verify the information and bears all risk for any inaccuracies.
JOHN [email protected]: 415.274.2715
CA DRE# 01440360
JOE CACCAMOJOHN ANDREINI
ZANDY SMITH
DAVE LUCAS
RICK SANNER JACK NAVARRA
CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS
IN CONJUNCTION WITH IL LICENSED BROKER: Shai Town Realty Group Inc.Shai Wolkowicki PH: 773-382-0591
JUSTIN SHARP
JUSTIN [email protected]: 415.274.7392CA BRE# 01895013
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