net lease PNC property

1. NET LEASED INVESTMENT OFFERING
PNC Bank (Ground Lease)
1996 Freedom Parkway
Washington, IL 61571 (Peoria MSA)
CONFIDENTIAL OFFERING MEMORANDUM
www.bouldergroup.com

2. TABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
TABLE OF CONTENTS
1) Confidentiality & Disclaimer
2) Executive Summary
3) Property Overview
4) Aerial
5) Site Plan
6) Maps
7) Tenant Profile
8) Demographic Comparison Report
9) Location Overview
10) Contact Information
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3. CONFIDENTIALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
CONFIDENTIALITY
CONFIDENTIALITY & DISCLAIMER
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is
intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to
any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been
prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary
level of interest in the subject property. The information contained herein is not a substitute for a thorough due
diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or
representation, with respect to the income or expenses for the subject property, the future projected financial
performance of the property, the size and square footage of the property and improvements, the presence or
absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the
physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or
any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this
Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has
not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any
investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy
or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the
information set forth herein.
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4. EXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant PNC Bank ground lease located in
Washington, Illinois. The PNC Bank is located on a 58,730 square foot parcel and was built in 2007. This ground
lease is located as an outlot parcel to a Wal-Mart Supercenter and adjacent to a Menards. The Wal-Mart Supercenter
was developed in 2003 as a relocation to replace a smaller location. Washington is 10 miles east of Peoria, the
home of Caterpillar which employs over 17,000 people.
The property is located along US 24 and benefits from its position on the hard corner of a signalized intersection.
The intersection of Freedom Parkway and US 24 experiences traffic counts in excess of 21,000 vehicles per day.
Over 9,000 cars travel in and out of the shopping center which features Wal-Mart, Menards and PNC Bank daily. The
property is located within the primary retail trade area that includes retailers such as Wal-Mart Supercenter,
Menards, Kroger, Tractor Supply, AutoZone, Advance Auto Parts and Dollar General.
PNC Bank’s original ground lease term was for 20 years with three 10-year renewal options and the lease expires in
December 2028. The net operating income increased by 14% every five years during the primary term and the
options periods. PNC is a publicly traded company on the New York Stock Exchange (PNC), with a market
capitalization of $30 Billion. PNC is an investment grade company with a Standard & Poor’s rating of A-.
INVESTMENT HIGHLIGHTS
• Investment grade rated company (Standard & Poor’s: A-)
• Multiple 14% rental escalations in primary term
• Long term ground lease with 17 years remaining
• Positioned on the hard corner of a signalized intersection
• Outlot parcel to a Wal-Mart Supercenter
• Average household income in excess of $75,000 within
five miles of the property
• No landlord responsibilities
• Nearby retailers include Menards, Kroger, Tractor Supply,
AutoZone Advance Auto Parts and Dollar General
• Three 10-year renewal options
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5. PROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $1,119,272
Cap Rate: 5.5%
Rent Schedule: NOI Escalation Date
$ 61,560 *
$ 70,178 1/1/2019
$ 80,003 1/1/2024
$ 91,203 1/1/2029 (Option 1)
$103,972 1/1/2034 (Option 2)
$118,528 1/1/2039 (Option 3)
$135,122 1/1/2044 (Option 4)
$154,039 1/1/2049 (Option 5)
$175,605 1/1/2054 (Option 6)
Renewal Options: Three 10-Year
Renewal Escalations: 14% increases every 5 years
Lease Commencement Date: December 15, 2008
Lease Expiration Date: December 31, 2028
Tenant: PNC
Credit Rating: A- (Standard and Poor’s)
Year Built 2008
Lease Type: Ground Lease - NNN
Rentable Square Feet: 3,501 SF
Land Size: 58,730 SF
* Seller to pay rent difference from the closing date until January 1, 2013 when the escalated rent commences.
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6. AERIAL
NET LEASED INVESTMENT OFFERING
AERIAL
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7. SITE PLAN
NET LEASED INVESTMENT OFFERING
SITE PLAN
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8. MAPS
NET LEASED INVESTMENT OFFERING
MAPS
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9. TENANT PROFILE
NET LEASED INVESTMENT OFFERING
TENANT PROFILE
PNC Financial Services is a diversified financial services company in the United States. PNC is engaged in retail
banking, corporate and institutional banking, asset management, and residential mortgage banking. PNC provides
many of its products and services nationally throughout 14 states. It provides certain products and services
internationally. Retail Banking provides deposit, lending, brokerage, trust, investment management, and cash
management services. Corporate and Institutional Banking provides lending, treasury management, and capital
markets-related products and services. Asset Management Group includes personal wealth management for high
net worth and ultra-high net worth clients and institutional asset management. PNC as of December 31, 2010, has
assets of approximately $264.3 billion and 2,870 bank branches. PNC is the 6th largest bank in the United States by
deposits and the 3rd largest provider in off premise ATMs.
Website: www.pnc.com
Number of Locations: 2,870 branches and 6,400
Stock Symbol: ATMs NYSE
PNC :
Standard & Poor’s Rating: A-
Market Capitalization: $30 Billion
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10. DEMOGRAPHIC COMPARISON REPORT
NET LEASED INVESTMENT OFFERING
DEMOGRAPHIC COMPARISON REPORT
Population 3-mi. 5-mi. 7-mi
Total Population 20,680 39,802 84,697
Total Households 8,340 15,821 34,462
Income
Median Household Income $63,707 $65,419 $57,084
Average Household Income $72,511 $75,409 $65,866
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11. LOCATION OVERVIEW
NET LEASED INVESTMENT OFFERING
LOCATION OVERVIEW
Washington is a located in Tazewell County, Illinois. According to the 2010 census
there Washington and Tazewell County had a population of 15,134 and 135,394
respectively. Washington is located 10 miles east of Peoria and is part of the Peoria
Metropolitan Statistical Area.
http://ci.washington.il.us/
http://www.tazewell.com/
Peoria is the largest city on the Illinois River and the seventh most populated in Illinois,
seventh-most
with a total population of 112,303. According to the 2009 Census, the Peoria
Metropolitan Statistical Area had a population of 375,865, making it the third largest
metropolitan area in the state after the Chicago metropolitan area and the Metro
tan Metro-East
portion of the St. Louis metropolitan area.
Peoria is home to the headquarters of Caterpillar Inc., one of the 30 companies
composing the Dow Jones Industrial Average. The largest employers of Peoria are
largest
Caterpillar, Inc. (17,338), St. Francis Hospital (5,800), Methodist Medical Hospital
(3,000), XPAC packaging (1,500) and Bradley University (1,237).
Peoria is home to Bradley University (6,000 students) and Illinois Central Colleg (over
College
12,000 students).
Peoria is centrally located between Chicago (141 miles), Indianapolis (201 miles) and
St. Louis (158 miles).
http://www.ci.peoria.il.us/
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12. CONTACT INFORMATION
NET LEASED INVESTMENT OFFERING
CONTACT INFORMATION
666 Dundee Road Suite 1801
Northbrook, IL 60062
Randy Blankstein Jimmy Goodman
President Partner
847.562.0003 847.562.8500
rblank@bouldergroup.com jimmy@bouldergroup.com
www.bouldergroup.com