LabCorp (Investment Grade) 150 Spring Lake Drive Itasca ... · BusinessWeek rated Itasca as the...
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LabCorp (Investment Grade) 150 Spring Lake Drive Itasca, IL 60143 (Chicago MSA) NET LEASE INVESTMENT OFFERING
Transcript of LabCorp (Investment Grade) 150 Spring Lake Drive Itasca ... · BusinessWeek rated Itasca as the...
LabCorp (Investment Grade)150 Spring Lake DriveItasca, IL 60143 (Chicago MSA)
NET LEASE INVESTMENT OFFERING
NET LEASE INVESTMENT OFFERING
TABLE OF CONTENTS
I. Executive Summary
Executive SummaryInvestment HighlightsProperty Overview
II. Location Overview
Site PlanAerialsMapsPhotos
III. Market & Tenant Overview
Tenant ProfileLocation OverviewDemographics
NET LEASE INVESTMENT OFFERING
DISCLAIMER STATEMENT
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.
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 hasThe Boulder Group conducted any investigation regarding these matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of the information provided. All potential buyers must takeappropriate measures to verify all of the information set forth herein.
DISCLAIMER STATEMENT:
NET LEASE INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant LabCorp diagnostic and administrative facility located in Chicago’s O’Hare industrial submarket. The property is positioned in the immediate proximity to Interstate 290/355 which experiences traffic volumes in excess of 225,000 vehicles per day. LabCorp recently relocated to this property from their previous facility which they operated at for 27 years. The building recently underwent a $7.2 million renovation ($5.8 million investment by LabCorp) further evidencing the tenant’s commitment to this location. There are over nine years remaining on the recently executed ten year lease which expires December 10, 2024. The lease features a rental escalation of approximately 5% in the primary term and rental escalations in each renewal option period. LabCorp utilizes the subject property as a clinical diagnostic laboratory where specimens are brought to site and tested. Additionally, the property is used as an administrative office for IT, management, sales, human resources and billing services. LabCorp operates one of the largest clinical laboratory networks in the world with 36 primary laboratories (including the subject offering). LabCorp is publicly traded (NYSE: LH) with a market capitalization in excess of $11 billion and is an investment grade rated tenant (S&P: BBB).
The 40,150 square foot LabCorp building is positioned on a 3.37 acre parcel within the Spring Lake Business Park. The Spring Lake Business Park also features the corporate headquarters of Knowles Corporation which is a publicly traded company (NYSE: KN) with a market capitalization of $1.5 billion. The property is benefitted by its location within the O’Hare industrial submarket which has a market vacancy 22% lower than the entire Chicago MSA. The property is benefitted by its location along Interstate 290/355 which experiences traffic volumes in excess of 225,000 vehicles per day. Chicago O’Hare International Airport, which is the 8th busiest airport in the world, is located approximately ten miles east of the property. The surrounding area is densely populated with over 225,000 people living within a five mile radius. The immediate area is affluent with average annual household incomes within a one mile radius in excess of $107,000.
There are over nine years remaining on the LabCorp lease which expires December 11, 2024. The lease features an approximately 5% rental escalation in the primary term and a rental escalation in each renewal option period. The building underwent a $7.2 million renovation which included a new roof, new HVAC units, new parking lot and new buildout designed to meet the needs of LabCorp. The building also features two loading docks. LabCorp is publicly traded on the New York Stock Exchange, LH, with a market capitalization in excess of $11 billion. LabCorp is an investment grade rated tenant with a Standard & Poor’s rating of BBB.
EXECUTIVE SUMMARY:
NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
• Located within the Chicago MSA
• Investment grade rated tenant (S&P: BBB)
• Property recently underwent a $7.2 million renovation ($5.8 million invested by LabCorp)
• LabCorp recently relocated to this facility from their prior location in Schaumburg which they operated at for 27 years
• Rental escalation in the primary term and in each renewal option period
• Strategically located within the O’Hare industrial submarket which has a vacancy percentage 22% lower than the entire Chicago MSA
• Immediate proximity to Interstate 290/355 which experiences traffic volumes in excess of 225,000 vehicles per day
• Over 225,000 people living within a five mile radius of the property
• Average annual household incomes within a one mile radius of the property are in excess of $107,000
• Positioned approximately ten miles from Chicago O’Hare International Airport which is the 8th busiest airport in the world
INVESTMENT HIGHLIGHTS:
NET LEASE INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $6,908,820
Cap Rate: 6.10%
Net Operating Income: NOI Escalation Date $421,438 $441,507 12/11/2019 $481,644 12/11/2024 (Option 1) $501,712 12/11/2029 (Option 2)
Lease Commencement Date: December 11, 2014
Lease Expiration Date: December 10, 2024
Renewal Options: Two 5-Year
Tenant: Laboratory Corporation of America (LabCorp)
Guarantor: Investment Grade (S&P: BBB)
Year Built: 1990
Year Renovated: 20141
Lease Type: NN (Roof & Structure)2
Building Size: 40,150 SF
Land Size: 3.37 Acres
1. The building underwent a $7.2 million renovation which included a new roof (with a 15 year warranty), new HVAC units, new parking lot and buildout designed specifically for LabCorp.
2. If the roof needs to be entirely replaced, the tenant shall reimburse Landlord for $100,000.
PROPERTY OVERVIEW:
NET LEASE INVESTMENT OFFERING
SITE PLAN
SPRI
NG
LAK
E D
RIVE
LOADING DOCKS
N
AERIALS
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N
(155,000 VPD)
Thorndale Avenue (55,000 VPD)
Metra Line
ITASCA METRA STATION
290
(225,000 VP
D)
290
355
355
(145
,000
VPD)
AERIALS
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N
EAGLEWOOD RESORT AND SPA
MEDINAH COUNTRY CLUB
North Rohlwing Road (20,000 VPD)
W Ir
ving
Par
k R
oad
(20,
000
VPD
)
(225,000 VPD)
53
290 355
SPRING LAKE BUSINESS PARK
NET LEASE INVESTMENT OFFERING
MAPS
N
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MAPS
N
NET LEASE INVESTMENT OFFERING
PHOTOS
NET LEASE INVESTMENT OFFERING
TENANT PROFILE
Laboratory Corporation of America Holdings, more commonly known as LabCorp, is an American S&P 500 company headquartered in Burlington, North Carolina. It operates one of the largest clinical laboratory networks in the world, with a United States network of 36 primary laboratories. Before a merger with National Health Laboratory in 1995, the company operated under the name Roche BioMedical.
LabCorp was an early pioneer of genomic testing using polymerase chain reaction (PCR) technology, at its Center for Molecular Biology and Pathology in Research Triangle Park, North Carolina, where it also performs other molecular diagnostics. It also does oncology testing, human immunodeficiency virus (HIV) genotyping and phenotyping.
LabCorp is publicly traded on the New York Stock Exchange (LH) with a market capitalization in excess of $11 billion. LabCorp is an investment grade rated tenant with a Standard & Poor’s rating of BBB. LabCorp has more than 48,000 employees and has over 220,000 clients which includes physician offices, hospitals, managed care organizations, and biotechnology and pharmaceutical companies.
Website: www.labcorp.com
Stock Symbol: NYSE: LH
Market Capitalization: $11 Billion
Credit Rating: S&P: BBB
Headquarters: Burlington, NC
TENANT PROFILE:
NET LEASE INVESTMENT OFFERING
LOCATION OVERVIEW
Itasca is a village in DuPage County. It is a northwest suburb of Chicago and is located approximately 25 miles west of downtown. The village is benefitted by its proximity to O’Hare International Airport, major expressways and rail transportation. Chicago O’Hare is located approximately ten miles east of Itasca. The population was 8,649 at the 2010 census. In 2009, BusinessWeek rated Itasca as the ‘Best Affordable Suburb’ in the state of Illinois. Arthur J. Gallagher & Co., one of the world’s largest insurance brokerage firms, Midas and Fellowes, Inc. headquarters are located in Itasca. Additionally, PrimeCo had its headquarters in Itasca.
Chicago is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald’s, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O’Hare International Airport is the second busiest airport in the world in terms of traffic movement.
The metro is a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness.
LOCATION OVERVIEW:
NET LEASE INVESTMENT OFFERING
DEMOGRAPHICS
DEMOGRAPHIC REPORT: Population 1 Mile 3 Mile 5 Mile
Total Population 4,986 85,345 225,536
Total Households 1,940 32,091 82,238
Income 1 Mile 3 Mile 5 Mile
Median Household Income $87,293 $70,299 $69,962
Average Household Income $107,788 $90,542 $90,306
Randy [email protected]
Jimmy [email protected]
666 Dundee Road, Suite 1801Northbrook, IL 60062
www.bouldergroup.com
