SOUTHGATE SHOPPING PLAZA€¦ · Oriental Buffet 10/01/2005 –10/02/2025 5,000 $8.27 $32,400...

O F F E R I N G

M E M O R A N D U M

1 2 2 1 – 1 2 4 1 S A N D Y H O L L O W R O A D

R O C K F O R D , I L 6 1 1 0 9

M A R C U S & M I L L I C H A PA c t i v i t y # Z 0 3 8 0 5 4 5

SOUTHGATE SHOPPING PLAZA

O F F E R I N G M E M O R A N D U M | S O U T H G A T E S H O P P I N G P L A Z A 1 1 T H & S A N D Y H O L L O W R D , R O C K F O R D , I L 6 1 1 0 9

T A B L E O F C O N T E N T S

I n v e s t m e n t O v e r v i e w | P a g e 1Investment HighlightsInvestment OverviewOffering Summary

L e a s e S u m m a r y | P a g e 3Property SummaryIncomeExpenses

A e r i a l | P a g e 6 Property AerialLocation Aerial

D e m o g r a p h i c s | P a g e 1 1Location MapRegional MapArea Demographics

L e g a l D i s c l a i m e r | P a g e 1 4

F i n a n c i a l O v e r v i e w | P a g e 2Rent Roll

T e n a n t P r o f i l e s | P a g e 4Notable Tenants

P r o p e r t y P h o t o s | P a g e 8

I N V E S T M E N T S U M M A R Y

The Conway Group at Marcus & Millichap is pleased to present

the sale of this 52,000 square-foot Shopping Plaza in Rockford,

Illinois. The subject property operates with nine current tenants

including AT&T, Dollar General, Advance America and Rent-A-

Center.

The plaza was previously shadow anchored by Kmart but is now

being replaced by a Walmart Supercenter in 2020, which will

increase foot traffic drastically. Strategically placed on a

signalized corner, the subject property has good visibility and

easy access. Brand new roof installed in 2017.

I N V E S T M E N T H I G H L I G H T S

• Walmart Supercenter Replacing Vacant Kmart in 2020

• Rockford is the Largest City in Illinois Outside of the Chicago

Metropolitan Area

• Off-Ramp Freeway Location | Good Visibility and Easy Access

• Brand New Roof Installed in 2017

• One Vacancy (3,000 SF) | 94% Filled

• Riverdahl Elementary Adjacent to Property

• Retail Nearby | Walgreen’s, Dairy Queen, McDonald’s, Pizza

Hut, Dunkin Donuts, ATM Bank, Advanced Auto and AutoZone

I N V E S T M E N T O V E R V I E W

O F F E R I N G S U M M A R Y

P R I C E $3,300,000

N O I $262,821

CAP Rate

Proforma CAP Rate

7.96%

8.67%

P R I C E / S F $63.46

R E N T / S F $5.07

G R O S S L E A S A B L E A R E A

( G L A )

52,000 SF

Y E A R B U I L T 1991/ Renovated 2009

L O T S I Z E 1.19 ACRES


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RENT ROLL

T E N A N T L E A S E T E R M S F R E N T / S F B A S E

R E N T

G R O S S

R E N T

AT&T Advanced Data ** 11/01/1998 – 11/30/2023 4,000 $9.78 $36,000 $43,155

Advance America 10/01/1997 – 01/31/2021 2,000 $7.94 $12,300 $15,878

Nails 2000 09/01/2000 – 09/30/2021 1,000 $13.50 $13,500 $15,284

South Gate Mini-Mall 01/01/2013 – 12/31/2022 9,000 $5.67 $51,000 $51,000

South Gate Mini-Mall-Extension

04/01/2013 – 12/31/2022 10,000 $6.00 $60,000 $60,000

Dollar General 05/01/1994 – 08/31/2020 10,000 $5.87 $40,800 $58,670

Oriental Buffet 10/01/2005 – 10/02/2025 5,000 $8.27 $32,400 $41,330

Rent-A-Center 08/01/1990 – 12/31/2018 5,000 $7.93 $30,700 $39,630

Tobacco Plus 01/01/2003 – 02/28/2019 3,000 $9.20 $27,600 $27,600

Vacant 3,000 ($6.00) ($18,000) ($23,362)

Sub-Total 52,000 $304,300 $352,547

Dollar General % Rent (2.5% above $1.36 Million in sales)

$8,000 $8,000

Gross Income $312,300 $360,547

Proforma Income ($320,300) ($383,909)

T H E C O N W A Y G R O U P

P R O P O S A L O F V A L U E


F I N A N C I A L O V E R V I E W

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L E A S E S U M M A R Y

P R O P E R T Y

S U M M A R Y

Property Southgate Shopping Plaza

Address 11th & Sandy Hollow Rd, Rockford, IL 61109

Price $3,300,000

Net Operating Income $262,821

CAP Rate

Proforma CAP Rate

7.96%

8.67%

Year Built Renovated 2009

Gross Leasable Area 52,000 SF

Zoning N/A

Type of Ownership Fee Simple

Lot Size 1.19 Acres


I N C O M E

BASE RENT GROSS RENT

GROSS INCOME $312,300 $360,547

NET BEFORE PARTICIPATION $214,574 $262,821

TENANT PARTICIPATION FOR RE +

CAM + INS

$48,247

NET OPERATING INCOME $262,821 $262,821

E X P E N S E S *

BASE RENT GROSS RENT

REAL ESTATE TAXES $62,926 $62,926

INSURANCE (INCLUDED IN CAM

CHARGES)

$0 $0

CAM $30,000 $30,000

MISCELLANEOUS EXPENSES $4,800 $4,800

TOTAL EXPENSES $97,726 $97,726

*01/01/17 – 12/31/17

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T E N A N T P R O F I L E

Tenant AT&T

Rentable SF 4000 SF

Lease Commencement November 1, 1998

Lease Expiration November 30, 2023

Term Remaining 4.5 Years

Options to Renew Two 5-Year Options

Current Base Rent $32,000

Guarantor Corporate

T E N A N T O V E R V I E W

AT&T Inc. is an American multinational telecommunications holding

company headquartered at Whitacre Tower in Downtown Dallas,

Texas. It is the world's largest telecommunications company, the

second largest provider of mobile telephone services, and the largest

provider of fixed telephone services in the United States through AT&T

Communications. Since June 14, 2018, it is also the parent company of

mass media conglomerate WarnerMedia, making it the world's largest

media and entertainment company in terms of revenue.




Advance America Cash Advance was founded in 1997 and is the

largest provider of the non-bank cash advance services in the United

States. As of December 31, 2013 Advance America operated over

2500 lending centers in 29 states and 18 centers in Canada. Advance

America is a member of the Consumer Financial Services Association

of America, which sets best practices standards for its membership.

Advance America provides its cash advances in small-denomination,

short-term amounts. The advances come due on the customer's next

payday. The company's stated goal is to attract customers by offering

straightforward, rapid access to short-term funding, while providing

high quality, professional customer service.


Tenant Advance America

Rentable SF 2000

Lease Commencement October 1, 1997

Lease Expiration January 31, 2021

Term Remaining 2.5+ Years

Options to Renew One 3-Year Option


Guarantor

4


Tenant Dollar General

Rentable SF 10,000

Lease Commencement May 1, 1994

Lease Expiration October 31, 2020

Term Remaining 2+ Years

Options to Renew No Options


Guarantor Corporate


Dollar General Corporation is an American chain of variety stores

headquartered in Goodlettsville, Tennessee. As of July 2018, Dollar

General operates 15,000 stores in 45 of the 48 contiguous United States

(the exceptions being three states in the northwest: Idaho, Montana,

and Washington).

The company first began in 1939 as a family-owned business called J.L.

Turner and Son in Scottsville, Kentucky by James Luther Turner and Cal

Turner. In 1968 the name changed to Dollar General Corporation and

the company went public on the New York Stock Exchange. Fortune

500 recognized Dollar General in 1999 and in 2018 reached #123. Dollar

General has grown to become one of the most profitable stores in the

rural United States with revenue reaching around $21 billion in 2017.




A rent-to-own industry leader, Plano, Texas-based, Rent-A-Center, Inc.,

is focused on improving the quality of life for its customers by providing

them the opportunity to obtain ownership of high-quality, durable

products such as consumer electronics, appliances, computers,

furniture and accessories, under flexible rental purchase agreements

with no long-term obligation.

The Company owns and operates approximately 2,350 stores in the

United States, Mexico, Canada and Puerto Rico, and approximately

1,250 Acceptance Now kiosk locations in the United States and Puerto

Rico. Rent-A-Center Franchising International, Inc., a wholly owned

subsidiary of the Company, is a national franchiser of approximately 250

rent-to-own stores operating under the trade names of "Rent-A-Center",

"ColorTyme", and "RimTyme".


Tenant Rent-A-Center

Rentable SF 5000

Lease Commencement August 1, 1990

Lease Expiration December 31, 2018

Term Remaining 5 Months

Options to Renew One 5-Year Option


Guarantor Corporate

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P R O P E R T Y A E R I A L


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L O C A T I O N A E R I A L


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P R O P E R T Y P H O T O S


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L O C A T I O N


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L O C A T I O N


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REGIONAL MAP

A R E A D E M O G R A P H I C S


MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Hamilton Sundstrand Corp 2,300

GCA Services Group Inc 1,176

Chautauqua 1,000

Swedishamerican Hospital 779

Andrews Staffing Inc 750

PCI Services of Illinois 640

Bergstrom Inc 600

Estwing Manufacturing Co Inc 500

SPX Corporation 450

Transportation Tech Industries 410

Behr 387

UPS 380

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 2,046 20,602 71,129

2010 Census Pop 2,118 21,151 72,893

2017 Estimate HH 789 7,975 27,563

2010 Census HH 820 8,248 28,490

Median HH Income

$58,279 $42,983 $39,092

Per Capita Income

$27,093 $21,484 $19,766

Average HH Income

$70,272 $55,495 $50,769

R O C K F O R D , I L L I N O I S

Rockford is the third largest city in the U.S. state of Illinois, the 171st most

populous city in the United States, the largest city in Illinois outside the

Chicago metropolitan area, and the city of the 148th most populous

metropolitan area in the United States. It is the county seat of Winnebago

County and is on both banks of the Rock River in far northern Illinois. A small

portion of Rockford dips down into neighboring Ogle County. According to

2010 census data, the City of Rockford had a population of 152,871, with an

outlying metropolitan area population of 348,360, which was estimated to

have decreased to 150,251 and 344,623, respectively, by July 2013. During

2017, a special census was completed putting the population at 153,379.

Settled in the mid-1830s, the position of the city on the Rock River made its

location strategic for industrial development. In the second half of the 19th

century, Rockford was notable for its output of heavy machinery and tools;

by the twentieth century, it was the second leading center of furniture

manufacturing in the nation, and 94th largest city. During the second half of

the 20th century, Rockford struggled alongside many Rust Belt cities. Since

the late 1990s, efforts in economic diversification have led to growth of

automotive, aerospace, and healthcare industries, as well as the

undertaking of various tourism and downtown revitalization efforts.

Nicknamed the Forest City, Rockford is known for various venues of cultural or

historical significance, including Anderson Japanese Gardens, Klehm

Arboretum, Tinker Swiss Cottage, the BMO Harris Bank Center, the Coronado

Theatre, the Laurent House, and the Burpee Museum of Natural History. Its

contributions to music are noted in the Mendelssohn Club, the oldest music

club in the nation, and performers such as Phantom Regiment and Cheap

Trick.

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Net Leased DisclaimerMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of thisinformation, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about theaccuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a duediligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The valueof a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with thesuitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documentsrelated to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the leaserate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, orcomparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material termsof the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer isresponsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating areplacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenantconsidering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arisingout of your investigation and/or purchase of this net leased property.

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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 athorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for thesubject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminatingsubstances, 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 ofany tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources webelieve to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigationregarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must takeappropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus &Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & 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 orname 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.


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SOUTHGATE SHOPPING PLAZA€¦ · Oriental Buffet 10/01/2005 –10/02/2025 5,000 $8.27 $32,400...

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