NET LEASED INVESTMENT OFFERING FAMSA 4700 South Ashland Avenue Chicago, IL 60609

NET LEASED INVESTMENT OFFERING
FAMSA
4700 South Ashland Avenue
Chicago, IL 60609
www.bouldergroup.com
TABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
TABLE OF CONTENTS
1)
Confidentiality & Disclaimer
2)
Executive Summary
3)
Investment Highlights
4)
Property Overview
5)
Aerial
6)
Site Plan
7)
Maps
8)
Tenant Profile
9)
Demographic Comparison Report
10)
Location Overview
11)
Contact Information
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CONFIDENTITALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
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. 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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EXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant net leased FAMSA property located
in Chicago, Illinois. This 25,000 square foot property is located on the first floor of the historic Goldblatt building
(City Landmark in Chicago) approximately five miles southwest of downtown Chicago. The property benefits from
a dense infill location with population in excess of 343,000 within three miles. There are eleven years remaining
on the primary term of FAMSA’s lease with rental escalations throughout both the initial term and renewal option
periods. FAMSA is a chain of retail stores that sells household appliances, electronic products, furniture, clothing
and other consumer products throughout its 420 locations in 78 Mexican cities and 37 cities in the United
States. In 2012, FAMSA had annual revenue in excess of $1 billion. This is an ideal location for FAMSA as this
strategic location targets their consumer profile. The property is located in a dense infill area of Chicago along West 47th Street between Ashland Avenue and
Marshfield Avenue. FAMSA has frontage and excellent exposure along all three roadways and is positioned at the
signalized intersection of 47th Street and Ashland Avenue. This intersection experiences traffic volumes in excess
of 41,000 vehicles per day. FAMSA is located in the first floor of the historic Goldblatt building with entrances on
Ashland Avenue and 47th Street. 47th Street is a primary retail thoroughfare featuring many national retailers
including Wal-Mart Neighborhood Market, Marshalls and Aldi, which are located less than one-half mile from the
property. Other retailers in the immediate area include Home Depot, Burlington Coat Factory and Food 4 Less
(Kroger).
As of May 2013, the Goldblatt building was approved as a designated City Landmark in Chicago. Landmark
sites are selected after meeting a combination of criteria, including historical, economic, architectural, artistic,
cultural, and social values. The Chicago Landmarks Ordinance
requires that any alterations beyond routine maintenance, up
to and including demolition, must have their permit reviewed
by the Landmarks Commission. Additionally, Goldblatt’s
Senior Living has plans to occupy floors two through five of the
property. Goldblatt’s Senior Living is an assisted living facility
that will contain 101 residential units and is scheduled to open
June 2014.
The original lease commenced in December 2009 with a
primary term of 15 years with three 5-year renewal options. The
lease features $2 per square foot rental escalations every five
years throughout the primary term and in the renewal option
periods. FAMSA is a publicly traded company on the Mexican
Stock Exchange (GFAMSAA) with annual revenue in excess of
$1 billion. FAMSA operates over 420 locations throughout 78
Mexican cities and 37 cities in the United States.
www.bouldergroup.com
INVESTMENT HIGHLIGHTS
NET LEASED INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
•Located within a dense infill area of Chicago
•Long term lease with eleven years remaining
•FAMSA is a publicly traded company with annual revenue in excess of $1 billion
•$2 per square foot rental escalations every five years throughout the primary term and renewal option
periods
•Population in excess of 343,000 within three miles of the property
•Positioned on a hard corner of a signalized intersection with frontage along three roadways
•Traffic volumes in excess of 41,000 vehicles per day at signalized intersection of 47th Street and Ashland
Avenue
•Nearby retailers include Wal-Mart Neighborhood Market, Home Depot, Burlington Coat Factory, Marshalls,
Aldi and Food 4 Less (Kroger)
•Located within the historic Goldblatt building, a designated City Landmark in Chicago
•Goldblatt’s Senior Living facility is scheduled to open on floors two through five of the Goldblatt building in
June 2014
www.bouldergroup.com
PROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING
PROPERTY OVERVIEW
Price:
$5,711,141
Cap Rate:
8.50%
Rent Schedule:
NOI Escalation Date $490,5471
$540,547
$590,547
$640,547
$690,547
$740,547
12/1/2014
12/1/2019
12/1/2024 (Option 1)
12/1/2029 (Option 2)
12/1/2034 (Option 3)
Renewal Options:
Three 5-Year
Lease Commencement Date:
December 1, 2009
Lease Expiration Date:
November 30, 20242
Tenant:
FAMSA
Credit Rating:
B (Standard & Poor’s)
Lease Type:
Double Net
Rentable Square Feet:
25,000
(1) FAMSA pays a fixed annual rent of $500,000 to landlord. Additionally, landlord is responsible for a tax base
year expense of $6,453 and a CAM base year expense of $3,000.
(2) FAMSA has the right to terminate the lease beginning December 1, 2016 by providing no less than one
hundred and eighty days written notice. If tenant exercises termination right, tenant shall pay a penalty dependent
upon when the lease is cancelled. If lease is cancelled December 2016, tenant shall pay a penalty of $544,821.
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AERIAL
NET LEASED INVESTMENT OFFERING
AERIAL
WEST 47th STREET
20,000 VPD
SOUTH ASHLAND AVENUE
21,000 VPD
N
N
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SITE PLAN
NET LEASED INVESTMENT OFFERING
SITE PLAN
N
S. ASHLAND AVE.
S. MARSHFIELD AVE.
W. 47TH STREET
www.bouldergroup.com
MAPS
NET LEASED INVESTMENT OFFERING
MAPS
CHICAGO
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TENANT PROFILE
NET LEASED INVESTMENT OFFERING
TENANT PROFILE
FAMSA (BMV: GFAMSAA) is a retail company engaged in the purchase and sale of household appliances,
electronic products, furniture, clothing and other consumer products. FAMSA is a Mexico based company,
headquartered in Monterrey, Mexico, and is publicly traded on the Mexican Stock exchange under the symbol
GFAMSAA. FAMSA operates over 420 retail stores and 8 distribution centers in 78 Mexican cities and 37 cities
in the United States. Additionally, FAMSA manufactures furniture and provides banking and credit services,
including personal car financing through its own bank (Banco Ahorro Famsa).
Website:
Number of Locations:
Number of Employees:
Stock Symbol:
Revenue:
www.famsa.com
420+
18,000
GFAMSAA (BMV)
$1.15 billion
www.bouldergroup.com
DEMOGRAPHIC COMPARISON REPORT
NET LEASED INVESTMENT OFFERING
DEMOGRAPHIC COMPARISON REPORT
Population
Total Population
Total Households
1-mi
3-mi
5-mi
35,912
9,638
343,702
103,040
877,946
297,031
$23,268
$36,566
$28,809
$42,936
$32,235
$49,439
Income
Median Household Income
Average Household Income
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LOCATION OVERVIEW
NET LEASED INVESTMENT OFFERING
LOCATION OVERVIEW
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 also 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.
www.cityofchicago.org
www.bouldergroup.com
CONTACT INFORMATION
NET LEASED INVESTMENT OFFERING
CONTACT INFORMATION
666 Dundee Road, Suite 1801
Northbrook, IL 60062
Randy Blankstein
President
847.562.0003
[email protected]
Jimmy Goodman
Partner
847.562.8500
[email protected]
www.bouldergroup.com
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