www.TheKaseGroup.com
Michael A. Paéz
Investment Advisor
415.312.7279
mpaez@svn.com
BRE#01937246
Jacob Abusharkh
Managing Director
415.269.2474
jacob@svn.com
BRE#01385529
Pep Boys - Waukegan, IL (Chicago)
$6,943,138 | 6.50% CAP
Highlights
Strong Corporate Guaranty
Absolute NNN Lease with Annual Rental Escalations
Excellent Access & Visibility
Tenant Has Operated at This Location for Over 19 Years
Surrounded by Major Employers
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
CONTENTS
PROPERTY OVERVIEW
Executive Summary
Tenant Summary
Tenant Press
FINANCIAL OVERVIEW
Financial Summary
LOCATION INFORMATION
Location Maps
Aerial Photo
DEMOGRAPHICS
Demographics Analysis
Demographics Map
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
PROPERTY OVERVIEW
Executive Summary
Tenant Summary
Property Info
The subject property is a 22,146 SF fee simple Pep Boys in Waukegan, IL. Subject property has
8 years left on a 15 year NNN corporate lease with 4-5 year options and annual increases of
1.5% through the base term. The property sits on 2.05 acres and strategically situated on heavily
traveled N Green Bay Rd.
Area Info
Waukegan is a city and the county seat of Lake County, Illinois. As of the 2013 census estimate,
the city had a population of 88,826. It is the ninth-largest city in Illinois by population. It is the
fifth-largest city on the western shore of Lake Michigan, after Chicago, Milwaukee, Green Bay, and
Kenosha.
620 North Green Bay Road | Waukegan, IL 60085
Price: $6,943,138
Building SF: 22,146
Lot Size: 2.05 AC
Price/SF: $314
County: Lake
NOI: $451,304
CAP Rate: 6.50%
Year Built/Remodeled: 1997/2005
Executive Summary
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
Tenant Summary
Tenant Overview
The Pep Boys: Manny, Moe & Jack, (branded as and commonly abbreviated as Pep Boys)
is a full-service and tire automotive aftermarket chain.
The first store, originally named Pep Auto Supplies, was founded in Philadelphia,
Penn-sylvania in 1921 by Emanuel (Manny) Rosenfeld, Maurice L. (Moe) Strauss, W. Graham
(Jack) Jackson, and Moe Radavitz.
Currently headquartered in the Allegheny West section of Philadelphia, Pep Boys
oper-ates 803 stores and approximately 7,000 service bays in 35 stoper-ates and Puerto Rico.
Along with its full-service vehicle maintenance and repair capabilities, the company
also serves the commercial auto parts delivery market. It is one of the leading sellers of
replacement tires in the United States, and in 2005 was named one of the 500
fastest-growing U.S. companies.
Corporate Information
Ticker Symbol: NYSE: PBY, NASDAQ: PBY
Founded: 1921, Philadelphia
Employees: 19,000
No. of Locations: 800+
Website: www.PepBoys.com
Tenant Highlights
Leading seller of replacement tires in U.S.
Named one of the 500 fastest-growing
U.S. companies
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
Tenant Press
http://www.streetinsider.com/Corporate+News/Bridgestone+to+Acquire+Pep+Boys+(PBY)+in+~$835M+Deal/11000452.html
Bridgestone to Acquire Pep Boys (PBY) in ~$835M Deal
October 26, 2015 8:33 AM EDT
Bridgestone Americas, Inc. (Bridgestone) and The Pep Boys – Manny, Moe & Jack (NYSE: PBY) today announced that Pep Boys and Bridgestone Retail Operations, LLC (BSRO), a wholly owned subsidiary of Bridgestone, have entered into a definitive merger agreement under which BSRO will acquire Pep Boys in an all-cash transaction for $15.00 per share, or approximately $835 million in aggregate equity value. This represents a premium of 23 percent over Pep Boys' closing price of $12.15 on October 23, 2015 and a premium of 62 percent over Pep Boys' unaffected (prior to market speculation of a potential transaction) price of $9.25 on May 19, 2015. The transaction is structured as a tender offer. "Bridgestone and Pep Boys are two leading companies that share a proud heritage in the American automotive services industry," said Gary Garfield, CEO and President of Bridgestone Americas. "Our shared expertise and commitment to our customers and employees will help us build an even stronger organization."
Pep Boys, headquartered in Philadelphia, has been one of the nation's leading automotive aftermarket chains since 1921. With more than 7,500 service bays in more than 800 locations in 35 states and Puerto Rico, Pep Boys offers tires, maintenance and repair and parts and accessories. The acquisition accelerates the global growth strategy of Bridgestone Corporation, the world's largest tire and rubber company and parent of Bridgestone Americas. Pep Boys will add approximately 800 locations to BSRO's nationwide network of 2,200 tire and automotive service centers, which operate under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners.
Along with these company-owned stores and Bridgestone's more than 5,000 long-standing dealers and distributors in the United States, Pep Boys' distribution network will help reach even more consumers with the products and services they want when they need them. The acquisition represents an immediate nationwide expansion of more than 35 percent for BSRO.
"We are excited to join the Bridgestone family of companies to become part of the world's largest company-owned tire and automotive service retail network," said Scott Sider, CEO of Pep Boys. "This transaction delivers a significant premium for Pep Boys' shareholders and offers new opportunities for our employees across a bigger business. We look forward to working with the Bridgestone team for a smooth and successful transition."
The transaction is expected to close Tweet Share E-mail in the beginning of 2016. Under the terms of the agreement, which has been unanimously approved by the boards of both Bridgestone and Pep Boys, a wholly owned subsidiary of BSRO will commence a tender offer for all outstanding shares of Pep Boys at $15.00 per share in cash. The completion of the tender offer will be conditioned on Pep Boys' shareholders tendering at least a majority of Pep Boys' outstanding shares, determined on a fully diluted basis, and other customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Following completion of the tender offer, both companies will complete a merger in which Pep Boys shares that were not tendered in the tender offer will be cancelled and converted into the right to receive $15.00 per share in cash. Following completion of the transaction, Pep Boys will be wholly owned by and operate under BSRO. Pep Boys' stock will no longer trade on the New York Stock Exchange.
J.P. Morgan Securities LLC is acting as the exclusive financial advisor to Bridgestone. Jones Day is acting as legal advisor to Bridgestone. Rothschild is acting as the exclusive financial advisor to Pep Boys. Morgan, Lewis & Bockius LLP is acting as legal advisor to Pep Boys.
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
FINANCIAL OVERVIEW
620 North Green Bay Road | Waukegan, IL 60085
$6,943,138 | 6.50% CAP
Building SF: 22,146 SF
Lot Size: 2.05 AC
Year Built/Remodeled: 1997/2005
Market: Chicago
Tenant Name
GLA
Lease Begin
Lease End
Annual Rent
Increases/Options
Pep Boys Auto
22,146 SF
8/1/2008
7/31/2023
$451,304
1.5% Annual Increases
Tenant has four 5 year
options to renew
Operating Summary
Current
2016
2017
2018
2019
Net Operating Income
$451,304 $458,074 $464,945 $471,919 $478,998
CAP Rate
6.50% 6.60% 6.70% 6.80% 6.90%
2020
2021
2022
2023
Net Operating Income
$486,183 $493,475 $500,877 $508,391
CAP Rate
7.00% 7.10% 7.20% 7.30%
Financial Summary
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
LOCATION INFORMATION
Location Maps
Aerial Photo
Location Maps
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
2. LOCATION OVERVIEW
PEP BOYS
Location Maps
All Sperry Van Ness® Offices Independently Owned & Operated.
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
Aerial Photo
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
DEMOGRAPHICS
Demographics Analysis
Demographics Map
Demographics Analysis
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Total Population
Total Number of Households
Total Number of Persons per Household
Average House Value
Average Household Income
Median Age
Median Age - Male
Median Age - Female
Total Population - White
Total Percent - White
Total Population - Black
Total Percent - Black
Total Population - Asian
Total Percent - Asian
Total Population - Hawaiian
Total Percent - Hawaiian
Total Population - Indian
Total Percent - Indian
Total Population - Other
Total Percent - Other
Total Population - Hispanic
Total Percent - Hispanic
18
212
393
0.1%
0.2%
0.2%
3,264
29,620
44,837
25.9%
27.6%
22.8%
620 North Green Bay Rd | Waukegan, IL 60085
For Sale |
$6,685,900
* Demographic information provided by BuildOut, Inc.
4,624
35,925
64,924
2.7
3.0
3.0
$165,790
$157,304
$180,898
$62,548
$60,024
$65,037
34.1
31.3
31.8
34.0
30.1
31.0
34.7
32.1
32.4
776
5,694
10,001
6.2%
5.3%
5.1%
2,278
17,502
36,143
18.1%
16.3%
18.3%
0
0
19
0.0%
0.0%
0.0%
5,932
51,031
99,874
47.1%
47.6%
50.7%
12,585
107,296
197,036
5,804
53,298
81,907
46.1%
49.7%
41.6%
1 Mile
3 Miles
5 Miles
4. DEMOGRAPHICS
PEP BOYS
Demographics Report
All Sperry Van Ness® Offices Independently Owned & Operated.
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
3530 N Governor Williams Hwy | Darlington, SC 29540
RADIUS MAP
5 miles
7 miles
10 miles
Total Population
6,523 16,087 36,656
Total Number of Households 2,375 6,051 13,934
Average Houeshold Income
$54,646 $49,412 $46,526
Median Age 38.8 38.6 38.5
*Demographic information provided by BuildOut, LLC
* Demographic information provided by BuildOut, LLC
550 North Market Street | McArthur, OH 45651
Dollar General Net Leased Offering
Radius Map
Demographics Analysis
5 Miles
7 Miles
10 Miles
Total Population
4,541
7,575
16,215
Total Number of Households
1,853
3,069
6,502
Average Household Income
$42,967
$42,934
$41,857
Median Age
37.5
37.8
37.4
6
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated.
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
Demographics Map
Pep Boys
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
4. DEMOGRAPHICS
PEP BOYS
Demographics Map
All Sperry Van Ness® Offices Independently Owned & Operated.
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
www.TheKaseGroup.com
15
* Demographic information provided by BuildOut, LLC
620 North Green Bay Rd | Waukegan, IL 60085
Radius Map
1 Mile
3 Miles
5 Miles
Total Population
12,585
107,296
197,036
Total Number of Households
4,624
35,925
64,924
Average Household Income
$62,548
$60,024
$65,037
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated
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