Burger King
75 W Northwest Hwy, Palatine, IL 60067
Offering Memorandum
™
R E T A I L
A D V I S O R S
C O NFIDENTIALITY & DIS CLAIMER STATEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of Burger King located at 75 W
Northwest Hwy, Palatine, IL 60067 (“Property”). It has been prepared by Matthews Retail Advisors . This Offering Memorandum
may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in
this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the
Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller
or Matthews Retail Advisors . The material is based in part upon information supplied by the Seller and in part upon financial
information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation
or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no
legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections
and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in t he strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents
in any fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Retail Advisors expressly reserve the right, at their sole disc retion, to reject any and all expressions
of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering
Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of
the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such
negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information
provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed
Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims
against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders,
owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the
marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that
there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
Matthews Retail Advisors
Table of Contents
Pricing & Financial Analysis
Investment Highlights.................................................... 2
Executive Summary...................................................... 3
Company Overview .................................................... 4
Property Description
Physical Description...................................................... 7
Tenant Map................................................................. 8
Regional Map.............................................................. 9
Bird’s Eye.................................................................. 10
Demographics
City Overview | Palatine, IL........................................ 12
Demographics Report................................................. 13
EXCLUSIVELY LISTED BY:
Gary Chou
Director | Restaurant Practice Group
direct +1.310.919.5827
MOBILE +1.714.928.8016
gary.chou@matthews.com
License No. 01911222
Randy Olczyk
Broker of Record
Chicagoland Commercial Real Estate
License No. 471018001
Matthews Retail Advisors
Pricing & Financial Analysis
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Investment Highlights
QUALITY NATIONAL TENANT AND OPERATIONS
• Strong National Brand – Burger King is the second largest hamburger chain in
the world with over 13,000 stores in operation
• Large Franchise Guarantee – Heartland Illinois Food Corp/TriCity owned by
Dhanani’s Houston Foods owns more than 450 Burger Kings
• Absolute NNN Lease – Zero landlord responsibilities
• Updated Burger King concept
STRONG RETAIL CORRIDOR
• this location has great access to interstate 14 which leads directly to
Chicago
• Minimal competition with very few quick service restaurants in the vicinity
• shopping center with anchors hobby lobby and ace hardware is to the east
• large residential area within a one mile radius of Burger King
• national tenants in the area include: Mcdonald’s, CVs, eurofresh Market,
sherwin-Williams, hobby lobby, dairy Queen, Citibank, dollar tree, and ace
P. 2
Matthews Retail Advisors
OFFERING MEMORANDUM | Burger King
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Executive Summary
Burger King
75 W Northwest Hwy
Palatine, IL 60067
List Price...............................................................................................$640,000
CAP Rate - Current����������������������������������������������������������������������������������� 8.75%
Gross Leasable Area��������������������������������������������������������������������������2,943 SF
Lot Size ....................................................................... 0.54 Acres (23,522 SF)
Year Built��������������������������������������������������������������������������������������������������������1995
Annualized Operating Data
Monthly Rent
Annual Rent
CAP Rate
Current - 8/29/2017
$4,666.67
$56,000.00
8.75%
Option 1 - 8/28/2022
$4,666.67
$56,000.00
8.75%
Option 2 - 8/28/2027
$4,666.67
$56,000.00
8.75%
Tenant Summary
Tenant Trade Name
Type of Ownership
Lease Guarantor
Burger King
Fee Simple
Heartland Illinois Food Corp/TriCity
Lease Type
Roof and Structure
NNN
Tenant Responsible
Original Lease Term
8/29/1997
Rent Commencement Date
8/29/1997
Lease Expiration Date
8/28/2017
Term Remaining on Lease
Increases
Options
Burger King | OFFERING MEMORANDUM
20
Lease Commencement Date
2 Years
None - Percentage Rent
Two (2) 5-Year Options
Matthews Retail Advisors
P. 3
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Company Overview
Property Name
Property Type
Parent Company Trade Name
Ownership
Credit Rating
Rating Agency
Revenue
Net Income
Stock Symbol
Burger King
Net Leased Quick Service Restaurant
Restaurant Brands International Inc.
Public
B+
Standard & Poor’s
$1.97 B
$117.7 M
QSR
NYSE
Board
No. of Locations
±13,000
No. of Employees
±34,000
Headquartered
Miami, FL
Web Site
Year Founded
P. 4
Matthews Retail Advisors
http://www.bk.com/
Burger King is a global chain of hamburger fast food restaurants
headquartered in Miami, Florida. The company began in 1953 as
Insta-Burger King, but after financial difficulties in 1954, two large
franchisees in Miami, purchased the company and renamed it Burger
King. In 2002, a third set of owners, a partnership of TPG Capital, Bain
Capital, and Goldman Sachs Capital Partners, took it public. Eight
years later, 3G Capital of Brazil acquired a majority stake in BK and
the new owners promptly initiated a restructuring of the company
to reverse its declining market share. 3G, along with partner
Berkshire Hathaway, merged the company with Canadian-based
doughnut chain Tim Hortons under a new Canadian-based parent
company, Restaurant Brands International which was founded on
August 25, 2014. The multinational giant currently serves customers
in US and Canada, Europe, Middle East and Africa, Latin America, the
Caribbean, and Asia Pacific.
1953
OFFERING MEMORANDUM | Burger King
Property Description
PRICING AND FINANCIAL ANALYSIS
P. 6
Matthews Retail Advisors
PROPERTY DESCRIPTION
DEMOGRAPHICS
OFFERING MEMORANDUM | Burger King
PROPERTY DESCRIPTION
PRICING AND FINANCIAL ANALYSIS
DEMOGRAPHICS
Physical Description
THE OFFERING
Property Name..................................................................................... Burger King
Property Address...............................................................75 W Northwest Hwy
Palatine, IL 60067
Assessor’s Parcel Number............................................... 02-15-208-031-0000
SITE DESCRIPTION
Number of Stories���������������������������������������������������������������������������������������������One
Year Built..............................................................................................................1995
Gross Leasable Area (GLA)��������������������������������������������������������������������2,943 SF
Lot Size............................................................................. 0.54 Acres (23,522 SF)
Type of Ownership................................................................................Fee Simple
Landscaping.........................................................................................Professional
Topography.................................................................................... Generally Level
CONSTRUCTION
Foundation........................................................................................Concrete Slab
Framing..............................................................................................................Wood
Exterior............................................................................................. Painted Stucco
Parking Surface.............................................................................................Asphalt
Roof.........................................................................................................................Flat
Burger King | OFFERING MEMORANDUM
Matthews Retail Advisors
P. 7
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Tenant Map
P. 8
Matthews Retail Advisors
OFFERING MEMORANDUM | Burger King
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Regional Map
Burger King | OFFERING MEMORANDUM
Matthews Retail Advisors
P. 9
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Bird’s Eye
P. 10
Matthews Retail Advisors
OFFERING MEMORANDUM | Burger King
Demographics
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
City Overview | Palatine, IL
Palatine | A Family Friendly Chicago Suburb
Palatine is a village in Cook County, Illinois, located approximately 30
miles northwest of Chicago. According to the 2010 census, its population
had risen to 68,557, making it the seventh-largest community in Cook
County and the 18th-largest in the state of Illinois.
Because of Palatine’s convenient Chicago suburb location, it puts
metropolitan cultural and business advantages within easy reach, while
providing an away-from-it-all home town feeling for its residents. Palatine
is a community that is known for having a pleasant mix of residential,
commercial, light industrial and office space, while still being surrounded
by parks and open space.
There are a multitude of \recreation and leisure activities in and around
Palatine. There are diverse clubs, civic, and community groups in the city
that provide a variety of events and activities for nearly everyone.
Palatine is also known for being an excellent place to live and establish a
home with a family, due to award winning schools and the tranquil
atmosphere.
P. 12
Matthews Retail Advisors
OFFERING MEMORANDUM | Burger King
PRICING AND FINANCIAL ANALYSIS
DEMOGRAPHICS
PROPERTY DESCRIPTION
Demographics Report
Population
2020 Projection
2015 Estimate
2010 Census
2000 Census
Growth 2015-2020
Growth 2010-2015
Growth 2000-2010
1-Mile
14,979
14,586
14,152
13,139
2.69%
3.07%
7.71%
3-Mile
100,879
98,467
95,819
95,006
2.45%
2.76%
0.85%
5-Mile
248,005
244,037
239,860
240,396
1.63%
1.74%
-0.22%
Households
2020 Projection
2015 Estimate
2010 Census
2000 Census
Growth 2015-2020
Growth 2010-2015
Growth 2000-2010
6,665
6,470
6,250
5,509
3.01%
3.54%
13.44%
39,355
38,337
37,193
36,462
2.66%
3.07%
2.01%
97,134
95,173
92,942
90,849
2.06%
2.40%
2.30%
6.26%
7.28%
7.77%
11.72%
18.10%
13.29%
10.71%
6.91%
8.79%
3.42%
4.24%
1.50%
$98,466
$73,441
6.26%
7.28%
7.77%
11.72%
18.10%
13.29%
10.71%
6.91%
8.79%
3.42%
4.24%
1.50%
$104,845
$77,963
Income
$0 - $15,000
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 - $499,999
$500,000+
2015 Est. Average Household Income
2015 Est. Median Household Income
Burger King | OFFERING MEMORANDUM
6.14%
7.42%
8.41%
9.97%
18.41%
11.85%
10.03%
7.25%
11.25%
4.13%
4.31%
0.83%
$99,195
$74,539
Matthews Retail Advisors
P. 13
Burger King
75 W Northwest Hwy
Palatine, IL 60067
OFFERING MEMORANDUM
Gary Chou
Director | Restaurant Practice Group
direct +1.310.919.5827
MOBILE +1.714.928.8016
gary.chou@matthews.com
License No. 01911222
Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com
™
Randy Olczyk
Broker of Record
Chicagoland Commercial Real Estate
License No. 471018001