lee wayne plaza - loopnet · 2018. 11. 13. · professional fees - utilities $6,555 management fees...

LEE WAYNE PLAZASterling, Illinois

NON-ENDORSEMENT AND DISCLAIMER NOTICE

NON-ENDORSEMENTSMarcus & 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 or name 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DISCLAIMERTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

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EXECUTIVE SUMMARYRent Roll • Investment Highlights

MARKET OVERVIEWProperty Aerials • Market Overview • Demographics

PROPERTY DESCRIPTIONProperty Overview • Lease Summary • Property Photos

FINANCIAL ANALYSISFinancial Analysis • Rent Analysis

TABLE OF CONTENTS

LEE WAYNE PLAZAS T E R L I N G , I L

LEE WAYNE PLAZA

2317-2323 E Lincolnway Ster l ing, IL 61081

Dan YozwiakFirst V ice President, Investments

Yozwiak Fenn Group

Columbus Off ice

Off ice (614) 360-9036

dan.yozwiak@marcusmil l ichap.com

License: OH: SAL.2008003600

Justin FennNational Off ice and Industr ial Propert ies

Group

Yozwiak Fenn Group

Columbus Off ice

Off ice (614) 360-9048

just in.fenn@marcusmil l ichap.com


EXCLUSIVELY LISTED BY

O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A

WWW.MARCUSMILLICHAP.COM

Brian Pavi lonisGSA Off ice Special ist

Associate

Yozwiak Fenn Group

Columbus Off ice

Off ice (614) 360-9069

brian.pavi lonis@marcusmil l ichap.com


Mark GardinerGSA Off ice Special ist

Associate

Yozwiak Fenn Group

Columbus Off ice

Off ice (614) 360-9067

mark.gardiner@marcusmil l ichap.com


1

RENT ROLL

Suite Tenant GLA Lease Start Lease End Monthly Base RentAnnualRent/SF

Annual Base Rent

105 Potthoff Tax Accounting Service 950 2012 5/31/2019 $300 $3.79 $3,600

106 Bi-County Special Education Cooperative 15,800 2015 8/1/2020 $3,000 $2.28 $36,000

107 White Oak Women’s Center 2,100 2005 7/1/2019 $720 $4.11 $8,640

107 B Tenant Storage 2,232 2018 Month to Month $185 $.99 $2,220

108 Quick Needle 690 2016 6/30/2019 $300 $5.22 $3,600

109 Hawkins-Cassens Insurance Agency 1,920 1999 5/31/2019 $1,500 $9.38 $18,000

110 Illinois Dept. of Employment Security 8,075 1994 11/30/2019 $5,552 $8.25 $66,624

112 Best, Inc. 1,000 2005 7/1/2019 $720 $8.64 $8,640

129 McCormick Financial Service 1,005 2009 Month to Month $540 $6.45 $6,480

139 Back to Health Chiropractic Care 902 2006 Month to Month $600 $7.98 $7,200

141 Tenant Storage 100 2018 Month to Month $8 $.96 $96

142 Randall Manus, Attorney 100 2014 Month to Month $125 $15 $1,500

143 Comcast of Northern Illinois 540 2012 2/28/2020 $475 $10.56 $5,700

144 Castor Home Nursing Inc. 1,900 2018 7/31/2023 $850 $5.37 $10,200

Whse Warehouse Space 6,200 2018 Month to Month $500 $0.97 $6,000

Total 43,514 SF $15,375 $4.24 $184,500

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INVESTMENT AND OFFERING HIGHLIGHTS

OFFERING PRICE

$1,430,608

CAP RATE

9.50%

LEE WAYNE PLAZA2317-2323 E Lincolnway Ster l ing, IL 61081

► 100% Occupancy | Long term, stable tenancy

► Anchor Tenant recently consolidated locations to this

space | Illinois Department of Employment Security

► High visibility just off of U.S. Rt. 2

► Strong tenant mix of office and service tenants

► 20% of GLA leased for storage | offering long term value

add opportunities as convertible office space

► Located in primary retail corridor surrounded by national

retailers and restaurants such as Walmart Supercenter,

Menard’s, Walgreens, Wendy’s, McDonald’s and Starbucks

GROSS LEASABLE AREA

43,514 SF

3

PROPERTY OVERVIEWMarcus & Millichap is pleased to present for purchase Lee Wayne Plaza, a 43,514 SF, fully occupied office strip. The plaza has a stable mix of professional and service tenants that have been established at this location on average for 9.25 years. Office market vacancy is minimal in Sterling with rent approximately $8 to $10/SF gross. Several tenants pay below market rent, which provides opportunity for the future owner to generate additional income. The previous owner has agreed to lease the vacant storage space, which constitutes 20% of the GLA. While those spaces are currently utilized as storage, they can be built out for office or retail space to further strengthen the NOI.

Two government tenants anchor the plaza, accounting for 55% of the total GLA; both have firmly expressed their desire to maintain each of their spaces beyond their current lease terms. The plaza was built in 1962 and has been periodically updated including an extensive renovation in 2000. The roof is in good shape, HVAC recently serviced, parking lot is in fair condition and new signage installed.

The location sits in the most densely populated area of Sterling and has high visibility sitting directly on Route 2, the primary commercial artery through Sterling. Numerous traffic generators are nearby including Northland Mall, a newer construction Walmart Supercenter, Menards, ALDI, and Kohl’s among other national retailers such as Buffalo Wild Wings, Starbucks, McDonald’s, Wendy’s, and Walgreens.

Sterling is located 110 miles west of downtown Chicago, 50 miles southwest of Rockford and 50 miles east of the Quad Cities. The property services the Sauk Valley community with a population of approximately 60,000 including more than 40,000 residents in Sterling, Rock Falls and Dixon.

Rock River Bridge, Sterling, IL

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ANCHOR TENANT PROFILES

Bi-County Special Education Cooperative (36% of GLA)

Serves Whiteside and Carroll Counties and provides educational services to preschool children ages 3-5 with disabilities or special needs. It is the mission of Bi-County Special Education Cooperative to provide a positive, caring educational experience, rendered in the least restrictive environment, to all students found eligible under the Individuals with Disabilities Act. They believe that when given the support, opportunity and encouragement, all children can learn and succeed. The Bi-County Special Education Cooperative invested heavily in this site with their own TI money to completely remodel the interior, installing new tile flooring, carpeting, counters, painting, etc. In addition, the County Regional Office of Education is located in Sterling; further motivation to stay centralized at this location

Illinois Dept. of Employment Security - Unemployment Career Center (19% of GLA)

Sterling IL Unemployment Career Center Office provide individuals seeking employment all the latest tools to find and keep that special job. Employers will find assistance in recruiting new employees including a national job listing network, applicant screening, and space in the centers to conduct testing and employment interviews.

The State of Illinois has recently consolidated their Career Center locations here from another town, making this a mission critical location that serves three cities. They can only pay holdover rent for 6 months and with less than a year left on their lease IDES has assured the owner that if they had intentions of leaving, they would have had to start planning any exit several months ago.

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LEASE AND OFFERING SUMMARY

PROPERTY DESCRIPTION

Property Name Lee Wayne Plaza

Property Address 2317-2323 E Lincoln Way, Sterling, IL 61081

Property Subtype Multi Tenant Office Center

Year Built/Renovated 1962/2000

Gross Leasable Area 43,514 SF

Type of Ownership Fee Simple

Acres 2.08

Parking 100+ Spaces in shared lot

LEASE SUMMARY

Tenant Spaces Multi Tenant Office Center

Lease Type Gross

Lease Commencement See Rent Roll

Right of First Refusal/Offer No

Lee Wayne Plaza

43,514 SF Multi tenant office plaza in Sterling, IL

Income

Base Rent $184,500

Annual Revenue Totals $184,500

Itemized Expenses

Taxes $21,855

Insurance $4,876

Repairs & Maintenance $7,926

Professional Fees -

Utilities $6,555

Management Fees (4% of Gross Rent) $7,380

Annual Expense Totals $48,592

NOI $135,908

Cap Rate 9.50%List Price $1,430,608SF 43,514 $/SF $32.87

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LOCATION MAP

SUBJECT PROPERTY

7

AERIAL

Lincoln H

ighway

/St. Rou

te 2

E Lynn Blvd.

SUBJECT PROPERTY

Northland Mall

Distribution Center

Downtown Sterling

McDonald’s

Woodlawn Office Plaza

Rock River

Challand Middle School

Lincoln ElementarySchool

N

8

MARKET OVERVIEWSter l ing, IL

Sterling is a city in Whiteside County, Illinois. The property services the Sauk Valley community with a population of approximately 60,000 including more than 40,000 residents in Sterling, Rock Falls and Dixon. Sterling is recognized for its central location between several major cities, access to excellent transportation networks, and foundation of manufacturing. National manufacturers and retail giants such as Walmart, Menards, Wahl Clipper Corporation, HALO Branded Solutions, and Dana Incorporated have established distribution centers and production plants here in Sterling. The City’s industrial base has expanded as the city has filled two industrial parks and begins development of a third and fourth, offering generous incentives for business owners. Retail sales for the region have expanded as Sterling has emerged as a regional retail hub with multiple retail centers such as the Northland Mall. Outside the city, the landscape is primarily dominated by agricultural fields that typify most of the Midwest. There are five golf courses in the immediate area, one of which is operated by the Sterling Park District. The Sterling Park District operates a wide variety of recreation and entertainment features including 14 parks, 7 miles of bike paths, 27-hole frisbee golf course, Aquatics Center, Gymnastics Center, Skate Park, multiple indoor fitness centers, hundreds of organized programs for the public, a marina on the Rock River which borders the west side of town, and much more.

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POPULATION 1 MILE 3 MILES 5 MILES

2022 Projection 5,857 26,125 31,586

2017 Estimate 5,923 26,397 31,766

2010 Census 6,012 26,951 32,477

2000 Census 6,274 28,101 33,611

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2022 Projection 2,515 10,714 12,928

2017 Estimate 2,530 10,727 12,872

2010 Census 2,585 11,041 13,266

2000 Census 2,658 11,320 13,390

POPULATION 1 MILE 3 MILES 5 MILES

Daytime Population 6,518 28,584 34,178

Median Age 39.57 39.70 41.02

Average Household Size 2.30 2.43 2.43

INCOME 1 MILE 3 MILES 5 MILES

Average $58,930 $58,207 $59,575

Median $45,734 $42,963 $43,758

Per Capita $25,383 $23,900 $24,373

DEMOGRAPHICS

5 miles

SUBJECT

1 mile

3 miles

11

P R E S E N T E D B Y

LEE WAYNE PLAZA, STERLING, IL

Dan Yozwiak

First V ice President, Investments

Yozwiak Fenn Group

Columbus Off ice

Off ice (614) 360-9036

dan.yozwiak@marcusmil l ichap.

com


Justin Fenn

National Off ice and

Industr ial Propert ies Group

Yozwiak Fenn Group

Columbus Off ice

Off ice (614) 360-9048

just in.fenn@marcusmil l ichap.com


Brian Pavi lonis

GSA Off ice Special ist

Associate

Yozwiak Fenn Group

Columbus Off ice

Off ice (614) 360-9069

brian.pavi lonis@marcusmil l ichap.

com


Mark Gardiner

GSA Off ice Special ist

Associate

Yozwiak Fenn Group

Columbus Off ice

Off ice (614) 360-9067

mark.gardiner@marcusmil l ichap.

com


lee wayne plaza - loopnet · 2018. 11. 13. · professional fees - utilities $6,555 management fees...

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