Net Leased Kroger For Sale

							             NET LEASED INVESTMENT OFFERING




       Kroger
2701 Columbus Street
  Ottawa, IL 61350




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                                       TABLE OF CONTENTS
      NET LEASED INVESTMENT OFFERING




      TABLE OF CONTENTS




1)    Confidentiality & Disclaimer
2)    Executive Summary
3)    Property Overview
4)    Aerial
5)    Site Plan
6)    Map
7)    Tenant Profile
8)    Demographic Comparison Report
9)    Location Overview
10)   Contact Information




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                                                                       CONFIDENTIALITY & DISCLAIMER
                                            NET LEASED INVESTMENT OFFERING




                                   CONFIDENTIALITY
                                   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 Kroger property located in Ottawa,
Illinois. This is a proven location for Kroger since 1982 and they are committed to the area as evidenced by the recent
execution of their second renewal option. The 44,088 square foot property is located within a primary retail trade area
along the most heavily trafficked roadway in Ottawa. The property is being offered at a low price per square foot of $78.
Kroger is rated investment grade (BBB) by Standard & Poor’s and is one of the nation’s leading grocery store chains.

The property is located along Columbus Street, the primary north-south traffic thoroughfare in the area. Columbus Street
experiences traffic volumes in excess of 18,700 vehicles per day and has a full access interchange with Interstate 80 less
than one-half mile from the property. Interstate 80 experiences traffic volumes in excess of 24,500 vehicles per day. The
property is located in a primary retail trade area featuring a Wal-Mart Supercenter and retail shopping centers leased to
major retailers. This retail area is growing as Menard’s has targeted a site, for future development located north of the
Kroger. The Kroger property also benefits from multiple signalized points of ingress along Columbus Street. Ottawa is
located 80 miles southwest of downtown Chicago and is known as the gateway to Starved Rock Park. Starved Rock Park is
an Illinois State Park and experiences more than 2 million visitors annually.

The original twenty five year lease term commenced in 1982 and Kroger recently exercised their second renewal option for
an additional five years through August 2017. The lease features four additional 5-year renewal options. Kroger is a
publicly traded company on the New York Stock Exchange (KR) with a market capitalization of $13 billion. Kroger is an
investment grade rated company with a Standard & Poor’s rating of BBB.


INVESTMENT HIGHLIGHTS
 •   Long standing tenant since 1982

 •   Proven location as tenant recently executed second renewal
     option for five additional years

 •   Investment grade tenant (S&P: BBB)

 •   No landlord responsibilities

 •   Located on the primary north-south traffic thoroughfare

 •   Located in the primary retail trade area with many regional
     draws

 •   Low price per square foot of $78

 •   Positioned on a traffic light controlled intersection




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                                                          PROPERTY OVERVIEW
                         NET LEASED INVESTMENT OFFERING




                         PROPERTY OVERVIEW



Price:                        $3,450,000

Cap Rate:                     8.08%

Net Operating Income:         $278,866

Renewal Options:              Four 5-Year

Lease Commencement Date:      September 1, 1982

Lease Expiration Date:        August 31, 2017

Year Built:                   1982

Tenant:                       Kroger

Credit Rating:                BBB (Standard & Poor’s)

Lease Type:                   NNN

Rentable Square Feet:         44,088

Land Size:                    3.78 Acres




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                                 AERIAL
NET LEASED INVESTMENT OFFERING




       AERIAL




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                                 SITE PLAN
NET LEASED INVESTMENT OFFERING




     SITE PLAN




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                                 MAP
NET LEASED INVESTMENT OFFERING




        MAP




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                                                                                            TENANT PROFILE
                                           NET LEASED INVESTMENT OFFERING




                                             TENANT PROFILE


Kroger (NYSE: KR) is one of the largest grocery retailers in the county. The Kroger Brand operates nearly two dozen
subsidiaries and store formats include grocery and multi-department stores, discount, convenience stores and
jewelry stores. In 1983, The Kroger Company acquired Dillon Companies grocery chain, along with its subsidiaries
King Supers, City Market, Fry’s, Gerbes and the convenience store chain Kwik Shop. Kroger’s largest merger
occurred in 1999, when the company merged with Fred Meyer, Inc. As of 2010, Kroger operated, either directly or
through its subsidiaries, 3,574 stores, of them 2,435 are supermarkets across 31 states. Kroger’s sales increased
over 10% from fiscal year 2010 to $91 billion, and the company is ranked #23 on the Fortune 500. Kroger was
founded in 1883 and is headquartered in Cincinnati, Ohio.




Website:                       www.thekrogerco.com
Number of Locations:           3,574
Stock Symbol:                  KR: NYSE
Standard & Poor’s Rating:      BBB
Market Capitalization:         $13 billion
Employees:                     339,000




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                                           DEMOGRAPHIC COMPARISON REPORT
                           NET LEASED INVESTMENT OFFERING




                    DEMOGRAPHIC COMPARISON REPORT



Population                   3-mi.                5-mi       15-
                                                             15-mi

Total Population            18,085             23,150       66,270
Total Households            7,497              9,535        26,340

Income

Median Household Income     $45,638            $47,512      $50,861
Average Household Income    $56,506            $58,123      $59,408




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                                                            LOCATION OVERVIEW
               NET LEASED INVESTMENT OFFERING




              LOCATION OVERVIEW


Ottawa is the largest city in LaSalle County, Illinois. At the time of the 2010 U.S Census
Ottawa had a population of 18,786. LaSalle County is located approximately 80 miles
southeast of downtown Chicago. According to the 2010 census, LaSalle County had a
population of 113,924. Located in LaSalle County is Starved Rock State Park. Ottawa is
known as the scenic gateway to the park which experiences more than 2 million visitors
annually.

Ottawa is ideally located at the convergence of the Illinois River and the Fox River; the
Illinois River connects Lake Michigan to the Mississippi River, and North America’s
25,000 mile river system. The city of Ottawa plays a large role in the sand and glass
industry, and transportation of the sand is facilitated by the Illinois River. The largest
employer in Ottawa is Pilkington Glass Works; the plant underwent a $50 million
renovation in 2006.

www.cityofottawa.org




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                                                    CONTACT INFORMATION
                   NET LEASED INVESTMENT OFFERING




                 CONTACT INFORMATION




                666 Dundee Road Suite 1801
                    Northbrook, IL 60062



Randy Blankstein                 Jimmy Goodman
President                        Partner
847.562.0003                     847.562.8500
rblank@bouldergroup.com          jimmy@bouldergroup.com




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