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JLL is pleased to offer the fee-simple interest in the Chicago U.S. Bank Portfolio, which consists of three (3) U.S Bank branch locations in the Chicago MSA (“Portfolio” or “Properties”). The Portfolio features three unique but identical, coterminous leases, all of which have been recently extended early by U.S. Bank. The early lease extensions demonstrate the Tenant’s commitment to the locations driven by consistent deposit growth averaging a 10.7% CAGR across the Portfolio since 2017. In addition to outstanding deposit growth, the Properties feature strategic, infill positioning in high-traffic retail corridors with outstanding surrounding density in the Chicago MSA, offering exposure to an average of 42,500 vehicles per day and an average surrounding 5-mile population density of 297,159 residents. Each of the three properties offers drive-thru bank services and outstanding underlying real estate situated on hard-corners, with large average parcel size of 0.95 acres across the Portfolio that provides for highly attractive long-term redevelopment potential. Furthermore, U.S. Bank (“Tenant” or “Company”) boasts an investment-grade credit rating of ‘AA-’ by S&P, providing outstanding security to the long-term rent obligation coupled with the recent re-commitment via early rent extensions and the operating history at the locations that dates to 2012.
The Portfolio offers over six (6) years of remaining lease term guaranteed by U.S. Bank, with coterminous leases that expire 1/31/2028. Each property is on an attractive Absolute NNN structure, featuring 2.5% annual rent increases, and two, five-year options. The Offering represents an opportunity to own real estate with exceptional underlying fundamentals at infill Chicago locations, consistent bank branch deposit growth, while providing secure and passive long-term income from a ‘AA-’ rated Tenant.
- 3 locations totaling ±13,650 SF
- 6.2 years of term remaining on Absolute NNN leases
- NOI of $448,188
- Annual rent increases of 2.5% beginning 2/1/2024
- 10.7% CAGR in deposit growth since 2017 across the Portfolio
- Excellent infill fundamentals with strong visibility, averaging 42,500 vehicles per day