Net Leased Macaroni Grill For Sale | The Boulder Group

NET LEASE INVESTMENT OFFERING (VALUE ADD)

MACARONI GRILL (DARK) 2375 East 116th, Carmel, IN 46032 (Indianapolis MSA)

TABLE OF CONTENTS

TABLE OF CONTENTS I. Executive Summary

II. Location Overview

III. Market & Tenant Overview

Executive Summary

Photographs

Demographic Report

Investment Highlights

Aerial

Location Overview

Property Overview

Site Plan

Tenant Overview

Floor Plan

Maps

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DISCLAIMER STATEMENT

DISCLAIMER STATEMENT:

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

EXECUTIVE SUMMARY:

The Boulder Group is pleased to exclusively market for sale a single tenant Macaroni Grill property located in an affluent suburb of Indianapolis with a significant value add opportunity. Macaroni Grill ceased operations in 2014, however has an obligation to fulfill the terms of the lease for the remaining two years. This location was part of a broader nationwide closing of Macaroni Grill restaurants where over 27% of all locations closed. The building is strategically located at the southwest corner of Keystone Parkway and East 116th Street across the street from a 360,000+ square foot Marsh grocery anchored development. There are over two years remaining on the Macaroni Grill lease that expires April 30, 2017 allowing the incoming investor to receive cash flow from the property for two years prior to finding a new tenant.

The property is located at the corner of the heavily trafficked Keystone Parkway and East 116th Street interchange. This interchange experiences traffic counts in excess of 62,000 vehicles per day. Keystone Parkway is the primary north-south thoroughfare in the area connecting Carmel to Indianapolis. East 116th Street is a primary east-west thoroughfare in the area. The property is benefitted from its location in a strong retail corridor. There is a 360,000+ square foot retail center located across the street from the property that features Marsh Supermarket, Petco, World Market, PNC Bank, O’Reilly Auto Parts, and many others. Additional retailers located in the immediate vicinity of the property include Kroger, CVS, Walgreens, Chase Bank, Key Bank, Starbucks, and AutoZone. The building is located in Carmel, one of Indianapolis’s most affluent suburbs. There are approximately 60,000 people living within a three mile radius of the property earning average annual household incomes in excess of $101,000. The median disposable income is 41.3% higher within a five mile radius of the property than the national average.

Macaroni Grill has over two years remaining on their lease that expires on April 30, 2017 allowing a future investor ample time to re-tenant the property. To illustrate the strength of the immediate retail area, the adjacent building was recently leased to McAlister’s Deli within six months of the previous tenant leaving the location.

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INVESTMENT HIGHLIGHTS

INVESTMENT HIGHLIGHTS:

• Value add opportunity to re-tenant the property with over two years remaining on the Macaroni Grill lease • Located in the largest and most expensive submarket of the Indianapolis MSA • Affluent area with over 151,000 people living within a five mile radius earning average annual household incomes in excess of $104,000 • Strategically positioned at the corner of a heavily trafficked interchange of the two primary thoroughfares in the area (62,000 Vehicles Per Day) • Keystone Parkway is the main north-south thoroughfare connecting Carmel to downtown Indianapolis • Across the street from a 360,000+ square foot Marsh Supermarket anchored shopping center • Median disposable income within a five mile radius of the property is 41.3% higher than the national average • Strong immediate retail corridor as evidenced by the brief amount of time it took to re-tenant the adjacent restaurant property that is currently a McAlister’s Deli • Retailers located in the immediate vicinity include Marsh Supermarket, Kroger, Walgreens, CVS, PNC Bank, Chase Bank, Key Bank, O’Reilly Auto Parts and McDonald’s • 5.2% unemployment rate in the Indianapolis MSA

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PROPERTY OVERVIEW

PROPERTY OVERVIEW:

Price:

$1,408,500

Cap Rate:

10.25%

Net Operating Income:

$144,375

Lease Commencement Date:

April 11, 2002

Lease Expiration Date:

April 30, 2017

Tenant:

Macaroni Grill

Year Built:

2002

Lease Type:

NNN Ground Lease*

Building Size:

6,876 SF

* Should structural repairs be required during the last two years of the Tenant’s primary term or any renewal term, Tenant shall not be required to make such structural repairs should Tenant deliver to Landlord a written waiver of all rights to renew the Lease beyond the term in effect.

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PHOTOGRAPHS

PROPERTY PHOTOGRAPHS:

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E 116TH STREET (24,000 VPD)

AERIAL

SUBJECT PROPERTY

Towards Downtown Indianapolis

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N KEYSTONE AVENUE (39,000 VPD)

SITE PLAN

KEYSTONE PKWY (39,000 VPD)

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SUBJECT PROPERTY

KEYSTONE PKWY (39,000 VPD)

POINTE DR

E 116TH STREET (24,000 VPD)

FLOOR PLAN

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MAPS

SUBJECT PROPERTY

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MAPS

SUBJECT PROPERTY

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DEMOGRAPHIC REPORT

DEMOGRAPHIC REPORT:

Population

1-Mile

3-Mile

5-Mile

Total Population

7,099

57,099

151,386

Total Households

2,904

24,092

62,189

Income

1-Mile

3-Mile

5-Mile

Median Household Income

$73,603

$74,046

$76,838

Average Household Income

$96,085

$101,814

$104,942

Average Disposable Income

$72,837

$76,686

$78,532

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LOCATION OVERVIEW

LOCATION OVERVIEW:

Carmel, Indiana is a fast-growing, economically-thriving suburban edge city on the North Side of Indianapolis.

Home to about 86,000 residents (2013), the once sleepy suburban community has been transformed over the past 20 years by ambitious redevelopment projects that have led to the making of a vibrant city that is no longer simply a place to sleep at night.

The City of Carmel spans 47 square miles across Clay Township in Hamilton County. The City is bordered by the White River to the east; Michigan Road (U.S. 421) and the county line to the west; 96th Street to the south and 146th Street to the north. Known for its highly educated and affluent population, Carmel households have average income levels of $107,505 and the average price of a home is $293,600, according to the U.S. Census Bureau.

With excellent schools, low taxes, safe neighborhoods and ease of transportation, Carmel has emerged as one of the most coveted places to live, not just in Indiana, but in the United States. In 2012, CNN Money Magazine named Carmel the No. 1 place to live in America (for cities ranging from 50,000 to 300,000 in population.

From border to border, Carmel is known for its distinct residential neighborhoods, rich in architectural diversity, including many beautiful estates that have attracted many of Indiana’s noteworthy citizens, including the owners of professional sports franchises, corporate CEO’s, professional athletes and at one point the Vice President of the United States. www.carmel.in.gov

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LOCATION OVERVIEW

LOCATION OVERVIEW:

Indianapolis is the capital and most populous city in the state of Indiana as well as the county seat of Marion County. As of the 2010 US Census, the city’s population was 820,445, making it the 12th largest city in the United States. The Indianapolis combined statistical area is the 23rd-largest in the country with a 2010 census population of 2,080,782.

Historically, Indianapolis had oriented itself around government (a byproduct of its state capital function) and industry, particularly manufacturing. Today, Indianapolis has a much more diversified economy, contributing to the fields of education, health care, and finance. Tourism is also a vital part of the economy of Indianapolis, with the city playing host to numerous conventions and sporting events. Of these, perhaps the most well known are the annual Indianapolis 500, Brickyard 400, and NHRA U.S. Nationals. Other major sporting events include the annual Big Ten Conference football championship and the Men’s and Women’s NCAA basketball tournaments. Indianapolis also hosted the Super Bowl XLVI in 2012. Both Forbes and Livability.com rank Indianapolis as one of the best downtowns in the United States citing “more than 200 retail shops, more than 35 hotels, nearly 300 restaurants and food options, movie theaters, sports venues, museums, art galleries and parks” as attractions.

Many of Indiana’s largest and most recognized companies are headquartered in Indianapolis, including pharmaceutical manufacturer Eli Lilly and Company; wireless distribution and logistics provider Brightpoint; health insurance provider Wellpoint; retailers Marsh Supermarkets, Finish Line, and hhgregg Inc.; Republic Airways Holdings (including Chautauqua Airlines, Republic Airlines, and Shuttle America); and REIT Simon Property Group. The U.S. headquarters of Roche Diagnostics, Conseco, First Internet Bank of Indiana, Dow AgroSciences, Emmis Communications, Steak ‘n Shake, and Allison Transmission are also located in Indianapolis.

Indianapolis is a prime center for logistics and distribution facilities. Indianapolis International Airport is the largest airport in Indiana, serving about 7.5 million passengers and transporting 985,000 tons of cargo annually. The airport is home to the second-largest FedEx operation in the world (after the Memphis headquarters) and the United States Postal Service Eagle Network Hub. Thirty years in planning, a new midfield terminal complex was completed in 2008. It officially opened for arriving flights on November 11, 2008 and departures on November 12, 2008. The $1.1 billion project represents the largest development initiative in the city’s history. www.indy.gov

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TENANT OVERVIEW

TENANT OVERVIEW:

Romano’s Macaroni Grill is a casual dining restaurant chain specializing in Italian-American cuisine. The company has over 200 locations around the world, and is headquartered in Houston, Texas. Romano’s Macaroni Grill menu features items found in traditional cuisine from Italy and the Mediterranean area. Restaurants also offer patrons the option of creating their own pasta, from a list of pre-selected ingredients. All meals are served with complimentary bread and olive oil. In addition to their restaurants, the brand also features a line of packaged food products based on dishes offered by the restaurant. The packages are manufactured by General Mills Restaurant Favorites line.

Macaroni Grill is a wholly owned subsidiary of Ignite Restaurant Group. Headquartered in Houston, TX, Ignite Restaurant Group, Inc. owns and operates three restaurant brands: Joe’s Crab Shack, Romano’s Macaroni Grill and Brick House Tavern + Tap. Each brand offers a variety of high-quality, chef-inspired food and beverages in distinctive, casual, high-energy atmosphere. The Ignite brands provide guests with memorable, matchless dining experiences.

Website: www.macaronigrill.com Number of Locations: 200 Headquarters: Houston, TX Parent Website: www.igniterestaurants.com Number of Ignite restaurant Locations: 350+ Headquarters: Houston, TX

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Randy Blankstein President 847.562.0003 randy@bouldergroup.com

Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com

666 Dundee Road, Suite 1801 Northbrook, IL 60062 www.bouldergroup.com