Chili’s Grill and Bar is an infill pad outparcel located ½ mile from O’Hare Airport and 1/8 mile from All State Arena in the dense Rosemont submarket, which borders the city of Chicago. The Property is adjacent to Target and enjoys 78,000 unimpeded views per day (corner visibility). Within a 5-mile radius, the population is greater than 312,000. The store sales are strongest in ERJ Dining’s system, $4.1 million vs. average of $2.3 million in the Chicago area. There is a strong demand for outparcel locations given dearth of available opportunities.
A triple net lease (triple–Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three “nets”) on the property in addition to any normal fees that are expected under the agreement (rent, utilities, etc.)
High demand from tenants. This demand remains strong as newer types of retailers have emerged and compete for the prime visibility and easy access (Urgent Care Centers and ER Centers, Dental Care, Wireless Carrier Stores).
Tenants desire the visibility as well as the control over their real estate. The building and signage reflects the retailers brand and image. Whereas in a shopping center a retailer would only get to put up a sign on the building, in a freestanding building the entire building is designed by the retailer. High visibility builds brands.
Majority of NNN retailers are national or regional tenants that have meticulous site selection criteria models (they know where they want to be which is why they sign the longer term leases and invest in their properties the way they do)