30000 Telegraph Rd-Southfield-OM - Landmark … FINANCIAL SUMMARY 30000 Telegraph Rd • Southfield, MI Minimum Rent Reimbursements Tenant Name Pro‐Rata Share Square Feet …

27995 Halsted Road, Suite 150Farmington Hills, MI 48331

Phone: (248) 488-2620

landmarkinvestmentsales.com

OFFERING MEMORANDUM

CONTACT US

TROPICAL SMOOTHIE | FIREHOUSE SUBS | US MATTRESS | URGENT CARE 30000 Telegraph Road, Southfield, MI 48034

KEVIN J. BAKER

[email protected]

(248) 488-2620

Senior [email protected]

(248) 488-2620

LOUIS J. CIOTTI KYLE J. SIMON

[email protected]

(248) 488-2620

DANIEL H. KUKES

[email protected]

(248) 488-2620

2

Landmark Commercial Real Estate Services, Inc. d/b/a Landmark Investment Sales (“BROKER”) has been retained by the Owner to sell the 100% fee simple title of thisasset. The Broker is the exclusive agent for the sale of this asset. The Broker has prepared the Property Information with information provided by the Owner, fromsources deemed to be reliable. The Potential Purchaser will conduct its own due diligence of The Property, independently and without reliance upon BROKER of theOwner. Information furnished herein, the Offering Memorandum (the “OM”) is intended solely for the Potential Purchaser and its affiliates (“Recipients”) for its reviewof the acquisition of 30000 Telegraph Center (“Property”).

All information in the OM (“Confidential Information”) shall be deemed confidential. Confidential Information shall not include any information which is generallyavailable to the public or which becomes available to the Recipients on a non-confidential basis from a source that is or was under no obligation not to disclose suchinformation.

In consideration of Broker and disclosure of the confidential information, the recipient shall not at any time, attempt in any manner to deal directly in any manner orcircumvent Broker.

Unless otherwise agreed in writing or required by law, the Recipients will not use, disclose, or reveal any Confidential Information for any purpose other than inconnection with the proposed transaction to any persons or entities other than those employees, officers, directors, bankers, advisors, representatives, or agents(collectively, “Representatives”) who clearly need such access to perform their employment, fiduciary or contractual duties to the Recipient and to actively and directlyparticipate in the evaluation of the Confidential Information. Additionally, Recipients shall not directly contact anyone directly associated with the Property withoutthe express written consent of the Owner or Broker.

Recipients agree not to contact or initiate contact with the Tenants, at any time, either directly or indirectly. Unless such approval is specifically granted in writtenfrom the Owner or Broker.

This agreement shall be governed by the laws of the Michigan, and in any action brought to enforce the terms hereof, Recipients hereby irrevocably consents tojurisdiction and venue in the Circuit Court for the County of Oakland, State of Michigan, or the United States District Court, whichever the Owner may elect. Theinvalidity or unenforceability of any provision of this agreement as applied to a particular occurrence or circumstance shall not affect the validity of or enforceability ofany of the other provisions of this agreement or the applicability of such provisions as the case may be. This agreement shall inure to the benefit of and may beenforced by the Owner and its successors and assigns and shall be binding on the Recipients, its officers, directors, partners, agents, members, representatives andsuccessors in interest. If any portion of this agreement becomes the subject of litigation or arbitration, the prevailing party in such suit or proceeding shall be entitledto reimbursement for its reasonable costs, expenses and attorney’s fees incurred, including those incurred in connection with any appeals. A copy of this agreementdelivered by facsimile transmission shall be binder on both parties.

CONFIDENTIALITY DISCLAIMER

30000 Telegraph Rd • Southfield, MI

TABLE OF CONTENTS

3

Offering Summary 5

Site Plan 7

Financial Summary 9

Tenant Profiles 10-13

Macro Aerial 14

Market Narrative 15

Oakland County’s Top Employers 16

Property Condition Summary 17

Demographics 18

Our Team 19


4

MAJOR DAYTIME POPULATION


1 MILE 3 MILE 5 MILE

Population 6,400 60,913 200,736

Avg HH Income $101,772 $107,750 $108,393

Daytime Pop. 13,131 68,036 167,713

5

OFFERING SUMMARY

SUMMARY OF PRIMARY TENANTS

TENANT SFANNUAL

RENT PSF EXPIRATION

US Mattress 3,500 $84,000 $24.00 10/31/2020*

Southfield Urgent Care 4,700 $112,800 $24.00 5/31/2025

Firehouse Subs 2,400 $62,400 $26.00 2/28/2025

Tropical Smoothie Café 1,806 $61,404 $34.00 12/31/2025

PROPERTY DETAILS

Address: 30000 Telegraph Rd Southfield, MI 48034

Occupancy: 100%

Lot Size: 2.00 acres


PRICING

Price: $4,150,000

Square Footage: 12,406 SF

Price PSF: $334.52/SF

Cap Rate: 7.60%

In-Place NOI: $315,433

INVESTMENT HIGHLIGHTS

Exceptional Demographics $107K+ average household incomes in a three mile radius. Excellent daytime population (68,036 employees within 3

miles) with 2.4M SF of office space on a two mile stretch ofTelegraph Road.

Strong Traffic Counts Great visibility and access on Telegraph Rd (US-24), one of the

busiest corridors (83,000+ CPD) in Oakland County.

New/Renovated Construction Property finished construction in 2015.

Triple Net Leases All leases are full NNN with no caps.

Below Market Rents Market rents today could increase by 10%.

Surrounding National Retailers Lowe’s, LA Fitness, DSW, and Meijer are within one mile of

the site.

*See US Mattress Tenant Profile (pg. 10) for termination language.

6

VIEW NORTH


SITE PLAN


8

VIEW EAST


9

FINANCIAL SUMMARY


Minimum Rent Reimbursements

Tenant NamePro‐Rata Share

Square Feet Monthly Annual psf CAM

Real Estate Taxes Insurance

Total Reimb.

Total Gross Revenue psf

Commencement Date

Expiration Date

US Mattress 28.21% 3,500 7,000$ 84,000$ 24.00$ 5,206$ 11,839$ 1,330$ 18,375$ 102,375$ 29.25$ 7/1/2015 10/31/2020Southfield Urgent Care 37.88% 4,700 9,400 112,800 24.00 13,935 15,898 1,786 31,619 144,419 30.73 6/1/2015 5/31/2025Firehouse Subs 19.35% 2,400 5,200 62,400 26.00 7,116 8,118 912 16,146 78,546 32.73 3/1/2015 2/28/2025Topical Smoothie Café 14.56% 1,806 5,117 61,404 34.00 5,355 6,109 686 12,150 73,554 40.73 9/1/2015 12/31/2025

Total 100.00% 12,406 26,717$ 320,604$ 25.84$ 31,611$ 41,963$ 4,714$ 78,289$ 398,893$ 32.15$ Vacant 0.00% ‐

Occupied 100.00% 12,406

Estimated In‐PlaceAnnual psf

RevenueBase Rental 320,604$ 25.84$ CAM Reimbursement 31,611 2.55 Real Estate Tax Reimbursement 41,963 3.38 Insurance Reimbursement 4,714 0.38

Total Gross Revenue 398,893$ 32.15$

Operating ExpensesCAM 24,812$ 2.00$ Real Estate Taxes 41,963 3.38 Insurance 4,714 0.38 Management Fee (3% of TGR) 11,970 0.96

Total Operating Expenses 83,460$ 6.73$

Net Operating Income 315,433$ 25.43$

10

TENANT PROFILE

Tenant Southfield Mattress Pros, LLCLocation 30000 Telegraph Road, Southfield, MI 48034Rentable Square Feet 3,500 SFLease Commencement Date 7/1/2015Lease Expiration Date 10/31/2020Term 5 years and 4 monthsProrata Share 28.21%

Rent Months 1-4: $0.00/SFMonths 5-64: $24.00/SF

CAM/Operating Expenses NNNReal Estate Taxes NNNInsurance NNNRenewal Two (2) five (5) year options Guaranty Mattress USA, Inc. (36 months). Currently operate seven locations within Metro Detroit.

Termination Tenant has the one time right to terminate following the 40th

lease month (Nov 1. 2018) if gross sales do not exceed $500,000 during the third lease year.


11

TENANT PROFILE

Tenant Michigan Medical Clinics Inc.Location 29984 Telegraph Road, Southfield, MI 48034Rentable Square Feet 4,800 SFLease Commencement Date 6/1/2015Lease Expiration Date 5/31/2025Term Ten (10) yearsProrata Share 37.88%

Rent

Months 1-24: $23.50/SFMonths 25-36: $25.00/SFMonths 37-60: $27.00/SFMonths 61-90: $29.20/SFMonths 91-120: $31.00/SF

CAM/Operating Expenses NNNReal Estate Taxes NNNInsurance NNNRenewal Two (2) five (5) year options Guaranty Alex Olkhovsky (42 months), personally.


12

TENANT PROFILE

Tenant Watson Restaurant Group, LLCLocation 29550 Telegraph Road, Southfield, MI 48034Rentable Square Feet 2,400 SFLease Commencement Date 3/1/2015Lease Expiration Date 2/28/2025Term Ten (10) years Prorata Share 19.35%

Rent Months 1-60: $26.00/SFMonths 61-120:$28.00/SF

CAM/Operating Expenses NNNReal Estate Taxes NNNInsurance NNNRenewal Two (2) five (5) year options Guaranty David J. Watson (36 months). Two store operator.


13

TENANT PROFILE

Tenant Southfield Smoothie, LLCLocation 29920 Telegraph Road, Southfield, MI 48034Rentable Square Feet 1,806 SFLease Commencement Date 9/1/2015Lease Expiration Date 12/31/2025Term Ten (10) years and four (4) monthsProrata Share 14.56%

RentMonths 1-4: $0.00/SFMonths 5-64: $34.00/SFMonths 65-124: $36.00/SF

CAM/Operating Expenses NNNReal Estate Taxes NNNInsurance NNNRenewal Two (2) five (5) year options

Guaranty Joseph Dwyer & Craig Lemieux (36 months). Area developers who control the Michigan marketplace for Tropical Smoothie.


14

MACRO AERIAL


1 MILE 3 MILE 5 MILE

Population 6,400 60,913 200,736

Avg HH Income $101,772 $107,750 $108,393

Daytime Pop. 13,131 68,036 167,713

MARKET NARRATIVE


More than 175,000 area residents work in Southfield, which consists of 25% of Oakland County’s office space.

Southfield is home to over 9,000 businesses including more than 100 “Fortune 500” companies, totaling over 27 millionsquare feet of office space.

The 12 Mile Rd and Telegraph Rd intersection is the fourth busiest intersection in the state with 83,801 cars per day travelingnorth on Telegraph and 103,149 cars per day traveling south of 12 Mile Rd on Telegraph.

Southfield is considered the “center” of the Metro Detroit trade area for retailers and office users alike.

Major retailers on the corridor include Meijer, Lowe’s, Best Buy, Michaels, DSW, Pier 1 Imports, Office Depot, Panera Bread,Starbucks, Verizon, LA Fitness, and AMC Theatres.

OAKLAND COUNTY’S TOP EMPLOYERS

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COMPANY # OF EMPLOYEES

Beaumont Hospitals 17,896

FCA US 12,564

General Motors 9,242

Ascension 4,408

US Postal Service 4,195

Oakland County 3,432

Henry Ford Health System 3,405

Trinity Health 3,098

Magna International of America 2,199

Comerica Bank 2,163


17

PROPERTY CONDITION SUMMARYProperty Description: Freestanding retail strip

Address: 30000 Telegraph Rd, Southfield, MI

Square Footage: 12,406 SF

Occupancy: 100%

Tax Parcel: 24-08-426-129

Year Built/Renovated: 2015

Zoning: B-1

Roof Age: 2015

Trade Area Statistics 1 MILE 3 MILE 5 MILE

2017 Population: 6,400 60,913 200,736

2017 Households: 3,122 27,308 87,247

2017 Avg. HH Income: $101,772 $107,750 $108,393

2017 Median HH Income: $75,835 $82,482 $86,627

2017 Total Businesses: 1,154 5,468 15,460

2017 Total Employees: 13,131 68,036 167,713

Traffic Counts:Telegraph Rd north of 12 Mile Rd = 83,801 cpdTelegraph Rd south of 12 Mile Rd = 103,149 cpd


DEMOGRAPHICS

18

POPU

LATI

ON

2017 Estimated Population 6,400 60,913 200,7362022 Projected Population 6,466 61,854 202,6662010 Census Population 6,360 59,214 196,8532000 Census Population 6,714 62,376 206,984Projected Annual Growth 2017 to 2022 0.2% 0.3% 0.2%Historical Annual Growth 2000 to 2017 -0.3% -0.1% -0.2%

HO

USE

HO

LDS

2017 Estimated Households 3,122 27,308 87,2472022 Projected Households 3,241 28,547 90,5372010 Census Households 3,027 25,606 82,9542000 Census Households 3,157 26,345 85,623Projected Annual Growth 2017 to 2022 0.8% 0.9% 0.8%Historical Annual Growth 2000 to 2017 -0.1% 0.2% 0.1%

RA

CE

2017 Est. White 40.1% 47.8% 58.5%2017 Est. Black 53.2% 44.6% 33.8%2017 Est. Asian or Pacific Islander 4.1% 4.4% 4.7%2017 Est. American Indian or Alaska Native 0.3% 0.2% 0.2%2017 Est. Other Races 2.4% 3.0% 2.8%

INC

OM

E 2017 Est. Average Household Income $101,772 $107,750 $108,3932017 Est. Median Household Income $75,835 $82,482 $86,6272017 Est. Per Capita Income $49,650 $48,395 $47,204

BU

SIN

ESS 2017 Est. Total Businesses 1,154 5,468 15,460

2017 Est. Total Employees 13,131 68,036 167,713

DESCRIPTION 1 MILE 3 MILE 5 MILE


OUR TEAM


LOUIS J. CIOTTISENIOR DIRECTOR | [email protected] Ciotti is a graduate of Oakland University with a Bachelor of Arts degree in Broadcast Communications and Business. He began his real estate brokerage careerthereafter at Signature Associates, quickly distinguishing himself as a top producer winning multiple awards. Louis specializes in shopping center leasing andinvestment sales as well as retail tenant representation accounts. He has developed valuable expertise in the sale of service station portfolios and bank dispositions,understanding the needs of his institutional clients. Louis has an aggressive, energetic and friendly style that serves his clients and customers well. At Landmark, Louishas continued expanding on his territorial expertise and dominance while bolstering his full service approach to retail real estate requirements.

KEVIN J. BAKERPRINCIPAL | [email protected] Baker is a Principal and Co-Founder of Landmark Investment Sales. Kevin specializes in the sale of retail shopping centers and single tenant net lease investmentproperties across all property types. He currently represents some of the nation’s largest institutional funds, private equity funds, and high net worth investors in listinginvestment properties all over the country. Since 2010, Kevin has closed deals totaling over 6,500,000 SF valued at over $750,000,000. Prior to 2010, Kevin workedextensively at Landmark as a broker specializing in tenant representation and landlord representation completing in excess of 100 lease & sale transactions. Kevin joinedLandmark in 2005 as a Sales Associate. Prior to Landmark, Kevin attended Michigan State University and University of Michigan-Dearborn where he studied finance. Kevinbegan his real estate career in 2001 when he founded Baker Real Estate Holdings, specializing in acquisition and management of a student housing portfolio at MichiganState University.

DANIEL H. KUKESPRINCIPAL | [email protected] Kukes is a Principal and Co-Founder of Landmark Investment Sales. Daniel specializes in the sale of retail shopping centers, medical office, and single tenant netlease investment properties across all property types. He currently represents some of the nation’s largest institutional real estate funds, private equity group, and highnet worth investors in acquiring and listing investment properties all over the country. Since 2010, Daniel has closed deals totaling over 6,500,000 SF valued at over$750,000,000. Daniel joined Landmark in 2009 as an Associate Broker. He began his real estate career at NAI Farbman where he focused on shopping center leasing andretail tenant representation. After five years at NAI Farbman, Daniel joined DAP Investments as a partner responsible for retail development, acquisitions and leasing.While there, he developed several single tenant and shopping center projects in Michigan and Illinois. Daniel is a graduate of Michigan State University with a Bachelorof Arts degree in Pre-Law & Society.

KYLE J. SIMONASSOCIATE | [email protected] Simon graduated from Michigan State University with a Bachelor of Arts degree in Professional Writing and received his Juris Doctor degree from the MichiganState University College of Law in 2017. While in law school he concentrated on securities regulation and mortgage finance. His capstone work on the topics of CMBSand Dodd-Frank won him the Honigman Securities Law Writing Competition featured at the Midwest Securities Law Institute. Kyle began at Landmark in 2014 as anintern of the Investment Sales team. During his tenure, he sourced thousands of investment grade medical and retail real estate contacts across the United States.Demonstrating exceptional drive, Kyle earned a full-time brokerage position at Landmark following his academic career.

Documents

30000 Telegraph Rd-Southfield-OM - Landmark … FINANCIAL SUMMARY 30000 Telegraph Rd • Southfield, MI Minimum Rent Reimbursements Tenant Name Pro‐Rata Share Square Feet …