BURLINGTON 4095 Miller Road Flint, Michigan · Flint, Michigan Flint is the largest city and seat of Genesee County, Michigan, United States. Located along the Flint River, 66 miles

BURLINGTON4095 Miller RoadFlint, Michigan

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

TABLE OF CONTENTS

II. Location Overview Photographs Aerial Site Plan Maps

III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

I. Executive Profile Executive Summary Investment Highlights Property Overview


DISCLAIMERSTATEMENT:

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.


EXECUTIVESUMMARY:

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Burlington property located in Flint Township, Michigan. Burlington recently relocated to this site from the nearby regional mall. Approximately $2.5M in tenant improvements and build-out was invested in the property to create the current Burlington prototype, which demonstrates its commitment to this market. There are approximately 10 years remaining on the lease with a $0.50 PSF rental escalation in 2024. Additionally, there are four 5-year renewal options. All CAM is administered by a 3rd party and is paid for by Burlington. The property had a new HVAC system installed in 2018 and there is a roof warranty through 2033.

The 42,980 square foot building is ideally located along Miller Road (22,847 VPD), a primary east-west thoroughfare, and is immediately off of Interstate 69 (51,800 VPD) and Interstate 75 (90,000 VPD). The property is located in a shopping center with DSW, ULTA, Five Below and PetSmart. Burlington is well positioned in a dominant retail corridor with other retailers including Target, Walmart, Sam’s Club, Home Depot, Bed Bath & Beyond, Best Buy, Kohl’s and Genesee Valley Mall (JCPenney, Macy’s & 120+ stores). There are over 100,000 people living within five miles of the property.

Burlington, formerly known as Burlington Coat Factory, is a national off-price department store retailer, and a division of Burlington Coat Factory Warehouse Corporation. Burlington operates 567 stores in 45 states and Puerto Rico. In June 2016, it was announced that Burlington Stores had joined the Fortune 500 for the first time. Burlington’s was rated BB+ by S&P in late 2018 as a result of the company’s improving credit metrics. During 2017 and 2018, between new stores and remodel activity, Burlington added 189 stores to the Company’s “brand standard”. The planned new store and remodel activity for 2019 should translate to nearly 300 stores added to the brand standard between 2017 and 2019. The Company expects the significant majority of its stores to be in its brand standard within 5 years.


INVESTMENT HIGHLIGHTS:

INVESTMENT HIGHLIGHTS

• Burlington recently relocated to this site from the nearby regional mall

• $2.5M in tenant improvements and build-out was invested in the property to create the current Burlington

prototype, which demonstrates its commitment to this market

• Ideally located along Miller Road (22,847 VPD), a primary east-west thoroughfare, and is immediately off

of Interstate 69 (51,800 VPD) and Interstate 75 (90,000 VPD)

• Co-tenants in a shopping center with DSW, ULTA, Five Below and PetSmart

• Positioned in a dominant retail corridor with other retailers including Target, Walmart, Sam’s Club, Home

Depot, Bed Bath & Beyond, Best Buy, Kohl’s and Genesee Valley Mall (JCPenney, Macy’s & 120+ stores)

• Over 100,000 people living within five miles of the property

• Burlington Stores joined the Fortune 500 for the first time in 2016

• Burlington’s was rated BB+ by S&P in late 2018 as a result of the company’s improving credit metrics

• New HVAC system (2018) and roof warranty through 2033


PROPERTY OVERVIEW:

PROPERTY OVERVIEW


Price: $6,507,535

Cap Rate: 7.10%

Rent Schedule: NOI Escalation Date$462,035 Current$483,525 March 1, 2024$505,015 March 1, 2029 (Option 1)$526,505 March 1, 2034 (Option 2)$547,995 March 1, 2039 (Option 3)$569,485 March 1, 2044 (Option 4)

Lease Expiration Date: February 28, 2029

Tenant: Burlington Coat Factory of Texas Inc.

Guarantor: Burlington Coat Factory Warehouse CorporationS&P: BB+

Lease Type: NN* (Roof & Structure)

Year Built/Renovated: 1996/2018

Building Size: 42,980 SF

* All CAM is administered by a 3rd party and paid directly by tenant


PHOTOGRAPHS


AERIAL


SITE PLAN

MAPMAP

DEMOGRAPHICREPORT:

DEMOGRAPHIC REPORT

Population 1-Mile 3-Mile 5-Mile

Total Population 1,431 36,355 109,558

Total Households 673 15,506 45,108

Income 1-Mile 3-Mile 5-Mile

Average Household Income $48,417 $53,236 $53,317


MARKET OVERVIEW

MARKETOVERVIEW:

Flint, Michigan Flint is the largest city and seat of Genesee County, Michigan, United States. Located along the Flint River, 66 miles northwest of Detroit, it is a principal city within the region known as Mid Michigan. According to the 2010 census, Flint has a population of 102,434, making it the seventh largest city in Michigan. The Flint metropolitan area is located entirely within Genesee County. It is the fourth largest metropolitan area in Michigan with a population of 425,790 in 2010. The city was incorporated in 1855.

Flint was founded as a village by fur trader Jacob Smith in 1819 and became a major lum-bering area on the historic Saginaw Trail during the 19th century. From the late 19th century to the mid 20th century, the city was a leading manufacturer of carriages and later automobiles, earning it the nickname “Vehicle City”. General Motors (GM) was founded in Flint in 1908, and the city grew into an automobile-manufacturing powerhouse for GM’s Buick and Chevrolet divisions after World War II up until the early 1980s recession. Flint was also the home of the Flint Sit-Down Strike of 1936–37 that played a vital role in the formation of the United Automobile Workers.


TENANT OVERVIEW

TENANT OVERVIEW:


BurlingtonBurlington, formerly known as Burlington Coat Factory, is an American national off-price department store retailer, and a division of Burlington Coat Factory Warehouse Corporation with 567 stores in 45 states and Puerto Rico, with its corporate headquarters located in Burlington Township, New Jersey. In 2006, it was acquired by Bain Capital in a take-private transaction and in 2008, Tom Kingsbury became President and CEO. The company went public again in 2013. In June 2016, it was announced that Burlington Stores had joined the Fortune 500 for the first time.

Burlington is a leading off-price apparel and home product retailer. They offer a large assortment of current, high-quality, designer and name-brand merchandise at up to 60% off other retailers’ prices. Shoppers choose from a large selection of coats, clothing, and shoes for the entire family.

Website: www.burlington.comFounded: 1972Locations: 567Employees: 40,000Type: PublicStock Symbol (NYSE): BURL

3520 Lake Avenue, Suite 203Wilmette, IL 60091

www.bouldergroup.com

Randy [email protected]

Jimmy [email protected]

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BURLINGTON 4095 Miller Road Flint, Michigan · Flint, Michigan Flint is the largest city and seat of Genesee County, Michigan, United States. Located along the Flint River, 66 miles