Waterford MiniPlex OM 4.30...square-mile region composed of six counties: Wayne, Macomb, Lapeer, Oakland, St. Clair and Livingston. More than 4.3 million residents reside in the area

WATERFORD MINI-PLEX

4865 & 4895 Highland Rd • Waterford, MI 48328

OFFERING MEMORANDUM

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any

corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information

about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has

been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References

to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus &

Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

2

P R E S E N T E D B Y

Mark Mamassian

Associate

Member - National Office and Industrial

Properties Group

Detroit Office

Tel: (248) 415-2643

Fax: (248) 415-2610

[email protected]

License: MI 6501182453

John J. Godwin

Senior Vice President Investments

Senior Director - National Office and Industrial Properties

Group

Detroit Office

Tel: (248) 415-2618

Fax: (248) 415-2610

[email protected]

Licenses: MI 6502339209, MI 6502112435

3

TABLE OF CONTENTS

INVESTMENT OVERVIEW 01

Property Overview

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02

Tenant Summary

Lease Expiration Summary

Operating Statement

Notes

Pricing Detail

MARKET COMPARABLES 03

Sales Comparables

Lease Comparables

MARKET OVERVIEW 04

Market Analysis

Demographic Analysis

WATERFORD MINI-PLEX

4

WATERFORD MINI-PLEX

5

INVESTMENT

OVERVIEW

PROPERTY OVERVIEW

WATERFORD MINI-PLEX

PROPERTY OVERVIEW

Marcus & Millichap is pleased to present the Waterford Mini-Plex located at 4865 and 4895 Highland Road in Waterford, Michigan.

The subject is approximately 37,000-square-feet situated on over two acres of land. The buildings are fully-occupied by various

tenants on a modified-gross lease type. The location of the property on Highland Road gives the asset high visibility and access,

along with ease of transportation. Highland Road is a major thoroughfare in the area connecting to various other major roadways.

Waterford, Michigan is a charter township in Oakland County, Michigan. In 2012, the population of the Waterford was 72,166.

Established in 1834, Waterford is centrally located in Oakland County and is the fifth largest Township by population in Michigan.

The Lakeland Paradise is home to 34 lakes, with much to offer to residents, businesses and visitors alike! The area is also filled

with major train depots; at Hatchery Road, Airport Road and Windiate Road. The railroad historically made the many lakes of the

Waterford area easily accessible by summer vacationers from big cities. Now, the railway serves as a major freight transportation

system, with seven railroad crossings and one railroad bridge. In fact, Waterford is the perfect spot for all modes of transportation;

water, rail, car and plane! Off Airport Road; Waterford is home to the Oakland County International Airport. The airport is a county

owned public use airport and is approximately one mile from the center of the Township. It is ranked as the nations thirteenth

busiest general aviation airport and second to Detroit Metro. Over million passengers and pilots pass through the airport every

year and is used by virtually all the Fortune 500 companies. With the ease of access, travel, high visibility, recreational amenities

and more; this opportunity is a great investment for anyone!

PROPERTY OVERVIEW

Almost 37,000-square-foot Industrial Warehouse

Fully-Occupied by Various Tenants

35 Free Parking Spaces

High Visibility and Access off Highland Road

Ease of Transportation with a International Airport in Waterford, Michigan

6

REGIONAL MAP

WATERFORD MINI-PLEX

7

LOCAL MAP

WATERFORD MINI-PLEX

8

AERIAL PHOTO

WATERFORD MINI-PLEX

9

AERIAL PHOTO

WATERFORD MINI-PLEX

10

PROPERTY PHOTO

WATERFORD MINI-PLEX

11

WATERFORD MINI-PLEX

12

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

WATERFORD MINI-PLEX

13

TENANT SUMMARY

FINANCIAL ANALYSIS

WATERFORD MINI-PLEX

OPERATING STATEMENT

14

* See Below

*Approximately $16,577 is reimbursed from tenants for CAM and this is included in pricing.

FINANCIAL ANALYSIS

WATERFORD MINI-PLEX

PRICING DETAIL

15

*Approximately $16,577 is reimbursed from tenants for CAM and this is included in pricing. ***Current SEV: $617,100. Upon property transfer, taxes could increase which will have an effect on overall gross income.

Debt Constant: 7.92%

WATERFORD MINI-PLEX

16

MARKET

COMPARABLES

WATERFORD MINI-PLEX

SALES COMPARABLES MAP

17

WATERFORD MINI-PLEX

(SUBJECT)

1140 Centre Rd

950 Maplelawn Dr

Palmer Moving Storage

Piedmont Commerce

Center

SALES COMPARABLES

1

2

3

4

PROPERTY NAMEWATERFORD MINI-PLEX

SALES COMPARABLES

18

SALES COMPARABLES

Avg. $57.92

$0.00

$6.90

$13.80

$20.70

$27.60

$34.50

$41.40

$48.30

$55.20

$62.10

$69.00

Waterford

Mini-Plex

1140

Centre Rd

950

Maplelawn

Dr

Palmer

Moving

Storage

Piedmont

Commerce

Center

Average Price Per Gross Square Foot

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM

WATERFORD MINI-PLEX

SALES COMPARABLES

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


19

SALES COMPARABLES

Asking Price $2,500,000

Price/SF $67.62

CAP Rate 8.93%

Year Built 1946

Occupancy 100%

Parking Ratio 3.03/1,000SF

Divisible True

Clear Height 21'

WATERFORD MINI-PLEX4865 Highland Rd, Waterford, MI, 48328

1

Close of Escrow 4/7/2017

Sales Price $2,475,000

Rentable SF 44,975

Price/SF $55.03

Year Built 1986

Occupancy 100%

1140 CENTRE RD1140 Centre Rd, Auburn Hills, MI, 48326

2



Rentable SF 32,980

Price/SF $66.71

Year Built 1982

Occupancy 100%

950 MAPLELAWN DR950 Maplelawn Dr, Troy, MI, 48084

PROPERTY NAME

MARKETING TEAM

WATERFORD MINI-PLEX

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


20

SALES COMPARABLES

3



Rentable SF 31,689

Price/SF $55.07

Year Built 1963

Occupancy 100%

PALMER MOVING STORAGE1900 Stephenson Hwy, Troy, MI, 48083

4



Rentable SF 30,625

Price/SF $54.86

Year Built 1972

Occupancy 100%

PIEDMONT COMMERCE CENTER1328 Wheaton Dr, Troy, MI, 48083

8

WATERFORD MINI-PLEX

LEASE COMPARABLES MAP

WATERFORD MINI-PLEX

(SUBJECT)

QMI Building

4514 Pontiac Lake Rd

Alliance Industrial Center

Lyon Oaks Industrial Park4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

21


LEASE COMPARABLES

22

AVERAGE OCCUPANCY

Avg. 93.83%

0

10

20

30

40

50

60

70

80

90

100

Waterford

Mini-Plex

QMI

Building

4514

Pontiac

Lake Rd

Alliance

Industrial

Center

Lyon Oaks

Industrial

Park


LEASE COMPARABLES

23

AVERAGE RENT PER SQUARE FOOT

Avg. $8

$0

$1

$2

$3

$4

$5

$5

$6

$7

$8

$9

Waterford

Mini-Plex

QMI

Building

4514

Pontiac

Lake Rd

Alliance

Industrial

Center

Lyon Oaks

Industrial

Park

PROPERTY NAME

MARKETING TEAM

WATERFORD MINI-PLEX

LEASE COMPARABLES


rentpropertyname1


rentpropertyname1


24

Asking Rent/SF $7.91

Year Built 1946

Occupancy 100%

Lease Type Gross


WATERFORD MINI-PLEX4865 Highland Rd, Waterford, MI, 48328

1

Survey Date 7/10/2017

Rentable SF 19,785


Year Built 1997

Occupancy 100%

Lease Type NNN

Lot Size 1.80

Parking Ratio 2.83:1000SF

QMI BUILDING4202 Pioneer Dr, Commerce Township, MI, 48390

2

Survey Date 7/15/2017

Rentable SF 9,600

Available SF 1,000


Year Built 1970

Occupancy 90%

Lease Type Gross

Lot Size 1.50

Parking Ratio 1.85

4514 PONTIAC LAKE RD4514 Pontiac Lake Rd, Waterford, MI, 48328

PROPERTY NAME

MARKETING TEAM

WATERFORD MINI-PLEX

LEASE COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


25

Rentable SF 23,100

Available SF 3,300


Year Built 2001

Occupancy 86%

Lease Type Modified Gross

Lot Size 2.38


3

ALLIANCE INDUSTRIAL CENTER2850 Alliance, Waterford, MI, 48328

4

Rentable SF 41,195


Year Built 1999

Occupancy 100%

Lease Type Modified Gross

Lot Size 8.20


LYON OAKS INDUSTRIAL PARK29200 Lyon Oaks Dr, Wixom, MI, 48393

WATERFORD MINI-PLEX

26

MARKET

OVERVIEW

MARKET OVERVIEW

DETROITOVERVIEW

26

The Detroit metro is located in the southeastern portion of Michigan

along the Detroit River, which connects Lake St. Clair and Lake Erie.

Across the Detroit River lies the city of Windsor, Ontario, which

provides access to the Canadian market. The metro is a nearly 4,000-

square-mile region composed of six counties: Wayne, Macomb,

Lapeer, Oakland, St. Clair and Livingston. More than 4.3 million

residents reside in the area and after years of declining population, the

metro is adding residents again as employers and development

expand. Wayne is the most populated county, followed by Oakland

County. Detroit is the largest city with nearly 700,000 residents.

MARKET OVERVIEW

METRO HIGHLIGHTS

EMPLOYMENT GROWTH

Job creation will remain strong, building on the

178,300 jobs added in the past five years. The

largest gains are expected in construction and

office-using sectors.

AUTO DESIGN AND MANUFACTURING

The metro is home to the Big Three as well as two-

thirds of the world’s automotive research and

development firms.

DIVERSIFYING ECONOMY

Increased entrepreneurial activity has created a

knowledge-based economy, diversifying beyond

manufacturing and the auto industry.

WATERFORD MINI-PLEX

MARKET OVERVIEW

ECONOMY Multiple Fortune 500 corporations are based in the metro, many of which are in the auto

industry, such as General Motors Corp., Ford Motor Co. and FCA US LLC. Other

companies include Autoliv, BorgWarner, DTE Energy, Ally Financial and Kelly Services.

A growing knowledge-based economy is supplementing the manufacturing and automotive

industries. The New Economy Initiative for Southeast Michigan provides support and

networking for entrepreneurial activity.

The economy is diversifying into the healthcare and technology sectors, attracting

companies to the area. Tech companies work alongside the auto industry.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

General Motors Corp.

Rock Ventures

FCA US LLC

DTE Energy

Beaumont Health

Henry Ford Health System

St. John Providence Health System

Ford Motor Co.

Detroit Medical Center

Wayne State University* Forecast

27

MANUFACTURING12%

GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

4%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

18%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

1%INFORMATION

20%

4%

9% 10% 6%

16%

WATERFORD MINI-PLEX

MARKET OVERVIEW

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

The metro is expected to add nearly 50,600 people through 2022, resulting in the

formation of roughly 37,600 households and generating demand for housing.

Relatively affordable home prices produce a homeownership rate of 69 percent,

which is above the national rate of 64 percent.

Almost 29 percent of residents age 25 and older are bachelor’s degree holders and

11 percent also have earned a graduate or professional degree.

The Detroit region, birthplace of Motown and the mass-production automobile industry,

offers all the benefits of living close to the Great Lakes but at a moderate cost.

Revitalization has included sports facilities such as Comerica Park for the Tigers, Ford Field

for the Lions, and a new hockey arena for the Red Wings. Additionally, new entertainment

and retail venues are reshaping downtown Detroit. For culture buffs, the region is home of

the Detroit Institute of Arts, the Detroit Historical Museum and the Michigan Science

Center. Meanwhile, several universities and colleges are located nearby, including the

University of Michigan, Wayne State University, University of Detroit Mercy and Lewis

College of Business.

QUALITY OF LIFE

28

2017 Population by Age

0-4 YEARS

6%5-19 YEARS

19%20-24 YEARS

6%25-44 YEARS

25%45-64 YEARS

29%65+ YEARS

15%

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

WATERFORD MINI-PLEX

40.1

2017MEDIAN AGE:

U.S. Median:

37.8

$57,000

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

4.3M

2017POPULATION:

Growth2017-2022*:

1.2%

1.7M

2017HOUSEHOLDS:

2.2%

Growth2017-2022*:

MARKET OVERVIEW

WATERFORD MINI-PLEX

30

DETROIT METRO AREA

Vacancy Remains Tight and Rents Climb

Amid Rise in Speculative Construction

Tight vacancy produces another year of robust rent gains. Deliveries in the Detroit market will reach the

highest point in more than 10 years with Amazon accounting for almost a third of the new inventory. The

company opened a warehouse in Livonia last fall and has a fulfillment center in Romulus, as well as a

distribution center in Shelby Township due for completion in 2018. While many of this year’s projects are

build-to-suit, speculative construction will escalate to 1.5 million square feet in 2018, as persistently low

vacancy provides few options for tenants in need of large, modern space. A sizable portion of the new

inventory will be delivered near the Detroit Metropolitan Wayne County Airport and northward along the

Interstate 275 corridor into Livonia. Marketwide, the rise in speculative deliveries will nudge vacancy up by

year end, although the rate will still be one of the tightest among major U.S. metros, keeping rent growth

above the national level for the second consecutive year.

Detroit’s solid industrial performance and yield potential keep investors active. Cap rates that average

in the high-8 percent area and lower entry costs than other markets of its size are luring yield-seeking

investors. Although costs are rising, the average price last year remained 5 percent below the 2007 peak.

Many buyers are drawn to assets in the northeastern portion of the region, which has the metro’s tightest

vacancy rate. Here, buildings along the Highway 97 corridor from Warren to Chesterfield and near Mound

Road are favored. Many local and regional investors search for Class C assets constructed in the 1980s to

1990s with less than 50,000 square feet that trade at first-year returns in the 8 percent to 9 percent span.

Properties in Troy are also receiving heightened buyer interest. In this area, a lack of new inventory is

holding vacancy at one of the lowest levels metrowide and driving rent growth.

* Forecast

Sources: CoStar Group, Inc.; Real Capital Analytics

MARKET OVERVIEW

WATERFORD MINI-PLEX

31

DETROIT METRO AREA

2018 Market Forecast

Detroit climbs three positions this year due to tight vacancy and strong rent

growth.

After 30,200 jobs were created last year, payrolls expand by 35,000 workers

in 2018. This year’s total includes the addition of roughly 4,300 manufacturing

jobs.

Developers will finalize 6 million square feet of industrial inventory during

2018, ramping up from 4 million square feet last year.

A rise in speculative deliveries will inch vacancy up to a still tight 3.3 percent

at year end. The vacancy rate has stayed below 4 percent since the

beginning of 2016.

Building on a 9.5 percent surge last year, the average asking rent will soar 8.5

percent to $5.75 per square foot in 2018. Rents have jumped 34 percent

since the beginning of 2015 but remain below the national average.

An increase in new inventory over the last several years should attract more

out-of-state buyers at cap rates that are generally in the 7 percent range.

* Forecast

Sources: CoStar Group, Inc.; Real Capital Analytics

NIPI Rank

3, up 3 places

Employment

up 1.7%

Construction

6 million sq. ft.

Vacancy

up 20 bps

Rent

up 8.5%

Investment

PROPERTY NAME

MARKETING TEAM

WATERFORD MINI-PLEX

DEMOGRAPHICS

Source: © 2017 Experian

Created on April 2018

POPULATION 1 Miles 3 Miles 5 Miles

2022 Projection

Total Population 6,724 61,355 158,911

2017 Estimate


2010 Census


2000 Census


Daytime Population

2017 Estimate 5,778 48,594 123,332

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2022 Projection

Total Households 2,834 25,711 63,802

2017 Estimate


Average (Mean) Household Size 2.36 2.37 2.46

2010 Census


2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2017 Estimate

$200,000 or More 2.79% 3.40% 4.69%

$150,000 - $199,000 3.43% 4.13% 4.94%

$100,000 - $149,000 15.21% 16.52% 15.81%

$75,000 - $99,999 14.98% 14.47% 13.54%

$50,000 - $74,999 20.97% 19.48% 18.10%

$35,000 - $49,999 15.08% 14.42% 13.61%

$25,000 - $34,999 9.01% 9.56% 9.09%

$15,000 - $24,999 8.80% 8.91% 9.10%

Under $15,000 9.71% 9.11% 11.12%

Average Household Income $74,152 $77,053 $80,781

Median Household Income $57,936 $58,943 $58,707

Per Capita Income $30,869 $32,198 $32,437

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2017 Estimate Total Population 6,569 60,385 155,914

Under 20 21.49% 23.87% 25.07%

20 to 34 Years 18.56% 20.04% 19.83%

35 to 39 Years 6.40% 6.63% 6.43%

40 to 49 Years 13.60% 14.11% 14.15%

50 to 64 Years 21.92% 20.90% 20.97%

Age 65+ 18.03% 14.45% 13.52%

Median Age 42.70 39.60 38.98

Population 25+ by Education Level

2017 Estimate Population Age 25+ 4,771 42,156 106,539

Elementary (0-8) 1.77% 1.85% 2.57%

Some High School (9-11) 7.12% 6.85% 7.76%

High School Graduate (12) 32.03% 27.85% 26.64%

Some College (13-15) 26.86% 27.03% 25.04%

Associate Degree Only 9.49% 9.29% 8.81%

Bachelors Degree Only 15.00% 17.43% 18.37%

Graduate Degree 6.80% 8.79% 9.77%

Time Travel to Work

Average Travel Time in Minutes 30 30 30

32

Income

In 2017, the median household income for your selected geography is

$57,936, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 10.24%

since 2000. It is estimated that the median household income in your

area will be $66,788 five years from now, which represents a change

of 15.28% from the current year.

The current year per capita income in your area is $30,869, compare

this to the US average, which is $30,982. The current year average

household income in your area is $74,152, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 6,569. The

population has changed by -3.99% since 2000. It is estimated that

the population in your area will be 6,724.00 five years from now,

which represents a change of 2.36% from the current year. The

current population is 48.81% male and 51.19% female. The median

age of the population in your area is 42.70, compare this to the US

average which is 37.83. The population density in your area is

2,086.58 people per square mile.

Households

There are currently 2,726 households in your selected geography. The

number of households has changed by 3.81% since 2000. It is

estimated that the number of households in your area will be 2,834

five years from now, which represents a change of 3.96% from the

current year. The average household size in your area is 2.36 persons.

Employment

In 2017, there are 1,871 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

58.43% of employees are employed in white-collar occupations in

this geography, and 41.90% are employed in blue-collar occupations.

In 2017, unemployment in this area is 5.00%. In 2000, the average

time traveled to work was 30.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

91.80% White, 2.55% Black, 0.00% Native American and 1.97%

Asian/Pacific Islander. Compare these to US averages which are:

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 6.13% of the current year

population in your selected area. Compare this to the US average of

17.88%.

PROPERTY NAME

MARKETING TEAM

WATERFORD MINI-PLEX

Housing

The median housing value in your area was $136,770 in 2017,

compare this to the US average of $193,953. In 2000, there were

2,151 owner occupied housing units in your area and there were 476

renter occupied housing units in your area. The median rent at the

time was $535.

Source: © 2017 Experian

DEMOGRAPHICS

33

8

WATERFORD MINI-PLEX

DEMOGRAPHICS

34

www.MarcusMillichap.com

Mark Mamassian

Associate

Member - National Office and Industrial

Properties Group

Detroit Office

Tel: (248) 415-2643

Fax: (248) 415-2610

[email protected]

License: MI 6501182453

John J. Godwin

Senior Vice President Investments

Senior Director - National Office and Industrial

Properties Group

Detroit Office

Tel: (248) 415-2618

Fax: (248) 415-2610

[email protected]

Licenses: MI 6502339209, MI 6502112435

P R E S E N T E D B Y

35

Documents

Waterford MiniPlex OM 4.30...square-mile region composed of six counties: Wayne, Macomb, Lapeer, Oakland, St. Clair and Livingston. More than 4.3 million residents reside in the area