Kean's Marina

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KEAN’S MARINA FULL-SERVICE MARINA FOR SALE

MARINA & STORAGE | 320 BOAT SLIPS | 100% OCCUPIED | 8.9% CAP 100 MEADOWBROOK, DETROIT, MI 48214 TABLE OF CONTENTS

PROPERTY OVERVIEW ...... 03

LOCATION INFORMATION ...... 16

DEMOGRAPHIC/ECONOMIC DATA ...... 22

2 KEAN’S MARINA | DETROIT, MICHIGAN 01 PROPERTY INFORMATION

3 KEAN’S MARINA | DETROIT, MICHIGAN PROPERTY INFORMATION INVESTMENT HIGHLIGHTS LOCATED IN AN OPPORTUNITY ZONE | 100% OCCUPIED WITH WAITING LIST

BOAT WELL ACCESSIBILITY INCOME-GENERATING ON-SITE STORAGE

Kean’s Marina has 320 boat slips, the There are three boat storage warehouses majority of which can accommodate on the property totaling 62,000 SF. These sizable boats/yachts. There are also ten warehouses are used for boat, winter, and (10) jet-ski berths. equipment storage. There is in out rack storage with travel lift on site. There is also ample outdoor storage.

MINUTES FROM DOWNTOWN DETROIT ATTRACTIVE AMENITIES

The property is conveniently located off The property features a gas dock, Jefferson Rd on Detroit’s east side and is a large hoist, dock store, beautiful just minutes away from the buzz of banquet hall, and indoor bar. Recent downtown Detroit and Belle Isle. improvements include a new pool, hot tub, tiki bar, outdoor playground area, and remodeled men’s and women’s restrooms.

RAISED DOCKS GREAT INVESTMENT OPPORTUNITY

The docks were all raised in 2019 to Kean’s Marina is an ideal strategic purchase combat the rising water issues along the for its operating income and future Detroit River coastline. development of Detroit’s limited waterfront property.

4 KEAN’S MARINA | DETROIT, MICHIGAN PROPERTY INFORMATION EXECUTIVE SUMMARY

100 Meadowbrook St. ADDRESS Detroit, MI 48214 # OF SLIPS 320 ACREAGE 21 BOAT STORAGE 62,000 SF

OFFICE/BANQUET 13,478 SF Gas Dock Dock Store 8.9% Pool CAP RATE Hot Tub Patio Deck Children’s Play Area $9,000,000 Bathrooms/Showers SALE PRICE AMENITIES Laundry Facilities Free WIFI P.A. Commercial is pleased to exclusively offer for purchase Kean’s Marina, Water/Electric a 320 slip commercial marina situated on 21 expansive acres along the Gated Access beautiful Detroit River. This property is located in an opportunity zone and is Picnic Area Tiki Bar currently 100% occupied with a waiting list. Banquet Facility Indoor Bar The property includes four major buildings that have a combined area of 75,478 SF. The 13,478 SF “main building” houses the marina offices, tenant NEIGHBORHOOD Marina District spaces, and four bathrooms on the first floor with executive offices, a kitchen, DISTANCE TO CITY 5.3 Miles ballroom/banquet room, private bar, and new restrooms on the second floor. CENTER NEAREST HWY I-75 & 1-94 The remaining three (3) buildings total approximately 62,000 SF and are CAP RATE 8.9% used for indoor boat storage, which are in good condition and back up to Freud Street. Building One is 30,000 SF and offers in out service. The other two SALE PRICE $9,000,000 storage buildings are each 16,000 SF. CLICK HERE TO WATCH DRONE VIDEO 5 KEAN’S MARINA | DETROIT, MICHIGAN PROPERTY INFORMATION MARINA AERIAL

6 KEAN’S MARINA | DETROIT, MICHIGAN PROPERTY INFORMATION THE MAIN BUILDING S

The main building houses the marina offices, rented This building has been partitioned into offices and leased spaces (Lens, St. Clair Yacht Sales), and the marina tenant spaces on the first floor. The second floor features lavatories. The roof was fully replaced in 2019 and the executive offices, a large bar with a view of the river, and a structure is in good condition including remodeled banquet room on the second floor with lavish facilities. The offices, second floor, entertainment facilities, and lavish marina store and gas dock are adjacent to the harbor with restrooms. The building has a gross area of 13,478 SF. easy access for customers.

7 KEAN’S MARINA | DETROIT, MICHIGAN THE MAIN BUILDING STAIRWAY & HALLWAY

8 KEAN’S MARINA | DETROIT, MICHIGAN THE MAIN BUILDING BANQUET ROOM

9 KEAN’S MARINA | DETROIT, MICHIGAN THE MAIN BUILDING PRIVATE BAR

10 KEAN’S MARINA | DETROIT, MICHIGAN THE MAIN BUILDING MEN’S & WOMEN’S RESTROOMS

11 KEAN’S MARINA | DETROIT, MICHIGAN PROPERTY INFORMATION STORAGE BUILDINGS

BUILDING 1 BUILDING 2 BUILDING 3

APPROX AGE 15 Years 50 Years 15 Years

SIZE 30,000 SF 16,000 SF 16,000 SF

EAVE HEIGHT 30 ft. 14.5 ft. 22 ft. INTERIOR COLUMNS 30 ft. from wall none none

FLOOR asphalt asphalt asphalt

DOORS sliding sliding sliding

LIGHTING metal halide florescent metal halide

HEAT radiant gas forced air gas forced air

CONDITION good good good

There are three storage buildings on the property that are similar in construction and vary in age, size and height. All are pre-engineered, insulated, steel sided buildings with steel frames with the two older buildings sitting on concrete piers. The most recently constructed building is used for rack storage in addition to heated, winter storage, while the two remaining buildings are used only for heated winter storage and equipment storage. The buildings are all located on the west side of the property that backs to Freud Street and they have been constructed in a linear fashion.

12 KEAN’S MARINA | DETROIT, MICHIGAN PROPERTY INFORMATION BOAT STORAGE

13 KEAN’S MARINA | DETROIT, MICHIGAN PROPERTY INFORMATION MARINA AND WELL INFORMATION

The Kean’s Marina basin has 320 slips and ten (10) jet ski berths with the majority LENGTH QUANTITY of the slips accessed from main, finger piers that are about four feet in width. 25 ft 12 Water depth in the basin averages about nine feet with water depth in front of the property in the Detroit River being about 19 ft. 32 ft 191

40 to 50 ft 103 All docks and piers are supported by steel piling with steel rails. Main piers have overhead lighting and provide potable water and shorepower to each slip 50 ft end 14 within a pedestal. TOTAL 320

14 KEAN’S MARINA | DETROIT, MICHIGAN PROPERTY INFORMATION MARINA AMENITIES

Kean’s Marina has common area amenities consisting The hoist slip has a beam of 18 ft. and the 20 ton Algonac hoist of asphalt paved parking, a pool, hot tub, bar, and has adequate capacity for most all of the boats stored at the a playground that are located adjacent to the main Marina. Kean’s gas dock area is located at the north end of building. The pool/playground area also has community the basin and has two pumps dispensing regular and diesel seating and a small conversation/tiki hut. There is also a fuel. Patron parking is located in the same general area as gas dock and a single large hoist slip designed for use with winter outside storage and is within an asphalt paved parking a travelift lot that is situated between the main marina building and the three storage buildings.

15 KEAN’S MARINA | DETROIT, MICHIGAN 02 LOCATION

16 KEAN’S MARINA | DETROIT, MICHIGAN LOCATION THE MARINA DISTRICT

GROSSE POINTE CHANDLER PARK PARK SUBJECT PROPERTY

CHRYSLER MANUFACTURING

JEFFERSON CHALMERS

FUTURE FIAT CHRYSLER ASSEMBLY

MARINA DISTRICT EAST JEFFERSON AVE

SINBAD’S RESTAURANT EAST ROOSTERTAIL INDIAN VILLAGE VILLIAGE DETROIT YACHT CLUB

WEST VILLAGE

BELLE ISLE

EAST JEFFERSON AVE PARK

17 KEAN’S MARINA | DETROIT, MICHIGAN LOCATION MARINA LOCATION & TAX INCENTIVES

RESIDENTIAL NEIGHBORHOOD NORTH OF SUBJECT

RESIDENTIAL NEIGHBORHOOD EAST OF SUBJECT

The Marina District is located on the east side of Detroit in an Opportunity Zone hosting an array of tax benefits for qualified investors or Opportunity Zone Investment Funds. Surrounded by newer home construction to the north with additional stubbed land primed for development. Sinbad’s Restaurant and the popular Roostertail performance & event venue reside next door to Kean’s Marina. Beautiful Belle Isle is in clear view from the harbor. Kean’s Marina is an ideal strategic purchase both for its operating income and future development of Detroit’s limited waterfront property.

18 KEAN’S MARINA | DETROIT, MICHIGAN LOCATION MARINA DISTRICT VISION PLAN In the last five years, Detroit area stakeholders have been developing a cohesive vision for the Marina District to provide guidance for future development in the area. Some goals for the district include:

1. INCREASE JOBS AND ECONOMIC VITALITY Re-purpose vacant land towards land uses that generate jobs, innovation, and a more resilient economy

2. CREATE A UNIQUE DESTINATION IN THE CITY NOT JUST FOR BOATERS, BUT FOR EVERYONE. Create a “draw” and a reason to come to the marina district. Increase visibility from E. Jefferson

3. RECTIFY EXISTING AND POTENTIAL LAND USE CONFLICTS i.e. residential adjacent to heavier industrial land

4. STRENGTHEN THE VITALITY AND LEVEL OF AMENITIES WITHIN THE MARINA OPERATIONS More slip utilization + leases. More seasonal and transient boaters

5. ENHANCE THE VISUAL QUALITY AND SAFETY OF THE DISTRICT. Strength the district image and branding. Provide safe public access

6. IMPROVE ENVIRONMENTAL QUALITY AND FUNCTIONS Habitat and shoreline restoration Storm water management Utility and infrastructure opportunities

19 KEAN’S MARINA | DETROIT, MICHIGAN LOCATION CITY OF DETROIT The subject is located in the City of Detroit, in southeastern Michigan, and the largest city in Michigan. It has an area of 140 square miles and is the core city of a metropolitan area of approximately 2,000 square miles. Its position on the Detroit River across from Windsor, Ontario makes it an international city and a gateway to Canada. Metropolitan Detroit includes all or part of six counties and has a population of more than 4.3 million residents.

Although Detroit has been faced with extreme financial and economic hardship over the last few decades, the city is currently experiencing DOWNTOWN DETROIT FROM RIVERFRONT a much-needed renaissance, and is emerging as “America’s Great Comeback City.” Much of the improvements to the City have been in the Central Business District (CBD) and in the east riverfront between the CBD and Belle Isle and near the subject. These include improvements started a number years ago such as the Riverwalk, a linear park along the Detroit River and the Dequindre Cut, an urban walkway/bike path. Pockets of the City are being rehabilitated that include the Midtown area which is a large area north of the Central Business District and extending to what was formerly referred to as the New Center Area and the East Riverfront. South and west of the CBD are areas such as Mexican Town that thrived even as other parts of the City declined.

CAMPUS MARTIUS DURING TREE LIGHTING CEREMONY Detroit’s rebirth can be traced to billionaire entrepreneur Dan Gilbert’s decision to relocate his Quicken Loans family of companies to the CBD in 2009. Since then, his commercial real estate company—Bedrock— has purchased and refurbished close to 100 commercial properties, totaling over 18 million SF, mostly in downtown. Because of today’s youth demographic favoring urban living over suburban sprawl, there was pent-up demand for downtown apartments.

20 KEAN’S MARINA | DETROIT, MICHIGAN LOCATION CITY OF DETROIT

Many buildings opened completely full and had waiting lists for months. Other entrepreneurs got in on the action, developing marquee projects in key neighborhoods like Midtown, the West Village and Corktown to keep up with demand.

According to CoStar Group, average rents in downtown Detroit range from $890 for a studio to $3,100 for a three- bedroom. Average vacancy rates are only five percent. From a financing perspective, lenders are aggressively targeting the MICROSOFT’S NEW OFFICE IN DOWNTOWN DETROIT city for acquisition, renovation and development financing.

Like its residential properties, Bedrock has invested a significant amount of money into rehabbing its office properties, too. According to JLL, average Class-A office rents in downtown Detroit are just north of $24 a square foot, the second- highest average in the Metro (after Birmingham/Bloomfield). Whereas in years past, downtown office rents often struggled compared to the suburbs, today’s tenants desire a downtown presence because of changing employee work- life preferences, specifically amongst the coveted millennial demographic. Recent moves by companies like Ford, Google MIDTOWN DETROIT and Microsoft underscore this trend.

21 KEAN’S MARINA | DETROIT, MICHIGAN 03 DEMOGRAPHIC & ECONOMIC DATA

22 KEAN’S MARINA | DETROIT, MICHIGAN ECONOMIC & DEMOGRAPHIC DATA QUICK STATS

POPULATION 1 MILE 3 MILES 5 MILES 2019 TOTAL POPULATION 6,082 67, 6 4 4 187, 52 0

2024 POPULATION 6,405 67, 24 3 186,715

POPULATION GROWTH 5.31% -0.59% -0.43% AVERAGE AGE 41.70 40.0 38.3

POPULATION

2019 TOTAL HOUSEHOLDS 2,712 27,627 74,562

HH GROWTH 2019 - 2024 5.09% -0.86% -0.54%

MEDIAN HOUSEHOLD INCOME $28,350 $28,794 $30,672

AVG HOUSEHOLD SIZE 2.20 2.40 2.40

2019 AVG HH VEHICLES 1 1 3/26

HOUSING

MEDIAN HOME VALUE $91,577 $88,967 $84,019

MEDIAN YEAR BUILT 1948 1947 1948

23 KEAN’S MARINA | DETROIT, MICHIGAN ECONOMIC & DEMOGRAPHIC DATA POPULATION STATS (3 MILES)

HOUSEHOLDS BY INCOME EMPLOYEES BY OCCUPATION

< $25K Retail Professional Management $25K - $50K Information $50K - $75K Financial/Investments

$75K - $100K Sales & Office

$100K - $125K Services

$125K - $150K Production & Manufacturing Utilities $150K - $200K Construction $200K + Farming, Fishing, Forestry

0 2 4 6 8 10 12 14 0 2 4 6 8 10 12 THOUSANDS THOUSANDS

HOUSING VALUES CONSUMER SPENDING TOTALS

< $100K Apparel

$100K - $200K Entertainment & Hobbies

$200K - $300K Food & Alcohol

$300K - $400K Household Items & Expenses

$400K - $500K Transportation & Maintenance

$500K - $1,000K Health Care

$1,000K+ Education & Day Care

0 1 2 3 4 5 6 7 0.02 0.04 0.06 0.08 0,10 0.12 014 THOUSANDS BILLIONS (DOLLARS)

24 KEAN’S MARINA | DETROIT, MICHIGAN ECONOMIC & DEMOGRAPHIC DATA DETROIT BOATING MARKET

Boating demand in Southeast Michigan improved substantially in the past 10 years and has been stable for the past 5. A comparison of the occupancy of a number of major marinas in the Metropolitan Detroit Market show a significant increase in occupancy when comparing recent years.

OCCUPANCY OCCUPANCY PROPERTY # OF SLIPS IN 2011 2013 - 2018 Kean’s Marina 320 65% 90% Detroit Sunset Marina 99 45% 90% Harsen’s Island Emerald City Marina 581 65% 90% Saint Clair Shores Algonac Harbor 353 65% 75% Algonac Jefferson Beach, Miller Marina 800 60% 97% Saint Clair Shores

Belle Maer Harbor 431 55% 98% Harrison Township

According to the National Marine Manufacturers Association, In 2017, marine expenditures were at an all-time high in 2017 at $39 billion, up 7 percent from 2016. The number includes spending on new boats, engines, trailers, accessories, and services. Michigan was third on the list of states that spent the most on new powerboats, engines, trailers, and accessories in 2017, with $982 million in sales. This was an increase of 12 percent from 2016.

25 KEAN’S MARINA | DETROIT, MICHIGAN ECONOMIC & DEMOGRAPHIC DATA DETROIT DEVELOPMENT OUTLOOK

TRANSFORMATIONAL DEVELOPMENTS COMING TO DETROIT:

The Riverfront Numerous projects will make the Riverfront more accessible and attractive to visitors. Expect redevelopment of vacant warehouses and land, increased residential and retail, streetscaping along Jefferson Avenue, a new greenway, an urban beach, and the Riverwalk extending to Belle Isle. A major redevelopment will take place at the West Riverfront Park as well. This plot of land in the west side industrial area will be transformed with trees, playscapes, ARTIST CONCEPTUAL RENDERING OF THE DETROIT RIVERFRONT sports courts, trails, and a beach in the coming years

Michigan Central Station Fiat Chrysler Plants In the next three-to-four years, Ford Motor Company will At the Connor Creek Industrial Center (located directly build a campus for mobility in Corktown at an estimated north of the subject property), the automobile company cost of $740 million. will spend $1.6 billion converting its Mack Avenue Engine Complex to produce next generation Jeeps, and $900 Brush Park Developments million to retool the Jefferson North Assembly Plant. It City Modern - The addition of 400 new residential units estimates that these upgrades will bring 5,000 new jobs to to vacant lots. Much of the work is expected to be Detroit completed in 2020. Brewster Douglass Development - The addition of 900 new residences ti the neighborhood. Gordie Howe International Bridge Located in the Delray Neighborhood, The bridge will Hudsons Site be 1.6 miles long and cost an estimated $5.7 billion. The 1,000,000 square feet skyscaper with 330 residential units international crossing will also have bike and pedestrian and 240,000 square feet of office space at a cost of over lanes. $900 million.

26 KEAN’S MARINA | DETROIT, MICHIGAN ECONOMIC & DEMOGRAPHIC DATA WHY DETROIT?

GROWING POPULATION THRIVING DETROIT DOWNTOWN Detroit is the most populous city in the U.S. state of In the central portions of Detroit, the population of young Michigan, the largest city on the United States – Canada professionals, artists, and other transplants is growing and border. The metropolitan area, known as Metro Detroit, is retail is expanding. This dynamic is luring additional new home to 4.3 million people, making it the second-largest in residents, and former residents returning from other cities, to the Midwest after Chicago. Since many older residents are the city’s Downtown along with the revitalized Midtown and moving back in and new businesses are bringing increased New Center areas. There are popular eateries, sports teams job opportunities for the city, there is an upward population with significant fan bases, regular concerts and a generally growth trend in the city. happening nightlife. The same could not be said for this city a few years ago and now it attracts a number of businesses BOOMING ECONOMY and consequently, families that choose to live here. Compared to many other real estate markets across the country, Detroit is an affordable market to both invest in or TOURISM rent real estate. The city is also the headquarters to many Because of its unique culture, distinctive architecture, and Fortune 500 companies. The most heavily represented revitalization and urban renewal efforts in the 21st century, sectors are manufacturing (particularly automotive), Detroit has enjoyed increased prominence as a tourist finance, technology, and health care. The most significant destination in recent years. The New York Times listed Detroit companies based in Detroit include: General Motors, as the 9th-best destination in its list of 52 Places to Go in 2017, Quicken Loans, Ally Financial, Compuware, Shinola, while Lonely Planet named Detroit the second-best city in American Axle, Little Caesars, DTE Energy,, and Blue Cross the world to visit in 2018. Blue Shield of Michigan. Metropolitan Detroit is a hub for entertainment options where a number of festivals are organized on a regular basis, including musical shows and cruises, and has a wide range of hotels to choose from.

27 KEAN’S MARINA | DETROIT, MICHIGAN CONTACT US

For more information, or to schedule a tour of Kean’s Marina, please contact the exclusive listing agents:

ANTHONY PELLEGRINO III Senior Associate

[email protected] D: 248.358.5341 C: 313.878.7735

JOHN DE WALD CPA Principal 26555 Evergreen Road [email protected] Suite 1500 D: 248.663.0504 Southfield, MI 48076 C: 313.510.3777 248.358.0100 pacommercial.com