Offering Memorandum • Tim Horton's 12-Year Lease
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OFFERING MEMORANDUM • TIM HORTON’S 12-YEAR LEASE BUILD-TO-SUIT, ABSOLUTE TRIPLE NET LEASED QUICK SERVICE RESTAURANT WITH 10-PERCENT INCREASES EVERY FIVE YEARS Actual Subject Photo 1072 Ashland Road, Mansfield, Ohio 44905 UNDER CONSTRUCTION 110,500 DAYTIME POPULATION UNIVERSITY HOSPITALS SAMARITAN MEDICAL CENTER $17-MILLION TWO-STORY MEDICAL SITE WITHIN 10 MILES (2018) URGENT CARE, RADIOLOGY, PHYSICAL THERAPY, OFFICES ASHLAND ROAD/U.S. ROUTE 42 • 16,000 VPD (2018) SUBJECT PROPERTY 1,980 SQ. FT. GLA • .98 +/- ACRES STEWART ROAD • 5,000 VPD (2018) DRIVE-THRU • BUILT 2017 N *Borders Are Approximate Tim Horton’s 12-Year Lease | Mansfield, Ohio 2 VITAL DATA LEASE SUMMARY Price $1,652,000 Tenant Tim Horton’s Hill-RSSUM Holdings, LLC Guarantor Cap Rate 5.75% & Personal Guarantys ADDRESS: 1072 ASHLAND RD Gross Leasable Area 1,980 Sq. Ft. +/- Lease Type Absolute NNN MANSFIELD, OH 44905 Roof & Structure Tenant Responsible Year Built/Renovated 2017 Lease Commencement 04/14/2017 Lot Size .98 Acres +/- Lease Expiration 04/30/2032 Parking 20 Spaces Lease Term Remaining 12.5 Years Remaining PRICE Type of Ownership Fee Simple $1,652,000 Options Three, 5-Year Options Occupancy 100% Increases Yes, 10% Every 5 Years RENT SCHEDULE Year Annual Rent ($) Monthly Rent ($) Rent/Sq. Ft. Cap Rate CAP RATE 1-5 95,000.00 7,916.67 $47.98 5.75% 5.75% 6-10 104,500.00 8,708.33 $52.78 6.33% 11-15 114,950.00 9,579.17 $58.06 6.96% Option Periods 16-20 126,445.00 10,537.08 $63.86 7.65% 21-25 139,089.50 11,590.79 $70.25 8.42% ANNUAL RENT 25-30 152,998.45 12,749.87 $77.27 9.26% This information has been secured from sources we believe to be reliable, but we make no representations or $95,000 warranties, expressed 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap ACTIVITY ID: ZAA0332056 Tim Horton’s 12-Year Lease | Mansfield, Ohio 3 STEWART PLAZA UNDER CONSTRUCTION 16,000 SQ;. FT. GLA UNIVERSITY HOSPITALS SAMARITAN MEDICAL CENTER 70,665 SQ. FT. GLA SUBJECT PROPERTY BURGER KING 1,980 SQ. FT. GLA • .98 +/- ACRES Recent Renovation DRIVE-THRU • BUILT 2017 MCDONALD’S 2018 Demolition & Complete Store Remodel STEWART ROAD • 5,000 VPD (2018) ASHLAND ROAD/U.S. ROUTE 42 16,000 VPD (2018) 60,800 POPULATION Updated WITHIN 5 MILES (2018) Construction N *Borders Are Approximate Tim Horton’s 12-Year Lease | Mansfield, Ohio 4 DOWNTOWN MANSFIELD UNDER CONSTRUCTION 2 Miles Southwest UNIVERSITY HOSPITALS SAMARITAN MEDICAL CENTER $17-MILLION TWO-STORY MEDICAL SITE URGENT CARE, RADIOLOGY, PHYSICAL THERAPY, OFFICES Mansfield Self-Storage BURGER KING Recent Renovation SUBJECT PROPERTY 1,980 SQ. FT. GLA • .98 +/- ACRES DRIVE-THRU • BUILT 2017 STEWART ROAD • 5,000 VPD (2018) MCDONALD’S 2018 Demolition & Complete Store Remodel ASHLAND ROAD/U.S. ROUTE 42 16,000 VPD (2018) 23,000 HOUSEHOLDS WITHIN 5 MILES (2018) N *Borders Are Approximate Tim Horton’s 12-Year Lease | Mansfield, Ohio 5 U.S. ROUTE 30 33,000 VPD (2018) MANSFIELD BAPTIST TEMPLE Updated Construction MCDONALD’S 2018 Demolition & STEWART ROAD • 5,000 VPD (2018) Complete Store Remodel ASHLAND ROAD/U.S. ROUTE 42 16,000 VPD (2018) SUBJECT PROPERTY 1,980 SQ. FT. GLA • .98 +/- ACRES DRIVE-THRU • BUILT 2017 UNDER CONSTRUCTION UNIVERSITY HOSPITALS SAMARITAN MEDICAL CENTER $49,000 AVG. HH INCOME WITHIN 5 MILES (2018) N *Borders Are Approximate Tim Horton’s 12-Year Lease | Mansfield, Ohio 6 INVESTMENT HIGHLIGHTS Newly Developed Tim Horton’s Location with 177 Feet of Subject is Located Just Five Miles from the Featured Frontage on a Prime Signalized Intersection of Two Main Asset is Mansfield and Richland County’s Largest Roadways, Featuring a Freeway Pylon Visible to SR-30 Employer, OhioHealth Mansfield Hospital with 2,500 and Drive-Thru | Subject Opened Their Doors in 2017 Employees and 326 Beds Subject to Absolute Triple Net 15-Year Lease with Surrounding Area National Retailers Include Rite Aid, No Landlord Responsibility and 10-Percent Rental Wendy’s, KeyBank, Kroger, Pet Valu, Verizon Wireless, Escalations Every Five Years, Including in Three, Five- Mr. Hero Subs, Taco Bell, Save A Lot, AutoZone, Family Year Renewal Options Dollar, O’Reily Auto, and More The Subject Tim Horton’s Lease is Guaranteed by Hill- Subject Only Ten Miles From Mansfield Lahn Regional RSSUM Holdings, LLC with Personal Guaranty; Tenant Airport, Home to Richland Aviation, Flight Instruction Operates 35 Tim Horton’s and Three Jimmy John’s School, and Ohio Air National Guard Base with Over 1,000 Active Guard and Air Reserve Personnel Commuter Convenience: Property Sits On Direct Route between Cleveland and Columbus, Just Three Miles off of Nearby Tourism Attractions Include the Ohio State I-71 (68,000 VPD), Along Ashland Road/US State Route Reformatory (Three Miles West), Richland Carousel Park 42 (16,000 VPD), Stewart Road North (5,000 VPD), and (Three Miles Southwest), and Kingwood Center Gardens SR-30 (33,000 VPD) (OHDOT, 2018) (Five Miles West), Helping Generate Over $338 Million in Tourism Sales in Richland County (Destination Mansfield) Mansfield is the Largest City in the Mid-Ohio Region and Anchors the Mansfield Metropolitan Statistical Area, Subject is Only a Five-Minute Drive from Madison High Which Had a Population of 124,475 Residents in 2010 | School (950 Students, 70 Faculty) and Madison Middle Mansfield Borders the Columbus Metro Area School (925 Students, 70 Faculty) | There are 28 Top Public Schools in Mansfield, Serving 11,940 Students Subject is Across the Street from Under Construction for the 2019-20 School Year (PublicSchoolReview.com) University Hospitals Samaritan Center, a $17-Million, Two-Story Facility Featuring Urgent Care, Radiology, Nearby Recreational Amenities Include Liberty Park, Physical Therapy Services, as well as Offices and a Dawson Ridge Golf Course, Forest Hills Golf Course and Community Center for Screenings Westbrook Country Club This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap ACTIVITY ID: ZAA0332056 Tim Horton’s 12-Year Lease | Mansfield, Ohio 7 1072 Ashland Rd, Mansfield, OH 44905 Tim Hortons Tim Hortons DEMOGRAPHICS 5.0-Mile Radius 10.0-Mile Radius 15.0-Mile Radius 2018 5-MILE POPULATION 2018 5-MILE HOUSEHOLDS APPROX. 60,800 APPROX. 23,000 2018 5-MILE AVERAGE HOUSEHOLD INCOME Area Population 5-Mile 10-Mile 15-Mile OVER $49,000 2010 Population 61,489 108,048 165,524 2018 Population Estimate 60,847 107,078 164,390 Map data ©2019 Google, INEGI 100 mi 2023 Population Projection 59,515 106,863 164,244 2018 Daytime Population 61,759 110,498 161,204 5-MILE Area Households 5-Mile 10-Mile 15-Mile 2010 Households 23,942 42,280 65,041 10-MILE 2018 Households Estimate 23,114 41,043 63,461 2023 Households Projection 22,774 41,429 64,193 15-MILE 2018 Average HH Size 2.3 2.4 2.4 Area Income 5-Mile 10-Mile 15-Mile Median HH Income $37,266 $45,209 $46,114 Per Capita Income $19,884 $23,534 $23,447 Average HH Income $49,180 $59,123 $58,927 2018 10-MILE DAYTIME POPULATION Source: Marcus & Millichap Analytics, U.S. Census Bureau (2019)10 APPROX. 110,500 Tim Horton’s 12-Year Lease | Mansfield, Ohio 8 Copyrighted report licensed to Marcus & Millichap Inc - 473839. AREA MAP • 1072 ASHLAND ROAD, MANSFIELD, OHIO 44905 MANSFIELD LAHM REGIONAL AIRPORT & OHIO AIR NATIONAL GUARD BASE 1,000+ ACTIVE GUARD AND AIR RESERVE 10 MILES NORTHWEST INDUSTRIAL & DISTRIBUTION SUBJECT PROPERTY 1,980 SQ. FT. GLA • .98 +/- ACRES DRIVE-THRU • BUILT 2017 ASHLAND RD/U.S. ROUTE 42 WESTBROOK 16,000 VPD (2018) COUNTY CLUB U.S. ROUTE 30 DAWSON RIDGE 33,000 VPD (2018) GOLF COURSE MADISON SCHOOLS MIDDLE & HIGH SCHOOL WALGREENS 1,800 STUDENTS DAIRY QUEEN OHIOHEALTH INTERSTATE I-71 MANSFIELD HOSPITAL MANSFIELD BURGER KING 68,000 VPD (2018) 5 MILES WEST N 2,500 EMPLOYEES | 326 BEDS MCDONALD’S *Borders Are Approximate N *Borders Are Approximate This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap ACTIVITY ID: ZAA0332056 Imagery ©2019 Google, Imagery ©2019 Landsat / Copernicus, Maxar Technologies, State of Ohio / OSIP, USDA Farm Service Agency, Map data ©2019 2000 ft Tim Horton’s 12-Year Lease | Mansfield, Ohio 9 SITE PLAN RITE AID UNDER CONSTRUCTION MCDONALD’S MEDICAL FACILITY PYLON SIGN STEWART ROAD • 5,000 VPD (2018) STEWART ENTER DO NOT 20 PARKING SPACESPATIO ASHLAND ROAD/U.S.