WYOMING DETROIT, 15340STREET MICHIGAN TIM HORTONS OFFERING MEMORANDUM

PETER BLOCK JARED PRINCE ASHLIN HAMILTON BRIAN WHITFIELD Executive Vice President Associate Associate Broker of Record +1 847 384 2840 +1 847 384 2852 +1 847 698 8225 Presented by: [email protected] [email protected] [email protected]

*Representative Image TABLE OF CONTENTS

> EXECUTIVE SUMMARY Executive Summary Investment Highlights

> PROPERTY INFORMATION Property Description Property Aerial Retail Map Tenant Overview

> LOCATION OVERVIEW Location Overview Area Map Demographics

> DISCLAIMER > EXECUTIVE SUMMARY

Offering Memorandum EXECUTIVE SUMMARY

Colliers International is pleased to present for sale a freestanding, single tenant, net- leased Tim Hortons located at 15340 Wyoming St in Detroit, Michigan. This is a strong location northwest of downtown Detroit along Rte 10 (156,000 VPD). The site posts over 21,000 vehicles per day on Wyoming St and a 5 mile population of over 400,000 people. The Tim Hortons corporate lease runs for six years through December 31st, 2022 and contains four (4), five (5) year options. The lease calls for 10% increases every 5 years, with the next increase on January 1, 2018. OFFERING SUMMARY This location sits on a 16,000 SF lot adjacent to the intersection of Wyoming Street & Fenkell Avenue. Neighbors include: McDonald’s, White Castle, Subway, BP, Valero, and more. ASKING PRICE: $632,258 CAP RATE: 7.75% CAP RATE (1/1/18): 8.53% NOI: $49,000 SIZE: 1,925 SF LEASE EXPIRATION: December 31, 2022

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 4 INVESTMENT HIGHLIGHTS

STRONG INVESTMENT FUNDAMENTALS

>> Absolute NNN Lease with no Landlord Responsibilities

>> Strong going in yield at 7.75% and great price point

>> 10% Rent Increases in Base Term and Options

>> Low price point

>> Corporate guarantee from Tim Hortons

>> Population Over 400,000 within a 5-mile radius

STRATEGIC LOCATION – ESTABLISHED TRADE AREA

>> Located at a retail – centered intersection with strong traffic counts

>> Immediately adjacent to John C Lodge Fwy (Rte 10), which boasted traffic counts in excess of 150,000 vehicles per day at the Wyoming St exit

>> Less than 7 miles from downtown Detroit and within 2 miles of University of Detroit & Marygrove College

>> Area Retailers include: McDonald’s, Subway, White Castle, Little Caesars Pizza, Dollar Tree, BP, among others.

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 5 > PROPERTY INFORMATION

Offering Memorandum PROPERTY DESCRIPTION

PROPERTY ADDRESS: 15340 Wyoming St. Detroit, MI 48238 OFFERING PRICE: $632,258

NOI: $49,000; rent increases to $53,900 on 1/1/18

CAP RATE: 7.75% 8.53% on 1/1/18 LEASE EXPIRATION: December 31, 2022

OPTIONS: Four (4), Five (5) year options

ESCALATIONS: 10% every 5 years, including options

YEAR BUILT: 1984

BUILDING SIZE: 1,925 SF

PARCEL SIZE: 15,986 SF

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 7 PROPERTY AERIAL

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 8 RETAIL MAP

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 9 TENANT OVERVIEW

Tim Hortons is the third largest coffee chain in the world. It has over a 50 year history that started in Ontario, Canada. It is the QSR leader in Canada, and expanding throughout the US. The brand started as a coffee and doughnut shop, but has evolved to a full menu offering everything from salads to sandwiches. Tim Hortons is an iconic Canadian brand that serves almost 80% of the cups of coffee sold in Canada.

There are more than 4,590 Tim Hortons restaurants worldwide; 869 being in the United States. The brand is known for their impact within the community, offering high quality products, and providing a great experience for franchisees. In 2014, the parent company of Burger King, Restaurant Brands International, acquired Tim Hortons for 11.4 billion. This accelerated Tim Hortons growth into the United States. Tim Hortons currently has a strong presence in the Midwest and northeast, with plans to expand into the Southeast.

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 10 > LOCATION OVERVIEW

Offering Memorandum LOCATION OVERVIEW

DETROIT, MI TRANSPORTATION

Detroit is the most populous city in the U.S. state of Michigan, the fourth-largest The Detroit region boasts an extensive transportation infrastructure with city in the Midwest and the largest city on the United States–Canada border. It is an extensive toll-free expressway system which includes four major the seat of Wayne County, the most populous county in the state. The municipality Interstate Highways, Detroit Metro Airport, four major Class I Railroads of Detroit had a 2015 estimated population of 677,116, making it the 21st-most and six international border crossings, making it one of the largest foreign populous city in the United States. The metropolitan area, known as Metro Detroit, trade zones in North America. The elevated Detroit People Mover is home to 4.3 million people and lies at the heart of the Great Lakes Megalopolis encircles downtown providing service to numerous downtown hotels, area, with around 60 million people. Roughly one-half of Michigan’s population offices and attractions. lives in Metro Detroit alone.

The Detroit metropolitan area, often referred to as Metro Detroit, is a major UNEMPLOYMENT RATES metropolitan area in Southeast Michigan, consisting of the city of Detroit and its surrounding area. There are several definitions of the area, including the official October 2015 October 2016 Change Detroit-Warren-Dearborn statistical areas designated by the Office of Management and Budget, a federal 5.9% 5.3%  agency of the United States. Metro Detroit is known for its automotive heritage, Metro Area arts, entertainment, popular music, and sports. The area includes a variety of State of Michigan 5.1% 4.7%  natural landscapes, parks, and beaches, with a recreational coastline linking the United States 5% 4.9%  Great Lakes. It is one of the nation’s largest metropolitan economies, with seventeen Fortune 500 companies.

ECONOMY

The City of Detroit anchors the second-largest economic region in the Midwest, behind Chicago, and the thirteenth-largest in the United States. Detroit and the surrounding region constitute a major center of commerce and global trade, most notably as home to America’s ‘Big Three’ automobile companies: General Motors, Ford, and Chrysler. Detroit’s six-county Metropolitan Statistical Area (MSA) has a population of about 4.3 million and a workforce of about 2.1 million. In November 2016, the Department of Labor reported metropolitan Detroit’s unemployment rate at 5.3%. The Detroit MSA had a Gross Metropolitan Product (GMP) of $197.7 billion in 2010.

While Detroit remains the center for the American automobile industry, Detroit is one of the fastest growing regions for technology jobs in the country. Some of the fastest growing business sectors include biotechnology, nanotechnology, information technology, hydrogen fuel cell development, health care, aerospace, defense and logistics.

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 12 AREA MAP

475 127

FLINT 69

69

75 LANSING 23

96 PONTIAC 94 75

15340 WYOMING ST.

127

96 275 DETROIT 75 94 ANN ARBOR 94 401

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 13 POP FACTS: DEMOGRAPHIC REPORT 2016 POP FACTS: DEMOGRAPHIC REPORT 2016 15340 WYOMING ST, DETROIT, MI, 48238-1719 15340 WYOMING ST, DETROIT, MI, 48238-1719 RADIUS 1 RADIUS 2 RADIUS 3 RADIUS 1 RADIUS 2 RADIUS 3 (0.0-1.0 miles) (0.0-3.0 miles) (0.0-5.0 miles) (0.0-1.0 miles) (0.0-3.0 miles) (0.0-5.0 miles) POPULATION 2016 EST. POPULATION HISPANIC OR LATINO 2021 Projection 17,305 155,075 405,819 Total 18,209 161,941 420,321 2016 Estimate 18,209 161,941 420,321 Hispanic or Latino 213 1.17% 1,944 1.20% 14,218 3.38% 2010 Census 20,059 175,380 448,689 Not Hispanic or Latino 17,996 98.83% 159,997 98.80% 406,103 96.62% 2000 Census 27,629 230,685 584,580 2016 TENURE OF OCCUPIED HOUSING UNITS Growth 2016 - 2021 -4.97% -4.24% -3.45% Total 6,799 63,747 162,487 Growth 2010 - 2016 -9.22% -7.66% -6.32% Owner Occupied 3,809 56.02% 36,084 56.60% 91,395 56.25% Growth 2000 - 2010 -27.40% -23.97% -23.25% Renter Occupied 2,990 43.98% 27,663 43.40% 71,092 43.75% HOUSEHOLDS AVERAGE HOUSEHOLD SIZE 2021 Projection 6,478 61,446 158,052 Total 2.64 2.50 2.55 2016 Estimate 6,799 63,747 162,487 2010 Census 7,454 68,180 171,077 2000 Census 9,475 84,018 210,454 Growth 2000 - 2010 -4.73% -3.61% -2.73% Growth 2010 - 2015 -8.78% -6.50% -5.02% Growth 2015 - 2020 -21.33% -18.85% -18.71%

2016 EST. POPULATION BY SINGLE CLASSIFICATION RACE Total 18,209 161,941 420,321 White Alone 345 1.89% 4,041 2.50% 72,210 17.18% Black or African 17,105 93.93% 152,177 93.97% 323,163 76.88% American Alone American Indian and 73 0.40% 639 0.39% 1,559 0.37% Alaska Native Alone Asian Alone 22 0.12% 490 0.30% 4,915 1.17% Native Hawaiian and 1 0.01% 11 0.01% 66 0.02% Other Pacific Islander Alone Some Other Race Alone 63 0.35% 577 0.36% 6,137 1.46% Two or More Races 600 3.30% 4,006 2.47% 12,271 2.92%

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 14 POP FACTS: DEMOGRAPHIC REPORT 2016 15340 WYOMING ST, DETROIT, MI, 48238-1719 RADIUS 1 (0.0-1.0 miles) RADIUS 2 (0.0-3.0 miles) RADIUS 3 (0.0-5.0 miles) 2016 EST. HOUSEHOLDS BY HOUSEHOLD INCOME Total 6,799 63,747 162,487 CY HHs, Inc < $15,000 2,132 31.36% 18,919 29.68% 45,458 27.98% CY HHs, Inc $15,000 - $24,999 1,003 14.75% 10,331 16.21% 24,848 15.29% CY HHs, Inc $25,000 - $34,999 1,041 15.31% 8,140 12.77% 20,151 12.40% CY HHs, Inc $35,000 - $49,999 996 14.65% 8,275 12.98% 21,902 13.48% CY HHs, Inc $50,000 - $74,999 861 12.66% 8,525 13.37% 23,394 14.40% CY HHs, Inc $75,000 - $99,999 395 5.80% 4,280 6.71% 11,860 7.30% CY HHs, Inc $100,000 - $124,999 193 2.85% 2,473 3.88% 6,876 4.23% CY HHs, Inc $125,000 - $149,999 90 1.32% 1,298 2.04% 3,556 2.19% CY HHs, Inc $150,000 - $199,999 58 0.85% 867 1.36% 2,598 1.60% CY HHs, Inc $200,000 - $249,999 19 0.29% 284 0.44% 836 0.51% CY HHs, Inc $250,000 - $499,999 9 0.13% 272 0.43% 770 0.47% CY HHs, Inc $500,000+ 1 0.02% 84 0.13% 238 0.15%

2016 EST. AVERAGE HOUSEHOLD INCOME Total $36,673 $41,441 $43,754

2016 EST. MEDIAN HOUSEHOLD INCOME Total $27,539 $28,223 $30,428

2016 MEDIAN HH INC. BY SINGLE RACE, CLASS, OR ETHNICITY White Alone $33,453 $45,658 $38,749 Black or African American Alone $27,032 $27,519 $28,429 American Indian and Alaska Native $55,095 $39,060 $33,273 Alone Asian Alone $31,822 $41,377 $40,865 Native Hawaiian and Other Pacific $0 $100,000 $103,828 Islander Alone Some Other Race Alone $57,420 $42,704 $36,108 Two or More Races $37,798 $38,909 $37,691 Hispanic or Latino $37,215 $39,131 $35,030 Not Hispanic or Latino $27,443 $28,111 $30,284

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 15 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the property at 15340 Wyoming Avenue, Detroit, MI. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Peter Block from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the property at 15340 Wyoming Avenue, Detroit, MI or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

Tim Hortons Offering Memorandum | Detroit, MI COLLIERS INTERNATIONAL 16