Investment Summary
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INVESTMENT SUMMARY SITE PLAN BUILDING DESCRIPTION LOCAL AERIAL MARKET ANALYTICS RENT ROLL FINANCIALS LOCATION OVERVIEW MARKET OVERVIEW DEMOGRAPHICS INVESTMENT SUMMARY 4149, 4159, 4169 N. Holland Sylvania Rd, Toledo, OH About the Investment Marcus and Millichap is pleased to present for sale the 4149 N. Holland Sylvania Road (Building #1), 4159 N. Holland Sylvania Road (Building #2), 4169 N. Holland Sylvania Road (Building #3), collectively known as “Liberty Square Park”. This offering consists of three, multi-tenant, office buildings totaling 31,621 square feet and sit on approximately 2.5 aces of land across three separate/adjoining parcels. Investment Highlights . Three, multi-tenant office buildings showing 83% occupancy in the fast- growing West/Sylvania Toledo submarket. Located on the outskirts of the Sylvania area, one of the fastest growing in Lucas County, adding nearly 400 residents per year over the last decade. Housing is comparatively affordable, and real estate has held its value due to continued support of an excellent school system and a lower unemployment rate. Benefits from easy access to several major highway systems — I-75 north and south; I-80/90 (The Ohio Turnpike) east and west; regional connector routes like US 23 north and south; US 24 northeast and southwest; and US 20 east and west. Less than an hour from Detroit Metro Airport and 20 minutes from Toledo Express Airport. 1.4 Miles to ProMedica Flower Hospital, with its extended services and physician groups, is expected to continue its pattern of growth. The hospital complex is part of the ProMedica Healthcare System and is one of Ohio’s leading healthcare facilities. 1.6 Miles to Lourdes University, which has experienced double-digit growth over the past several years. As it continues to grow, it will attract more students, families, and sports fans to Sylvania and spur development in housing, retail businesses, and services. Affluent demographics with over 150,000 residents within a 5-mile radius and average household incomes in excess of $110,000 within a 1-mile radius. 3 INVESTMENT SUMMARY SITE PLAN BUILDING DESCRIPTION LOCAL AERIAL MARKET ANALYTICS RENT ROLL FINANCIALS LOCATION OVERVIEW MARKET OVERVIEW DEMOGRAPHICS SITE PLAN 4149, 4159, 4169 N. Holland Sylvania Road, Toledo, OH 43623 BUILDING TOTAL GLA: 31,621-SF | LOT AREA: ±2.50-AC Building #1 (APN):78-21304 | Building #2 (APN): 78-21311 | Building #3 (APN): 78-54851 PARCEL INFO Year Built: 1995 Total GLA: 17,984 SF Land Size: ± 3.10 AC Parking Spaces: 120± Suites Count: 8 Parcel #: 999-99-25-205.09 # Tenant GLA (SF) 4159 1 Embrace Spa Nails 1,250 N. Holland Sylvania Road 2 Verizon 1,250 3 Infinity Salon 1,172 4 Tailored Catering 1,067 4169 5 Miss Shirley’s Bakery 1,570 N. Holland Sylvania Road 6 Let it go Consignment 2,500 7 Little Caesars 1,675 8 Alexandria Brewing Co.41497,500 Total N. Holland Sylvania17,894 Road 4 INVESTMENT SUMMARY SITE PLAN BUILDING DESCRIPTION LOCAL AERIAL MARKET ANALYTICS RENT ROLL FINANCIALS LOCATION OVERVIEW MARKET OVERVIEW DEMOGRAPHICS BUILDING #1 Street Address 4149 N. Holland Sylvania Road Built Year 1989 Construction Masonry Building GLA 7,445-Sqft # of Stories Two Parcel # (APN) 78-21304 Parcel Size +/- 0.77 Acres Parking Spaces 35 # of Suites 12-Suites Occupancy 77.66% BUILDING TENANTS Tenant Name GLA (SF) % Share Lease From Lease To Walen Financial 812 10.91% 11/1/2018 10/31/2021 VACANT 832 11.18% Anderson Insurance 856 11.50% 5/1/2019 4/30/2022 Law Offices 779 10.46% 11/1/2018 10/31/2020 VACANT 831 11.16% Lawrence Johnson 591 7.94% 1/1/2017 MTM Smith & Smith 775 10.41% 1/1/2008 MTM Jole R. Harmon 270 3.63% 10/1/2018 9/30/2019 Contemporary 390 5.24% 2/1/2017 1/31/2020 Jole R. Harmon 195 2.62% 11/1/2017 MTM Liberty Square Mgmt. 593 7.97% Storage for Suite 3 521 7.00% 5/1/2019 4/30/2022 Total 7,445 100% 5 INVESTMENT SUMMARY SITE PLAN BUILDING DESCRIPTION LOCAL AERIAL MARKET ANALYTICS RENT ROLL FINANCIALS LOCATION OVERVIEW MARKET OVERVIEW DEMOGRAPHICS BUILDING #2 Street Address 4159 N. Holland Sylvania Road Built Year 1994 Construction Masonry Building GLA 14,289-Sqft # of Stories Two Parcel # (APN) 78-21311 Parcel Size +/- 1.15 Acres Parking Spaces 55 # of Suites 10-Suites Occupancy 79.48% BUILDING TENANTS Tenant Name GLA (SF) % Share Lease From Lease To The Kerger Law Firm 1,072 7.50% 11/1/2018 10/31/2020 VACANT 1,964 13.74% Informative Financial 3,055 21.38% 6/1/2018 5/31/2023 Amanda Bebeau, 2,063 14.44% 7/1/2018 2/29/2020 Amanda Bebeau, 543 3.80% 3/1/2019 2/29/2020 Pino Holly Wealth 1,122 7.85% 6/1/2015 3/31/2020 Ameriprise Financial 1,072 7.50% 11/1/2016 10/31/2021 A Nun's Life Ministry 1,464 10.25% 1/1/2019 12/31/2019 Conference Room 966 6.76% (INCLUDED IN ALL LEASES) VACANT 968 6.77% Total 14,289 100% 6 INVESTMENT SUMMARY SITE PLAN BUILDING DESCRIPTION LOCAL AERIAL MARKET ANALYTICS RENT ROLL FINANCIALS LOCATION OVERVIEW MARKET OVERVIEW DEMOGRAPHICS BUILDING #3 Street Address 4169 N. Holland Sylvania Road Built Year 1995 Construction Masonry Building GLA 9,887-Sqft # of Stories Two Parcel # (APN) 78-54851 Parcel Size +/- 0.63 Acres Parking Spaces 32 # of Suites 6-Suites Occupancy 90.57% BUILDING TENANTS Tenant Name GLA (SF) % Share Lease From Lease To Sylvania Steel 1,005 10.16% 7/1/2018 6/30/2021 Timothy Whetro 3,024 30.59% 7/1/2018 6/30/2021 Stranahan Foundation 2,040 20.63% 2/1/2019 1/31/2022 Toledo Radiological 2,098 21.22% 4/1/2015 3/31/2020 Amanda Bebeau 788 7.97% 12/1/2019 11/30/2019 VACANT 932 9.43% Total 9,887 100% 7 INVESTMENT SUMMARY SITE PLAN BUILDING DESCRIPTION LOCAL AERIAL MARKET ANALYTICS RENT ROLL FINANCIALS LOCATION OVERVIEW MARKET OVERVIEW DEMOGRAPHICS 160+ Retailers LIBERTY SQUARE 16,700+ VPD 8 INVESTMENT SUMMARY SITE PLAN BUILDING DESCRIPTION LOCAL AERIAL MARKET ANALYTICS RENT ROLL FINANCIALS LOCATION OVERVIEW MARKET OVERVIEW DEMOGRAPHICS TRAILING 12 MONTHS SALES ACTIVITY [77 OFFICE BUILDINGS SOLD] Market Buildings Inventory SF Avg Est. Rent / SF Vacancy $P/SF Cap Subject Property 3 31,621 $15.30 17% West/Sylvania Overall Submarket 574 6M $16.32 3.5% $90 9.70% West/Sylvania Submarket (1-3 Star) 566 5.6M $16.07 3.5% $89 9.60% Toledo 1-3 Star Submarket 1,853 21.2M $14.67 5.1% $80 9.60% Toledo Market Overall 1,884 26.2M $15.32 4.3% $78 9.60% Summary: Toledo - OH Office rents in the Toledo metro increased by 1.4% year-over-year as of 19Q2 and have posted an average annual gain of 1.7% over the past three years. Vacancies in the metro were well below the cycle average as of 19Q2 and trended downwards over the past four quarters. There is 100,000 SF currently underway, representing a 0.4% expansion of the existing inventory. Over the past three years, 245,000 SF has delivered, or a cumulative inventory expansion of 0.9%. Sales activity was minimal over the past four quarters, prolonging a multi-year stretch of limited investment. Employment gains decelerated over the past year, as total employment increased by 0.7%, or about 2,200 jobs. Over the past five years, employment has increased by 1.1% annually on average, compared to a 1.8% average increase nationally. Toledo’s economy relies heavily on manufacturing, which accounts for 15% of jobs in the metro. The Federal Reserve Bank of Cleveland reports that, in the 12 months ending in September 2018, Toledo’s manufacturing sector saw 7% job growth, the largest gain out of all sectors. Growth in this sector is expected to continue after production of the new Jeep Gladiator pick-up truck began in March, with sales expected to start next year. Topia, a Japanese firm that produces automotive prototypes, opened its first North American plant in Toledo last year. Additionally, Hometown Foods announced in 2018 that it acquired a portfolio of brands from the J.M. Smucker Company for approximately $375 million and will operate a 650,000-SF manufacturing facility in Toledo. Education and health services is another dominant industry sector in Toledo. Major employers in the metro include The University of Toledo, Bowling Green State University, Owens Community College, ProMedica, and Mercy Health Toledo has taken strides to diversify its economy and to promote job growth. In 2018, Site Selection Magazine ranked Toledo third in the nation for economic development for the second year in a row. The metro was recognized for several economic development projects including Credit Adjustments Inc. (CAI), a call center that opened in 2017 and created 60 jobs. CAI expanded in 2019, creating another 200 jobs in Toledo. 9 INVESTMENT SUMMARY SITE PLAN BUILDING DESCRIPTION LOCAL AERIAL MARKET ANALYTICS RENT ROLL FINANCIALS LOCATION OVERVIEW MARKET OVERVIEW DEMOGRAPHICS Tenant Name GLA (SF) % Share Lease From Lease To Monthly Rent Annual Rent R/SF Cleaning & Utilities Reimbursement Renewal Due Lease Type Rent Increases Walen Financial 812 10.91% 11/1/2018 10/31/2021 $1,255 $15,060 $18.55 $2,477 N/A Modified Gross N/A VACANT 832 11.18% Anderson Insurance 856 11.50% 5/1/2019 4/30/2022 $1,137 $13,644 $15.94 $2,294 N/A Modified Gross N/A Law Offices 779 10.46% 11/1/2018 10/31/2020 $1,217 $14,604 $18.75 $2,111 N/A Modified Gross N/A VACANT 831 11.16% Lawrence Johnson 591 7.94% 1/1/2017 MTM $911 $10,932 $18.50 $1,803 N/A Modified Gross N/A Smith & Smith 775 10.41% 1/1/2008 MTM $1,156 $13,872 $17.90 $2,364 N/A Modified Gross N/A 10/1/2018 9/30/2019 BUILDING # 1 Jole R.