DETROIT TRUCK MANUFACTURING David Hesano 111 E
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Offered By: DETROIT TRUCK MANUFACTURING David Hesano 111 E. 12 MILE RD. CBRE Net Lease Properties Group MADISON HEIGHTS, MICHIGAN 48071 +1 248 351 2014 [email protected] AFFILIATED BUSINESS DISCLOSURE its contents; and you are to rely solely on your investigations and inspections of the Property CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related in evaluating a possible purchase of the real property. The Owner expressly reserved the entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the including, but not limited to, brokerage services, property and facilities management, Property, and/or to terminate discussions with any entity at any time with or without notice valuation, investment fund management and development. At times different Affiliates may which may arise as a result of review of this Memorandum. The Owner shall have no legal represent various clients with competing interests in the same transaction. For example, this commitment or obligation to any entity reviewing this Memorandum or making an offer to Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell purchase the Property unless and until written agreement(s) for the purchase of the Property Crow Company. Those, or other, Affiliates may express an interest in the property described have been fully executed, delivered and approved by the Owner and any conditions to the in this Memorandum (the “Property”) may submit an offer to purchase the Property and Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, may be the successful bidder for the Property. You hereby acknowledge that possibility you agree that this Memorandum and its contents are of a confidential nature, that you will and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to hold and treat it in the strictest confidence and that you will not disclose this Memorandum disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In or any of its contents to any other entity without the prior written authorization of the Owner all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents the transaction described in this Memorandum and will not act in concert with or otherwise in any manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this conduct its business in a way that benefits any Affiliate to the detriment of any other offeror Memorandum, you have no further interest in purchasing the Property, kindly return this or prospective offeror, but rather will conduct its business in a manner consistent with the law Memorandum to CBRE, Inc. and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. DISCLAIMER CONFIDENTIALITY AGREEMENT This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective This is a confidential Memorandum intended solely for your limited use and benefit in investors may require to evaluate a purchase of the Property. The information contained in determining whether you desire to express further interest in the acquisition of the Property. This this Memorandum has been obtained from sources believed to be reliable, but has not been Memorandum contains selected information pertaining to the Property and does not purport verified for accuracy, completeness, or fitness for any particular purpose. All information is to be a representation of the state of affairs of the Property or the owner of the Property (the presented “as is” without representation or warranty of any kind. Such information includes “Owner”), to be all-inclusive or to contain all or part of the information which prospective estimates based on forward-looking assumptions relating to the general economy, market investors may require to evaluate a purchase of real property. All financial projections and conditions, competition and other factors which are subject to uncertainty and may not information are provided for general reference purposes only and are based on assumptions represent the current or future performance of the Property. All references to acreages, relating to the general economy, market conditions, competition and other factors beyond square footages, and other measurements are approximations. This Memorandum describes the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other certain documents, including leases and other materials, in summary form. These summaries information provided and made herein are subject to material variation. All references may not be complete nor accurate descriptions of the full agreements referenced. to acreages, square footages, and other measurements are approximations. Additional Additional information and an opportunity to inspect the Property may be made available information and an opportunity to inspect the Property will be made available to interested to qualified prospective purchasers. You are advised to independently verify the accuracy and qualified prospective purchasers. In this Memorandum, certain documents, including and completeness of all summaries and information contained herein, to consult with leases and other materials, are described in summary form. These summaries do not purport independent legal and financial advisors, and carefully investigate the economics of this to be complete nor necessarily accurate descriptions of the full agreements referenced. transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS Interested parties are expected to review all such summaries and other documents of MEMORANDUM IS SOLELY AT YOUR OWN RISK. whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of 2 Table of Contents 04 06 16 18 EXECUTIVE SUMMARY LOCATION & PROPERTY FINANCIAL ANALYSIS MARKET & AREA OVERVIEWS OVERVIEW 3 I. Executive Summary 4 The Offering: David Hesano of the CBRE Net Lease Property Group is pleased to offer for sale the fee simple interest in a high-profile single-tenant industrial investment. Detroit Truck Manufacturing, LLC, is situated at the northeast corner of John R Rd and E. Twelve Mile Rd in Madison Heights, MI approximately 14 miles of north of Detroit, MI. The 50,000 square foot building was completely renovated and finished in 2019 in order to accommodate high-tech manufacturing. Detroit Truck Manufacturing, LLC signed a ten (10)-year triple net (NNN) lease with limited Landlord responsibilities, which are subject to reimbursement by tenant, including the payment of taxes, maintaining insurance and the repair of the structural elements of the building. The tenant will have rental escalations equal to $0.10 per square foot every year as well as an early termination option at the end of the fifth (5th) year of the lease. As this site is 5.45 acres on a hard-corner within a vibrant retail trade-area, the property is positioned perfectly for future redevelopment. The intersection of John R. Rd and 12 Mile Rd. is home to the first BJ’s Wholesale Club in Michigan. Other major retailers at the intersection include high-volume Lowe’s and Home Depot stores which sit immediately adjacent to each other. Unlike a typical industrial park location, this property has great intrinsic land value. The asset is proposed to be a cash transaction and is offered free and clear of existing debt. Investment Highlights: Property Facts: 1) $3,945,000 Price | $78.90 Price per SF | 7.00% Cap. Rate 111 E. 12 Mile Rd PROPERTY ADDRESS Madison Heights, MI 48071 2) 10-Year NNN Lease | 9.5 Years Remaining | 4.5 Years Remaining with Termination Option YEAR RENOVATED 2019 3) $0.10 per SF Annual Rent Increases TOTAL BUILDING AREA 50,000 SF 4) Publicly-Traded Guarantor (NASDAQ: SPAR) PARKING 75 Surface Spaces 5) Offered Free and Clear of Debt 6) Hard-corner location, positioned for future redevelopment LAND AREA 5.45 Acres EXECUTIVE SUMMARY 5 II. Location & Property Overview 6 Location Overview The subject property is situated at the northeast corner of E. Twelve Mile Rd and John R. Rd about half a mile east of Interstate 75 (I-75) and approximately 14 miles north of Detroit. The property is positioned close to I-75 within a retail trade area. Additionally, this is a dense residential area with 330,304 residents within a five-mile radius. Nationally- recognized retail tenants in the immediate area include: - Lowe’s Home Improvement - BJ’s Wholesale (first in Michigan) - Home Depot - Penn Station East Coast Subs - Kroger - Red Lobster - Family Dollar - PNC Bank - Starbucks - Bank of America - Culver’s - Tim Horton Location Highlights » Convenient access to I-75 » Proximity to Detroit » Strong Industrial and Retail Corridor » Situated at the Corner of High Traffic Roads (23,500 VPD on John Rd; 27,700 VPD on Twelve Mile Rd) » Hard corner » Undeveloped property within the 5.45 acre parcel LOCATION & PROPERTY OVERVIEW 7 Aerial Map: Nearby National Tenants & Retail Corridors 13 MILE RD 13 MILE RD JOHN R RD STEPHENSON HWY DETROIT TRUCK MFG. STARBUCKS 12 MILE RD N 12 MILE RD LOCATION & PROPERTY OVERVIEW 8 © 2019 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed.