20 Year Ground Lease CONFIDENTIALITY and DISCLAIMER the Information Contained in the Following Marketing Brochure Is Proprietary and Strictly Confidential
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OFFERING MEMORANDUM TOLEDO OHIO 20 Year Ground Lease CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Livonia Lake St Clair Battle Creek Westland 94 94 Dearborn Ann Arbor Albion Taylor 69 12 Erie 275 Clinton 23 Ontario LAKE ERIE Lake City Michigan Rockwood Coldwater Dundee Conneaut 127 223 79 Adrian Ashtabula Hudson Monroe 12 20 TABLE OF CONTENTS 6 Lambertville Sylvania Painesville 90 80 20 20 Meadville Euclid Lagrange TOLEDO Kirtland 6 20A Waterville CLEVELAND 322 Bryan Cleveland Heights 19 Lorain Investment Summary .........................................5 6 75 Sandusky Maumee R. 6 Greenville Garrett 127 6 Parma 24 Bowling Green 80 Elyria 422 Warren 33 Defiance 23 20 Investment Highlights.........................................7 Newton Falls Norwalk 80 Medina 24 250 30 Paulding Fostoria Youngstown 79 Willard 224 Aerial Maps ..............................................11 & 12Fort Wayne Findlay AKRON 224 Struthers 224 77 69 71 75 Ashland 76 62 Salem Tenant Summary ..............................................14 30 Canton Van Wert Decatur 30 30 Beaver Falls Lima Mansfield Berne Kenton Location Map ...................................................16 Marion 33 Millersburg 42 71 Dover Carnot-Moon St. Marys 68 Portland 23 30 Location Overview ............................................18 Mount Vernon 127 Steubenville Bellefontaine Carnegie Indiana 36 Sidney Delaware 35 33 36 27 Location Highlights ...........................................20 62 Coshocton 22 77 250 Washington Piqua Westerville Muncie Worthington St. Clairsville 36 Troy Cambridge Demographics ..................................................21 Upper Arlington COLUMBUS 70 75 19 New Castle Moundsville 40 70 Zanesville Vandalia Springfield Grove City 79 Richmond DAYTON Lancaster 71 62 Rushville Kettering 22 250 19 Circleville Oxford Franklin Glouster OHIO RIVER 35 Fairmont 52 Great Miami R. 33 Marietta Hamilton 75 42 Wilmington 68 Chillicothe Athens Vienna Clarksburg 74 Parkersburg 50 421 Forest Park Reading 50 50 23 19 Philippi Hillsboro Greendale Weston 119 50 Scioto R. Jackson Pomeroy CINCINNATI Ravenswood Rising Sun Florence OHIO 35 33 33 19 OHIO RIVER 27 Kanawha R. Spencer Licking River New Boston Madison 71 Portsmouth Ripley West Virginia OHIO RIVER Falmouth 52 OHIO RIVER 119 77 CarrolltonKentucky R. Maysville Williamstown 79 25 Ironton Pocatalico 127 62 19 42 421 68 Flemingsburg Ashland Eminence Cynthiana 60 Huntington CHARLESTON 219 75 Kentucky 64 Olive Hill Shelbyville Georgetown 460 Richwood 64 Licking River Morehead 23 119 27 Montgomery 60 FRANKFORT Lexington 52 Fayetteville INVESTMENT SUMMARY 3301 SECOR RD, TOLEDO, OH 43606 PRICE: $2,988,505 CAP: 4.35% RENT: $130,000 OVERVIEW ANNUALIZED OPERATING DATA Price $2,988,505 Lease Term Annual Rent 3,028 SF Gross Leasable Area (GLA) 3/2020 - 3/2025 $130,000 0.629 Acres Lot Size (approx.) 4/2025 - 3/2030 $143,000 $130,000 Net Operating Income 4/2030 - 3/2035 $157,300 4.35% CAP Rate 4/2035 - 3/2040 $173,030 2020 Year Built 4/2040 - 3/2045 (Option 1) $190,333 4/2045 - 3/2050 (Option 2) $209,366 $230,302 LEASE ABSTRACT 4/2050 - 3/2055 (Option 3) 4/2055 - 3/2060 (Option 4) $253,333 Lease Type NNN Lease Term 20 Years Lease Start 10/13/2019 Lease Expiration 3/31/2040 Renewal Options 4x5 Increases 10% Rent Bumps Every 5 Yrs Inc’d Option Periods Landlord responsibilities Gen Liab Insurance 5 6 INVESTMENT HIGHLIGHTS NNN New 20 Year Ground Lease Features excellent visibility: This newly 2020 constructed Chase Daily traffic counts exceed Bank Ground Lease offers a passive investor the opportunity to acquire a 22,031 vehicles per day 20-year NNN Ground Lease with four passing directly in 5-year options. The site has a drive thru, front of the site and offers 10% rent escalations every 5-years including option periods which surely hedges against inflation. The rent commenced March 10, 2020 and the last day of the base term is 3/31/2040. The Lease is a NNN ground lease with minimal landlord responsibility of only having to maintain general liability insurance, all other maintenance, insurance, and tax related expenses are tenant’s responsibility Strong population density High quality of life This is the only Chase Bank with over 250,537 residents with skilled & in an 11-mile radius from within a 5-mile radius trained workforce this new site, cornering the from the site regional market 7 8 INVESTMENT HIGHLIGHTS t New 2020 ground lease construction, offering new 20-year NNN lease t Densely populated growing region t Site has a drive thru, and is the only Chase Bank in the immediate region t Chase Bank carries an S&P A+ rating, and is traded on the NYSE:JPM PLANNED 245,901 $60,544 DEVELOPMENT TOTAL AVERAGE POPULATION HOUSEHOLD WITHIN 5-MILE INCOME WITHIN RADIUS 5-MILE RADIUS 22,031 VPD - SECOR RD PLANNED DEVELOPMENT 21,555 VPD - CENTRAL AVE W 9 10 Mercy Health - St. Anne Hospital CENTRAL AVE W – 21,555 VPD Westgate Storage University Of Toledo Medical Neurology SECOR RD – 22,031 VPD Toledo Hospital Ottawa Park Golf Course Old Orchard McDonald’s Elementary School tm 11 SECOR RD – 22,031 VPD McDonald’s CENTRAL AVE 12 13 CHASE BANK TENANT SUMMARY CHASE BANK JPMorgan Chase Bank N.A. bears a Standard & Poor’s A+ rating NEW YORK CITY, NY JPMorgan Chase Bank doing business as Chase Bank is a national HEADQUARTERS Association that provides various banking and other financial services to corporate, institutional, and governmental clients in the United States and internationally. It offers noninterest-bearing deposits and interest- JPMORGAN bearing deposits. The company also provides consumer loans, such 256,981 as residential mortgages, home equity loans and lines of credit, auto CHASE & CO. PARENT COMPANY 2019 EMPLOYEES loans, business banking loans, and student and other loans, including home equity loans secured by junior liens, prime mortgage loans, and payment option loans. In addition, it offers credit card loans and wholesale loans to various customers, such as corporate and institutional S&P: A+ $2.74 T clients, and high-net-worth individuals,