Investment Investment Surrounding Rent Tenant Area NET LEASEAerial PROPERTY GROUP | OFFERINGSite Plan MEMORANDUM Overview Highlights Uses Roll Overview Overview
WALGREENS | QDOBA | BRUNCH CAFE 17001 NEWBURGH ROAD THREE–TENANT NET LEASE OPPORTUNITY LIVONIA, MICHIGAN (DETROIT MSA)i Investment Aerial Overview
CONTACTS Chris Bosworth Will Pike Vice Chairman Vice Chairman T +1 404 923 1486 T +1 404 923 1381 [email protected] [email protected]
Brian Pfohl Matt Mountjoy Senior Vice President Capital Markets Manager T +1 404 504 7893 T +1 404 504 5939 [email protected] [email protected]
Cyrus Felfeli Thomas Carr Capital Markets Analyst Capital Markets Analyst T +1 404 812 5065 T +1 404 812 5101 [email protected] [email protected]
Anne Rahm CBRE | MI Licensee [email protected]
www.cbre.com/nlpgatlanta
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Investment Aerials Investment Site Plan, Rent Roll & Lease Tenant Area Overview Highlights Surrounding Uses Notes Overview Overview ii Investment Investment Surrounding Rent Tenant Area Aerial Site Plan Overview Highlights Uses Roll Overview Overview
Investment Overview
iii Investment Investment Surrounding Rent Tenant Area AerialsAerial Site Plan Financials Overview Highlights Uses Roll Overview Overview
Investment Overview
The CBRE Net Lease Property Group is pleased to exclusively offer a 19,390– major thoroughfares connecting the surrounding retail, office and residential square–foot, three–tenant retail building that is 100% leased to Walgreens, corridors. Six Mile Road intersects with Interstate–275 (Traffic Count: 139,200 Qdoba and Brunch Cafe as follows: VPD) just one block west of the site. The property is strategically located within a well–developed corridor which features 4.4 MSF of retail, 6.3 MSF of office • Walgreens | +/- 11.7 years | 14,490 SF | $410,000 and 3,213 multifamily units within a 3–mile radius. Nearby retailers include • Qdoba | +/- 2.6 years | 2,450 SF | $51,205 The Home Depot, Target, Trader Joes, Kroger, Meijer, Costco, REI, Busch’s • Brunch Cafe | +/- 9.8 years | 2,450 SF | $59,290 Fresh Food Market, BJ’s Wholesale Club, Dick’s Sporting Goods, Barnes & Noble, PetSmart, Five Below, Office Depot, Best Buy, Office Max, Bed Bath & The property is ideally situated on a 2.47–acre hard–corner parcel in Livonia, MI, Beyond, Pier 1 Imports, O’Reilly Auto Parts, Sherwin–Williams, AT&T, GNC, which is one of Detroit’s most affluent suburbs (3-mile AHI: $110,007) and is just FedEx Office, Chase, Bank of America, Fleming’s Steakhouse and Wine Bar, 24 miles west of downtown Detroit (MSA Population: 4.3 million). The building J Alexander’s, P.F. Chang’s, BurgerFi, Red Robin, Buffalo Wild Wings, Panera features excellent access and visibility at the signalized intersection of Newburgh Bread, and Chipotle. Road and Six Mile Road (Combined Traffic Count: 71,800 VPD), which are two
4 Investment Investment Surrounding Rent Tenant Area AerialsAerial Site Plan Financials Overview Highlights Uses Roll Overview Overview
Investment Overview (Continued)
The immediate corridor features a diverse mix of retail, office, educational, these retail centers which contribute to the liveliness of the corridor. Additionally, and medical use buildings which keeps the area bustling year–round. The the surrounding area is considered a medical hub as the Michigan Department 506,685–square–foot Laurel Park Mall is located directly across the street of Health & Human Services and Northville Health Center share a campus on from the property which includes over 60 restaurants and stores, a movie the other side of the Interstate–275 interchange, while several other medical theatre, and an attached Marriott hotel. Laurel Park Place will add Dunham facilities such as the St. Mary Mercy Hospital and Providence Medical Center Sports as an additional anchor to Von Maur in Fall 2019. Additional retail Livonia operate in the immediate vicinity as well. Furthermore, the Schoolcraft centers in the surrounding area include High Point Shopping Center, Newburgh College (Enrollment: 13,000 Students) campus, which is home to the newly– Plaza, Northville Village Center, Northville Park Place, and Northridge Grove developed St. Joe’s Sports Dome (the largest sports dome in Michigan), is Shopping Center. Several office parks – featuring tenants such as Comerica located just 2.3 miles from the site providing the property with even stronger Bank, Siemens, Masco Corporation, and Hormel Foods – are dispersed around daytime traffic.
Demographics
POPULATION 1 MILE 3 MILE 5 MILE 10,689 65,552 212,759
AVERAGE HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
$107,998 $110,007 $103,159
TRAFFIC COUNT
Newburgh Road: 33,700 VPD Six Mile Road: 38,100 VPD
5 Investment Investment Surrounding Rent Tenant Area AerialsAerial Site Plan Financials Overview Highlights Uses Roll Overview Overview
17001 NEWBURGH ROAD LIVONIA, MICHIGAN 48154
PRICE CAP RATE NOI $7,700,000 6.75% $520,495
YEAR BUILT CURRENT OCCUPANCY PARCEL SIZE 2007 100% 2.47 ACRES
BUILDING SIZE RENT INCREASES WALT 19,390 SF VARIOUS ±10.3 YEARS
Term Lease Tenants GLA Remaining Expiration Rent Rent/SF
75% | 14,490 SF ±11.7 05/31/2032 $410,000 $28.30
12.5% | 2,450 SF ±2.6 4/30/2023 $51,205 $20.90
12.5% | 2,450 SF ±9.8 6/30/2030 $59,290 $24.20 6 Investment Investment Surrounding Rent Tenant Area Aerial Site Plan Overview Highlights Uses Roll Overview Overview
AERIALS
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INVESTMENT HIGHLIGHTS
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Investment Highlights
Attractive Tenant Mix Excellent Access/Visibility
Walgreen Co. (S&P: BBB), a subsidiary of Walgreens Boots Alliance Inc. The property is ideally situated on a 2.47–acre hard–corner parcel in Livonia, (NASDAQ: WBA), operates 9,277 drug stores in 50 states, the District MI, which is one of Detroit’s most affluent suburbs (3-mile AHI: $110,007) and of Columbia and Puerto Rico. Domestically, the company also operates is just 24 miles west of downtown Detroit (MSA Population: 4.3 million). The approximately 500 worksite health and wellness centers and in-store building features excellent access and visibility at the signalized intersection of convenient care clinics. Walgreens Boots Alliance Inc. reported FY 2019 Newburgh Road and Six Mile Road (Combined Traffic Count: 71,800 VPD), revenues of $136.9 billion, EBITDA of $6.58 billion, and net income of which is are major thoroughfares in the surrounding retail and office corridors. $3.98 billion as of August 31, 2019. Walgreens provides consumer goods Six Mile Road intersects with Interstate–275 (Traffic Count: 139,200 VPD) just and services in addition to pharmacy and health and wellness services one block west of the site. through drugstores, by mail, by telephone and online. Dominant Retail and Commercial Corridor Qdoba Mexican Eats is a chain of fast casual restaurants that has served Mexican–style cuisine since 1995. Qdoba was founded in Denver, Located across from the 506,685–square–foot Laurel Park Place Mall (Anchors: CO and has grown to become one of the most sought–after Mexican Von Maur and Dunham’s Sports), the property is strategically situated within restaurants in the country with more than 700 locations in 48 states. The a well–developed corridor featuring 4.4 MSF of retail, 6.3 MSF of office Qdoba chain is owned by Apollo Global Management – a global private and 3,213 multifamily units within a 3–mile radius. Nearby retailers include equity firm with over $303B in AUM. The tenant under the lease is ZRC The Home Depot, Target, Trader Joes, Kroger, Meijer, Costco, REI, Busch’s Operations Company. Fresh Food Market, BJ’s Wholesale Club, Dick’s Sporting Goods, Barnes & Noble, PetSmart, Five Below, Office Depot, Best Buy, Office Max, Bed Bath & Brunch Cafe is a local sit–down restaurant serving traditional breakfast Beyond, Pier 1 Imports, O’Reilly Auto Parts, Sherwin–Williams, AT&T, GNC, and lunch meals with a contemporary twist. Brunch Cafe has operated at FedEx Office, Chase, Bank of America, Fleming’s Steakhouse and Wine Bar, this site for more than 2.5 years. J Alexander’s, P.F. Chang’s, BurgerFi, Red Robin, Buffalo Wild Wings, Panera Bread, and Chipotle. Proven Performance / Long Term Tenancy
Walgreens: 2018 Store Sales = $2.74m Upscale Demographics Qdoba: Tenant since center opened in 2007 and executed an early 10– year extension in 2012. Walgreens, Qdoba and Brunch Cafe all benefit from dynamic demographics Brunch Cafe: In operation for 2.5+ years and just extended their lease with a population of 65,552 and an average household income of $110,007 for 10 years. within a 3–mile radius.
Entrance to Livonia ±10.3 Years of WALT The property borders a parcel owned by the City of Livonia that serves as a The property has ±10.3 years of WALT remaining which provides long– welcoming centerpiece to the heart of the surrounding corridor. The parcel term cash flow from an investment–grade anchor tenant. Walgreens features a fountain, brick signage, and seasonal flowers which enhances the occupies 75% of the building area and is responsible for 79% of the aesthetic charm of the Newburgh–Six Mile Road intersection and the Property. property’s NOI. The Walgreen’s lease has ±11.7 years remaining with fifty 1–year renewal options. 11 Investment Investment Surrounding Rent Tenant Area Aerials Site Plan Overview Highlights Uses Roll Overview Overview
Investment Highlights
Dynamic Corridor
The immediate corridor features a diverse mix of retail, office, educational, and medical use buildings which keeps the area bustling year–round. The Laurel Park Mall is located directly across the street from the property which includes over 60 restaurants and stores, a movie theatre, and the attached Marriott hotel. Laurel Park Place will add Dunham Sports as an additional anchor to Von Maur in Fall 2019. Additional retail centers in the surrounding area include High Point Shopping Center, Newburgh Plaza, Northville Village Center, Northville Park Place, and Northridge Grove Shopping Center. Several office parks – featuring tenants such as Comerica Bank, Siemens, Masco Corporation, and Hormel Foods – are dispersed around these retail centers which contribute to the liveliness of the corridor. Additionally, the surrounding area is considered a medical hub as the Michigan Department of Health & Human Services and Northville Health Center share a campus on the other side of the Interstate–275 interchange, while several other medical facilities such as the St. Mary Mercy Hospital and Providence Medical Center Livonia operate in the immediate vicinity of the property. Furthermore the property benefits from its proximity to a built–in customer base at Schoolcraft University (Enrollment: 13,000) – a Livonia community college with a full campus just 2.3 miles away.
Detroit MSA Advantage
The Detroit MSA is home to a population of 4.3 million residents across six counties, making it the 2nd largest MSA in the Midwest and 14th largest overall. Best–known as a hub for the nation’s automobile industry, the Detroit area is now home to 17 Fortune 500 companies and a steadily increasing number of manufacturing jobs. It is also home to a number of firms pursuing emerging technology including biotechnology, nanotechnology, information technology and hydrogen fuel cell development.
12 Investment Investment Surrounding Rent Tenant Area Aerial Site Plan Overview Highlights Uses Roll Overview Overview SITE PLAN & SURROUNDING USES
13 Investment Investment Surrounding Rent Tenant Area Aerials Site Plan Overview Highlights Uses Roll Overview Overview
S ECT PARCEL
* CIT PARCEL