Dan Cooper Bob Havasi
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Dan Cooper [email protected] (888) 525-5695 x12 Cooper Commercial Investment Group Bob Havasi 6120 Parkland Blvd., Suite 206 [email protected] Cleveland, OH 44124 (888) 525-5695 x10 www.coopergrp.com In Cooperation with Licenses MI Broker Table of Contents INVESTMENT SUMMARY Investment Highlights ……………..… 4 Investment Overview ………………… 5 Location Overview …………………… 6 Location—Article …………………….. 7 Offering Summary …………………… 8 FINANCIAL ANALYSIS Rent Roll …………...…………………. 10-11 Financial Analysis ..……...…………… 12 PROPERTY ANALYSIS Site Plan ..…..…………………………. 14 Aerial Maps .………………………….. 15-16 Surrounding Retail Photos ………….. 17-18 Location Maps .…………………........ 19 Demographics ..…………………........ 20 TENANT ANALYSIS Tenant Profiles ……….………………. 22-41 Disclosure & Confidentiality ……….... 42 2 3 Chesterfield Village Square INVESTMENT HIGHLIGHTS • Dominant, Regional, Power Center: High-Trafficked Corner Location Shadow Anchored by Target & Directly Across From Meijer, Home Depot and Lowe’s • Desirable Tenant Presence with Over 95% of Spaces Filled with Nationally Named Tenants & High-Performing Locations: Sales Well Above Chain Averages • Leading Corporately Owned Target Location: One of the Top Five Stores in the Region and Top Performing Store Sales on a Per Square Foot Basis • Irreplaceable Location at “Main and Main”: Highly Visible and Centrally Located on Main Retail Corridor, Adjacent to Numerous Other Complimentary Retailers: 2.2 Million S.F. of Retail with 97% Occupancy ADDITIONAL INVESTMENT HIGHLIGHTS • Most Tenants with NNN Lease Structures, Rental Increases, Recent Lease Extensions and/or New Lease Executions Plus • County Seat Market with Major Area Employers: Midst of Upside Through Lease-Up of Remaining Vacancy (8%) Substantial Residential Boom (8% Growth Since 2010, 27% Since 2000 and 3.2% Expected Over the Next Five Years) • Dominant I-94 Retail Corridor: 54k VPD Surrounding the Center and 79k VPD Along I-94 (Direct Highway Access, • Center Draws from a 15-20 Mile Radius to the North (Next Visibility & Signage) in Strong Residential Community with Closest Target is Over 34 Miles) and Macomb County is Home Average Household Incomes Over $91,000 Within 5-Miles to 3 of the Top 10 Most Populated Communities in all of MI • Upscale Suburban Location with Direct Route to Downtown Detroit (Approx. 30 Miles) Along I-94 • Adjacent to StoryPoint Senior Living Community, a New Project Set to Open in the Spring of 2019: 204 Apartment Homes • Heavy Tourism: Summer Months Attraction, Anchor Bay (2 Miles) Creates Significant Increase in Seasonal Population • 5 Miles to Selfridge Air National Guard Base, Which Hosts Over 6,000 Servicemen, 1,000 Daily Employees and Has Recently Invested $32.6 Million Into the Base to Further Enhance Operations • Detroit– Home to 12 Fortune 500 Companies, 13th Largest MSA and Ranked 6th for Total Exports in the United StatesWith About 80,500 People Working in Downtown 4 Detroit, Comprising 1/5 of the City's Employment Base INVESTMENT OVERVIEW The Cooper Commercial Investment Group has been exclusively retained by ownership to sell Chesterfield Village, a regional power center shadow anchored by Target. The corporate owned Target location is known as one of the top five stores in the region and top performer in sales on a per square foot basis. The featured center is located in up and coming, Chesterfield Township, a suburb just north of Detroit, Michigan, which has been in the midst of a substantial residential boom over the last several years. The asset is being offered for $15,840,000, representing an 8.15% CAP and expected year-1 cash-on-cash return of 11.64%, yet still offers upside through lease-up of the remaining vacancy (8%), which is below current market occupancy rates of 97%. Additionally, ownership has executed a new lease with nationally tenant Label Shopper. The lease is far below market rental rates but gives a Buyer the unique ability to increase rents for the space by $40,000/year, which is potentially huge upside. If a replacement tenant LOI is presented to the tenant within two years of their lease date, the tenant has the option to either increase their rent from $60k per year to $100k per year or will need to vacate the space for the replacement tenant. The entire development was built in phases between 1995-2003 and renovated 2007-2009. The 155,958 S.F. center has a fantastic corner location with high visibility and prominent signage. The asset is occupied with strong, highly recognizable, national tenants, including: Applebee’s (Ground Lease), Panera Bread (NASDAQ: PNRA), Buffalo Wild Wings, Harbor Freight Tools, Famous Footwear (NYSE: BWS), Dunham’s, Sally Beauty Supply (NYSE: SBH), GNC (NYSE: GNC), CATO (NYSE: CATO), Advance America, Payless Shoesource Superstore, Little Caesar’s, Staples (NASDAQ: SPLS), Anytime Fitness and several other well-known users. The tenants that report sales have demonstrated continued success and high performance with reports well above the chain averages. A number of the tenants have been at the center since it was built and have consistently exercised renewals. In fact, many just recently executed lease extensions demonstrating their success at the center and in the Chesterfield market. Most of the tenants at Chesterfield Village are on NNN lease structures, reimburse for administrative/management fees and have rental increases during their current lease term, providing future income growth. The development, coupled with its strong shadow anchor Target, has created a very stable asset. Located at the hard corner of Gratiot Avenue and 23 Mile Road, Chesterfield Village is strategically positioned along I-94, the direct route to Downtown Detroit. The center is situated in the heart of the retail corridor, which boasts 2.2 million square feet of retail with 97% occupancy and is directly across from or surrounded by numerous complimentary retailers including: Meijer, Home Depot, Lowe’s, Michael’s, Dollar Tree, PetSmart, Chipotle, Kohl’s, Best Buy, Five Below, Old Navy, T.J. Maxx, AutoZone, Qdoba, Starbucks, Hobby Lobby, Kohl’s and many more. Due to the tremendous amount of retail, the area draws from a minimum of 15-20 miles to the north as the next closest Target is over 34 miles away. Chesterfield has become a main shopping destination for most of the northern suburbs, and Macomb County boasts 3 of the top 10 most populated communities in all of Michigan. Positioned along the I-94 corridor, the retail destination is located in a strong residential community with average household incomes over $91,000 within 5-miles. Directly adjacent to the property a brand-new senior living community, StoryPoint, which is currently under development is set to open in the spring of 2019, offering an additional 204 apartments. Traffic counts surrounding the center are over 54,000 vehicles per day, while traffic counts along I-94 are 57,000 VPD. Additionally, the property sits just 5 miles north of the Selfridge Air National Guard Base, which hosts over 6,000 personnel, 1,000 daily employees and has recently invested $32.6 million into the base to further enhance operations. Furthermore, Chesterfield is part of Metro Detroit approximately 31 miles north of the city and many people from the suburb commute to Detroit, along I-94 for work and recreational activities. About 80,500 people work in Downtown Detroit, comprising one-fifth of the city's employment base. With this property’s strategic placement, along with its proximity to employees and residents; this asset is positioned as a high-quality investment that is poised to generate substantial returns for years to come. 5 LOCATION OVERVIEW Chesterfield Charter Township is located in Macomb County, Michigan. mb County is the ninth smallest of Michigan’s 83 counties (with 482 square miles), yet it ranks third in total population. Macomb County boasts three of the 10 most populated communities in Michigan: Warren (#3), Sterling Heights (#4) and Clinton Township (#7). The Chesterfield Township is part of Metro Detroit approximately 30 miles north of the city, directly off I-94. The township is often referred to as New Baltimore, a historic, coastal resort community located directly off Anchor Bay. I-94 runs from Billings, Montana, to the Lower Peninsula of Michigan. I-94 enters the state south of New Buffalo and runs eastward through several metropolitan areas in the southern section of the state. The highway serves Benton Harbor – St. Joseph near Lake Michigan before turning inland toward Kalamazoo and Battle Creek on the west side of the peninsula. Heading farther east, I-94 crosses I-69 and then runs through Jackson, Ann Arbor, and portions of Metro Detroit, connecting Michigan's largest city to its main airport (DTW, 45 miles). Past the east side of Detroit, the Interstate angles northeasterly where the designation terminates on the Blue Water Bridge at the Canadian border. Chesterfield is a growing community with new luxury home neighborhoods developed over the past several years and future plans in process. New churches, schools, shopping centers, and factories for light industry have located in the township. Chesterfield is one of the fastest growing areas in Michigan, partly due to its strategic location with direct access to I-94. In fact, population has grown 85 since 2010, 27% since 2000 and is expected to have 3.2% growth in the next 5-years. Chesterfield Township and Macomb County has several major employers and is home to Lionel, LLC (make of Lionel Trains). The company operates their corporate offices, and non-manufacturing support functions from the facility. Additionally, General Motors (19,777 employees), FCA US LLC (11,314 employees), Ford Motor (4,560 employees), McLaren Health (2,776 employees), Ascension Michigan (2,650 employees), Utica Community Schools (2,642 employees), Henry Ford Health System (2,448 employees) and Macomb County (2,318 employees) offer a large presence in the area further drawing people to the area. Another major draw is Macomb Community College, located just east of Lakeside Mall, and is one of the largest educational institutions in the state.