MEMORANDUM 33605 Plymouth Road, Livonia, MI 48150 Confidentiality and Disclaimer
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Representative Photo BUDDY’S PIZZA BRAND NEW 20 - YEAR TRIPLE - NET (NNN) SALE LEASEBACK OFFERING MEMORANDUM 33605 Plymouth Road, Livonia, MI 48150 Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective locations is an important consideration, it is not a thorough due diligence investigation. Marcus & Millichap purchasers of Net Leased property as follows: guarantee of future success. Similarly, the lease rate for has not made any investigation, and makes no warranty or some properties, including newly-constructed facilities or representation, with respect to the income or expenses The information contained in this Marketing Brochure has newly-acquired locations, may be set based on a tenant’s for the subject property, the future projected financial been obtained from sources we believe to be reliable. projected sales with little or no record of actual performance of the property, the size and square footage However, Marcus & Millichap has not and will not verify performance, or comparable rents for the area. Returns of the property and improvements, the presence or any of this information, nor has Marcus & Millichap are not guaranteed; the tenant and any guarantors may absence of contaminating substances, PCB’s or asbestos, conducted any investigation regarding these matters. fail to pay the lease rent or property taxes, or may fail to the compliance with State and Federal regulations, the Marcus & Millichap makes no guarantee, warranty or comply with other material terms of the lease; cash flow physical condition of the improvements thereon, or the representation whatsoever about the accuracy or may be interrupted in part or in whole due to market, financial condition or business prospects of any tenant, or completeness of any information provided. economic, environmental or other conditions. Regardless any tenant’s plans or intentions to continue its occupancy of tenant history and lease guarantees, Buyer is of the subject property. The information contained in this As the Buyer of a net leased property, it is the Buyer’s responsible for conducting his/her own investigation of all Marketing Brochure has been obtained from sources we responsibility to independently confirm the accuracy and matters affecting the intrinsic value of the property and believe to be reliable; however, Marcus & Millichap has completeness of all material information before the value of any long-term lease, including the likelihood not verified, and will not verify, any of the information completing any purchase. This Marketing Brochure is not a of locating a replacement tenant if the current tenant contained herein, nor has Marcus & Millichap conducted substitute for your thorough due diligence investigation of should default or abandon the property, and the lease any investigation regarding these matters and makes no this investment opportunity. Marcus & Millichap expressly terms that Buyer may be able to negotiate with a warranty or representation whatsoever regarding the denies any obligation to conduct a due diligence potential replacement tenant considering the location of accuracy or completeness of the information provided. All examination of this Property for Buyer. the property, and Buyer’s legal ability to make alternate potential buyers must take appropriate measures to verify use of the property. all of the information set forth herein. Any projections, opinions, assumptions or estimates used By accepting this Marketing Brochure you agree to release in this Marketing Brochure are for example only and do Marcus & Millichap Real Estate Investment Services and NON-ENDORSEMENT NOTICE not represent the current or future performance of this hold it harmless from any kind of claim, cost, expense, or property. The value of a net leased property to you liability arising out of your investigation and/or purchase Marcus & Millichap Real Estate Investment Services, Inc. depends on factors that should be evaluated by you and of this net leased property. (“M&M”) is not affiliated with, sponsored by, or endorsed your tax, financial and legal advisors. by any commercial tenant or lessee identified in this CONFIDENTIALITY AND DISCLAIMER marketing package. The presence of any corporation’s Buyer and Buyer’s tax, financial, legal, and construction logo or name is not intended to indicate or imply advisors should conduct a careful, independent The information contained in the following Marketing affiliation with, or sponsorship or endorsement by, said investigation of any net leased property to determine to Brochure is proprietary and strictly confidential. It is corporation of M&M, its affiliates or subsidiaries, or any your satisfaction with the suitability of the property for intended to be reviewed only by the party receiving it agent, product, service, or commercial listing of M&M, your needs. from Marcus & Millichap and should not be made and is solely included for the purpose of providing tenant available to any other person or entity without the written lessee information about this listing to prospective Like all real estate investments, this investment carries consent of Marcus & Millichap. This Marketing Brochure customers. significant risks. Buyer and Buyer’s legal and financial has been prepared to provide summary, unverified advisors must request and carefully review all legal and information to prospective purchasers, and to establish ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. financial documents related to the property and tenant. only a preliminary level of interest in the subject property. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT While the tenant’s past performance at this or other The information contained herein is not a substitute for a FOR MORE DETAILS. Table of Contents Investment Highlights 4 Financial Analysis & Investment Summary 5 Concept Overview 6-7 Surrounding Area 8 Location Overview 9 Property Photos 10 Surrounding Area Photos 11 Regional Map 12 Demographics 13 Investment Highlights LOCATION LEASE TENANT REAL ESTATE L E A S E T E N A N T / FUNDAMENTALS STRUCTURE GUARANTOR ✓ Major Retailers in Surrounding Area ✓ Brand New 20-Year Sale Leaseback ✓ Premier, Market-Leading Specialty Include: Walmart, Rite Aid, Pizza Brand Based in Detroit McDonald’s, Home Depot, Red ✓ Triple Net (NNN) Lease with Zero Landlord Responsibilities ✓ This Location Has Been in Operation Lobster, Taco Bell, and Target For the Past 35 Years ✓ Attractive Rental Increases | Strong ✓ Outstanding Traffic Counts | ✓ Hedge Against Inflation | Ten Percent Commitment to Remodel in the Next Interstate-96 and Plymouth Road | Three Years Combined 226,200 Vehicles a Day (10.00%) Every 5 Years ✓ Strong Corporate Guarantee and ✓ Laurel Park Place | 70+ Stores | ✓ Four (4) Tenant Renewal Periods of Excellent Unit-Level Economics Five (5) Years Each 500,000+ SF of Retail Space | History ✓ Buddy’s Boasts 14 Locations of Exceeding Class A Mall Sales Per Throughout the Detroit MSA and Is SF Numbers Rapidly Expanding Throughout ✓ Premier Location | Benefits from Michigan Excellent Positioning Less Than Four ✓ Serving The Original Detroit-Style Miles From Major Motorways I-96, I- Square Pizza, Made-From-Scratch 275, and MI-14 Soups, and Celebrated Antipasto Salads Since 1946 4 Financial Analysis & Investment Summary PURCHASE PRICE: $2,714,000 | CAP RATE: 6.25% | RENT: $169,625 THE OFFERING RENT SCHEDULE Purchase Price $2,714,000 Rent Escalation Lease Year(s) Annual Rent Monthly Rent CAP Rate 6.25% (%) Year 1 $169,625 $14,135 - Annual Rent $169,625 Year 2 $169,625 $14,135 - Price / SF $430 Year 3 $169,625 $14,135 - Rent / SF $26.89 Year 4 $169,625 $14,135 - Year 5 $169,625 $14,135 - Year 6 $186,588 $15,549 10.00% PROPERTY DESCRIPTION Year 7 $186,588 $15,549 - Property Buddy’s Pizza Year 8 $186,588 $15,549 - Property Address 33605 Plymouth Road Year 9 $186,588 $15,549 - City, State ZIP Livonia, MI 48150 Year 10 $186,588 $15,549 - Building Size (SF) 6,309 Year 11 $205,246 $17,104 10.00% Lot Size (Acres) 1.87 Year 12 $205,246 $17,104 - Year 13 $205,246 $17,104 - Type of Ownership Fee Simple Year 14 $205,246 $17,104 - Year 15 $205,246 $17,104 - Year 16 $225,771 $18,814 10.00% LEASE SUMMARY Year 17 $225,771 $18,814 - Property Type Net-Leased Restaurant Year 18 $225,771 $18,814 - Tenant / Guarantor Buddy’s Livonia / Buddy’s Holding LLC Year 19 $225,771 $18,814 - Lease Term 20 Years Year 20 $225,771 $18,814 - Lease Commencement Upon Close of Escrow Lease Expiration 20 Years from Close of Escrow Investment Summary Marcus & Millichap is pleased to present the exclusive listing for a Buddy’s Pizza Lease Term Remaining 20 Years located at 3305 Plymouth Road, Livonia, MI. The property consists of 6,309 Lease Type Triple Net (NNN) square feet of building space and is situated on roughly 1.87 acres of land. This Roof & Structure Tenant Responsible Buddy’s Pizza is subject to a 20-year absolute triple net (NNN) lease, which will Options to Renew Four (4), Five (5) Year Option Periods commence on the close of escrow. The base rent is $169,625 and will increase by ten percent every five years throughout the base term and in each of the Rental Increases 10.00% Every 5 Years four, five-year renewal options. 5 Concept Overview About Buddy’s Pizza More than 72 years since the introduction of “The Original Detroit- Style Square Pizza”, and with 14 locations throughout metro Detroit, Buddy’s continues to serve Detroit’s original square pizza, made-from-scratch soups, and their celebrated antipasto salads. Over time, Buddy’s has added a variety of items to the menu that have kept up to date with on trend menu offerings such as multi grain crust, vegan options, and gluten-free pizzas. To continue pleasing the broad spectrum of clientele that visits the restaurant, Buddy’s has partnered with a local brewery to offer “Buddy Brew” and “Bocce IPA”, ale’s that satisfy the increasing demand for craft beer.