1 OFFERING MEMORANDUM Multi-Tenant Lease Investment Opportunity 24461-24491 W 10 Mile Rd | SoutHfield, MI 48033 EXCLUSIVELY MARKETED BY: 2 NICK STOCKTON Lic. # 359714 In Cooperation With: 770.863.8392 | DIRECT Sands Investment Group MicHigan, LLC Lic. # 6505424119 [email protected] Broker of Record: Max Freedman MI Lic. # 6502424113 © 2020 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of eacH individual to conduct thorougH due diligence on any and all information that is passed on about the property to determine it’s accuracy and completeness. Any and all projections, market assumptions and casH flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these projections, market assumptions and casH flow analysis are subject to change witH property and market conditions. Sands Investment Group encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purcHase and transaction. TABLE OF CONTENTS 3 Riverwood ResearcH Center | 24461-24491 W 10 Mile Rd | SoutHfield, MI 48033 Investment Overview Investment Summary Investment Highlights Loan Assumption Property Overview Location Map Aerial Map Retail Map Area Overview City Overview Demographics Rent Roll Actual Property Image INVESTMENT SUMMARY 4 Sands Investment Group is Pleased to Exclusively Offer For Sale the 68,142 SF Riverwood ResearcH Center Located at 24461-24491 W 10 Mile Road in SoutHfield, MicHigan. This Opportunity Includes 5 Tenants in One Building Situated in a HigHly Populated Location, Providing For a Secure Investment. OFFERING SUMMARY PRICE $11,000,000 CAP 7.59% NOI $834,918 PRICE PER SF $161.43 PROPERTY SUMMARY ADDRESS 24461-24491 W 10 Mile Rd SoutHfield, MI 48033 COUNTY Oakland BUILDING AREA 68,142 SF LAND AREA 5.97 AC BUILT 1987 Actual Property Image LOAN ASSUMPTION5 FINANCING ASKING PRICE $11,000,000 ASKING CAP RATE 7.59% NOI $834,918 SQFT 68,142 PP/SQFT $161.43 RP/SQFT $12.25 LEASE TERM 5.6 LOAN INFO LTV 53.27% EQUITY REQUIRED $5,140,412 AMORTIZATION 30 INTEREST RATE 5.06% CALL 7 Years Remain ANNUAL DEBT SERVICE $379,849 CASH FLOW AFTER DEBT SERVICE $455,069 CASH ON CASH RETURN 8.85% DEBT COVERAGE RATIO 2.2 Actual Property Images HIGHLIGHTS 6 Long Term Absolute Triple Net (NNN) Leases 100% Occupied Mixed-Use Medical & Automotive 3 Medical Tenants in a Certificate of Need State National Credit Tenants Remodeled in 2017 Assumable CMBS Loan Annual Rent Escalations SoutHfield is an Affluent Detroit Suburb Strong Traffic Counts of Over 19,200 VPD Strategically Located in a Densely Populated NeigHborhood - Over 78,065 Residents WitH an Average Household Income of $67,532 WitHin a 3-Mile Radius Nearby Tenants Include: Midas, Little Caesar's, Dunkin’ Donuts, Pizza Hut, AutoZone, Tim Hortons and Many More Actual Property Images 7 RIVERWOOD RESEARCH CENTER RIVERWOOD RESEARCH CENTER Riverwood ResearcH Center | 24461-24491 W 10 Mile Rd | SoutHfield, MI 48033 8 DST HealtH Hi-Lo Auto Sales W 10 Mile Rd RIVERWOOD RESEARCH CENTER Autumn Ridge Condominiums 9 W 10 Mile Rd RIVERWOOD RESEARCH CENTER CITY OVERVIEW 10 SoutHfield | Oakland County | MicHigan “GOLDEN TRIANGLE” IN SOUTHFIELD SOUTHFIELD, MI ARTIC RING OF LIFE Southfield, MI Economy Contemporary Life Southfield is a city in Oakland County in the state of Southfield is a commercial and business center for the The city is home to the Arctic Ring of Life, whicH is a MicHigan. The city is a northern suburb of Detroit. The metropolitan Detroit area, witH Southfield's polar bear habitat witH a viewing tunnel; one of NortH city’s estimate 2017 population is about 73,208 27,000,000 square feet of office space, whicH is the America's largest polar bear habitats. Southfield is residents. Southfield is a part of Metro Detroit’s second largest office space in the Detroit metro area. located 20 minutes from downtown Detroit, making it upscale office market, the city's marque is a cluster of Several internationally recognized corporations have the perfect city for a day trip. Detroit is home to the five golden skyscrapers – known as the "Golden major offices and headquarters in Southfield, including Detroit Institute of Arts, whicH is a museum featuring Triangle" – that form the contemporary 2,200,000 the NortH American headquarters of Veoneer, Hub 100+ galleries witH American & global art on display, square feet Southfield Town Center office complex Hulsbeck and First, Denso, Peterson Spring, Federal- from ancient to modern eras. The city is home to the witH a Westin Hotel and a conference center. In Mogul, Lear, R.L Polk & Co., International Automotive Henry Ford Museum whicH is dedicated to American addition, a 33-story luxury residential higH-rise is Components, Stefanini, Inc. and Guardian Alarm. life & ideas, included the Rosa Parks bus & JFK's limo. separate from the complex. To the west, near the Today, more than 100 Fortune 500 companies have Detroit includes the Belle Isle Park whicH is an confluence of I-696/Reuther Freeway and M-10/Lodge offices in Southfield. The city is a nationally recognized aquarium, zoo, and island park in the Detroit River Freeway, is the American Center. public scHool district helping its economy. between MicHigan and Ontario. DEMOGRAPHICS 11 Riverwood ResearcH Center | 24461-24491 W 10 Mile Rd | SoutHfield, MI 48033 Tel-Twelve Mall Population (188,064 VPD) 1-MILE 3-MILE 5-MILE 7,253 78,065 248,298 (143,200 VPD) W 10 Mile Rd (19,240 VPD) SoutHland HigH ScHool Average Household Income (103,164 VPD) RIVERWOOD 1-MILE 3-MILE 5-MILE RESEARCH CENTER $64,202 $67,532 $72,121 RENT ROLL 12 Riverwood ResearcH Center | 24461-24491 W 10 Mile Rd | SoutHfield, MI 48033 SQUARE TOTAL YEARLY RENT INCREASE RENTAL LEASE LEASE UNIT TENANT NAME FOOTAGE INCOME PER SF DATES INCREASE BEGIN END 24463 Pace SoutHeast MicHigan 26,147 SF $358,213.92 $13.70 Annually 2.5% 04/01/2017 08/31/2031 24469 Pace SoutHeast MicHigan 6,150 SF $84,255.00 $13.70 Annually 2.5% 04/01/2017 08/31/2031 24467 DaVita - Tree City Dialysis, LLC 6,688 SF $109,087.20 $16.31 Every 2 Years 3% 11/01/2008 03/31/2026 24471 Midway 7,510 SF $105,140.04 $14.00 Every 5 Years CPI 08/01/2019 07/31/2024 24477 F-M Motorsports TSC, Inc. 17,495 SF $131,511.96 $7.52 Annually 4% 01/29/2016 03/31/2021 24481 True Scan, LLC (MRI) 4,152 SF $46,710.00 $11.25 Annually 2% 09/01/2018 08/31/2021 TOTAL 68,142 SF $834,918.12 CONFIDENTIALITY AGREEMENT 13 The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Sands Investment Group and should not be made available to any otHer person or entity witHout the written consent of Sands Investment Group. This Offering Memorandum 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, 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 Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group 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. By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property. Riverwood ResearcH Center | 24461-24491 W 10 Mile Rd | SoutHfield, MI 48033 14 Actual Property Image EXCLUSIVELY MARKETED BY: NICK STOCKTON Lic. # 359714 In Cooperation With: 770.863.8392 | DIRECT Sands Investment Group MicHigan, LLC [email protected] Lic. # 6505424119 Broker of Record: Max Freedman Sands Investment Group | SIGnnn.com MI Lic. # 6502424113.