Offered By: 4061 S. 28TH STREET David Hesano of CBRE, Inc. GRAND RAPIDS, MICHIGAN 49512 +1 248 351 2014 [email protected] AFFILIATED BUSINESS DISCLOSURE or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your CBRE, Inc. operates within a global family of companies with many subsidiaries and/ receipt of this Memorandum or use of its contents; and you are to rely solely on or related entities (each an “Affiliate”) engaging in a broad range of commercial your investigations and inspections of the Property in evaluating a possible purchase real estate businesses including, but not limited to, brokerage services, property and of the real property. The Owner expressly reserved the right, at its sole discretion, facilities management, valuation, investment fund management and development. At to reject any or all expressions of interest or offers to purchase the Property, and/ times different Affiliates may represent various clients with competing interests in the or to terminate discussions with any entity at any time with or without notice which same transaction. For example, this Memorandum may be received by our Affiliates, may arise as a result of review of this Memorandum. The Owner shall have no legal including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates commitment or obligation to any entity reviewing this Memorandum or making an may express an interest in the property described in this Memorandum (the “Property”) offer to purchase the Property unless and until written agreement(s) for the purchase may submit an offer to purchase the Property and may be the successful bidder for the of the Property have been fully executed, delivered and approved by the Owner and Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. any conditions to the Owner’s obligations therein have been satisfied or waived. By nor any involved Affiliate will have any obligation to disclose to you the involvement receipt of this Memorandum, you agree that this Memorandum and its contents are of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, of a confidential nature, that you will hold and treat it in the strictest confidence and Inc. will act in the best interest of the client(s) it represents in the transaction described that you will not disclose this Memorandum or any of its contents to any other entity in this Memorandum and will not act in concert with or otherwise conduct its business without the prior written authorization of the Owner or CBRE, Inc. You also agree that in a way that benefits any Affiliate to the detriment of any other offeror or prospective you will not use this Memorandum or any of its contents in any manner detrimental offeror, but rather will conduct its business in a manner consistent with the law and any to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you fiduciary duties owed to the client(s) it represents in the transaction described in this have no further interest in purchasing the Property, kindly return this Memorandum Memorandum. to CBRE, Inc. CONFIDENTIALITY AGREEMENT DISCLAIMER This is a confidential Memorandum intended solely for your limited use and benefit This Memorandum contains select information pertaining to the Property and the in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property Owner, and does not purport to be all-inclusive or contain all or part of the information and does not purport to be a representation of the state of affairs of the Property or which prospective investors may require to evaluate a purchase of the Property. The the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of information contained in this Memorandum has been obtained from sources believed the information which prospective investors may require to evaluate a purchase of real to be reliable, but has not been verified for accuracy, completeness, or fitness for property. All financial projections and information are provided for general reference any particular purpose. All information is presented “as is” without representation or purposes only and are based on assumptions relating to the general economy, warranty of any kind. Such information includes estimates based on forward-looking market conditions, competition and other factors beyond the control of the Owner assumptions relating to the general economy, market conditions, competition and and CBRE, Inc. Therefore, all projections, assumptions and other information provided other factors which are subject to uncertainty and may not represent the current or and made herein are subject to material variation. All references to acreages, square future performance of the Property. All references to acreages, square footages, footages, and other measurements are approximations. Additional information and an and other measurements are approximations. This Memorandum describes certain opportunity to inspect the Property will be made available to interested and qualified documents, including leases and other materials, in summary form. These summaries prospective purchasers. In this Memorandum, certain documents, including leases and may not be complete nor accurate descriptions of the full agreements referenced. other materials, are described in summary form. These summaries do not purport to Additional information and an opportunity to inspect the Property may be made be complete nor necessarily accurate descriptions of the full agreements referenced. available to qualified prospective purchasers. You are advised to independently verify Interested parties are expected to review all such summaries and other documents of the accuracy and completeness of all summaries and information contained herein, whatever nature independently and not rely on the contents of this Memorandum in to consult with independent legal and financial advisors, and carefully investigate the any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, economics of this transaction and Property’s suitability for your needs. ANY RELIANCE officers, Affiliates or representatives make any representation or warranty, expressed ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK. 2 Table of Contents 04 06 14 19 EXECUTIVE SUMMARY LOCATION & PROPERTY TENANT OVERVIEW FINANCIAL ANALYSIS OVERVIEW 21 26 COMPARABLES MARKET & AREA OVERVIEW 3 I. Executive Summary 4 The Offering: David Hesano of the CBRE Net Lease Properties Group is pleased to offer for sale the fee simple interest in a new 6,408 square foot (SF) Buddy’s Pizza on 1.74 Acres in Grand Rapids, MI. Upon closing, Buddy’s Pizza will be signing a new twenty (20)-year Absolute Net lease starting at $192,240 in annual rent with four (4), five (5)-year renewal options and ten percent (10%) rental escalations every five (5) years through the initial term and renewal options. The building was built in 2003, was formerly occupied by Carrabba’s Italian Grill and underwent extensive interior and exterior renovations in 2018 and early 2019. The restaurant opened in the Spring of this year and this unit is outperforming sales projections. Additionally, online consumer reviews have been excellent. Founded over 72 years ago and creating the original “Detroit-Style” pizza, Buddy’s Pizza is one of the premier, nationally recognized, full-service pizzerias and has over thirteen (13) locations in Southeast Michigan and Grand Rapids. The chain was recently acquired by the restaurant investment firm CapitalSpring, which has invested over $1.3 Billion in over fifty (50) restaurant brands. Buddy’s Pizza has won many national awards and is considered one of the top pizzerias in the nation. Buddy’s is currently in expansion mode with six new units projected to open in the next year. Property Facts: The asset is being offered free and clear of existing financing. 4061 28th Street SE PROPERTY ADDRESS Investment Highlights: Grand Rapids, MI 49512 1) 20-Year Absolute Net Sale-Leaseback. YEAR BUILT 2003 (Renovated in 2018-2019) 2) Significant Rent Bumps (10% every 5 years). TOTAL BUILDING AREA 6,408 SF 3) Nationally Acclaimed Regional Pizzeria Chain. Ingress/Egress on 28th Street and a Dedicated ACCESS 4) Strong and Experienced Operator (CapitalSpring, $1.3B+ Invested in Turn Lane 50+ Brands). LAND AREA 1.74 Acres 5) Offered Free and Clear of Debt. EXECUTIVE SUMMARY 5 II. Location & Property Overview 6 Location Overview The subject property is located on 28th St. approximately nine miles southeast of Downtown Grand Rapids, MI. This located is within a very dense retail corridor that runs through the southeast side of Grand Rapids, between Kalamazoo Ave. to the west and Cascade Rd. to the east, and is home to a substantial number of national retail tenants including: - Walgreens - Arby’s - Panera Bread - Advance Auto Parts - Meijer - Qdoba Mexican Eats - Aspen Dental - Noodles & Company - ALDI - Sprint - Belle Tire - IHOP - Target - Jimmy John’s - Texas Roadhouse - LongHorn Steakhouse - Home Depot - Starbucks - Olive Garden - Tropical Smoothie Café - Lowe’s - Chick-fil-A - Denny’s - Red Roof Inn - Costco - Jared - Red Lobster - Staples - DICK’s Sporting Goods - Fidelity Investments - Michael’s - Bob Evans - Buffalo Wild Wings - Art Van PureSleep - PetSmart - PNC Bank - Wendy’s