Dan Cooper - LoopNet · INVESTMENT OVERVIEW . 6 Chesterfield Charter Township is located in Macomb...

Cooper Commercial Investment Group

6120 Parkland Blvd., Suite 206

Cleveland, OH 44124

www.coopergrp.com

Dan Cooper [email protected]

(888) 525-5695 x12

Bob Havasi [email protected]

(888) 525-5695 x10

In Cooperation with Licenses MI Broker

http://www.coopergrp.com

mailto:[email protected]


2

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

INVESTMENT HIGHLIGHTS

4

Chesterfield Village Square

• 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

• Most Tenants with NNN Lease Structures, Rental Increases, Recent Lease Extensions and/or New Lease Executions Plus Upside Through Lease-Up of Remaining Vacancy (8%)

• Dominant I-94 Retail Corridor: 54k VPD Surrounding the Center and 79k VPD Along I-94 (Direct Highway Access, Visibility & Signage) in Strong Residential Community with Average Household Incomes Over $91,000 Within 5-Miles

• County Seat Market with Major Area Employers: Midst of Substantial Residential Boom (8% Growth Since 2010, 27% Since 2000 and 3.2% Expected Over the Next Five Years)

• Center Draws from a 15-20 Mile Radius to the North (Next Closest Target is Over 34 Miles) and Macomb County is Home 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 Detroit, Comprising 1/5 of the City's Employment Base

ADDITIONAL INVESTMENT HIGHLIGHTS

5

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.

INVESTMENT OVERVIEW

6

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. Macomb College currently serves over 48,000 students annually.

Furthermore, the property sits just 5 miles north of the 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.

Many people from the northern suburbs of Detroit commute to the large city for work and recreational

activities. In the past year, J.P. Morgan Chase & Co. announced a $50 million increase in the $100 million

investment the firm committed to economic development and neighborhood stabilization in Detroit by

2019. Detroit is the most populous city in Michigan, the largest city on the U.S.–Canada border,

13th-most populous MSA and 6th largest exporting city in the United States. The Metro Detroit area is

home to 4.3 million people, making it the second-largest in the Midwest after Chicago. Several major

corporations are based in the city, including twelve Fortune 500 companies. The most heavily

represented sectors being manufacturing (particularly automotive), finance, technology, and health care.

The most significant companies based in Detroit include: General Motors, Quicken Loans, Ally Financial,

Compuware, Shinola, American Axle, Little Caesars, DTE Energy, Lowe Campbell Ewald, Blue Cross

Blue Shield of Michigan, and Rossetti Architects. About 80,500 people work in Downtown Detroit,

comprising one-fifth of the city's employment base. Aside from the numerous Detroit-based companies,

other large companies that have a major presence in Detroit, include Comerica, Chrysler, HP Enterprise,

Deloitte, PricewaterhouseCoopers, KPMG, and Ernst & Young. Ford Motor Company is located in the

adjacent city of Dearborn. Thousands more employees work in Midtown, north of the central business

district. Midtown's anchors are the city's largest single employer Detroit Medical Center, Wayne State

University (27,000+ students), and the Henry Ford Health System in New Center. Like downtown and

Corktown, Midtown also has a fast-growing retailing and restaurant scene. Furthermore, Detroit draws to

their three major sports venues: Comerica Park (home of the Detroit Tigers), Ford Field (home of the

Detroit Lions), and Little Caesars Arena (home of the Detroit Red Wings and the Detroit Pistons).

LOCATION OVERVIEW

8

Price:

Down Payment:

Gross Leasable Area:

Price/SF:

NOI:

CAP Rate:

Year Built:

Renovated:

Lot Size:

Foundation:

Exterior:

Roof:

$15,840,000

$4,752,000

155,958 S.F.

$100.99

$1,291,034

8.15%

Completed in Phases 1995-2003

2007-2009

Approx. 18.99 Acres

Concrete

Concrete Block/Metal

Dunham’s 2012 & Balance Original

SUMMARY

Loan Amount:

Loan Type:

Interest Rate:

Amortization:

Term:

Loan-to-Value (LTV):

$11,088,000

New Loan

5.10%

30 Years

10 Years

70.00%

Rental Income:

Tenant Reimbursements:

Potential Gross Income:

Vacancy (Actual):

Vacancy for Reimbursements:

Effective Gross Income:

Expenses:

NOI:

Annual Debt Service:

Structural Reserve ($0.10/S.F.):

Cash Flow After Reserves:

Cash-on-Cash Return:

$1,855,653

$354,717

$2,210,370

($196,980)

($44,915)

$1,968,475

$677,442

$1,291,034

$722,427

$15,596

$553,011

11.64%

Operating Data

Anticipated New Financing

10

Total % of Tenant Lease Lease Rent/ Annual Lease Rental Option

Tenant GLA Total Since Start Expiration S.F. Rent Type Bumps Rate/S.F.

NAP | Corporately Owned | 100,259 SF

(1)

4,683 3.00% 2003 12/1/2013 11/30/2023 $27.50 $128,784 NNN None

(3) 5-Yr. Remain Option 3: $29.50/SF Option 4: $32.00/SF Option 5: $34.55/SF

7,740 4.96% 2004 4/1/2014 3/31/2019 $16.25 $125,775 NNN None (2) 5-Yr.

Option 1: $17.88/SF Option 2: $19.66/SF

(2)

4,693 3.01% 2006 2/1/2019 1/31/2024 $10.87 $51,013 NNN None

(2) 5-Year (Automatic Renewal) Option 1: $11.75/SF Option 2: $13.50/SF

1,600 1.03% 2006 8/1/2016 7/31/2021 $22.00 $35,200 NNN None (1) 5-Yr. Remains

Option 1: $24.00/SF

20,000 12.82% 1995 10/1/2015 9/30/2020 $9.85 $197,000 Modified NNN None (1) 5-Yr. Remains

Option 1: Lesser of 115% of Base Rent or CPI

Super Store

8,447 5.42% 2003 3/1/2017 2/28/2027 $14.00 $118,258 NNN 3/1/2022 - $15.40/SF (2) 5-Yr.


(3)

6,250 4.01% 2009 6/8/2016 8/31/2025 $15.95 $99,688 NNN 5/1/2019 - $16.45/SF (2) 5-Yr.


45,780 29.35% 2013 5/7/2013 1/31/2023 $7.50 $343,350 Increase Over

Base Year 2013 None

(4) 5-Yr. Option 1: $7.80/SF Option 2: $8.10/SF Option 3: $8.40/SF Option 4: $8.70/SF

(4)

1,190 0.76% 2006 11/1/2016 10/31/2021 $21.33 $25,387 NNN 11/1/2018 - $21.25/SF 11/1/2019 - $21.75/SF 11/12020 - $22.25/SF

(1) 5-Yr. Option 1

Year 1: $22.75/SF Year 2: $23.26/SF Year 3:$23.75/SF Year 4: $24.25/SF Year 5: $24.75/SF

(5)

1,837 1.18% 2011 2/22/2011 3/31/2021 $16.21 $ 29,782 NNN 4/1/2019 - $16.30/SF 4/1/2020 - $16.65/SF

(2) 5-Yr. Option 1: CPI Option 2: CPI

1,225 0.79% 1995 2/1/2016 1/31/2021 $21.00 $25,725 NNN None (1) 5-Yr.

Option 1: $23.10/SF

Continued on Next Page

11

Total % of Tenant Lease Lease Rent/ Annual Lease Rental Option

Tenant GLA Total Since Start Expiration S.F. Rent Type Bumps Rate/S.F.

1,225 0.79% 1995 3/1/2016 2/28/2021 $25.73 $31,519 NNN None N/A

1,190 0.76% 2005 3/1/2017 2/29/2020 $19.01 $22,620 NNN None (1) 3-Yr.

Option 1: $19.51/SF

(6)

1,923 1.23% 2017 6/1/2017 8/31/2022 $16.79 $32,290 NNN 6/1/2019 - $17.00/SF 6/1/2020 - $17.50/SF 6/1/2021 - $18.00/SF

(2) 5-Yr. Option 1

Year 1: $18.50/SF Year 2: $19.00/SF Year 3:$19.50/SF Year 4: $20.00/SF Year 5: $20.50/SF

Option 2 Year 1: $21.00/SF Year 2: $21.50/SF Year 3:$22.00/SF Year 4: $22.50/SF Year 5: $23.00/SF

(7)

1,394 0.89% 2014 2/10/2014 6/30/2024 $13.03 $18,160 NNN 7/1/2019 - $13.67/SF (1) 5-Yr

Option 1: $15.40/SF

(8)

14,505 9.30% 2017 10/1/2018 9/30/2028 $9.70 $140,699 NNN 5/1/2023 - $10.67/SF

(4) 5-Yr. Option 1: $11.74/SF Option 2: $12.91/SF Option 3: $14.20/SF Option 4: $15.62/SF

1,429 0.92% 2009 3/1/2015 2/29/2020 $20.75 $29,652 NNN None (2) 5-Yr. Remain


5,000 3.21% 2012 2/1/2017 4/30/2023 $12.25 $61,250 NNN 5/1/2021 - $13.25/SF 5/1/2022 - $14.25/SF

(1) 5-Yr. Option 1: $15.67/SF

5,415 3.47% 1995 9/6/2016 9/19/2032 $15.24 $82,522 Ground Lease

Tenant Handles Expenses Direct

None (2) 5-Yr.

Option 1: $90,774/Annual Option 2: $99,851/Annual

(9)

7,300 4.68% 2018 Estimated 9/1/2018

Estimated 8/31/2028

$8.22 $60,000 Modified Gross +

% Rent Years 6-10 - $9.04/SF

(2) 5-Yr. Option 1: $9.95/SF

Option 2: $10.94/SF

Vacant 7,123 4.57% N/A N/A N/A $15.00 $106,845 NNN N/A N/A

Vacant 6,009 3.85% N/A N/A N/A $15.00 $90,135 NNN N/A N/A

Total 155,958 100.00% $11.90 $1,855,653

Vacancy 13,132 8.42% $15.00 $196,980

Pro Forma Calendar Year: January 1, 2019 through December 31, 2019

(1) Rental rate shown effective 12/1/2018. (2) Tenant recently approached ownership for an early renewal. Terms shown reflect the early 5 yr. renewal, which was executed.

(3) Blended rental rate for early exercised first option effective 5/1/2019.

(4) Blended current rental rate for increase effective 11/1/2018.

(5) Blended rental rate for increase effective 4/1/2019.



(8) Tenant has 4 months abated rent. All remaining abated rent to be credited at closing.

(9) Lease includes Landlord Right to Terminate should another tenant be found for the space within first two years. Existing tenant has ROFR, but if exercise their rent increases from $60,000 per year to $100,000 per year.

12

Pro Forma

2017 2018-2019 $/SF 2016 2015

INCOME:

Potential Rental Income

Rental Income (1) $ 1,537,994 $ 1,855,653 $ 11.90 $ 1,537,994 $ 1,535,259

Tenant Reimbursements

Target & Applebee's CAM Contribution (3) - 14,536 0.09 - -

CAM (2) (3) 109,744 124,145 0.80 120,905 119,983

Real Estate Taxes 166,908 192,539 1.23 174,559 185,294

Insurance - 11,856 0.08 - -

Management - 4,999 0.03 - -

Admin. Fee - 6,641 0.04 - -

Miscellaneous Utilities 1,113 - - - -

Gross Potential Rental Income $ 1,683,512 $ 2,210,370 $ 14.17 $ 1,833,457 $ 1,840,537

Vacancy Factor (Actual) 10.62% $ (196,980) $ (1.26)

Vacancy for Reimbursements Lost 8.72% (44,915) (0.29)

Effective Gross Income $ 1,683,512 $ 1,968,475 $ 12.62 $ 1,833,457 $ 1,840,537

OPERATING EXPENSES:

Management Fee 4% $ 87,190 $ 66,347 $ 0.43 $ 93,183 $ 87,743

Real Estate Taxes 290,251 291,653 1.87 291,869 289,006

Insurance 20,960 21,000 0.13 21,521 19,683

Ground Lease Rent (4) 74,494 77,702 0.50 71,286 71,286

Landscaping 18,560 20,000 0.13 16,280 17,845

Snow Removal 62,040 62,040 0.40 62,040 65,910

Water/Sewer 29 50 0.00 58 44

CAM Electric 34,601 35,000 0.22 29,548 30,816

Maintenance and Repair 12,872 13,500 0.09 16,181 12,734

Maintenance Labor 4,800 4,800 0.03 4,800 4,800

Parking Lot Repairs & Maintenance 5,849 5,000 0.03 1,225 4,201

Parking Lot Light Repairs 3,358 7,500 0.05 15,284 15,612

Sweeping Contract 15,600 15,600 0.10 15,600 14,400

Sidewalks 961 2,000 0.01 2,787 1,050

HVAC Repairs & Maintenance 2,849 5,000 0.03 10,068 9,556

Trash Removal 20,789 20,000 0.13 17,867 17,450

Signage 834 750 0.00 608 474

Fire Safety 3,390 5,000 0.03 13,701 3,747

Roof Repairs & Maintenance 6,638 6,000 0.04 15,712 13,691

Non-Reimbursable Utilities 13,913 15,000 0.10 15,464 12,341

Non-Reimbursable R&M 7,215 3,500 0.02 3,861 2,102

Total Expenses $ 687,193 $ 677,442 $ 4.34 $ 718,942 $ 694,492

Net Operating Income $ 996,319 $ 1,291,034 $ 8.28 $ 1,114,515 $ 1,146,044

Loan Analysis

Cash Flow Available Before Debt Service $ 1,291,034 $ 8.28

Capitalization Rate 8.15% 8.15%

Valuation $ 15,840,000 $ 101.57

Loan to Value 70.00% 70.00%

Loan Amount $ 11,088,000 $ 127.62

Rate 5.10% 5.10%

Term 10 10

Amortization 30 30

Annual Debt Service $ 722,427 4.63

Debt Service Coverage Ratio 1.79 1.79

(1) 2016 Rental Income includes rent for Temporary Tenants.

(2) Historically, CAM reimbursements have included Common Area Maintenance, Admin., Mgmt. and some Insurance. We have separated for Pro Forma Purposes.

(3) Target and Applebee's CAM contribution has been included in CAM in the past, we have separated for Pro Forma purposes.

(4) Ground Leased portion of center on 1.7 Acres. Current term through 2052 with 9% bumps every 5 years. (2) 30-Yr. Options at same rent schedule is pending. Ownership has Right of First Refusal to purchase.

20

51382 Gratiot Ave 1 mi radius 3 mi radius 5 mi radius 10 mi radius 15 mi radius

Chesterfield, MI 48051

POPULATION

2017 Estimated Population 7,913 43,775 96,025 365,993 768,267

2022 Projected Population 8,174 44,806 98,450 374,236 784,404

2010 Census Population 7,299 40,271 88,318 340,622 725,954

2000 Census Population 6,075 34,285 65,973 294,571 669,249

Projected Annual Growth 2017 to 2022 0.7% 0.5% 0.5% 0.5% 0.4%

Historical Annual Growth 2000 to 2017 1.8% 1.6% 2.7% 1.4% 0.9%

2017 Median Age 34.9 37.6 37.5 40 40.9

HOUSEHOLDS

2017 Estimated Households 3,164 16,596 34,839 141,859 304,264

2022 Projected Households 3,311 17,253 36,292 147,427 315,643

2010 Census Households 2,843 14,977 31,563 132,145 285,405

2000 Census Households 2,193 12,146 23,615 113,021 259,551

Projected Annual Growth 2017 to 2022 0.9% 0.8% 0.8% 0.8% 0.7%

Historical Annual Growth 2000 to 2017 2.6% 2.2% 2.8% 1.5% 1.0%

RACE AND

ETHNICITY

2017 Estimated White 82.8% 85.5% 84.0% 83.0% 83.3%

2017 Estimated Black or African American 10.7% 8.9% 9.8% 10.9% 9.6%

2017 Estimated Asian or Pacific Islander 1.9% 2.1% 2.6% 2.9% 3.9%

2017 Estimated American Indian or Native Alaskan 0.3% 0.4% 0.3% 0.3% 0.3%

2017 Estimated Other Races 4.3% 3.1% 3.2% 2.9% 2.9%

INCOME

2017 Estimated Average Household Income $75,542 $87,215 $91,445 $87,564 $84,663

2017 Estimated Median Household Income $61,209 $73,835 $78,936 $71,718 $68,895

2017 Estimated Per Capita Income $30,215 $33,121 $33,443 $34,415 $33,825

EDUCATION

(AGE 25+)

2017 Estimated Elementary (Grade Level 0 to 8) 2.8% 2.5% 2.5% 2.7% 3.2%

2017 Estimated Some High School (Grade Level 9 to 11) 7.8% 5.9% 5.4% 5.7% 5.9%

2017 Estimated High School Graduate 32.5% 30.4% 29.0% 28.5% 29.2%

2017 Estimated Some College 25.5% 25.5% 24.2% 25.3% 24.7%

2017 Estimated Associates Degree Only 13.1% 12.3% 12.1% 11.4% 10.7%

2017 Estimated Bachelors Degree Only 12.8% 15.9% 17.7% 17.1% 16.9%

2017 Estimated Graduate Degree 5.4% 7.5% 9.1% 9.3% 9.5%

BUSINESS

2017 Estimated Total Businesses 369 1,246 2,764 11,939 25,209

2017 Estimated Total Employees 5,121 14,233 30,203 127,508 277,128

2017 Estimated Employee Population per Business 13.9 11.4 10.9 10.7 11.0

2017 Estimated Residential Population per Business 21.4 35.1 34.7 30.7 30.5

22

Panera Bread Company (NASDAQ: PNRA), together with its sub-sidiaries, owns, operates, and franchises retail bakery-cafes and operates under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery & Café names that offer daily baked goods, including freshly baked bagels, breads, muffins, scones, rolls, and sweet goods; made-to-order sandwiches on freshly baked breads; soups; freshly prepared and hand-tossed salads; pasta dishes; and custom roasted coffees and cafe beverages, such as hot or cold espresso and cappuccino drinks and smoothies through on-premise sales, as well as provides catering services. The company has reported operation of 901 company-owned bakery-cafes and 1,071 franchise-operated bakery-cafes in 46 states and Ontario. The company was formerly known as Au Bon Pain Co., Inc. and changed its name to Panera Bread Company in August 1998.

Corporate Headquarter:

# of Total Locations:

Corporate:

Ticker Symbol:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

St. Louis, MO

1,972+

Panera, LLC

NASDAQ: PNRA

4,683

2003

12/01/2013

11/30/2023

Yes, 12/1/2018

(3) 5-Yr.

None

Bakery/Café

None

Tenant Base Rent Schedule

Current*:

Option 1:

Option 2:

Option 3:

Monthly

$10,731.87

$11,512.37

$12,488.00

$13,483.13

PSF

$27.50

$29.50

$32.00

$34.55

Tenant Lease Abstract

Annual

$128,782.50

$138,148.50

$149,856.00

$161,797.65

www.panerabread.com

Common Area Maintenance:

Cap:

Insurance:

Real Estate Taxes

Admin. Fee:

Mgmt. Fee:

Pro Rata Share

10% Over Preceding

Year on CAM Expenses

Pro Rata Share

Pro Rata Share

10% on CAM Expenses (including Insurance)

None

Source: www.panerabread.com;

* Current rental rate 12/1/2018.

Pro Forma based on calendar year 1/1/2019 through 12/31/2019.

Tenant Recapture

23

Dunham’s Sports is the Midwest’s largest sporting goods chain.

Over the years with hard work, great customer service and

attention to detail, Dunham’s has grown into a full line sporting

goods chain serving customers in 22 states, from Nebraska to

Maryland. Every one of the 230+ stores nationally offers a full line

of traditional sporting goods and athletic equipment as well as a

wide variety of active and casual sports apparel and footwear. The

motto at Dunham’s Sports is Big Names…Low Prices. Every

Dunham’s Sports customers will find Hot Deals and Sport Values

at prices that may be too low to advertise.



Corporate:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Sales Threshold:

Troy, MI

230+

Dunham’s Athleisure Corp.

45,780

2013

05/07/2013

01/31/2023

None

(4) 5-Yr.

None

Sale/Rental of Sporting

Goods & Apparel

None

5% Over $6,867,000


Current:

Option 1:

Option 2:

Option 3:

Option 4:

Monthly

$28,612.50

$29,757.00

$30,901.50

$32,046.00

$33,190.50

PSF

$7.50

$7.80

$8.10

$8.40

$8.70


Annual

$343,350.00

$357,084.00

$370,818.00

$384,552.00

$398,286.00

www.dunhamssports.com


CAM Cap:

Insurance:

Real Estate Taxes

Admin. Fee:

Mgmt. Fee:

Increase Over Base Year 2013

5% Over Previous Year



None

None

Source: www.dunhamssports.com;

Tenant Recapture

24

Buffalo Wild Wings is the ultimate place to eat wings, grab a

cold one and meet friends to watch a game. The restaurant

continues to add tap lines, come up with more kinds of

sauces and have an infinite number of tv’s. The restaurant

has grown to have a store in every state in the U.S. and

continue to open B-Dubs around the world. On February 5,

2018, Buffalo Wild Wings, Inc. (“BWW”) and Arby’s Restaurant

Group, Inc. (“ARG”) announced the successful completion of the

acquisition of BWW by ARG.



Corporate:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Minneapolis, MN

1,271+

AMC Chesterfield, Inc.

6,250

2009

06/08/2016

08/31/2025

Yes, 5/1/2019

(2) 5-Yr.

None

Restaurant/Bar with

Sale of Chicken Wings

None


Current*:

Bump 2019:

Option 1:

Option 2:

Monthly

$8,307.33

$8,567.70

$9,479.17

$10,520.83

PSF

$15.95

$16.45

$18.20

$20.20


Annual

$99,688.00

$102,812.50

$113,750.00

$126,250.00

www.buffalowildwings.com


Cap:

Insurance:

Real Estate Taxes

Admin. Fee:

Mgmt. Fee:

Pro Rata Share

5% Over Previous Year, Excluding

Snow Removal & Utilities

Pro Rata Share

Pro Rata Share

10% on CAM Expenses

None

Source: www.buffalowildwings.com;

* Blended current rental rate for increase effective 5/1/2019.


Tenant Recapture

25

Harbor Freight Tools (S&P “BB-”/Moody’s “Ba3”) was started as a

small family-owned business, making a commitment to provide

working people with great quality tools at the lowest prices. And

for over 35 years, Harbor Freight Tools has done just that. From

hand tools and generators, to air and power tools, from shop

equipment to automotive tools, Harbor Freight offers more than

7,000 tools and accessories at quality levels that match or exceed

competing brands, but at prices that are up to 80% less. The

company buys direct from the same factories that supply the

expensive brands and pass the savings on to customers. Harbor

Freight operates 850 stores nationwide and has over 40 million

satisfied customers.

Source: www.harborfreight.com

Headquarter:

# of Locations:

Corporate:

S&P Credit Rating:

Moody’s Credit Rating:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Calabasas, CA

850 Nationwide

Harbor Freight Tools USA, Inc.

BB-

Ba3

14,505

2018

10/01/2018

09/30/2028

Yes, 5/1/2023

(4) 5-Yr.

Target & 50% Occupancy Excluding

Anchor Space

General Tool/Accessories

One-time right to terminate at the

expiration of the 60th month following

the RCD; if tenant delivers a timely Early

Termination Notice, the lease shall

terminate on the last day of the 66th

month and tenant shall pay a termination

payment of $222,459.76 to LL consisting

of $29,010 representing 50% of broker

commission, $170,000 representing TIA,

and $23,449.76 representing 2 months

rent.


Current*:

Bump 2023:

Option 1:

Option 2:

Option 3:

Option 4:


Annual

$140,699.00

$154,768.35

$170,288.70

$187,259.55

$205,971.00

$226,568.10

www.harborfreight.com

Pro Rata Share



Pro Rata Share

Pro Rata Share

None

None


CAM Cap:

Insurance:

Real Estate Taxes:

Admin. Fee:

Mgmt. Fee:

Monthly

$11,724.92

$12,897.36

$14,190.72

$15,604.96

$17,164.25

$18,880.67

PSF

$9.70

$10.67

$11.74

$12.91

$14.20

$15.62

* Tenant has 4 months of abated rent. Full rent to begin 10/1/2018. Any remaining

abated rent will be credited at closing.

Tenant Recapture

26

Applebee’s has grown to become a popular restaurant in neighborhoods around the globe – with nearly 2,000 restaurants across 50 states, Puerto Rico, Guam and 14 other countries. Applebee’s is one of the world’s largest Casual Dining brands. Applebee’s draws people of all ages and lifestyles with its fun, family-friendly atmosphere and signature bar and grill menu combining simple, craveable American fare, classic drinks and local drafts. “Eatin’ Good in the Neighborhood”, means guests enjoy a great dining experience with the satisfaction of an abundant and delicious meal. Established in 2007, DINE (NYSE: DIN) brings together Applebee’s (established in 1980) and IHOP (founded in 1958), celebrating and supporting each brand’s individuality, and leveraging their nearly 100 years of hospitality experience and expertise so that guests feel welcome, satisfied and eager to return, every visit, every restaurant, every time.



Type:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Glendale, CA

1,936

Ground Lease

5,415

1995

09/06/2016

09/19/2032

None

(2) 5-Yr.

None

Casual Dining

Bar & Grill

None


Current:

Option 1:

Option 2:

Monthly

$6,876.83

$7,564.50

$8,320.92

PSF

$15.24

$16.76

$18.44


Annual

$82,522.00

$90,774.00

$99,851.00

www.applebees.com


Insurance:

Real Estate Taxes

Admin. Fee:

Mgmt. Fee:

Tenant Handles Direct



None

None

Source: www.applebees.com; www.dinebrands.com

Tenant Recapture

27

Famous Footwear (NYSE: BWS/S&P “BB”/Moody’s “Ba2”) offers

athletic and casual shoes for the whole family from hundreds of

name brands. Customers find styles for women, men and kids

from brands like Nike, Converse, Vans, Sperry, Madden Girl,

Skechers, ASICS and more! Famous Footwear is part of Caleres

Inc. (formerly Brown Shoe Company), a global footwear

company that offers a diverse portfolio of brands, which fit

people's lives. Combined, these brands help make Caleres a

company with both a legacy and a mission. Caleres operates over

1,000 value-priced family footwear stores under the Famous

Footwear banner in the US and Guam, 174 Naturalizer stores in

the US and Canada, and a growing number of shoe stores in

China. The company distributes footwear worldwide through more

than 3,000 retailers, including independent, chain (DSW),

department stores (Sears), catalogs, and online retailers.

Source: www.famousfottwear.com

Headquarter:

# of Locations:

Corporate:

Ticker Symbol:

S&P Credit Rating:


GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Sales Threshold:

St. Louis, MO

1,262+

Brown Group Retail, Inc.

NYSE: BWS

BB

Ba2

7,740

2004

04/01/2014

03/31/2019

None

(2) 5-Yr.

Target & Occupancy of

70% or More of Center

Shoe Store

None

3% Over $4,150,791.67


Current:

Option 1:

Option 2:


Annual

$125,775.00

$138,391.20

$152,168.40

www.famousfottwear.com

Pro Rata Share


Snow Removal, Utilities & Parking

Lot Repairs

Pro Rata Share

Pro Rata Share

During any time in the lease tenants

share not to exceed $1.75/SF

10% on CAM, Excluding Utilities

None


CAM Cap:

Insurance:

Real Estate Taxes:

RET Cap:

Admin. Fee:

Mgmt. Fee:

Monthly

$10,481.25

$11,532.60

$12,680.70

PSF

$16.25

$17.88

$19.66

Tenant Recapture

28

Sally Beauty Holdings (NYSE: SBH/S&P “BB+”/Moody’s “Ba3”) is

a global distributor and specialty retailer offering professional

beauty products to both retail consumers and salon professionals.

Sally Beauty is the destination for 1000’s of salon-quality products

under $10. Trained beauty advisors pair customers with

must-have solutions—from hair care and color, to nails,

cosmetics, and pro-quality styling tools—all priced to please and

backed by a Love It or Return It Guarantee. The company is the

largest retailer of professional beauty supplies in the world,

operating nearly 3,000 stores throughout the United States,

Puerto Rico and Canada alone. Sally offers more than 9,000

products for hair, skin, and nails to both retail consumers and

salon professionals.

Headquarter:

# of Locations:

Corporate/Guaranty:

Ticker Symbol:

S&P Credit Rating:


GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Denton, TX

3,000+

Sally Beauty Holdings, Inc.

NYSE: SBH

BB+

Ba3

1,600

2006

08/01/2016

07/31/2021

None

(1) 5-Yr.

Target

Beauty Supplies/Hair

Extensions

None


Current:

Option Remaining:


Annual

$35,200.00

$38,400.00

www.sallybeauty.com

Pro Rata Share



Pro Rata Share

Pro Rata Share

10% on CAM Expenses (Including Insurance, Excluding Roof Repairs)

None


CAM Cap:

Insurance:

Real Estate Taxes:

Admin. Fee:

Mgmt. Fee:

Monthly

$2,933.33

$3,200.00

PSF

$22.00

$24.00

Tenant Recapture

Source: www.sallybeauty.com

29

GNC (NYSE: GNC) sets the standard in the nutritional supplement

industry by demanding truth in labeling, ingredient safety and

product potency, all while remaining on the cutting-edge of

nutritional science. GNC is the world's largest company of its kind

devoted exclusively to helping its customers improve the quality of

their lives. GNC is a specialty retailer of health and wellness

products, which include vitamins, minerals and herbal

supplements, sports nutrition products, diet products and other

wellness products. The company’s operations consist of

purchasing raw materials, formulating and manufacturing

products and selling the finished products. The company operates

in three segments: Retail, Franchising, and Manufacturing/

Wholesale. GNC operates its primary manufacturing facilities in

South Carolina and distribution centers in Arizona, Indiana,

Pennsylvania and South Carolina.

www.gnc.com

Headquarter:

# of Locations:

Corporate:

Ticker Symbol:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Exclusive:

Co-Tenancy:

Other Termination:

Pittsburgh, PA

4,800+

General Nutrition Corp.

NYSE: GNC

1,225

1995

02/01/2016

01/31/2021

None

(1) 5-Yr.

Vitamin/Supplements

Target

None


Current:

Option 1:

Monthly

$2,143.75

$2,358.12

PSF

$21.00

$23.10


Annual

$25,725.00

$28,297.50

Pro Rata Share

5% Over Previous Year on CAM

Charges on a Cumulative Basis

Pro Rata Share

Pro Rata Share

15% on CAM Expenses

None


Cap:

Insurance:

Real Estate Taxes:

Admin. Fee:

Mgmt. Fee:

Source: www.gnc.com

Tenant Recapture

30

Peter Harris Clothes was founded in 1970 to market incredible

off-price buys of top designer and brand name clothes.

Continuing with that same commitment to quality and value, the

company expanded even further by creating the sister store, Label

Shopper. Peter Harris Clothes and Label Shopper buyers are

professional “Label Shoppers”. They know quality, the brands and

fashion collections everyone from misses and juniors to men all

love. The retail buyers are always on the hunt for amazing buys of

the latest styles from those designers and brand name fashions,

keeping up with current trends. Peter Harris/Label Shopper buys

and sells the highest quality clothing and accessories – the exact

same fashions you find in specialty and department stores - but

Peter Harris and Label Shopper stores sell them for up to 70% off

their original retail price. Peter Harris Clothes and Label Shopper

has grown their footprint in the Northeast and Midwest as the

premier discount label store.

www.labelshopper.com.com

Headquarter:

# of Locations:

Corporate:

GLA:

Tenant Since:

Delivery Expected:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Exclusive:

Co-Tenancy:

Other Termination:

% Rent:

Pittsburgh, PA

84

Label Shopper of

Michigan LLC

7,300

2018

7/20/2018

Est. 9/1/2018

Est. 8/31/2028

Years 6-10

(2) 5-Yr.

Competing Use Stores

None

See Below

4% Over $600,000


Current:

Bump Yrs. 6-10:

Option 1:

Option 2:

Monthly

$5,000.00

$5,500.00

$6,050.00

$6,655.00

PSF

$8.22

$9.04

$9.95

$10.94


Annual

$60,000.00

$66,000.00

$72,600.00

$79,860.00

Modified Gross (Pays In-Suite Utilities)

Gross

Gross

None

None


Insurance:

Real Estate Taxes:

Admin. Fee:

Mgmt. Fee:

Source: www.labelshopper.com

1. Tenant shall have the one-time right to terminate Lease if Tenant’s Gross Sales are less than $600,000 in the first two years of the Lease

Term. Should tenant elect to terminate lease, Tenant shall notify Landlord within 30 days from the completion of the 24th month

2. Landlord (“LL”) will have a one-time right to terminate within the first 24 months if LL has a bona fide LOI from a new tenant to lease the

space. LL will provide sixty (60) days notice upon receipt of the third party LOI. Label Shopper will have the right within fifteen (15) days of

LL notification to re-set their fixed rent to $100,000 gross in which case the LL will waive their right to terminate.

Tenant Recapture

31

Staples (NASDAQ: SPLS/S&P “B+”/Moody’s “B1”) provides work

solutions that deliver industry-leading products, services and

expertise across office supplies, facilities, breakroom, furniture,

technology, promotional products, and print & marketing services.

The company supports businesses of all sizes from solopreneurs

to the Fortune 100 and everything in between. Staples meets

customers needs with everyday low prices across multiple

channels, including direct sales, eCommerce, mobile, and retail.

Headquarter:

# of Locations:

Corporate

:

Ticker Symbol:

S&P Credit Rating:


GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Boston, MA

1,541+

Staples The Office

Superstore East, Inc.

NASDAQ: SPLS

B+

B1

20,000

1995

10/01/2015

09/30/2020

None

(1) 5-Yr.

Target

Office Supplies, Equipment

& Furniture

None


Current:


Annual

$197,000.00

www.staples.com

Limited to CPI Increases Over Base

Year 1996

Pro Rata Share

Pro Rata Share

10% on CAM Expenses (Excluding Utilities)

None

Monthly

$16,416.67

PSF

$9.85

Source: www.staples.com


Insurance:

Real Estate Taxes:

Admin. Fee:

Mgmt. Fee:

Option Remaining: Lesser of 115% of Base Rent or CPI

Tenant Recapture

32

Anytime Fitness is the fastest growing fitness club most

convenient gym providing 24/7 access with more than 3,000

locations worldwide. The company reports and average of 300

new gyms opening each year for the past eight years. The gym

offers personal training and classes, and the right tools to keep

members on track to their fitness goals. Every member gets a free,

personalized Get Started Plan when they join. The friendly,

professional staff is trained to help each person with a fitness

journey and at Anytime Fitness, the supportive community of

like-minded people gives members the encouragement needed to

succeed.

Corp. Headquarter:

# of Locations:

Guaranty:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Cambridge, MN

3,000+ Worldwide

SJ Holdings, Inc.

5,000

2012

02/01/2017

04/30/2023

Yes, 5/1/2021

5/1/2022

(1) 5-Yr.

None

Gym/Personal Training

None


Current:

Bump 2021:

Bump 2022:

Option 1:

Monthly

$5,104.17

$5,520.83

$5,937.50

$6,529.17

PSF

$12.25

$13.25

$14.25

$15.67


Annual

$61,250.00

$66,250.00

$71,250.00

$78,350.00

www.anytimefitness.com

Tenant Recapture

Source: www.anytimefitness.com;


Cap:

Insurance:

Real Estate Taxes

Admin. Fee:

Mgmt. Fee:

Pro Rata Share

6% Over Previous Year, on a

Cumulative Basis Excluding


Pro Rata Share

Pro Rata Share

10% on CAM Expenses,

Excluding Utilities

Pro Rata Share

33

As a leading specialty retailer of women's fashions, CATO (NYSE:

CATO) is committed to offering high quality fashions at low prices

every day. The stores offer the latest fashion styles for any

occasion – work or play, dressy or casual in junior/misses and

plus sizes. CATO also offers great jewelry, shoes and accessories,

too. A substantial portion of Cato’s merchandise is sold under its

private labels and is produced by various vendors in accordance

with the company's specifications. The parent company operates

apparel and accessories specialty stores under the names "Cato",

“Versona”, “it’s Fashion” and "It's Fashion Metro".

Headquarter:

# of Locations:

Corporate:

Ticker Symbol:

GLA:

Tenant Since:

Current Term Start*:

Lease Expiration:

Rental Bumps:

Options:

Exclusive:

Co-Tenancy:

Other Termination:

Charlotte, NC

1,000 in 32 States

The CATO Corporation

NYSE: CATO

4,693

2006

02/01/2019

01/31/2024

None

(2) 5-Yr. (Automatic)

National Women’s

Apparel or Accessory

Chain Store

Target & 60% Occupancy

of Small Shops Spaces

None


Current:

Option 1:

Option 2:

Monthly

$4,251.08

$4,595.23

$5,279.62

PSF

$10.87

$11.75

$13.50


Annual

$51,013.00

$55,142.75

$63,355.50

Pro Rata Share

% Over Previous Year, Excluding

Utilities & Snow Removal

Pro Rata Share

Pro Rata Share

10% on CAM Expenses

None


Cap:

Insurance:

Real Estate Taxes:

Admin. Fee:

Mgmt. Fee:

Source: www.catofashions.com

* Tenant recently approached ownership for an early renewal. Terms shown reflect the early 5-yr. renewal, which was executed.

Tenant Recapture

www.catofashions.com

34

Henry Ford OptimEyes offers complete eye care and eyewear

from the experts. During a comprehensive eye exam, the eye

doctor does much more than just determine the prescription for

eyeglasses or contact lenses. He or she will also check the eyes

for common eye diseases, assess how the eyes work together as

a team and evaluate the eyes as an indicator of overall health.

Optim Eyes is a division of the Henry Ford Health System, which is

comprised of hospitals, medical centers and one of the nation's

largest group practices, the Henry Ford Medical Group, which

includes more than 1,200 physicians practicing in over 40

specialties. The System's flagship, Henry Ford Hospital in Detroit,

is a Level 1 Trauma Center recognized for clinical excellence in

cardiology, cardiovascular surgery, neurology and neurosurgery,

orthopedics, sports medicine, multi-organ transplants and cancer

treatment. With more than 30,000 employees, Henry Ford Health

System is the fifth-largest employer in metro Detroit, and among

the most diverse.

Headquarter:

# of Locations:

Guaranty:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Detroit, MI

18 Optim Eyes Locations

Personal

1,837

2011

02/22/2011

03/31/2021

Yes, 4/1/2019

4/1/2020

(2) 5-Yr.

None

None

None


Current*:

Bump 2019:

Bump 2020:

Option 1:

Option 2:

Monthly

$2,481.83

$2,495.25

$2,548.83

CPI

CPI

PSF

$16.21

$16.30

$16.65

CPI

CPI


Annual

$29,782.00

$29,943.10

$30,586.05

CPI

CPI

www.henryford.com


Insurance:

Real Estate Taxes

Admin. Fee:

Mgmt. Fee:

Pro Rata Share

Pro Rata Share

Pro Rata Share

10% on CAM Expenses (Including Insurance but excluding roof repairs)

Pro Rata Share

Source: www.henryford.com;

* Blended rental rate for increase effective 4/1/2019.


Tenant Recapture

35

Advance America is one of the nation’s largest consumer lending

companies offering a variety of financial services. Advance

America is a wholly owned subsidiary of Grupo Elektra (Moody’s

“Ba3”), one of the world’s leading providers of banking services,

consumer finance, personal loans and specialty retailing. Whether

customers need a Payday Loan or Installment Loan, Advance

America Racine is the place to go. Advance America is a nationally

recognized, fully licensed financial company that helps millions of

people every year. The company’s services include: Payday

Loans, Installment Loans, Online Installment Loans, Title Loans,

MoneyGram Services and Visa Prepaid Cards.

Headquarter:

# of Locations:

Corporate:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Spartanburg, SC

2,000+

ACSO of Michigan, Inc.

1,190

2005

03/01/2017

02/29/2020

None

(1) 3-Yr.

Target

Check Cashing/Advance

In the event that Tenant is

prohibited by law from

continuing its regular business

operations. Upon termination,

Tenant to pay 120 days rent

(including additional rent) and

the unamortized portion of the

brokerage commissions.


Current:

Option 1:

Monthly

$1,885.00

$1,935.00

PSF

$19.01

$19.51


Annual

$22,620.00

$23,220.00

www.advanceamerica.net

Source: www.advanceamerica.net;

Pro Rata Share

6% Over Previous Year

Pro Rata Share

Pro Rata Share

None

None


Cap:

Insurance:

Real Estate Taxes

Admin. Fee:

Mgmt. Fee:

Tenant Recapture

36

Payless ShoeSource is the largest specialty family footwear

retailer in the Western Hemisphere, offering a trend-right and

comprehensive range of everyday and special occasion shoes and

accessory items at affordable prices for every member of the

family. Payless boasts a powerful portfolio of well-known and

popular national brands, featuring authentic athletic brand

Champion®, American Eagle™ by Payless®, designer label

Christian Siriano for Payless, heritage skate brand Airwalk®,

American classic Dexter® and Dexflex Comfort®, and the youthful

edgy fashion brand, Brash™. The children’s collection features

one of the broadest and most compelling assortments in the

marketplace, including SmartFit®, and a range of fun character

shoes kids love to wear from Marvel™, Disney™ and

Nickelodeon™ including Spider-Man™, Disney Princess™,

Cars™ and Dora the Explorer™.

www.payless.com

Headquarter:

# of Locations:

Corporate:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Exclusive:

Co-Tenancy:

Other Termination:

Topeka, KS

4,400

Payless Shoesource Inc.

8,447

2003

03/01/2017

02/28/2027

Yes, 3/1/2022

(2) 5-Yr.

None

Target & 72.5% of Center Must Be

Occupied

One-time right to terminate after the 84th

month. Tenant may exercise by giving LL

written notice, providing sales reports showing

sales less than $750,000 for the immediately

preceding 12 months, and reimbursement of

unamortized portion of the TIA and leasing

commissions.


Current:

Bump 2022:

Option 1:

Option 2:

Monthly

$9,854.83

$10,840.32

$11,924.34

$13,113.96

PSF

$14.00

$15.40

$16.94

$18.63


Annual

$118,258.00

$130,083.80

$143,092.18

$157,367.61

Pro Rata Share



Pro Rata Share

Pro Rata Share

10% on CAM Expenses (Excluding Utilities, Snow & Parking Lot R&M)

None


Cap:

Insurance:

Real Estate Taxes:

Admin. Fee:

Mgmt. Fee:

Source: www.payless.com

Tenant Recapture

37

As one of the fastest growing pizza chains in the U.S. (based on

net number of stores added each year 2008-2015), there’s no

denying that Little Caesars is doing something right. The

company is an international brand and household name – and it

has come a long way since its start as a single store in metro

Detroit in 1959 and the opening of its first franchise in 1962. The

company began offering HOT-N-READY® pizzas for $5 and the

concept was enough to become a permanent trademark for the

company and produce significant growth.

Headquarter:

# of Locations:

Guaranty:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Detroit, MI

Worldwide

Personal

1,429

2009

03/01/2015

02/29/2020

None

(2) 5-Yr. Remain

None

Carry-Out/Buffet Pizza

None


Current:

Option 2:

Option 3:

Monthly

$2,471.00

$2,679.37

$2,798.45

PSF

$20.75

$22.50

$23.50


Annual

$29,652.00

$32,152.50

$33,581.50

www.littlecaesars.com

Tenant Recapture

Source: www.littlecaesars.com;


Cap:

Insurance:

Real Estate Taxes

Admin. Fee:

Mgmt. Fee:

Pro Rata Share

10% Over Previous Year, on a

Non-Cumulative Basis Excluding


Pro Rata Share

Pro Rata Share

None

None

38

Grondin’s Hair Center is a family-owned company that has grown

into a thriving chain of salons, a College of Cosmetology, and over

300 expert stylists - all located throughout the State of Michigan.

The company operates on the core principle that offering the

services of talented, creative hair stylists to customers at very

affordable prices is a recipe for success - for everyone. Grondin's

Hair Centers serve communities throughout Michigan offering

families and customers everything from your child's first haircut to

waxing services to permanent waves and expert coloring services

with highlights and lowlights. The stylists are licensed by the State

of Michigan and undergo extensive training in the art of cutting,

styling and coloring hair. Many of our stylists also have advanced

certifications that help bring the latest styles and trends into each

salons and community.

Headquarter:

# of Locations:

Corporate:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

Lapeer, MI

50

Paul N. Grondin Inc.

1,225

1995

03/01/2016

02/28/2021

None

None

None

Hair Salon

None


Current:

Monthly

$2,626.58

PSF

$25.73


Annual

$31,519.00

www.grondins.com

Tenant Recapture

Source: www.grondins.com;


Cap:

Insurance:

Real Estate Taxes

Admin. Fee:

Mgmt. Fee:

Pro Rata Share


Snow Removal, Utilities & Pavement

Repairs

Pro Rata Share

Pro Rata Share

15% on CAM Expenses

None

39

Conveniently located in beautiful Chesterfield Twp, Nail First is

unlike any other Nail Salon. The atmosphere and quality of service

are second to none. The salon’s patrons are number one priority.

The staff works endlessly to provide excellent service and fulfill

any and all requests. The design of Nail First is sophisticated,

modern with a pleasant and clean environment in which patrons

can relax and enjoy. Nail First offers a multitude of services such

as nail enhancements, manicures, pedicures, waxing, skin care

and many more. Utilizing the best techniques and products, the

results speak for themselves.

www.nailfirstchesterfield.com

Headquarter:

# of Locations:

Guaranty:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Exclusive:

Co-Tenancy:

Other Termination:

Chesterfield, MI

1

Personal

1,190

2006

11/01/2016

10/31/2021

Yes, 11/1/2019

11/1/2020

(1) 5-Yr.

Nail Salon

None

None


Current:

Bump 2019:

Bump 2020:

Option 1

Year 1:

Year 2:

Year 3:

Year 4:

Year 5:

Monthly

$2,115.58

$2,156.87

$2,206.45

$2,256.04

$2,306.62

$2,355.20

$2,404.79

$2,454.37

PSF

$21.33

$21.75

$22.25

$22.75

$23.26

$23.75

$24.25

$24.75


Annual

$25,387.00

$25,882.50

$26,477.50

$27,072.50

$27,679.40

$28,262.50

$28,857.50

$29,452.50

Pro Rata Share

Pro Rata Share

Pro Rata Share

10% on CAM Expenses (Including Insurance & Excluding Roof Repairs)

Pro Rata Share


Insurance:

Real Estate Taxes:

Admin. Fee:

Mgmt. Fee:

Source: www.nailfirstchesterfield.com

Tenant Recapture



40

Smoker’s World is a family-owed and operated company with lo-

cations in Ann Arbor Michigan, Chesterfield Michigan, and Miami

Florida. The store carries a wide variety of electronic cigarettes,

mods, tanks, coils, vaporizers, hookahs, water pipes, bongs, and

hand pipes made from glass, metal, marble and wood. Smokers

World has a fully stocked Juice Bar with hundreds of premium e

juices and liquids that can be custom blended to fit unique vaping

tastes. The store also carries a wide variety of cigarettes, cigars,

and pipe tobacco.

Headquarter:

# of Locations:

Guaranty:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Co-Tenancy:

Exclusive:

Other Termination:

North Miami, FL

3

Personal

1,394

2014

02/10/2014

06/30/2024

Yes, 7/1/2019

(1) 5-Yr.

None

Cigars, Cigarettes & Tobacco

Tenant shall have one-time right

to terminate if sales for the 12

months between 7/1/2018 and

6/30/2019 decrease by more

than 10% from the previous 12

months. Tenant must give 90

days notice.


Current:

Bump 2019:

Option 1:

Monthly

$1,513.33

$1,588.00

$1,790.00

PSF

$13.03

$13.67

$15.40


Annual

$18,160.00

$19,056.00

$21,480.00

www.smokersworldinc.com


Insurance:

Real Estate Taxes

Admin. Fee:

Mgmt. Fee:

Pro Rata Share

Pro Rata Share

Pro Rata Share

15% on Operating Expenses

Pro Rata Share

Source: www.smokersworldinc.com;



Tenant Recapture

41

Escape Room-Zone is Southeast Michigan’s most intense and

unique escape room experience, and one of the largest escape

rooms in the country. Teams navigate through a labyrinth of

logical, physical, and investigative puzzles in order to find the way

out. Up to 100 people can participate at a time, with up to 40

players in one room! Escape Room-Zone is designed to provide a

challenging and incredibly fun outlet for teams of all levels.

www.escaperoom-zone.com

Headquarter:

# of Locations:

Guaranty:

GLA:

Tenant Since:

Current Term Start:

Lease Expiration:

Rental Bumps:

Options:

Exclusive:

Co-Tenancy:

Other Termination:

Farmington, MI

5

Zap Zone Extreme, Ltd.

1,923

2017

06/01/2017

08/31/2022

Yes, 6/1/2019

6/1/2020

6/1/2021

(2) 5-Yr.

None

None

None


Current*:

Bump 2019:

Bump 2020:

Bump 2021:

Option 1

Year 1:

Year 2:

Year 3:

Year 4:

Year 5:

Option 2

Year 1:

Year 2:

Year 3:

Year 4:

Year 5:

Monthly

$2,690.83

$2,724.25

$2,804.37

$2,884.50

$2,964.62

$3,044.75

$3,124.87

$3,205.00

$3,285.12

$3,365.25

$3,445.37

$3,525.50

$3,605.62

$3,685.75

PSF

$16.79

$17.00

$17.50

$18.00

$18.50

$19.00

$19.50

$20.00

$20.50

$21.00

$21.50

$22.00

$22.50

$23.00


Annual

$32,290.00

$32,691.00

$33,652.50

$34,614.00

$35,575.50

$36,537.00

$37,498.50

$38,460.00

$39,421.50

$40,383.00

$41,344.50

$42,306.00

$43,267.50

$44,229.00

Pro Rata Share

Pro Rata Share

Pro Rata Share

None

Pro Rata Share

Source: www.escaperoom-zone.com


Insurance:

Real Estate Taxes:

Admin. Fee:

Mgmt. Fee:

Tenant Recapture

* Blended current rental rate for increase effective

6/1/2019. Pro Forma based on calendar year 1/1/2018

through 12/31/2019.

42

DISCLOSURE, CONFIDENTIALITY & DISCLAIMER

CONFIDENTIALITY AGREEMENT DISCLOSURE & DISCLAIMER

The information within this Offering Memorandum will set forth an

understanding regarding the relationship between the Recipient of

this package (the “Recipient”) and The Cooper Group and the

confidentiality of the investment information to be supplied to you

and your organization for use in considering, evaluating and/or

purchasing this property (the “Property”). The recipient

acknowledges that all financial, contractual, marketing, and

informational materials including but not limited to lease information,

occupancy information, financial information, projections, data

information and any other similar information provided by The

Cooper Group which relates to the Property (collectively, the

Confidential Information), whether said information was transmitted

orally, in print, in writing or by electronic media is confidential in

nature and is not to be copied or disseminated to any party without

the prior consent of The Cooper Group. The Recipient

acknowledges and agrees that the Confidential Information is of

such a confidential nature that severe monetary damage could result

from dissemination of that information to unauthorized individuals.

The Recipient shall limit access to the Confidential Information to

those individuals in the Recipient’s organization with a “need to

know” and shall take all precautions reasonably necessary to

protect the confidentiality of the Confidential Information. The

Recipient acknowledges and agrees that the Confidential

Information and any copies thereof are the property of The Cooper

Group and that all such information will be returned to The Cooper

Group upon written request. Any offers or inquiries from Recipient

in connection with this investment proposal shall be forwarded,

confidentiality, to The Cooper Group. Other than The Cooper

Group, recipient agrees that neither Recipient nor The Cooper

Group shall be obligated to pay any procuring broker fees in

connection with this investment unless a separate written Brokerage

Agreement is entered into and written acknowledgement of any

procuring Brokerage Agreement is received from all parties to the

investment transaction. Procuring brokers must provide written

introductions of potential investors and receive written

acknowledgment from The Cooper Group for representation to be

recognized. This is a confidential Memorandum intended solely for

your limited use and benefit in determining whether you desire to

express further interest in the acquisition of the Property.

The Memorandum contains selected information pertaining to the

property and does not purport to be a representation of the state of

affairs of the Property or the owner of the Property, to be all-inclusive or

to contain all or part of the information which perspective Recipients

may require to evaluate the purchase of real property. All financial

projections and information are provided for general reference purposes

only and are based on assumptions relating to the general economy,

market conditions, competition and other factors beyond the control of

the owner or The Cooper Group. All references disclosed herein related

to acreage, square footages and/or other measurements may be

approximations and the best information available. The summaries of

information included herein do not purport to be complete nor

necessarily accurate descriptions of the full agreements referenced.

Photos herein are the Property and respective owners and use of these

images without the express written consent of the owner is prohibited.

The owner and the Cooper Group expressly reserve the right, at its sole

discretion, to reject any or all expressions of interest or offers to

purchase the Property, and/or terminate discussions with any entity and

any time with or without notice which may arise as a result of review of

this Memorandum.

Neither the owner or the Cooper Group, nor any of their respective

directors, officers, affiliates or representatives make any representation

or warranty, expressed or implied , as to the accuracy or completeness

of this Memorandum or its contents; and you are to rely solely on your

investigators and inspections of the property in evaluating a possible

purchase of the Property. The information contained in this document

has been obtained from sources to be reliable. While the Cooper Group

does not doubt its accuracy, the Cooper Group has not verified it and

makes no guarantee, warranty or representation about it. It is your

responsibility to independently confirm the accuracy and completeness.

Any projections, opinions, assumptions or estimates used are for

example only and do not represent the current or future performance of

the Property. The value of this transaction to you depends on tax and

other factors which should be evaluated by your tax, financial and legal

advisors.

Cooper Commercial Investment Group

6120 Parkland Blvd., Suite 206

Cleveland, OH 44124

www.coopergrp.com

Dan Cooper [email protected]

(888) 525-5695 x12

Bob Havasi [email protected]

(888) 525-5695 x10

http://www.coopergrp.com



Dan Cooper - LoopNet · INVESTMENT OVERVIEW . 6 Chesterfield Charter Township is located in Macomb...

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Transcript of Dan Cooper - LoopNet · INVESTMENT OVERVIEW . 6 Chesterfield Charter Township is located in Macomb...