WYOMING DETROIT, MICHIGAN TIM HORTONS OFFERING MEMORANDUM. Presented by: *Representative Image

Transcription

1 WYOMING 15340STREET DETROIT, MICHIGAN TIM HORTONS OFFERING MEMORANDUM Presented by: PETER BLOCK Executive Vice President JARED PRINCE Associate ASHLIN HAMILTON Associate BRIAN WHITFIELD Broker of Record *Representative Image

2 TABLE OF CONTENTS > EXECUTIVE SUMMARY Executive Summary Investment Highlights > PROPERTY INFORMATION Property Description Property Aerial Retail Map Tenant Overview > LOCATION OVERVIEW Location Overview Area Map Demographics > DISCLAIMER

3 > EXECUTIVE SUMMARY Offering Memorandum

4 EXECUTIVE SUMMARY Colliers International is pleased to present for sale a freestanding, single tenant, netleased Tim Hortons located at Wyoming St in Detroit, Michigan. This is a strong location northwest of downtown Detroit along Rte 10 (156,000 VPD). The site posts over 21,000 vehicles per day on Wyoming St and a 5 mile population of over 400,000 people. The Tim Hortons corporate lease runs for six years through December 31st, 2022 and contains four (4), five (5) year options. The lease calls for 10% increases every 5 years, with the next increase on January 1, This location sits on a 16,000 SF lot adjacent to the intersection of Wyoming Street & Fenkell Avenue. Neighbors include: McDonald s, White Castle, Subway, BP, Valero, and more. ASKING PRICE: $632,258 CAP RATE: 7.75% CAP RATE (1/1/18): 8.53% NOI: $49,000 SIZE: OFFERING SUMMARY 1,925 SF LEASE EXPIRATION: December 31, 2022 COLLIERS INTERNATIONAL 4

5 INVESTMENT HIGHLIGHTS STRONG INVESTMENT FUNDAMENTALS > > Absolute NNN Lease with no Landlord Responsibilities > > Strong going in yield at 7.75% and great price point > > 10% Rent Increases in Base Term and Options > > Low price point > > Corporate guarantee from Tim Hortons > > Population Over 400,000 within a 5-mile radius STRATEGIC LOCATION ESTABLISHED TRADE AREA > > Located at a retail centered intersection with strong traffic counts > > Immediately adjacent to John C Lodge Fwy (Rte 10), which boasted traffic counts in excess of 150,000 vehicles per day at the Wyoming St exit > > Less than 7 miles from downtown Detroit and within 2 miles of University of Detroit & Marygrove College > > Area Retailers include: McDonald s, Subway, White Castle, Little Caesars Pizza, Dollar Tree, BP, among others. COLLIERS INTERNATIONAL 5

6 > PROPERTY INFORMATION Offering Memorandum

7 PROPERTY DESCRIPTION PROPERTY ADDRESS: Wyoming St. Detroit, MI OFFERING PRICE: $632,258 NOI: $49,000; rent increases to $53,900 on 1/1/18 CAP RATE: 7.75% 8.53% on 1/1/18 LEASE EXPIRATION: December 31, 2022 OPTIONS: ESCALATIONS: Four (4), Five (5) year options 10% every 5 years, including options YEAR BUILT: 1984 BUILDING SIZE: PARCEL SIZE: 1,925 SF 15,986 SF COLLIERS INTERNATIONAL 7

8 PROPERTY AERIAL COLLIERS INTERNATIONAL 8

9 RETAIL MAP COLLIERS INTERNATIONAL 9

10 TENANT OVERVIEW Tim Hortons is the third largest coffee chain in the world. It has over a 50 year history that started in Ontario, Canada. It is the QSR leader in Canada, and expanding throughout the US. The brand started as a coffee and doughnut shop, but has evolved to a full menu offering everything from salads to sandwiches. Tim Hortons is an iconic Canadian brand that serves almost 80% of the cups of coffee sold in Canada. There are more than 4,590 Tim Hortons restaurants worldwide; 869 being in the United States. The brand is known for their impact within the community, offering high quality products, and providing a great experience for franchisees. In 2014, the parent company of Burger King, Restaurant Brands International, acquired Tim Hortons for 11.4 billion. This accelerated Tim Hortons growth into the United States. Tim Hortons currently has a strong presence in the Midwest and northeast, with plans to expand into the Southeast. COLLIERS INTERNATIONAL 10

11 > LOCATION OVERVIEW Offering Memorandum

12 LOCATION OVERVIEW DETROIT, MI Detroit is the most populous city in the U.S. state of Michigan, the fourth-largest city in the Midwest and the largest city on the United States Canada border. It is the seat of Wayne County, the most populous county in the state. The municipality of Detroit had a 2015 estimated population of 677,116, making it the 21st-most populous city in the United States. The metropolitan area, known as Metro Detroit, is home to 4.3 million people and lies at the heart of the Great Lakes Megalopolis area, with around 60 million people. Roughly one-half of Michigan s population lives in Metro Detroit alone. The Detroit metropolitan area, often referred to as Metro Detroit, is a major metropolitan area in Southeast Michigan, consisting of the city of Detroit and its surrounding area. There are several definitions of the area, including the official statistical areas designated by the Office of Management and Budget, a federal agency of the United States. Metro Detroit is known for its automotive heritage, arts, entertainment, popular music, and sports. The area includes a variety of natural landscapes, parks, and beaches, with a recreational coastline linking the Great Lakes. It is one of the nation s largest metropolitan economies, with seventeen Fortune 500 companies. TRANSPORTATION The Detroit region boasts an extensive transportation infrastructure with an extensive toll-free expressway system which includes four major Interstate Highways, Detroit Metro Airport, four major Class I Railroads and six international border crossings, making it one of the largest foreign trade zones in North America. The elevated Detroit People Mover encircles downtown providing service to numerous downtown hotels, offices and attractions. Detroit-Warren-Dearborn Metro Area UNEMPLOYMENT RATES October 2015 October 2016 Change 5.9% 5.3% State of Michigan 5.1% 4.7% United States 5% 4.9% ECONOMY The City of Detroit anchors the second-largest economic region in the Midwest, behind Chicago, and the thirteenth-largest in the United States. Detroit and the surrounding region constitute a major center of commerce and global trade, most notably as home to America s Big Three automobile companies: General Motors, Ford, and Chrysler. Detroit s six-county Metropolitan Statistical Area (MSA) has a population of about 4.3 million and a workforce of about 2.1 million. In November 2016, the Department of Labor reported metropolitan Detroit s unemployment rate at 5.3%. The Detroit MSA had a Gross Metropolitan Product (GMP) of $197.7 billion in While Detroit remains the center for the American automobile industry, Detroit is one of the fastest growing regions for technology jobs in the country. Some of the fastest growing business sectors include biotechnology, nanotechnology, information technology, hydrogen fuel cell development, health care, aerospace, defense and logistics. COLLIERS INTERNATIONAL 12

13 AREA MAP FLINT LANSING PONTIAC WYOMING ST DETROIT 94 ANN ARBOR COLLIERS INTERNATIONAL 13

14 POPULATION POP FACTS: DEMOGRAPHIC REPORT WYOMING ST, DETROIT, MI, RADIUS 1 ( miles) RADIUS 2 ( miles) RADIUS 3 ( miles) 2021 Projection 17, , , Estimate 18, , , Census 20, , , Census 27, , ,580 Growth % -4.24% -3.45% Growth % -7.66% -6.32% Growth % % % HOUSEHOLDS 2021 Projection 6,478 61, , Estimate 6,799 63, , Census 7,454 68, , Census 9,475 84, ,454 Growth % -3.61% -2.73% Growth % -6.50% -5.02% Growth % % % 2016 EST. POPULATION HISPANIC OR LATINO Total 18, , ,321 Hispanic or Latino % 1, % 14, % Not Hispanic or Latino 17, % 159, % 406, % 2016 TENURE OF OCCUPIED HOUSING UNITS Total 6,799 63, ,487 Owner Occupied 3, % 36, % 91, % Renter Occupied 2, % 27, % 71, % AVERAGE HOUSEHOLD SIZE POP FACTS: DEMOGRAPHIC REPORT WYOMING ST, DETROIT, MI, RADIUS 1 ( miles) RADIUS 2 ( miles) RADIUS 3 ( miles) Total EST. POPULATION BY SINGLE CLASSIFICATION RACE Total 18, , ,321 White Alone % 4, % 72, % Black or African 17, % 152, % 323, % American Alone American Indian and % % 1, % Alaska Native Alone Asian Alone % % 4, % Native Hawaiian and Other Pacific Islander Alone % % % Some Other Race Alone % % 6, % Two or More Races % 4, % 12, % COLLIERS INTERNATIONAL 14

15 POP FACTS: DEMOGRAPHIC REPORT WYOMING ST, DETROIT, MI, RADIUS 1 ( miles) RADIUS 2 ( miles) RADIUS 3 ( miles) 2016 EST. HOUSEHOLDS BY HOUSEHOLD INCOME Total 6,799 63, ,487 CY HHs, Inc < $15,000 2, % 18, % 45, % CY HHs, Inc $15,000 - $24,999 1, % 10, % 24, % CY HHs, Inc $25,000 - $34,999 1, % 8, % 20, % CY HHs, Inc $35,000 - $49, % 8, % 21, % CY HHs, Inc $50,000 - $74, % 8, % 23, % CY HHs, Inc $75,000 - $99, % 4, % 11, % CY HHs, Inc $100,000 - $124, % 2, % 6, % CY HHs, Inc $125,000 - $149, % 1, % 3, % CY HHs, Inc $150,000 - $199, % % 2, % CY HHs, Inc $200,000 - $249, % % % CY HHs, Inc $250,000 - $499, % % % CY HHs, Inc $500, % % % 2016 EST. AVERAGE HOUSEHOLD INCOME Total $36,673 $41,441 $43, EST. MEDIAN HOUSEHOLD INCOME Total $27,539 $28,223 $30, MEDIAN HH INC. BY SINGLE RACE, CLASS, OR ETHNICITY White Alone $33,453 $45,658 $38,749 Black or African American Alone $27,032 $27,519 $28,429 American Indian and Alaska Native $55,095 $39,060 $33,273 Alone Asian Alone $31,822 $41,377 $40,865 Native Hawaiian and Other Pacific $0 $100,000 $103,828 Islander Alone Some Other Race Alone $57,420 $42,704 $36,108 Two or More Races $37,798 $38,909 $37,691 Hispanic or Latino $37,215 $39,131 $35,030 Not Hispanic or Latino $27,443 $28,111 $30,284 COLLIERS INTERNATIONAL 15

16 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the property at Wyoming Avenue, Detroit, MI. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Peter Block from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the property at Wyoming Avenue, Detroit, MI or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. COLLIERS INTERNATIONAL 16