TIM HORTONS WYOMING ST DETROIT, MI

Transcription

1 OFFERING MEMORANDUM TIM HORTONS WYOMING ST DETROIT, MI Daniel H. Kukes Scott J. Landers Principal Associate (248) (248)

2 Prepared by: Daniel H. Kukes Principal (248) Scott J. Landers Associate (248) Halsted, Suite 150 Farmington Hills, MI Investment Highlights 4 Offering Summary 5 Tenant Profile 6 Survey 7 Aerial 8 Location Map 9 Market Overview 10 City of Detroit Overview 11 Top Employers 12 Demographic Report 13 Team Bios 14

3 This Confidential Memorandum has been prepared by Landmark Investment Sales d/b/a Landmark Commercial Real Estate Services, Inc. ( LANDMARK ) and is being furnished to you solely for the purpose of your review of the commercial property located at Wyoming St in Detroit, Michigan, further described as a freestanding Tim Hortons building (the Property ). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Landmark Commercial Real Estate Services, Inc. ( Broker ). By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the Materials ), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to LANDMARK as soon as practicable together with all other materials relating to the Property which you may have received from LANDMARK; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of LANDMARK. This Confidential Memorandum has been prepared by LANDMARK, based upon certain information pertaining to the Property and any information obtained from LANDMARK to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an as-is, where-is basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by LANDMARK to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon LANDMARK, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither LANDMARK, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred. LANDMARK, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice. This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release LANDMARK and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. LANDMARK reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.

4 INVESTMENT HIGHLIGHTS Rent Bumps - 10% rental escalations every five years National Tenant Investment in a nationally recognizable tenant with a proven track record and excellent quality product and service Location Located on the morning side of the road within one block of the M-10 highway, with over 100,000 CPD (cars per day) Dense Demographics Over 80,000 people within 2 miles, and over 175,000 people within 3 miles Quality Real Estate The site is 2,307 SF, 1.10 Acres, with ample parking, excellent ingress/egress, prime visibility and signage, and already equipped with a drive-thru making this an all around great restaurant site Tenant Investment - This site was previously a KFC that was renovated and updated. Tim Hortons funded 100% of the construction costs.

5 RENT SCHEDULE Years Option Periods Annual Base Rent 1-5 $49, *(current) 6-10 $53, $59, $65, $71, $78, LEASE DETAILS Lease Term: Remaining Base Term: Lease Type: Landlord Responsibilities: 10 years 7+ years NNN Landlord to carry additional Lessor s Insurance Rent Commencement: 1/16/2012 Lease Expiration: 12/31/2022 Tenant: Tim Donut U.S. Limited, Inc. PROPERTY DETAILS Year Built: 1974 Rentable Square Feet: 2,307 SF Land Area: 0.47 acre Address: Wyoming St Detroit, MI PRICING Price: $601,227 Cap Rate: 8.15% Price Per SF: $260.61/SF

6 Tim Hortons was founded in 1964 in Hamilton, Ontario. The menu spans a broad range of categories including coffee, espressobased hot and cold beverages, soups, sandwiches, and freshly baked goods. The company has an iconic brand status in Canada and a strong and growing presence in select regional markets in the United States. As of June 2013, the chain has 3,468 locations in Canada and 807 locations in the United States. Tim Hortons merged with Burger King in December of 2014 in a transaction of roughly $11 billion dollars. On December 12 th, 2014 shared of Tim Hortons and Burger King worldwide had stopped trading on both the Toronto Stock Exchange and the New York Stock Exchange respectively. Restaurant Brand International, the holding company of both Tim Hortons and Burger King, commenced trading on both the Toronto Stock Exchange and the New York Stock Exchange under the symbol QSR on December 15 th, Restaurant Brands International is the third largest fast food company worldwide with a market value of roughly $18 billion dollars. The combined business is expected to generate about $22 billion dollars in sales and constitute more than 18,000 restaurants in 100 countries. The company is continuously innovating and improving it s concept. Most standard Tim Hortons locations are open 24 hours. There are a growing number of combo units housing both Tim Hortons and a Wendy s. Tim Hortons and Kahala Corp (owner of Cold Stone Creamery) starting cobranding in The We fit Anywhere model has led to a number of non-traditional locations in gas stations, convenience stores, universities, hospitals, office buildings, and airports. The chain s focus on top quality, always fresh product, value, great service and community leadership has allowed it to grow into the largest quick service chain in Canada. Tim Hortons is one of the largest publicly-traded quick service restaurant chains in North America based on market capitalization, and the largest in Canada.

7 Property Description: Freestanding Tim Hortons Address: Wyoming St Detroit, MI Building Square Footage: 2,307 SF Occupancy: 100% Land Area: 0.47 acre Tax Parcel: Year Built: 1974 Year Renovated: 2012 Zoning: Commercial Trade Area Statistics 1 MILE 3 MILE 5 MILE 2015 Population: 21, , , Households: 8,257 75, , Avg. HH Income: $35,522 $41,132 $42, Median HH Income: $28,110 $30,667 $32, Total Businesses: 533 4,441 14, Total Employees: 3,746 28, ,335 Traffic Counts: Wyoming St = 22,622 CPD Fenkell St = 13,180 CPD

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10 LANDMARK COMMERCIAL REAL ESTATE SERVICES, INC HALSTED RD SUITE 150 FARMINGTON HILLS, MI (248) The information contained herein was obtained from sources believed reliable; however, Landmark Commercial Real Estate Services, Inc. makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease, or withdrawal without notice.

11 This freestanding Tim Hortons drive-thru is located on the east side of Wyoming, immediately off of M-10. The site benefits from strong traffic counts from both Wyoming St and M-10. Wyoming has traffic counts over 22,000 CPD and M-10 has traffic counts exceeding 120,000 CPD. M-10 is a major thoroughfare for commuters who work downtown and live in the Suburbs. National restaurants in the immediate trade area include McDonald s, White Castle, and Subway. Wyoming Ave is home to many local businesses including restaurants, beauty supply stores, financial lenders, wireless retailers, auto repair shops, and churches. Fenkell Ave is home to Mary McLeod Bethune Elementary School, Guest Middle School, and Loyola High School (all of which are located less than ¾ of a mile from the Tim Hortons). The Detroit public bus system has several stops up and down both Wyoming and Fenkell Ave. The closest stop is on the corner of Wyoming and the John C Lodge Service Dr,which is walking distance to the subject Tim Hortons property. This area is an extremely dense community with over 175,000 people within a 3 mile radius. The Detroit bus system, highway, and thoroughfares help connect this community.

12 The City of Detroit is in the midst of a revival period full of artists, young entrepreneurs, and a rapidly rising restaurant scene. The millennial generation is creating a new version of Detroit, a self-sustaining version that is not reliant on the manufacturing titans. The restaurant and bar scene has been at the forefront of the Detroit Revival. Over 77 new bars and restaurants have opened since New restaurants such as Selden Standard have 2 3 hour wait times every day of the week. Wright & Co. is located on the second floor of an office and condominium building with no signage, yet the business is booming. Punch Bowl Social, a new concept, opened a 10,000 square foot restaurant, bar, and bowling alley. Suburban residents that would travel to Detroit a few times a year for food and entertainment are now making ventures into Detroit almost every weekend to check out the new restaurants and attractions.

13 Business Name Number of Employees Detroit Medical Center 12,398 City of Detroit 10,920 Henry Ford Health System 9,014 Detroit Public Schools 7,839 U.S. Government 6,454 Quicken Loans/Rock Financial 5,984 Wayne State University 5,924 Blue Cross Blue Shield of Michigan 5,172 State of Michigan 4,555 Chrysler Group LLC 4,042 13

14 DESCRIPTION 1 MILE 3 MILE 5 MILE POPULATION HOUSEHOLDS RACE INCOME BUSIN ESS 2015 Estimated Population 21, , , Projected Population 21, , , Census Population 19, , , Census Population 27, , ,969 Projected Annual Growth 2015 to % 0.3% 0.4% Historical Annual Growth 2000 to % -1.3% -1.2% 2015 Estimated Households 8,257 75, , Projected Households 8,676 78, , Census Households 7,343 68, , Census Households 9,335 84, ,438 Projected Annual Growth 2015 to % 0.6% 0.7% Historical Annual Growth 2000 to % -0.6% -0.6% 2015 Est. White 10.5% 11.0% 22.5% 2015 Est. Black 86.1% 85.6% 71.9% 2015 Est. Asian or Pacific Islander 0.4% 0.6% 1.3% 2015 Est. American Indian or Alaska Native 0.3% 0.3% 0.3% 2015 Est. Other Races 2.7% 2.5% 3.9% 2015 Est. Average Household Income $35,522 $41,132 $42, Est. Median Household Income $28,110 $30,667 $32, Est. Per Capita Income $13,952 $16,930 $16, Est. Total Businesses 533 4,441 14, Est. Total Employees 3,746 28, ,335 LANDMARK COMMERCIAL REAL ESTATE SERVICES, INC HALSTED RD SUITE 150 FARMINGTON HILLS, MI (248) or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease, or withdrawal without notice.

15 Daniel Kukes is a Principal and Co-Founder of Landmark Investment Sales. Daniel specializes in the sale of retail shopping centers, medical office, and single tenant net lease investment properties across all property types. He currently represents some of the nation s largest institutional real estate funds, private equity group, and high net worth investors in acquiring and listing investment properties all over the country. Since 2010, Daniel has closed deals totaling over 5,000,000 SF valued at over $450,000,000. Daniel joined Landmark in 2009 as an Associate Broker. He began his real estate career at NAI Farbman where he focused on shopping center leasing and retail tenant representation. After five years at NAI Farbman, Daniel joined DAP Investments as a partner responsible for retail development, acquisitions and leasing. While there, he developed several single tenant and shopping center projects in Michigan and Illinois. Daniel is a graduate of Michigan State University with a Bachelor of Arts degree in Pre-Law & Society. dkukes@landmarkcres.com Scott Landers is a recent graduate of the University of Michigan, with a Bachelor of Arts degree in Economics and Environmental Studies. Scott gained extensive business research and capital raising experience through his internship at Madison Capital Markets and 1st BridgeHouse Securities, where he worked with fixed income trading and investment banking teams. He currently holds four Securities licenses; Series 7, Series 63, Series 65, and Series 99, allowing him to transact securities and sell investment advice. Scott joined the Landmark team in 2012 as a business analyst and sales associate working on both investment sales and shopping center leasing. slanders@landmarkcres.com