O F F E R I N G M E M O R A N D U M Click Image For Online Property Map
DISCLOSURE : All materials and information received or derived from Fortis Net Lease (hereinafter collectively referred to as FNL ), its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty by FNL its directors, officers, agent s, advisors, or affiliates as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither FNL its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. FNL will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. ALL PARTIES SHALL CONDUCT THEIR OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE: Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. FNL makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. FNL does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by FNL in compliance with all applicable fair housing and equal opportunity laws. E XC LU S I V E LY L I S T E D BY: DOUG PASSON ROBERT BENDER Managing Partner Managing Partner 248.254.3407 248.254.3406 dpasson@fnlre.com rbender@fnlre.com Fortis Agents Cooperate Click Here To Meet The Team TIM HORTONS
INVESTMENT SUMMARY Asking Price: $733,300 Initial Cap Rate: 6.0% NOI: $44,000 Lot Size: Building Size:.637 Acres 2,048 SF Year Built: 2013 Aerial View: Click HERE Street View: Click HERE * Rent Increases to $48,400 in November 2018 LEASE SUMMARY Lease Type: Taxes/CAM/Insurance: Roof/Structure/Parking: NNN Ground Tenant Responsibility Tenant Responsibility Lease Commencement: November 19, 2013 Lease Expiration: November 30, 2023 Rent Increases: Option Periods: First Right of Refusal Lease Guarantor 10% at Year 6 and Options Four, Five (5) Year Options Tenant Has First Right of Refusal to Purchase TIM DONUT U.S. Limited, INC. INVESTMENT HIGHLIGHTS 10 Year NNN Ground Lease No Landlord Responsibilities 6+ Years Remaining on Lease 10% Rent Bumps Every 5 Years LOCATION HIGHLIGHTS Located on E 9 Mile Road (22,400+VPD) Between I-94 (130,000+VPD) and Gratiot Ave. (27,000+ VPD) Very Densely Populated Area With Over 365,500 Residents 2.55%Projected Growth Within 1 Mile by 2022 Median Home Value Within 5 Miles Exceeds $85,000 Average Household Income Within 5 Miles Exceeds $58,000 Surrounding Retail Tenants Include Family Dollar, Walgreens, Rite Aid, Office Depot, Aldi, Kroger, LA Fitness, Pier One Imports & More Period Monthly Rent Annual Rent % Increase Year 1-5 $ 3,666.67 $ 44,000.00 - Year 6-10 $ 4,033.33 $ 48,400.00 10% Year 11-15 (1st Option) $ 4,436.67 $ 53,240.00 10% Year 16-20 (2nd Option) $ 4,880.33 $ 58,564.00 10% Year 21-25 (3rd Option) $ 5,368.33 $ 64,420.00 10% Year 26-30 (4th Option) $ 5,905.17 $ 70,862.00 10% T I M H O R T O N S F O R T I S N E T L E A S E
INVESTMENT OVERVIEW Fortis Net Lease is pleased to present a free-standing Tim Horton s restaurant located at 17210 E Nine Mile Road in Eastpointe, Michigan. The ten year NNN ground lease requires no landlord responsibilities and has approximately six years remaining on the initial term. The lease has ten percent rent increases at the sixth year and at each option. The lease also has four, five year options. The subject property is located in a very densely populated area with over 365,500 residents within five miles. The median home value within five miles is over $85,000 and the average household income is over $58,000. Tim Horton s is situated on a local retail corridor and is less than three miles from Eastland Center (anchored by Home Depot, Lowe s, Burlington Coat Factory, Sears, Target & Shoppers World). TENANT OVERVIEW Founded in 1964, the Tim Hortons brand is one of the largest restaurant chains in North America and the largest in Canada. As of December 31, 2015, we owned or franchised a total of 4,413 Tim Hortons restaurants, including 3,650 in Canada, 650 in the United States and 113 in the Middle East. Of these restaurants, 4,389 were franchised (approximately 100%) and 24 were company owned. Tim Hortons restaurants are quick service restaurants with a menu that includes premium blend coffee, tea, espresso-based hot and cold specialty drinks, fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups and more. Restaurant Brands International Inc. is a Canadian corporation originally formed on August 25, 2014 to serve as the indirect holding company for Tim Hortons and its consolidated subsidiaries and for Burger King Worldwide and its consolidated subsidiaries. We are one of the world s largest quick service restaurant ( QSR ) companies with over 19,000 restaurants in approximately 100 countries and U.S. territories as of December 31, 2015. Our Tim Hortons and Burger King brands have similar franchise business models with complementary daypart mixes. Our two iconic brands are managed independently while benefitting from global scale and sharing of best practices. T I M H O R T O N S F O R T I S N E T L E A S E
Eastpointe, MI Eastpointe (formerly East Detroit) is a city in Macomb County in the state of Michigan. As of the 2010 census, the city population was 32,442. Eastpointe forms a part of the Metro Detroit area. It borders 8 Mile Road on the northern edge of Detroit. Eastpointe has many summer festivals and events, including Erin-Halfway Days Living History Festival held at John F. Kennedy Memorial Park in late July, Music in the Park Wednesday nights at Spindler Park, and Summer Fest, formerly known as The Ox Roast, mid to late August at John F. Kennedy Memorial Park. Cruisin' Gratiot in June is an annual weekend celebration of automotive history, tradition and memorabilia. The event includes car shows, contests, and live music. Eastpointe is generally considered to be a bedroom community. It is nevertheless a relatively short drive from many other points of interest in the Detroit area. It is served by Interstate 94 (I-94) and I-696, as well as M-3 (Gratiot Avenue), M-102 (8 Mile Road), and 9 Mile Road. Eastpointe is an excellent residential community of high quality predominantly brick homes, most of which were constructed during the past 30-40 years and are well maintained. There are ample shopping areas, business and professional establishments within and near the city to serve its residents well. Eastpointe is conveniently located to downtown Detroit, as well as to large industrial and manufacturing areas in the cities of Warren and Sterling Heights. Lake St. Clair, Metropolitan Beach, and other recreational facilities are also nearby. The city has wide concrete residential streets, efficient police and fire protection, a fine public library, excellent recreation facilities, and a quality water system and provides all municipal services courteously and efficiently. Eastpointe is served by the East Detroit Public Schools, South Lake Schools, and Macomb Intermediate School District. The city also has excellent parochial school systems and many churches of leading denominations. T I M H O R T O N S F O R T I S N E T L E A S E
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Eastpointe Chandler Park Academy Middle & High School T I M H O R T O N S F O R T I S N E T L E A S E
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365,587 People Live Within 5 Miles Average Household Income Exceeds $58,000 Within 5 Miles Click Image For Online Property Map T I M H O R T O N S F O R T I S N E T L E A S E
Population 1 Mile 3 Miles 5 Miles 2017 Total Population: 21,343 157,853 365,587 2022 Population: 21,888 159,555 367,592 Pop Growth 2017-2022: 2.55% 1.08% 0.55% Average Age: 37.80 37.90 38.60 Households 2017 Total Households: 8,282 61,113 141,978 HH Growth 2017-2022: 2.57% 1.24% 0.76% Median Household Inc: $42,736 $44,248 $44,077 Avg Household Size: 2.60 2.60 2.60 2017 Avg HH Vehicles: 2.00 2.00 2.00 Housing Median Home Value: $63,495 $72,655 $85,219 Median Year Built: 1952 1953 1954 Population: 1 Mile 3 Miles 5 Miles 2022 Projection 21,888 159,555 367,592 2017 Estimate 21,343 157,853 365,587 2010 Census 20,986 158,816 372,875 Growth 2017-2022 2.55% 1.08% 0.55% Growth 2010-2017 1.70% (0.61%) (1.95%) 2017 Population Hispanic Origin 455 3,213 6,744 2017 Population by Race: White 12,818 95,482 208,922 Black 7,582 54,840 139,594 Am. Indian & Alaskan 86 569 1,336 Asian 255 2,997 7,383 Hawaiian & Pacific Island 8 26 58 Other 594 3,939 8,293 U.S. Armed Forces: 0 102 145 Households: 2022 Projection 8,495 61,872 143,050 2017 Estimate 8,282 61,113 141,978 2010 Census 8,142 61,295 144,263 Growth 2017-2022 2.57% 1.24% 0.76% Growth 2010-2017 1.72% (0.30%) (1.58%) Owner Occupied 6,394 45,421 100,951 Renter Occupied 1,888 15,692 41,027 2017 Avg Household Income $50,763 $54,564 $58,437 2017 Med Household Income $42,736 $44,248 $44,077 2017 Households by Household Inc: <$25,000 2,468 16,783 41,273 $25,000 - $50,000 2,404 17,411 37,877 $50,000 - $75,000 1,635 12,432 25,944 $75,000 - $100,000 1,038 7,070 16,040 $100,000 - $125,000 379 3,688 8,907 $125,000 - $150,000 150 1,756 4,657 $150,000 - $200,000 148 1,413 4,203 $200,000+ 60 560 3,078 T I M H O R T O N S F O R T I S N E T L E A S E
E XC LU S I V E LY L I S T E D BY: DOUG PASSON ROBERT BENDER Managing Partner Managing Partner 248.254.3407 248.254.3406 dpasson@fnlre.com rbender@fnlre.com TIM HORTONS [ www.fortisnetlease.com