Subject Property
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INVESTMENT SUMMARY List Price Land Acreage Year Built: Current NOI Initial Cap Rate INVESTMENT HIGHLIGHTS $660,870 0.77 2012 $38,000 5.75% Absolute NNN Ground Lease Requires Zero Landlord Responsibilities 8+ Years Remaining on a 10 Year NNN Lease Four (4), Five (5) Year Options Periods with Increases 10% Rent Increase in Year 6 & 10% Rent Increase at Every Option Period LOCATION HIGHLIGHTS LEASE SUMMARY Lease Type Taxes/CAM/Insurance Roof/Structure Parking Lot Replacement Original Lease Term Rent Commencement Current Term Expiration Term Remaining Rent Increases Renewal Options First Right of Refusal Lease Guarantor NNN Ground Lease Tenant Responsibility Tenant Responsibility Tenant Responsibility 10 Years December 29, 2012 December 31, 2022 8+ Years 10% at Year 6 and Options Four (4), Five (5) Year Options Tenant Has First Right of Refusal to Purchase TIM DONUT U.S. Limited, INC. TENANT SUMMARY Tenant Website Number of Locations Tenant Information 2011 Sales Volume www.timhortons.com Over 3,750 Worldwide Over 600 in the U.S Publically Traded Company (NYSE:THI) Over 3.16 Billion in Sales 2012 Population Exceeds 169,000 within a 5 Mile Radius Average Household Income is Over $58,000 within a 5 Mile Radius The Subject Property is Surrounded by Multiple National Tenant Gas Stations as well as a Light Industrial Sector including Residential Complexes. Subject Property
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Property Photos
Rent Roll Period Monthly Rent Annual Rent % Increase Year 1-5 $3,166.67 $38,000 - Year 6-10 $3,483.33 $41,800 10% Increase Year 11-15 (1st Option) $3,831.67 $45,980 10% Increase Year 16-20 (2nd Option) $4,214.83 $50,578 10% Increase Year 21-25 (3rd Option) $4,636.33 $55,636 10% Increase Year 26-30 (4th Option) $5,100.00 $61,200 10% Increase
INVESTMENT OVERVIEW Fortis Net Lease is pleased to present a free-standing Tim Hortons 10 Year NNN Ground Lease located in Clinton Township, MI on Harper Ave., just North of I-94. The initial lease term runs through December of 2022 and the lease is equipped with a 10% rental increase in year 6 as well as 10% rental increases in all of the four (4), five year option periods. This is a great opportunity for an investor looking to purchase a passive income asset with absolutely zero management responsibilities. The tenant is responsible for all property taxes, insurance and capital expenditures including the roof, structure, HVAC and parking. The subject property is surrounded a number of national tenant gas stations and McDonalds right of of Interstate 94, making it very convenient for anyone to stop for coffee or food on the way to and from work or running errands. TENANT OVERVIEW Tim Hortons opened its first restaurant in Hamilton, Ontario in 1964. Since then, the focus on top quality, always fresh product, value, exceptional service and community leadership has allowed the chain to grow into the largest quick service restaurant chain in Canada specializing in always fresh coffee, baked goods and home-style lunches. Tim Hortons enjoys iconic brand status in Canada and a strong, emerging presence in select regional markets in the U.S. Tim Hortons' commitment to maintaining a close relationship with franchisees and the communities where it operates has helped generate immense guest loyalty and build Tim Hortons into one of the most widely recognized consumer brands in Canada. The chain is dedicated to satisfying the changing tastes of guests through continuous product innovation. The current menu spans a broad range of categories that appeal to guests throughout the day, such as flavored cappuccinos, specialty and steeped teas, home style soups, fresh sandwiches and freshly baked goods including donuts, muffins, bagels, cookies, croissants and pastries. The premium blend is also available in cans, as are Tim Hortons hot chocolate and flavored cappuccinos, allowing guests to enjoy these great tasting products at home. Most standard Tim Hortons locations are open 24 hours. Customers can eat in our dining rooms, take out, or use our convenient drive-thrus, which cater to consumers on the go. Combo unit locations, which house both a Tim Hortons and a Wendy's, offer guests the convenience of both restaurants under one roof. Additionally, the 'we fit anywhere' strategy has led to a number of non-traditional locations in gas stations, convenience stores, universities, hospitals, office buildings and airports. Tim Hortons is the fourth largest publicly-traded quick service restaurant chain in North America based on market capitalization, and the largest in Canada. As of October 2, 2011, Tim Hortons has 3,871 system wide restaurants, including 3,225 in Canada, over 645 in the United States.
LOCATION OVERVIEW CLINTON TOWNSHIP, MICHIGAN Clinton township was organized as Huron Township on August 12th, 1818, named after what was known as the Huron River. After some confusion with another Huron River south of Detroit, on July 17th, 1824, the Michigan Territorial Legislature renamed both the township and the river after DeWitt Clinton, the popular governor of New York from 1817 to 1823 who was largely responsible for the building of the Erie Canal which enabled settlers to come to Michigan. The subject property is located in Clinton Township, MI. Clinton Township is located approximately 30 minutes north of Detroit and with an average increase in residential homes of 300-400 per year since 1990, Clinton Township is one of the fastest growing areas in the state of Michigan. In 2013, the population in this selected geography was 238,487. The median household income in this selected geography was $59,274, compared to the US average, which is currently $51,017 as of September 17th, 2013. Gratiot Avenue is one of the most trafficked roads in the entire county and is considered a major retail corridor that runs all the way to downtown Detroit. METRO DETROIT The Detroit metropolitan area, often referred to as Metro Detroit, is the metropolitan area located in Southeast Michigan centered on the city of Detroit which shares an international border with Windsor, Ontario. The Detroit metropolitan area is the second largest U.S. metropolitan area connecting the Great Lakes system to the Saint Lawrence Seaway.
97,000+ VPD
Population 1 Mile 3 Mile 5 Mile 2014 Total Population: 14,526 79,648 181,198 2019 Population: 14,837 81,170 184,651 Pop Growth 2014-2019: 2.14% 1.91% 1.91% Average Age: 38.30 40.00 40.80 2014 Total Households: 6,765 34,516 77,297 HH Growth 2014-2019: 2.34% 1.96% 1.93% Median Household Inc: $38,595 $42,724 $46,701 Avg Household Size: 2.10 2.30 2.30 2014 Avg HH Vehicles: 2.00 2.00 2.00 Median Home Value: $91,365 $92,002 $102,288 Median Year Built: 1975 1968 1969 Households Housing Population: 2019 Projection 2014 Estimate 2010 Census Growth 2014-2019 Growth 2010-2014 2014 Population Hispanic Origin 2014 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other Households: 2019 Projection 2014 Estimate 2010 Census Growth 2014-2019 Growth 2010-2014 Owner Occupied Renter Occupied 2014 Avg Household Income 2014 Med Household Income 2014 Households by Household Inc: <$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+ 14,837 14,526 14,109 2.14% 2.96% 408 81,170 79,648 77,962 1.91% 2.16% 1,870 184,651 181,198 177,399 1.91% 2.14% 4,345 10,601 3,319 66 183 4 352 63,075 13,197 288 1,117 31 1,941 150,486 23,519 669 2,447 59 4,020 6,923 6,765 6,534 2.34% 1.44% 3,185 3,580 $52,302 $38,595 35,194 34,516 33,741 1.96% 0.78% 23,100 11,417 $57,103 $42,724 78,791 77,297 75,652 1.93% 0.59% 54,296 23,001 $61,778 $46,701 2,074 2,096 1,103 672 396 160 202 62 9,108 10,331 5,734 4,408 2,234 1,216 1,103 382 19,963 20,909 13,311 9,940 5,660 3,099 2,907 1,509
MORE THAN $3.1 BILLION IN SALES Fortis Net Lease is a national investment real estate brokerage firm specializing in the acquisition and disposition of investment real estate. We help developers, franchisees, private investors and institutional funds accomplish their short and long term investment goals. The principals of Fortis Net Lease have successfully sold hundreds of properties in over three dozen states with a total transaction volume topping $2.5 billion. Fortis Net Lease specializes in the acquisition and disposition of the following: Net leased single tenant properties (Pharmacies, Auto Parts, Dollar Stores, Banks, QSR, Office/Industrial, Medical, Junior/Big Box, etc.) Portfolios & Corporate Sale-Leaseback Transactions (Burger King, Arby s, Tutor Time, Taco Bell, Wendy s, etc.) Multi-Tenant Retail Centers & Medical Office (Anchored or Unanchored - 5,000-1,000,000 SF) The advisors at Fortis Net Lease create long term relationships with our investors by delivering superior services and unparalleled results. When you hire Fortis Net Lease as your exclusive representative you will experience the individual attention and professionalism that you will not receive at other large brokerage firms. OUR TEAM DOUG PASSON ROB BENDER BRYAN BENDER RICHARD LUDWIG MARVIN DELAURA MIKE CARTER Associate Director Senior Director Senior Associate Senior Associate (248)254.3410 (248) 254.3410 (248) 254.3410 (248) 254.3410 (248) 254.3410 (248) 254.3410 PAT HAMMOND FRANK ROGERS KYLE CARSON BEN SCHULTZ MIKE JAWORKSKI FORTIS NET LEASE Senior Associate Senior Associate Business Development Business Development Senior Associate 30445 Northwestern Highway, Suite 345 This information is deemed confidential and privileged and may contain inside information. If you are not the intended receiver do not read, copy or distribute this offering memorandum, instead delete or destroy it and contact one of our representatives. This information is believe to be accurate but is not represented or warranted by Fortis Net Lease or any of our agents or contractors.