IHOP Single Tenant Retail Investment 18 Year Abs NNN 24 Hour Location 1240 N Dixie Highway, Monroe, MI 48162 O F F E R I N G M E M O R A N D U M Click Image For Online Property Map
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INVESTMENT SUMMARY List Price: $2,083,333 Current NOI: $125,000 Initial Cap Rate: 6.0 % Average Cap Rate: 6.67 % Land Acreage: 1.38 Acres +/- Year Built: 1972 Year Renovated: 2015 Building Size: 4,910 SF Google Aerial Map: Click HERE Google Street Map: Click HERE LEASE SUMMARY Lease Type: Taxes/CAM/Insurance: Structure/Roof/Parking: Lease Term: Rent Commencement: Rent Expiration: Term Remaining: Rent Increases: Option Periods: Option Rent Increase: Guarantee: Absolute NNN Tenant Responsibility Tenant Responsibility 18 Years Upon Close of Escrow 18 years after COE 18 Years Yes -8% Every 5 Years Two(2), Five(5) Year Options 8% in each Option Trinity Restaurant Group, LLC (13 unit franchisee) INVESTMENT HIGHLIGHTS 18 Year Absolute NNN Investment Sale Leaseback Recently Renovated (2015) 24 Hour IHOP location at a well know travelers stop just off the interstate express way Zero Landlord Responsibilities 8% Rental Increases every 5 Years (First one in year 2023) Two (2)- Five (5) Year Renewal Options with increases Guarantee - Trinity Restaurant Group, LLC - 2 Time IHOP Franchisee of the Year winners with 13 IHOP locations in Michigan and a 14th location scheduled to open in 2018 100% Leased to IHOP Restaurant, a Subsidiary of DineEquity, Inc. which is the Largest Casual-Dining Restaurant Chain in the World LOCATION HIGHLIGHTS Located in a well Known Travelers Stop Along the Heavily traveled I-75 with More Than 68,000 VPD Monroe is Home of the La-Z-Boy World Headquarters, 14 Miles North of Toledo and 25 miles South of Detroit, Just off of the Interstate 75 Nearby National Retailers Include McDonalds, Taco Bell, Wendy's, Cracker Barrel, Denny's, Subway, Tim Hortons, Also Nearby are Major Hotel Chains including Quality Inn, Days Inn, and Holiday Inn Average Household Income Exceeds $65,000 Within 1 Mile Median Home Value Within 1 Mile Exceeds $124,079
INVESTMENT OVERVIEW Fortis Net Lease is proud to present the Sale Leaseback of this free-standing IHOP restaurant in Monroe, MI. The investment has an 18 year Absolute NNN lease with zero landlord responsibilities and 8% increases every 5 years with the first increase coming in 2023.. The property is located at the signalized corner of N Dixie Hwy and Ternes Dr. with ingress/egress points on both roads. This is a 24 hour location which was renovated into an IHOP in 2015. The location is just off of Interstate 75, one of the main highways traveled to enter into or depart from metro-detroit, and North Dixie Highway is a well known travel stop along I-75. The award winning operators, 2 Time IHOP Franchisee of the Year winners, are seasoned restauranteurs with 13 IHOP locations in MI and a 14th location opening in 2018. This is an ideal opportunity for an investor to purchase a passive income real estate asset with absolutely zero management responsibilities. The tenant is responsible for all property taxes, insurance, and capital expenditures including the roof, structure, & HVAC. TENANT OVERVIEW IHOP - officially known as the International House of Pancakes, is an American multinational pancake house/fast casual family restaurant chain that specializes in breakfast foods. It is owned by DineEquity, with 99% of the restaurants run by independent franchisees. In the past, the world knew us as IHOP, an American icon to it s guests and a franchising company that was focused on providing strategic leadership and vision for it s franchisees and on enhancing value for it s shareholders. With the addition of Applebee s to the IHOP family of restaurants in November 2007, they made a bold new commitment to their brand revitalization abilities and to the power of franchising. DineEquity promises to make its two businesses more powerful and more successful than either brand could have been apart. In October of 2012, DineEquity successfully completed the transition of Applebee s to a 99% franchised restaurant system. The goal remains to provide delicious, innovative dishes and exceptional guest experiences each and every time a guest walks through either brand s doors. With more than 3,600 restaurants combined in 17 countries, over 400 franchisees and approximately 200,000 team members (including franchisee- and company operated restaurant employees), DineEquity is one of the largest full-service restaurant companies in the world. TRINITY RESTAURANT GROUP, LLC Trinity Restaurant Group LLC was founded in early 2004 by John Baker and Dino Savant and currently operates 13 IHOP locations in MI. John and Dino worked throughout the corporate structure of many national and international brands ranging from quick serve to casual dining. Both partners specialized in a wide variety of areas within the industry, enabling them to apply a diverse skill-set that later allowed them to foster a well respected IHOP Restaurant chain in the Michigan region. Today their family of companies has grown from owning and operating 5 restaurants to over 31 locations ranging from casual to quick serve dining. John and Dino continue to be active within the restaurant industry and are actively involved in the IHOP Marketing Committee, Development Committee, and the Franchisee Co-op.
Monroe, MI Monroe is a community that has a shared vision that seeks to balance the opportunities of economic development with the stewardship that is required for historic preservation. Monroe is also Michigan s third oldest community. With a population of nearly 23,000, Monroe is located about 17-miles north of Toledo, Ohio and about 35-miles south of Detroit. The City of Monroe was incorporated in 1817 and is also the county seat of Monroe County. Monroe s location on the west shore of Lake Erie and its River Raisin made it a natural crossroads for food and transportation that attracted the Potawatomi Tribe of Indians who first lived here. Later, French missionaries, fur trappers, and settlers came for the same reasons. Residents and visitors today continue to find Monroe to be a welcoming crossroads of historic and natural treasures. The city is home to the National Register of Historic Places War of 1812 River Raisin Battlefield. Monroe s natural environment is showcased and preserved by having the 260 -acre Eagle Island Marsh unit of the Detroit River International Wildlife Refuge located in it. And the inland sea of Lake Erie offers boating, swimming, camping, wetlands exploration, hiking, and fishing, at the 1,300-acre Sterling State Park on the shores of Lake Erie.
New Development - ProMedica Hospital 134 Beds - Four Story Hospital Industrial Park
Industrial Park - Including Backyard Products Howard Ternes Packaging Plant Advanced HeatTreat Corporation Ammex Plastics Fluid Equipment Development SYGMA Network Pioneer Metal Finishing National Galvanizing LP Monroe Aluminum Products
Largest Employers in Monroe, MI ProMedica Regional Hospital Monroe County of Monroe DTE Energy La-Z-Boy Gerdau Macsteel Monroe Bank & Trust City of Monroe SYGMA Network 50,612 People Live Within 5 Miles Average Household Income Exceeds $65,000 Within 1 Mile
Population 1 Mile 3 Miles 5 Miles 2017 Total Population: 2,221 31,801 50,612 2022 Population: 2,205 31,600 50,249 Average Age: 37.30 39.00 39.80 Households 2017 Total Households: 855 12,574 19,978 Median Household Inc: $49,106 $43,172 $44,597 Avg Household Size: 2.60 2.40 2.50 2017 Avg HH Vehicles: 2.00 2.00 2.00 Housing Median Home Value: $124,079 $122,931 $132,056 Median Year Built: 1956 1955 1963 Population: 1 Mile 3 Miles 5 Miles 2022 Projection 2,205 31,600 50,249 2017 Estimate 2,221 31,801 50,612 2010 Census 2,255 32,130 51,336 2017 Population Hispanic Origin 90 1,731 2,424 2017 Population by Race: White 2,024 28,551 46,368 Black 108 1,927 2,315 Am. Indian & Alaskan 10 161 220 Asian 11 244 431 Hawaiian & Pacific Island 1 14 18 Other 67 903 1,260 U.S. Armed Forces: 5 26 26 Households: 2022 Projection 849 12,495 19,831 2017 Estimate 855 12,574 19,978 2010 Census 867 12,696 20,271 Growth 2017-2022 (0.70%) (0.63%) (0.74%) Growth 2010-2017 (1.38%) (0.96%) (1.45%) Owner Occupied 655 7,681 13,768 Renter Occupied 200 4,893 6,210 2017 Avg Household Income $65,091 $56,401 $61,647 2017 Med Household Income $49,106 $43,172 $44,597 2017 Households by Household Inc: <$25,000 201 3,343 4,940 $25,000 - $50,000 234 3,913 5,939 $50,000 - $75,000 137 1,824 2,972 $75,000 - $100,000 120 1,810 2,938 $100,000 - $125,000 62 831 1,371 $125,000 - $150,000 48 426 731 $150,000 - $200,000 38 269 593 $200,000+ 15 158 493
E XC LU S I V E LY L I S T E D BY: ABRAHAM LEON Senior Associate 248.419.3625 aleon@fnlre.com IHOP [ www.fortisnetlease.com