THE VILLAGE OF WOODHAVEN - 19800 WEST ROAD | WOODHAVEN, MICHIGAN - OFFERING MEMORANDUM
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Offering Memorandum
Capital Markets | Investment Properties
THE village of woodhaven
19800 w e s t r oa d | w o o d h av e n, m i c h i g a n
Affiliated Business Disclosure CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. Confidentiality Agreement This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc. Disclaimer © 2016 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
ta b l e o f co n t e n t s
01 02 03 04 05
executive Marke t Sale Rent Financial
summary Over vie w Compar ables Comparables Over vie w &
Rent Roll
Executive Summary
investment highlights
Q UALIT Y ASSET, B RAND NEW
CONSTRU C TION , r e n ta l e s c a l at i o n s Price per square
Cap rate
The Village of Woodhaven is brand new, ground-up foot
construction with a delivery date of fourth quarter, 2015 asking Price
for the majority of the tenants. 6.53% $421
$6,750,000
M INI M AL LANDLORD RESPONSI B ILITIES
Due to the small amount of common area, the subject
property requires minimal landlord responsibilities.
Additionally, all tenants are on NNN leases (landlord
is responsible for all roof and structure) in which
they reimburse for all operating expenses including
management fees plus pay an administration fee on top of
CAM.
RELO C ATION STORE FOR PANERA
B READ, E Q UIPPED WITH DRIVE - THRU
Panera Bread, the largest tenant, occupies 27% of the
center for their new store with a drive-thru. Panera Bread
has expanded and added a drive-thru as part of the
relocation to the property.
Strong demographics
Located within a strong demographic and high growth
market with an average household income of $65,000+
and a population of 130,000+ within a five-mile radius.
LO C ATED ALONG a M A J OR r e g i o n a l
RETAIL CORRIDOR , B ENEFITS FRO M
EXC ELLENT TRAFFI C COUNTS
The Village of Woodhaven is located along Woodhaven’s
retail corridor and is surrounded by numerous national and
regional tenants including Target, Meijer, Lowes’s, Walmart
Supercenter, LA Fitness, Kohl’s, and many more. Traffic
counts of 30,441 VPD along West Road and 23,265 along
Allen Roads.
5 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m i
The offering prominent out-parcel to the former Big K-mart redevelopment that is
currently underway. Notable retail tenants in the near vicinity include
CBRE, Inc. has been retained by the owner as the exclusive marketing Starbucks, Target, Walmart Supercenter, Buffalo Wild Wings, Meijer,
advisor for the disposition of The Village of Woodhaven, a newly Lowe’s, Home Depot, HomeGoods, Kohl’s and many more. As the
constructed multi-tenant shopping center, located at 19800 West entire development continues to land new tenants, more synergies
Road in Woodhaven, Michigan 48183. and foot traffic will continue to drive sales for all of the tenants located
within the development.
investment overview
The Village of Woodhaven presents a unique opportunity to acquire
The Village of Woodhaven is a newly constructed shopping center a high quality retail center located along West and Allen Roads in
that consists of two buildings totaling 16,029 square feet located on Woodhaven, Michigan. The center is highly visible and benefits from
a 2.43-acre parcel. The center will be 100% occupied by six tenants more than 30,441 vehicles driving past each day. The asset benefits
prior to the close of escrow. All tenants will operate under new 10-year from a high-income trade area, 100% occupancy, long-term leases,
net leases, except for T-Mobile which will be a 5-year net lease, each contracted rental increases, and an excellent location in the heart of
carrying multiple renewal options. Woodhaven’s Central Business District providing for increased density
and further development in the future. Substantially higher disposable
The largest tenant, Panera Bread, which occupies 27% of the center on incomes and strong and growing population figures make the Village
a brand new 10-year lease, has relocated to this location from directly of Woodhaven a highly sought after investment market for both
across the street due to its prime location and excellent access, along retailers and investors.
with the fact that this location permits a drive-thru. The second largest
tenant is Art Van Pure Sleep (mattress store) which occupies 24% of free and clear of existing financing
the center, also on a new 10-year lease. Other tenants include Panda
Express, Massage Green and T-Mobile (Wireless Vision, LLC). The This asset is being offered free and clear of existing financing. The
landlord recently signed a new 10-year lease with the European Wax marketing package includes attractive proposed financing. For further
Center. details please see page 26.
All tenants are on brand new triple net (NNN) leases in which
they are responsible for reimbursing the landlord for all operating
expenses including real estate taxes, property insurance, common
area maintenance (CAM), plus management fees. Furthermore, the
tenants are also to pay an administrative fee on top of CAM. Please
refer to the rent roll for further details. The only landlord replacement
responsibilities are for the roof and structure.
The average household income within a three-mile radius exceeds
$68,800 along with a dense demographic has over 130,000 people
within a five-mile radius, which allows the tenants a strong,
neighborhood client base. This asset will continue to appreciate in
years to come as more professionals relocate to this outstanding
community. Built with uncompromising quality and best in class
design, the Village of Woodhaven Shopping Center is known as a
6 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m i
THE VILLAGE OF WOODHAVEN | 19800 WEST ROAD | WOODHAVEN, MICHIGAN
proper t y over vie w
Cap rate Price per square foot
Portion of Parcels 59-038-99-0002-701 asking Price
pa r c e l n u mb e r 6.53% $421
and 59-03899-0002-702 $6,750,000
zo n i n g CBD, Central Business District
n u mb e r o f t e n a n t s Six
propert y t ype Multi-Tenant Retail
t ype of ownership Fee Simple
Pa r k i n g Dedicated Surface Parking Lot
f r o n ta g e Approximately 519’ along West Road
e x t e r i o r wa l l s Brick
roof Rolled Rubber Membrane
f o u n d at i o n Concrete
F i r e P r ot e c t i o n To Code
h va c Roof Mounted Units
WAY NE 100% 20 15 2 . 4 3 Ac r e s 1 6 ,0 2 9 SF T wo
county Current Occupancy Year Built Total land Area Net Rentable Area Total Buildings
7 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m i
site plan and parking field
PROPOSED
8 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m i
site plan and parking field 9 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m i
proper t y sur vey
PARCEL 2
10 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m itenant over vie w
Panera Bread is a chain of bakery-café fast casual restaurants in the United States and Canada. Its headquarters
are in Sunset Hills, Missouri, a suburb of St. Louis, and operates as Saint Louis Bread Company in the St. Louis
metropolitan area. It sells freshly baked bread, bakery items, pasta, panini and sandwiches, flatbread, and soups.
The company operates or franchises 1,800 Panera Bread bakery-cafes in 40 states.
website: www.panerabread.com
Massage Green Spas are designed and built mostly out of environmentally friendly materials. It incorporates
a membership-based model and simple operations. It is Headquartered in Farmington Hills, Michigan and
opened its first store in Dearborn in 2008 and 500 spas in development. Massage Green services include
therapeutic massages such as Swedish, deep tissue, sports reflexology, trigger point, cranial sacral, reiki, and
prenatal plus hot stone and aromatherapy and express massages. website: www.massagegreenspa.com
T-Mobile USA is a national provider of wireless voice, messaging, and data services. T-Mobile is headquartered in Bellevue,
Washington and employees approximately 45,000 employees. T-Mobile US, Inc. (NYSE: “TMUS”) is a publicly traded company.
website: www.tmobile.com
The tenant on the lease is Wireless Vision, LLC a Michigan Limited liability Company. Wireless Vision, LLC operates over 200
T-Mobile stores in 14 different markets, making the company one of the largest T-Mobile Exclusive Retailers in the country.
Currently, Wireless Vision operates stores in Michigan, Arizona, Illinois, Kansas, Missouri, Colorado, Florida, Indiana, Minnesota,
Wisconsin, Oklahoma, Georgia and Ohio. website: www.wirelessvision.com
Based in Warren, Michigan, Art Van launched its first PureSleep unit, a 5,000-square-foot, freestanding specialty
store in Canton, Mich., in 2009. It soon converted the bedding departments in all of its full-line stores to the
format. In 2011, Art Van acquired the Mattress World chain of 31 stores throughout Michigan and Indianapolis.
With the conversion of the former Mattress World locations, Art Van now has 43 freestanding PureSleep stores
and 39 Art Van stores with in-store PureSleep presentations for a total of 82 locations, including four franchised
operations. website: www.artvan.com
Panda Express is a fast casual restaurant chain which serves American Chinese cuisine. It operates mainly in the United States,
where it was founded, and is the largest chain of its kind in that country. Panda Express restaurants were traditionally located
in shopping mall food courts, but the chain now operates units in many other environments and formats, including stand-
alone restaurants, as well as universities, casinos, airports, military bases, and other venues. Panda Express has over 1,500
restaurants, located in 51 U.S. states, Puerto Rico, Guam, Canada, Mexico, Korea, and the United Arab Emirates. The company
does not offer franchises. All units are company-owned and operated. website: www.pandaexpress.com
11 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m iproper t y photos 12 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m i
marke t over vie w
location over vie w
Area Overview
The Village of Woodhaven Shopping Center is located at the northeast corner of It is also considered to be a part of a collection of 18 suburban communities
Allen and West Roads with direct visibility and access points along both major known as “Downriver”. Downriver is an unofficial name for the collection
roadways. This is the heart of the Woodhaven retail corridor and it benefits from of the cities of Taylor, Lincoln Park, Allen Park, Wyandotte, River Rouge,
its close proximity and access to I-75. The center is brand new construction and Melvindale, Ecorse, Woodhaven Romulus, Dearborn, Dearborn Heights,
is considered an outparcel to the former Big K-mart redevelopment. There are and Inkster.
multiple offers on the big box redevelopment space for tenants up to 100,000
square feet in size. WAYNE COUNTY, Michigan
Wayne County is the most populous county in the state of Michigan. The
The property is located within the Downriver South retail submarket comprising estimated population in 214 was approximately 1,765,000 making Wayne
of 1,073 buildings totaling 12.6 million square feet of retail space. Within a one County the 19th most populous county in the United States. Wayne County
mile radius of the subject property, there are 67 retail buildings totaling 1.7 provides an abundance of transportation routes with I-75 connecting
million square feet with a current occupancy of 87%. However, please note that eastern Wayne County to Toledo to the south and Flint to the north, I-94
running east-west through the central parts of Wayne County, US 12
a large part of this vacancy is the former Big Kmart that is a redevelopment
starting in Detroit and continuing west, and many other easily accessed
site that sits just behind the subject property and is on a 12.5 acre parcel with
routes.
119,000 square feet available for lease. The subject property is located within a
quarter of a mile from multiple major national retailers including Target (110,000
SF), Walmart (SF), The Home Depot (107,000 SF), Meijer (approximately 180,000
Redeveloping
SF), Kohl’s (88,783 SF), LA Fitness, Lowe’s (130,000 SF), Starbucks, Panera, Buffalo Redeveloping
Mid-Box Space Big Box Space
Wild Wings and more.
WOODHAVEN, Michigan
Woodhaven is a suburb in southern Wayne County, Michigan it is approximately
20 miles south of the City of Detroit, 20 miles from the Detroit Metropolitan airport
and 45 miles east Ann Arbor and 40 miles north of Toledo, Ohio. Woodhaven is
known for a its beneficial blend of residential and commercial. There are beautiful
parks, convenient shopping, and numerous businesses and industry that serve SITE
the residents and provide employment. The city has evolved into a place where its
residents live, work, and play. The top three industries in the City of Woodhaven VPD
0,441 Concentra Medical
RD. 3
are transportation, warehousing and retail. This is illustrated by the fact that it is WEST
23,265 VPD
Home to the Ford Stamping Plant. The Ford Woodhaven Stamping Plant employ
reportedly more than 1,000 people and manufactures door panels, floor pans,
hoods, quarter panels, roofs, tailgates and truck body sides. The plant is located
on 350+ acres and totals 2.6+ million square feet of space.
ALLEN RD.
14 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m iAerial showing site location
Redeveloping Redeveloping
Mid-Box Space Big Box Space
SUBJECT PROPERTY
VPD
R D. 30,441
WES T
23,265 VPD
ALLEN RD.
WALMART
15 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m iDEMOGRAPHIC BRIEF
area demogr
19800 WESTaphics
RD
1 Mile 3 Miles 5 Miles
POPULATION
2015 Population 5,463 58,355 138,568
2020 Population 5,346 58,394 138,246
2010 Population 5,612 58,469 139,311
2000 Population 5,945 55,344 133,954
Percent Pop Change: 2010 to 2015 -2.7% -0.2% -0.5%
Percent Pop Change: 2015 to 2020 -2.1% 0.1% -0.2%
AGE
2015 Median Age 45.6 42.4 41.7
2015 Average Age 43.5 41.3 40.9
DEMOGRAPHIC BRIEF
HOUSEHOLDS
597 S ADAMS RD
2015 Households 2,459 23,739 56,340
1 Mile 3 Miles 5 Miles
2020 Households P O P U L A T I O N 2,440 23,827 56,419
2015 Population 15,319 93,826 234,658
2010 Households 2,472 23,635 56,236
2020 Population 15,809 95,590 238,436
2000 Households 2010 Population 2,445 21,602 14,757 52,608 91,751 230,230
2000 Population 14,159 94,917 238,749
Percent HH Change: 2010 to 2015 -0.5% 0.4% 0.2%
Percent Pop Change: 2010 to 2015 3.8% 2.3% 1.9%
Percent HH Change: 2015 to 2020 -0.8%
Percent Pop Change: 2015 to 2020 0.4% 3.2% 0.1% 1.9% 1.6%
Average Household Size AGE 2.3 2.4 2.4
2015 Median Age 40.7 42.2 42.8
INCOME 2015 Average Age 39.9 41.4 41.8
SITE
2015 Median Household Income H O U S E H O L$55,631
DS $54,038 $51,261
2015 Average Household Income 2015 Households $65,788 $67,172 $65,344
7,543 41,948 101,319
2020 Households 7,813 43,080 103,732
2015 Per Capita Income 2010 Households
$29,619 $27,326 $26,568
7,221 40,528 98,284
2000 Households 7,358 41,936 100,804
HOUSING UNITS Percent HH Change: 2010 to 2015 4.5% 3.5% 3.1%
Percent HH Change: 2015 to 2020 3.6% 2.7% 2.4%
Average Household Size 2.1 2.2 2.3
2015 Housing Units 2,631 25,586 60,880
2015 Occupied Housing Units INCOME 2,459 23,739 56,340
2015 Vacant Housing Units 2015 Median Household Income 171 1,847 $82,543 4,540 $73,044 $71,291
2015 Average Household Income $123,098 $106,453 $101,988
2015 Owner-Occupied Housing Units 2015 Per Capita Income
2,021 17,147 $60,615
41,043 $47,593 $44,036
2015 Renter-Occupied Housing Units 438 6,592 15,297
HOUSING UNITS
EDUCATION 2015 Housing Units
Occupied Units
8,326
7,543
45,624
41,948
109,029
101,319
Vacant Housing Units 782 3,676 7,709
2015 Population Age 25 and Over 2015 Owner-Occupied Housing Units
3,993 40,750 5,073
96,196 29,743 73,878
High School thru Associates 2,771
2015 Renter-Occupied Housing Units 69.4% 27,644 67.8% 2,470 65,697 68.3%
12,205 27,441
Bachelor's Degree EDUCATION 660 16.5% 6,052 14.9% 13,085 13.6%
Graduate Degree 2015 Population Age 25 and Over 252 6.3% 3,167 7.8% 10,912 6,948 7.2%
67,562 168,483
High School thru Associates 2,910 26.7% 25,171 37.3% 68,241 40.5%
PLACE OF WORK Bachelor's Degree
Graduate Degree
3,978 36.5%
3,800 34.8%
21,478 31.8%
18,417 27.3%
51,108 30.3%
41,254 24.5%
Total Businesses P L A C E O F W O R438
K 2,149 5,075
Daytime Employment (Total Employees) Total Businesses 6,473 31,030 2,357 63,095 8,634 20,164
Daytime Employment (Total Employees) 17,893 99,313 240,476
©2015 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions
©2015 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions,
or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to
16 | THE
determine V i l lsatisfaction
to your a g e theosuitability
f wofotheoproperty
d h av eneeds.
for your n | Source:
w oNielsen
odh av
Page en, mi
1 ProjectID:37450
assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the
property to determine to your satisfaction the suitability of the property for your needs. Source: Nielsen
Page 1 ProjectID:25163sale compar ables
RECENT COMPARABLE SALES
Year Building Occupancy
Building Name Address Sale Date Sales Price Price/SF Cap Rate Comments
Built Size (SF) at Sale
The Village of Woodhaven is a brand new shopping center that is 100%
Village of Woodhaven
occupied by national, local and regional tenants. All tenants are on NNN leases
19800 West Road 1991 16,029 $6,750,000 $421 100% 6.53%
in which they reimburse the landlord for all operating expenses along with
Woodhaven, MI
management fees and admin fees.
All tenants are on brand new 10-year corporate leases with 10% rental increases
throughout base term and option periods. Tenants include Panda Express,
Maple Grove Plaza
Mattress Firm, Pacific Dental and NAF. Retailers in the immediate vicinity include
5 12725 Elm Creek Boulevard N 2015 11,612 Under Contract $7,787,406 $671 100% 6.40%
Target, Lowe’s Home Improvement, Costco, Nordstrom Rack, Home Depot,
Maple Grove , MN
Walmart Supercenter, Old Navy, Bed Bath & Beyond, TJ Maxx, Dick’s, and many
others.
Starbucks & Marco's Pizza The center is new construction occupied by Starbucks on a 10 year lease and
6 7920 Senoia Road 2015 3,480 10/12/2015 $1,675,000 $481 100% 6.25% Marco's Pizza, also on a 10 year lease. There are many new developments
Fairburn, GA surrounding the center.
The property is an outlot to a new Menard's home improvement store and is in
an area with a concentration of retailers including Home Depot, Sears Outlet,
Big Lots, Dunham's, Meijer, Marshalls, Michaels, PetSmart, Walmart, Target, LA
Fitness, Costco and many inline and restaurant/bank users. The property
Outlot Shopping Center
includes two curb cuts along an interior drive way to Menards with Starbuck's
7 12961 Middlebelt 2015 6,798 1/8/2015 $3,060,000 $450 100% 7.03%
being a drive thru location. The tenants within the center include AT&T, Starbucks
Livonia, MI
and The Vitamin Shoppe who have all signed new 10 year lease deals. Traffic
counts along Middlebelt Road are approximately 45,000 cars per day. Within a
three mile radius there are approximately 37,179 households with an average
household income of $68,070.
Lincoln Park West is an iconic 37,615 square foot Chicago retail property
situated at the base of a residential tower along Lincoln Park West and Clark
Street, two retail thoroughfares that border Lincoln Park. Located on the ground
level of a 16-story luxury condominium building, the site enjoys vertical
Lincoln Park West separation status meaning the property is not subject to redevelopment and use
8 2000-2056 Lincoln Park West 1934 37,615 8/27/2014 $13,500,000 $359 100% 6.65% restrictions normally imposed by a condominium association. With four in-places
Chicago, Il leases, Lincoln Park West is currently 100% occupied by high credit national
tenants. The improvements were originally developed in 1934 on a 0.41-acre
site zoned, B1-3. In-place rental rates range from $35.00 to $48.00 per square
foot at street level, while PNC pays $15.50 per square foot for its upper level
space.
The property is an outlot to a Meijer Supercenter and is located in the Golden
Corridor retail shopping district. The property is also proximate to Lakeside Mall;
Outlot Shopping Center a 1.3 million square foot regional mall anchored by Macy's, Sears, JCPenney
9 15069-15099 Hall Road 2013 12,156 7/15/2014 $5,200,000 $428 100% 7.12% and Lord & Taylor. The property was 100% occupied at the time of sale and
Shelby Township, MI included Starbucks (drive thru), Menchie's Frozen Yogurt, Piada, DiBella's Subs
and Qdoba. Within a three mile radius to the property there are 43,112
households with an average household income of $56,517.
Comparable Averages $500 100% 6.47%
18 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m iRECENT COMPARABLE SALES
Year Building Occupancy
Building Name Address Sale Date Sales Price Price/SF Cap Rate Comments
Built Size (SF) at Sale
The Village of Woodhaven is a brand new shopping center that is 100%
Village of Woodhaven
occupied by national, local and regional tenants. All tenants are on NNN leases
19800 West Road 1991 16,029 $6,750,000 $421 100% 6.53%
in which they reimburse the landlord for all operating expenses along with
Woodhaven, MI
management fees and admin fees.
All tenants are on brand new 10-year corporate leases with 10% rental increases
throughout base term and option periods. Tenants include Panda Express,
Maple Grove Plaza
Mattress Firm, Pacific Dental and NAF. Retailers in the immediate vicinity include
5 12725 Elm Creek Boulevard N 2015 11,612 Under Contract $7,787,406 $671 100% 6.40%
Target, Lowe’s Home Improvement, Costco, Nordstrom Rack, Home Depot,
Maple Grove , MN
Walmart Supercenter, Old Navy, Bed Bath & Beyond, TJ Maxx, Dick’s, and many
others.
Starbucks & Marco's Pizza The center is new construction occupied by Starbucks on a 10 year lease and
6 7920 Senoia Road 2015 3,480 10/12/2015 $1,675,000 $481 100% 6.25% Marco's Pizza, also on a 10 year lease. There are many new developments
Fairburn, GA surrounding the center.
The property is an outlot to a new Menard's home improvement store and is in
an area with a concentration of retailers including Home Depot, Sears Outlet,
Big Lots, Dunham's, Meijer, Marshalls, Michaels, PetSmart, Walmart, Target, LA
Fitness, Costco and many inline and restaurant/bank users. The property
Outlot Shopping Center
includes two curb cuts along an interior drive way to Menards with Starbuck's
7 12961 Middlebelt 2015 6,798 1/8/2015 $3,060,000 $450 100% 7.03%
being a drive thru location. The tenants within the center include AT&T, Starbucks
Livonia, MI
and The Vitamin Shoppe who have all signed new 10 year lease deals. Traffic
counts along Middlebelt Road are approximately 45,000 cars per day. Within a
three mile radius there are approximately 37,179 households with an average
household income of $68,070.
Lincoln Park West is an iconic 37,615 square foot Chicago retail property
situated at the base of a residential tower along Lincoln Park West and Clark
Street, two retail thoroughfares that border Lincoln Park. Located on the ground
level of a 16-story luxury condominium building, the site enjoys vertical
Lincoln Park West separation status meaning the property is not subject to redevelopment and use
8 2000-2056 Lincoln Park West 1934 37,615 8/27/2014 $13,500,000 $359 100% 6.65% restrictions normally imposed by a condominium association. With four in-places
Chicago, Il leases, Lincoln Park West is currently 100% occupied by high credit national
tenants. The improvements were originally developed in 1934 on a 0.41-acre
site zoned, B1-3. In-place rental rates range from $35.00 to $48.00 per square
foot at street level, while PNC pays $15.50 per square foot for its upper level
space.
The property is an outlot to a Meijer Supercenter and is located in the Golden
Corridor retail shopping district. The property is also proximate to Lakeside Mall;
Outlot Shopping Center a 1.3 million square foot regional mall anchored by Macy's, Sears, JCPenney
9 15069-15099 Hall Road 2013 12,156 7/15/2014 $5,200,000 $428 100% 7.12% and Lord & Taylor. The property was 100% occupied at the time of sale and
Shelby Township, MI included Starbucks (drive thru), Menchie's Frozen Yogurt, Piada, DiBella's Subs
and Qdoba. Within a three mile radius to the property there are 43,112
households with an average household income of $56,517.
Comparable Averages $500 100% 6.47%
19 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m iAVERAGE CAP RATE
Average Cap Rate
8.0%
7.03% 7.12%
6.75% SUBJECT Cap
6.65%
6.45% Rate - 6.53%
6.40%
6.25% 6.25%
Average Cap
6.0%
Rate 6.47%
5.35%
4.0%
2.0%
0.0%
1 2 3 4 5 6 7 8 9
The average cap rate for similar brand new shopping center sale transactions is 6.47%. Therefore, the subject
property, at an asking cap rate of 6.53%, is priced more competitively than the market.
20 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m iAVERAGE PRICE PER SQUARE FOOT
Average Price per Square Foot
$810
$710 $692
$671
$610
Comp Average price
$514 per SF $500
$510
$478 $481
$450
$430 $428
SUBJECT Price
$410
per SF $421
$359
$310
$210
$110
$10
1 2 3 4 5 6 7 8 9
The average price for similar brand new shopping center sale transactions is $500 per square
foot. Therefore, the subject property, at an asking price of $421 per square foot, is priced more
competitively than the comparable market.
21 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m irent comparables
COMPARABLE rents
Actual
Signed Average Expense
Building Name Building Current
Year Built Lease Status Lease SF / Rental Rate Recovery Comments
Address Size (SF) Occupancy
Available (NNN) Type
SF
The Village of Woodhaven is a brand new
shopping center that is 100% occupied by
Village of Woodhaven national, local and regional tenants. All
19800 West Road 16,029 2015 100% 0 $29.23 NNN tenants are on NNN leases in which they
Woodhaven, MI reimburse the landlord for all operating
expenses along with management fees and
admin fees.
Actual Signed Lease: Art Van Pure Sleep signed a new
five year lese for $30.00 per squre foot NNN. The
property is the redevelopment of a former retail,
Orchard-Maple Plaza - Art Van Pure Sleep restaurant and gas station into a mixed use two story
10/2013 -
1 6440-6490 Orchard Lake Road 21,849 2013 84% 4,000 $30.00 NNN retail/office complex. Additionally, Tim Horton's has a
9/2018
West Bloomfield, MI drive thru window located at the rear of the subject
property. The suites were finished to a white box
condition in general with tenants completing their own
buildout.
Actual Signed Lease: AT&T signed a new five year lese
for $30.00 per squre foot NNN. The property is an
outlot to a new Menard's home improvement store and
is in an area with a
concentration of retailers including Home Depot, Sears
Shadow-Anchored Retail Strip - AT&T Outlet, Big Lots, Dunham's, Meijer, Marshalls, Michaels,
2/2015 -
2 12961 Middlebelt Road 6,798 2015 100% 2,000 $30.00 NNN PetSmart, Walmart, Target, LA Fitness, Costco and many
1/2020
Livonia, MI inline and restaurant/bank users. The property includes
two curb cuts along an interior drive way to Menards
with Starbuck's being a drive thru location. The tenants
within the center include AT&T, Starbucks and The
Vitamin Shoppe who have all signed new 10 year lease
deals.
Actual Signed Lease: Starbucks signed a new 10-year
lese for $35.00 per squre foot NNN with an escalation
of 2.7% in year six. The property is an outlot to a new
Menard's home improvement store and is in an area with
a concentration of retailers including Home Depot, Sears
Shadow-Anchored Retail Strip - Starbucks Outlet, Big Lots, Dunham's, Meijer, Marshalls, Michaels,
2/2015 -
3 12961 Middlebelt Road 6,798 2015 100% 1,798 $36.00 NNN PetSmart, Walmart, Target, LA Fitness, Costco and many
1/2020
Livonia, MI inline and restaurant/bank users. The property includes
two curb cuts along an interior drive way to Menards
with Starbuck's being a drive thru location. The tenants
within the center include AT&T, Starbucks and The
Vitamin Shoppe who have all signed new 10 year lease
deals.
Actual Signed Lease: Vitamin Shoppe signed a new 10-
year lese for $32.00 per squre foot NNN with an
escalation of 10% in year six. The property is an outlot to
a new Menard's home improvement store and is in an
area with a concentration of retailers including Home
Shadow-Anchored Retail Strip - Vitamin
Depot, Sears Outlet, Big Lots, Dunham's, Meijer,
Shoppe 2/2015 -
4 6,798 2015 100% 3,000 $32.00 NNN Marshalls, Michaels, PetSmart, Walmart, Target, LA
12961 Middlebelt Road 1/2020
Fitness, Costco and many inline and restaurant/bank
Livonia, MI
users. The property includes two curb cuts along an
interior drive way to Menards with Starbuck's being a
drive thru location. The tenants within the center include
AT&T, Starbucks and The Vitamin Shoppe who have all
signed new 10 year lease deals.
Actual Signed Lease: Panda Express is on a new 10 year
lease at $36.00 per SF NNN with an increase of 10%
Rochester Hills Strip Center - Panda
every five years. They received $15.00 per SF in tenant
Express 1/2014 -
5 15,500 2014 100% 870 $24.00 NNN improvements. The comparable is shadow anchored by
3105 South Adams Road 12/2024
a Meijer shopping cetner to the east. Additionally
Rochester Hills , MI
located to the south is a Lowe's Home Improvement
store.
There is a 2,000 square foot suite available for lease.
The building has 33 surface parking spaces. The
property is an outlot to a Meijer Supercenter and is
Outlot Shopping Center - Qdoba located in the Golden Corridor retail shopping district.
8/2013 -
6 15069-15099 Hall Road 12,156 2013 100% 2,420 $35.00 NNN The property is also proximate to Lakeside Mall; a 1.3
7/2023
Shelby Township, MI million square foot regional mall anchored by Macy's,
Sears, JCPenney and Lord & Taylor. The property
includes a mixture of national tenants including
Starbucks and Qdoba as well as several local tenants.
All Comparable Averages 97% $31.17
23 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m iAVERAAGE RENTAL RATES
Average Rental Rates
$40.00
$36.00
$35.00
$35.00
All CompsAverage
$32.00 $31.17/SF NNN
$30.00 $30.00
$30.00 Subject Average Rate
$29.23/SF
$25.00 $24.00
$20.00
$15.00
$10.00
$5.00
$0.00
1 2 3 4 5 6
The average rental rate for comparable new retail development outparcel rents is $31.17 per square foot
NNN. Therefore, the subject property, operating at an average rental rate of $29.23 per square foot is
operating in line with similar brand new retail developments.
24 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m ifinancial over vie w
Cap rate Price per square foot Expense estimates
asking Price
6.53% $421 Due to the fact that the center is new
$6,750,000 construction, the taxes have been estimated
r e a l e s tat e ta x e s on the seller’s year one budget at $2.00 per
square foot or $32,058 for the first year of the
analysis.
income estimates Due to the fact that the center is new
co mm o n a r e a
construction, the analysis has estimated CAM
The scheduled base rent for the first year of maintenance and
and insurance expenses based on the sellers
the analysis assumes the rental income for insurance
2016 budget.
the current tenants based on the year one
income from 4/2016 - 3/2017. We have not management fee Estimated at 3.0% of effective gross revenue
applied any free rent or rent abatement in the
scheduled base rent analysis and have assumed that the seller will The entire retail submarket has a current
provide a credit to the purchaser at the close occupancy of 13.4%. However, due to the fact
of escrow for all rent concessions. Also, please va c a n cy a n d that the center is new construction and 100%
note that although the last lease has not been co l l e c t i o n lo s s occupancy, the analysis has applied a vacancy
finalized, we have assumed an occupancy rate factor of 5.0% which is inline with outlot
of 100% based on current lease negotiations. centers in the submarket.
The tenants are on NNN leases in which they The analysis has included a replacement
are responsible for reimbursing the landlord Replacement reserves reserve of $0.20 per square foot above the
for their pro-rata share of all operating NOI line.
expenses including real estate taxes, CAM
e x p e n s e r e i mb u r s e m e n t property insurance, property management proposed financing terms
fees, as well as common area utility costs.
Additionally, all tenants pay an administrative Proposed financing per a loan quote provided
fee on top of CAM reimbursements. Please on 10/19/2015:
refer to the rent roll for further details. Loan Amount: $5,000,000
Interest Rate: 4.50%
The analysis has assumed that the center Amortization Schedule: 30 Years
va c a n t s pa c e will be 100% occupied at the close of escrow Loan Terms: 10 Years
Proposed Financing
based on current lease negottions. Interest Only: Potential for a few years of
interest only (however not included in our
analysis)
TI/LC Reserves: $1.00 per SF per Year
Roof/Capital Reserves: $0.10 per SF
Recourse: Non-Recourse
This asset is being offered free and clear of
existing financing
26 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m i existing financing.Village of Woodhaven
year one cash flow estimates
Year One Cash Flow Estimates
Proposed Financing
Price $6,750,000
Down Payment 26% $1,750,000
Rentable Square Feet 16,029
Price per Square Foot $421.11
CAP Rate 6.53%
Year One NOI
Income Per SF
4/2016 - 3/2017
Base Rent
Occupied Space 100% 16,029 SF $469,578 $29.30
Vacant Space 0% 0 SF $0 $0.00
Total Base Rent $469,578 $29.30
Scheduled Base Rental Revenue $469,578 $29.30
Expense Reimbursement Revenue (Includes Additional Admin Fees)
Real Estate Taxes $32,500 $2.03
Insurance $4,677 $0.29
Common Area Maintenance + Utilities $45,370 $2.83
Management Fee $15,671 $0.98
Total Expense Reimbursement Revenue $98,218 $6.13
Gross Potential Income $567,796 $35.42
Vacancy/Collection Allowance 5% ($28,390) ($1.77)
Effective Gross Income $539,406 $33.65
Operating Expense Estimates
Real Estate Taxes $32,058 $2.00
Insurance $4,488 $0.28
Common Area Maintenance $35,400 $2.21
Utilities $7,248 $0.45
Total Common Area Expenses (Estimates) $79,194 $4.94
Management Fee 3.0% $16,182 $1.01
Replacement Reserve $0.20 $3,206 $0.20
Total Expenses $98,582 $6.15
Net Operating Income $440,824 $27.50
Net Cash Flow Before Debt Service $440,824 $27.50
Debt Service - Proposed Financing ($314,220) ($19.60)
Debt Service Coverage Ratio 1.40
Net Cash Flow After Debt Service $126,605 $7.90
Year One Cash on Cash Return 7.23%
Principal Reduction $80,661 $5.03
Total Return $207,266 $12.93
Year One Total Return 11.84%
27 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m irent roll as of february 2016 Village of Woodhaven
Rent Roll as of February, 2016
Tenant Name
SqFt Annual Changes
Type & Suite Number Rate per SF Changes On Detailed Reimbursement Method
Bldg Share Rental Rate To
Lease Dates
Panera Bread NNN + Mgmt (maximum of 5% of gross rents) + Admin Fee of 5%
1 (Panera Bread, LLC) 4,307 $129,210 1
$30.00 Nov-2020 $33.00 on top of CAM (CAM Definition includes management). Year one
expenses not to exceed $5.00 per SF. The increases in common
Retail, Suite: C 26.58%
area expenses not to exceed the lesser of (i) the actual increase in
Nov-2015 to Dec-2025
the cost comprising the common area expenses or (ii) 5% of the
previous year's common area expenses (excluding taxes, insurance
snow/salting costs, common utilities)
1
Per the first amendment to the lease, Panera received a rent concession of $50,000 which is to be pad in annual installments equal to 10% of tenants annual base rent beginning
on the first anniversary of the commencement date and continuing on each anniversary thereafter until fully paid. However, the seller will pay off this concession prior to closing;
therefore, new ownership will receive 100% of the initial contract rent for the entire lease.
Renewal Options: The tenant has three, five-year renewal options with a notification period of 180 days. The rental rate during the option period calls for an increase of 10% per
option period as follows: Option One: $36.30 per SF, Option Two: $39.93 per SF, Option Three: $43.92 per SF.
NNN + Mgmt (maximum of 4% of gross rents) + Admin Fee of
10% on top of CAM (CAM definition includes insurance, utilities
and management). Tenants additional rent shall not increase by
Massage Green (Massage Green Spa more than 4% over the cost of tenant's share of additional rent for
Woodhaven, LLC, personal/individual the immediately preceding calendar year with respect to expenses
1
2 guarantor) 2,200 $61,600 $28.00 Jul-2021 $30.80 within landlord's control.
Retail, Suite: C 13.58%
Oct-2015 to Mar-2026
1
The lease calls for an abatement of base rent for the first six months of the lease. We have assumed that any free rent will be credited to the purchaser at closing; therefore, we
have not applied any rental abatement in our analysis. The rental rate shown and included in our year one analysis is based on full rent.
Renewal Options: The tenant has two, five-year renewal options with a notification period of 120-365 days. The rental rate during the option period calls for an increase of 10%
per option period as follows: Option One: $33.88 per SF, Option Two: $37.27 per SF.
NNN + Mgmt + Admin Fee of 10% on top of CAM (CAM includes
T-Mobile
management). CAM charges (excluding taxes, insurance, utilities,
3 (Wireless Vision, LLC) snow and security) shall not increase by more than 5% non-
Retail, Suite: C 1,600 $43,200 $27.00 - - cumulative per year over the term of the lease.
May-2016 to Oct-2021 9.88%
Renewal Options: The tenant has two, five-year renewal options with a notification period of 180 days. The rental rate during the option period calls for an increase of 10% per
option period as follows: Option One: $29.70 per SF, Option Two: $32.67 per SF.
28 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m irent roll as of february 2016
Village of Woodhaven
Rent Roll as of February, 2016
Tenant Name
SqFt Annual Changes
Type & Suite Number Rate per SF Changes On Detailed Reimbursement Method
Bldg Share Rental Rate To
Lease Dates
ArtVan Pure Sleep Mattress Store NNN + Mgmt + Admin Fee of 5% on top of CAM (CAM includes
1
4 (Art Van Furniture, Inc.) 3,966 $103,116 $26.00 Jan-2017 $27.00 management and insurance). Controllable CAM charges shall not
Retail, Suite: C 24.48% increase by more than 4% non-cumulative per year over the term
Jan-2016 to Dec-2025 of the lease.
1
The lease calls for an abatement of base rent for the first three months of the lease. We have assumed that any free rent will be credited to the purchaser at closing; therefore, we
have not applied any rental abatement in our analysis. The rental rate shown and included in our year one analysis is based on full rent.
Renewal Options: The tenant has two, five-year renewal options with a notification period of 120 days. The rental rate during the option period calls for an increase of 10% per
option period as follows: Option One: $29.70 per SF, Option Two: $32.67 per SF.
NNN + Mgmt + Admin Fee of 10% on top of CAM (CAM includes
Panda Express management, insurance and utilities). Controllable CAM charges
5 (Panda Express, Inc a California Corp.) 2,556 $89,460 $35.00 Feb-2021 $38.50 shall not increase by more than 5% non-cumulative per year over
Retail, Suite: D 15.78% the term of the lease.
Feb-2016 to Jan-2026
Renewal Options: The tenant has four, five-year renewal options with a notification period of 180-365 days. The rental rate during the option period calls for an increase of 10%
per option period as follows: Option One: $42.35 per SF, Option Two: $46.59 per SF, Option Three: $51.24 per SF and Option Four: $56.37 per SF.
NNN + Mgmt + Admin Fee of 15% on top of CAM (CAM includes
1
6 European Wax Center (Franchisee) 1,400 $42,000 $30.00 Year Three $31.50 management, insurance and utilities).
Retail, Suite: D 8.64% Year Four $32.13
New 10 Year Lease Year Five $32.77
Year Six $33.43
Year Seven $34.10
Year Eight $34.78
Year Nine $35.47
Year 10 $36.18
Renewal Options: The tenant will have two one, five-year renewal options.
1
Please note that the current negotiations with the tenant are at a rate of $15.00 per SF for months 1 - 6 of the lease and increase to $30.00 per SF for months 7 - 36. Therefore,
our analysis has assumed the full rental rate of $30.00 per SF for the first year and if there is any difference in the funds, it will be credited to the purchaser at closing.
~Please note that for any tenants with leases / rent commencing prior to February 1, 2016, we have assumed that the Year One rental rate will be based on 100% and any difference
in funds will be credited to the purchaser at closing.~
Total Occupied SqFt 16,029 100% $468,586
Average NNN Rental Rate
Total Available SqFt 0 $29.23
Total Center SqFt 16,029
29 | THE V i l l a g e o f w o o d h av e n | w o o d h av e n , m iPlease Contac t
C a p i ta l M a r k e t s | I n v e s t m e n t P r o p e r t i e s
Bill O’Connor
Senior Vice President
+1 248 351 2045
Bill.oconnor@cbre.com
david hesano
vice president
+1 248 351 2014
david.hesano@cbre.com
© 2016 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently
confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax,
financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.You can also read
