S The Ka se Groupkaseholdings.com/properties/proposals/KMART West Branch.pdf · Investment Overview...

Jacob Abusharkh

Managing [email protected]

BRE#01385529

Jeff Gates

Senior [email protected]

BRE#01768554

www.TheKaseGroup.com

SVN The Kase Group

KMART NNN Leased Offering | West Branch, MI

$3,038,000 | 8.50% CAP

Offering Highlights

Rare Recently Extended KMART Absolute NNN Lease

Zero Landlord Obligations

Sears Holdings Corporate Guaranty - NASDAQ: SHLD

On Site Pharmacy

Large Lot (10.31 Acres) - 564 Parking Spaces

Long Term Established Tenancy

+/-86,749 SF Building Plus Garden Center

Strong Store Sales

Tenant Recently Spent $300,000 to Replace Roof

Actual Site Photo

KMART NNN Leased Offering


All Sperry Van Ness® Offices Independently Owned & OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.



SVN The Kase Group

The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photo-copied or disclosed to any third party without the written consent of Sperry Van Ness or Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Property Owner (“Owner”) in connection with the sale of the Property is the Sper-ry Van Ness Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Of-fering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Bro-chure must be returned to Sperry Van Ness.

Neither the Sperry Van Ness Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and noth-ing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property. This Offering Brochure may include certain statements and estimates by Sperry Van Ness with respect to the projected future perfor-mance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the Sperry Van Ness Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those repre-sentations and warranties that may be made to it in any final,

fully executed and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the Sperry Van Ness Advisor, nor any of their officers, employees, representatives, independent contractors or af-filiates, for the accuracy or completeness thereof. Recipients of this Investment Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expres-sions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms ac-ceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowl-edged the foregoing and agreed to release the Owner and the Sperry Van Ness Advisor from any liability with respect thereto.

To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.

Disclaimer | Confidentiality

KMART NNN Leased OfferingSVN The Kase Group



CONTENTS

PROPERTY OVERVIEW

Offering Highlights

Executive Summary

Tenant Summary

FINANCIAL OVERVIEW

Financial Summary

LOCATION OVERVIEW

Location Maps

Aerial Photo

Site Photos

Interior Photos

DEMOGRAPHICS

Demographics Report

Demographics Map




PROPERTY OVERVIEW

Offering Highlights

Executive Summary

Tenant Summary

Rare Recently Extended KMART Absolute NNN Lease

Zero Landlord Obligations

Sears Holdings Corporate Guaranty - NASDAQ: SHLD

On Site Pharmacy

Large Lot (10.31 Acres) - 564 Parking Spaces

Long Term Established Tenancy

+/-86,749 SF Building Plus Garden Center

Strong Store Sales

Tenant Recently Spent $300,000 to Replace Roof

Offering Highlights




Investment OverviewSale Price: $3,038,000

CAP Rate: 8.50%

Building Size: 86,479 SF

Lot Size: 10.31 Ac

Year Built: 1992

PropertyThe Kase Group is pleased to present a corporate Kmart in West Branch, Michigan. The tenant extended the lease for 2.5 years in November of 2015 - in 2+ years there’s a substantial increase in the rent of 14.3% to $295,190. Kmart rarely extends leases early unless in certain cases where the store is a strong performer. Kmart showed further commitment to the site by spending approximately $300,000 on a roof replacement. Low price per foot, low rent and a higher then average cap rate make this an attractive investment for an investor looking for yield and opportunity.

LocationWest Branch is a city in the state of Michigan. As of the 2010 census, the city population was 2,139. It is the county seat of Ogemaw County. The city is located within West Branch Township, but is politically independent.

2110 S M -76 | West Branch, MI 48661

Executive Summary




Tenant OverviewKmart, a wholly owned subsidiary of Sears Holdings Corporation (NASDAQ: SHLD), is a mass merchandising company and part of ShopYourWay, a social shopping experience where members have the ability to earn points and receive benefits across a wide variety of physical and digital formats through ShopYourWay.com. Kmart offers customers quality products through a portfolio of exclusive brands that include Sofia by Sofia Vergara, Jaclyn Smith, Joe Boxer, Route 66 and Smart Sense. Sears Holdings Corporation is a leading integrated retailer with over 2,600 full-

line and specialty retail stores in the United States and Canada and the home of SHOP YOUR WAY, a social shopping experience where members have the ability to earn points and receive benefits across a wide variety of physical and digital formats through ShopYourWay.com. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, fitness equipment and automotive repair and maintenance.

Key proprietary brands include Kenmore, Craftsman and DieHard, with a broad apparel offering, including such well-known labels as Lands’ End, the Kardashian Kollection, Jaclyn Smith and Joe Boxer, as well as Sofia by Sofia Vergara and The Country Living Home Collection. Sears is the nation’s largest provider of home services, with more than 15 million service and installation calls made annually and has a long-established commitment to those who serve in the military through initiatives like the Heroes at Home program. Named the 2011 Mobile Retailer of the Year, Recipient of the 2012 ENERGY STAR® “Corporate Commitment Award” for Product Retailing and Energy Management and one of the Top 20 Best Places to Work for Recent Grads, Sears Holdings Corporation operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation.

Tenant Summary







FINANCIAL OVERVIEW

Financial Summary

2110 S M -76 | West Branch, MI 48661$3,038,000 | 8.50% CAP

CAP Rate: 8.50%

Building SF: 86,479

Lot Size: 10.31 Ac

Year Built: 1992

Type of Ownership: Fee Simple

Tenant Name GLA Lease Begin Lease End Annual Rent Increases Options

KMART 86,479 SF 12/1/2015 5/31/2018 $258,291 Rent increaes Nine 5 Year

to $295,190 Options to

in 2018 at Renew

2nd sub-option

Operating Summary Current 2018 (sub-option) Option 1

Net Operating Income $258,291 $295,190 $369,000

CAP Rate 8.50% 9.72% 12.15%

Financial Summary







LOCATION OVERVIEW

Location Maps

Aerial Photo

Site Photos

Interior Photos

CONFIDENTIAL OFFERING MEMORANDUM

Location Maps

All Sperry Van Ness® Offices Independently Owned & Operated.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

www.TheKaseGroup.com1

Location Maps




Aerial Photo




Site PhotosKMART NNN Leased Offering



Interior PhotosKMART NNN Leased Offering






DEMOGRAPHICS

Demographics Analysis

Demographics Map

Total Population

Total Number of Households

Total Number of Persons per Household

Average House Value

Average Household Income

Median Age

Median Age - Male

Median Age - Female

Total Population - White

Total Percent - White

Total Population - Black

Total Percent - Black

Total Population - Asian

Total Percent - Asian

Total Population - Hawaiian

Total Percent - Hawaiian

Total Population - Indian

Total Percent - Indian

Total Population - Other

Total Percent - Other

Total Population - Hispanic

Total Percent - Hispanic

4 42 610.9% 0.8% 0.5%

0 0 40.0% 0.0% 0.0%

2110 S. M-76 | West Branch, MI 48661 For Sale | $2,323,222

* Demographic information provided by BuildOut, Inc.

158 2,006 4,700

2.8 2.8 2.7

$147,692 $147,232

$47,623 $47,851 $48,284

39.9 41.4 44.033.9 36.5 40.9

40.9 42.3 44.7

4 44 630.9% 0.8% 0.5%

1 12 190.2% 0.2% 0.1%

0 0 00.0% 0.0% 0.0%

419 5,300 12,27094.2% 95.1% 96.3%

445 5,576 12,741

5 61 1391.1% 1.1% 1.1%

1 Mile 5 Miles 10 Miles


Demographics Report




Demographics Analysis





Demographics Map




* Demographic information provided by BuildOut, LLC

2110 S. M-76 | West Branch, MI 48661 Radius Map

1 Mile 5 Miles 10 Miles

Total Population 445 5,576 12,741

Total Number of Households 158 2,006 4,700

Average Household Income $47,623 $47,851 $48,284

Median Age 39.9 41.4 44.0

Demographics Map





All Sperry Van Ness® Offices Independently Owned & Operated© 2013 All rights reserved

PRESENTED BY

Jacob AbusharkhManaging Director

[email protected]

BRE#01385529

Jeff GatesSenior Advisor415.231.5231

[email protected]

BRE#01768554

SVN The Kase Group

S The Ka se Groupkaseholdings.com/properties/proposals/KMART West Branch.pdf · Investment Overview...

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