SINGLE TENANT ABSOLUTE NNN INVESTMENT OPPORTUNITY · At Home, and JCPenney. Other nearby...

451 W. 14 MILE ROAD, MADISON HEIGHTS, MICHIGAN

SINGLE TENANT ABSOLUTE NNN INVESTMENT OPPORTUNITY

ACTUAL SITE

2 ACTUAL SITE SRS NATIONAL NET LEASE GROUP

EXCLUSIVELY MARKETED BYBRAD GIBBSVICE PRESIDENTSRS REAL ESTATE PARTNERS8343 Douglas Avenue, Suite 200Dallas, TX 75225

DL: 214.560.3238 | M: 214.435.4866

[email protected] | TX License No. 611900

Broker of Record: Frank Rogers | MI License #6502417063

MICHAEL CARTERFIRST VICE PRESIDENT

SRS NATIONAL NET LEASE GROUP101 W Big Beaver Road, Suite 14 Troy, MI 48084

DL: 248-688-0630 | M: 586-549-4260

[email protected] | MI License No. 6501180257

FRANK ROGERS FIRST VICE PRESIDENT

SRS NATIONAL NET LEASE GROUP101 W Big Beaver Road, Suite 14 Troy, MI 48084

DL: 248.688.0631 | M: 810.348.3324

[email protected] | MI License No. 6502417063

3 ACTUAL SITE

CONTENTS

8PROPERTY OVERVIEW

AERIALS | SITE PLAN | LOCATION MAP

16FINANCIALS

RENT ROLL | BRAND PROFILE

5INVESTMENT SUMMARY

OFFERING SUMMARY | INVESTMENT HIGHLIGHTS

14AREA OVERVIEW

DEMOGRAPHICS

SRS NATIONAL NET LEASE GROUP

5 ACTUAL SITE

INVESTMENT SUMMARY

SRS National Net Lease Group is pleased to present the rare opportunity to acquire the fee simple (land & building ownership) in Jared, The Galleria of Jewelry, a corporate guaranteed, absolute NNN, investment property located in Madison Heights, MI. The lease is corporately guaranteed by Sterling Jewelers, Inc., a subsidiary of Signet Jewelers Limited (NYSE: SIG). The tenant has approximately 5 years remaining in their current term with 2 (5-year) option periods to extend. The lease features a 10% rental increase in Nov. 2023, growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities, ideal for an out-of-state, passive investor. The site also features additional rent from a 50 year signage ground lease agreement with 21 years remaining.

The subject property is ideally positioned at the hard corner intersection of W. 14 Mile Road (47,800 VPD) and Barrington Street, with excellent visibility and street frontage. Additionally, the site is also located just off Interstate 75 (165,800 VPD), the primary commuter thoroughfare traveling in and out of Detroit with direct on/off ramp access. Jared, The Galleria of Jewelry is located across from Oakland Mall, a 1,500,000 SF center anchored by Macy’s, At Home, and JCPenney. Other nearby national/credit retailers include Target, Sam’s Club, Meijer, Kohl’s, DSW Designer Shoe Warehouse, Bed Bath & Beyond, and more, which increases consumer draw to the subject trade area. The 5-mile trade area is supported by a population of over 302,000 with an average household income of $85,000.


6 ACTUAL SITE

OFFERING SUMMARY


PROPERTY SPECIFICATIONS

Pricing: $3,995,000

Net Operating Income: $420,406

Cap Rate: 10.52%

Guaranty: Corporate

Tenant: Sterling Jewelers, Inc.

Lease Type: Absolute NNN

Landlord Responsibilities: None

OFFERING

Rentable Area: 6,076 SF

Land Area 1.28 Acres

Property Address: 451 W. 14 Mile Rd, Madison Heights, MI 48071

Year Built: 2003

Parcel Number: 44-25-02-226-001

Ownership: Fee Simple (Land & Building Ownership)

7 ACTUAL SITE

INVESTMENT HIGHLIGHTS


Corporate Guaranteed | Scheduled Rental Increase | Options to Extend

• Sterling Jewelers, Inc. guaranteed lease• Sterling Jewelers, Inc. is a subsidiary of Signet

Jewelers Limited (NYSE: SIG)• Approximately 5-years remaining in the current

term with 2 5-year options to extend• 10% rental increase scheduled for Nov. 2023,

increasing NOI and hedging against inflation• Annual store sales over $4MM• Additional rent from 50-year signage ground

lease with 21 years remaining

Strong Demographics In 5-mile Trade Area• More than 302,000 residents and 231,600

employees support the trade area• $85,137 average household income

Hard Corner Location | Along Primary Commercial Thoroughfare | Interstate 75

• Situated at the hard corner intersection of W. 14 Mile Road (47,800 VPD) and Barrington Street

• Located adjacent to the on/off ramps to Interstate 75 with 168,500 vehicles per day

• Excellent visibility with prominent street frontage along W. 14th Mile

Absolute NNN | Fee Simple Ownership | Zero Landlord Responsibilities

• Tenant pays for CAM, taxes, insurance and maintains all aspects of the premises

• No landlord responsibilities• Ideal, management-free investment for an out-

of-state, passive investor

Across From 1.5MM SF Oakland Mall | Nearby National/Credit Tenants

• Subject property is located across from Oakland Mall, a 1,500,000 SF enclosed mall anchored by Macy’s, At Home, and JCPenney

• Nearby national/credit retailers in the immediate trade area include Target, Sam’s Club, Meijer, Kohl’s, DSW Designer Shoe Warehouse, Bed Bath & Beyond, and more

• Retail strength of the immediate trade area increases consumer draw to the site

8 SRS NATIONAL NET LEASE GROUPACTUAL SITE

PROPERTY OVERVIEW

W.14 Mile Road 1 Access Point

Barrington Street 1 Access Point

6,076 SF

Improvements

There are approximately 52 parking spaces on the

owned parcel. The parking ratio is approximately

8.56 stalls per 1,000 SF of leasable area.

Parking

Parcel Number: 44-25-02-226-001 Acres: 1.28

Square Feet: 55,800 SF

Parcel

B-3:General Business District

Access Zoning

PARCEL MAP

2003

Year Built

W.14 Mile Road 47,800 Cars Per Day

Chrysler Freeway/ Interstate 75 165,800 Cars Per Day

Traffic Counts

CONCORD DR.

W. 14 MILE RD.

CARS PER DAY

CARS PER DAY

13,800

47,800


LAMPHERE HIGH SCHOOL

BISHOP FOLEY CATHOLICHIGH SCHOOL

OAKLAND MALL1,500,000+ SF

JOHN R RD.

INTERSTATE 75 CARS PER DAY

CARS PER DAY

32,600

165,800


W. 14 MILE RD.

CARS PER DAY47,800

11 ARTIST RENDERING SRS NATIONAL NET LEASE GROUP

CARS PER DAY47,800

BARRINGTON

ST.

PALMER AVE.

W. 14 MILE RD.

13 ACTUAL SITE

LOCATION MAP


DETROIT17 Min 12 miles

MADISON HEIGHTS

2018 ESTIMATED POPULATION1 Mile ....................................................... 8,026

3 Mile ................................................... 116,099

5 Mile ................................................... 302,266

2018 AVERAGE HOUSEHOLD INCOME1 Mile ................................................... $46,197

3 Mile ................................................... $75,638

5 Mile ................................................... $85,137

2018 ESTIMATED TOTAL EMPLOYEES1 Mile ..................................................... 19,695

3 Mile ..................................................... 82,195

5 Mile ................................................... 231,612

14

AREA OVERVIEWMadison Heights, Michigan Madison Heights is a city in Oakland County of the U.S. state of Michigan. It is a suburb of Detroit. As of the July 1, 2015, its estimated population was 30,198.

Madison Heights is part of Oakland County’s Automation Alley. There are more than 1,300 commercial and industrial businesses and services within the city’s 7.2 square miles, and the city is proud to have a majority of small businesses, as well as more than 100 major companies within its borders, such as Best Buy, Coca Cola, Commercial Steel Treating Corporation, Costco, CVS Pharmacy, Henkel Technologies, Home Depot, Meijer, Micro Center, Ogura Corporation, Sam’s Club, Hungry Howie’s, Target, UPS, WOW!, Culver’s, and Sears. The city has 23 shopping centers, 11 hotels, more than 860,000 square feet of office space, and seven industrial parks that include 10,000,000 square feet. The Hungry Howie’s Pizza corporate headquarters is located in Madison Heights. Madison Heights is also home to Moosejaw.

Madison Heights was originally a part of the Royal Oak Township. It was incorporated as a city on January 17, 1955. Over the years, a large number of commercial and industrial businesses have sprung up in this city. Historical sites near the city of Madison Heights include the Historic Fort Wayne, the Fox Theater Building and Cranbrook, which is home to the Canadian Museum of Rail Travel. Children will particularly enjoy visiting the Detroit Zoo and the Red Oaks Waterpark.

Madison District Public Schools and Lamphere Public Schools have public schools serving Madison Height. Madison Heights is also home to Bishop Foley Catholic High School, a private school. Four Corners Montessori Academy is a public charter school also located in Madison Heights. The Japhet School was located in Madison Heights until 2013, when it moved to Clawson. Air transportation is available at the Detroit City Airport.

Oakland County is a county located in the U.S. state of Michigan, located in the northwest of the Detroit metropolitan area. As of the July 1, 2015, its estimated population was 1,242,304, making it the second-most populous county in Michigan, behind neighboring Wayne County. The county seat is Pontiac. The county was founded in 1819 and organized in 1820.

The county’s knowledge-based economic initiative, coined “Automation Alley”, has developed one of the largest employment centers for engineering and related occupations in the United States. The County of Oakland counterpart in public education (K-12) is the Oakland Schools, an Intermediate school district. The following airports are located in neighboring counties:


15

AREA DEMOGRAPHICS


DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2018 Estimated Population 8,026 116,099 302,266

2023 Projected Population 8,139 118,564 309,440

2010 Census Population 7,793 112,405 291,589

Projected Annual Growth 2018 to 2023 0.28% 0.42% 0.47%

Historical Annual Growth 2010 to 2018 0.36% 0.39% 0.44%

2018 Estimated Households 4,027 49,073 127,686

2023 Projected Households 4,080 50,156 130,841

2010 Census Households 3,958 47,455 122,909

Projected Annual Growth 2018 to 2023 0.26% 0.44% 0.49%

Historical Annual Growth 2010 to 2018 0.21% 0.41% 0.46%

2018 Estimated White 65.56% 78.90% 78.88%

2018 Estimated Black or African American 10.52% 6.81% 7.02%

2018 Estimated Asian or Pacific Islander 19.08% 10.87% 10.68%

2018 Estimated American Indian or Native Alaskan 0.34% 0.28% 0.28%

2018 Estimated Other Races 1.61% 0.60% 0.56%

2018 Estimated Hispanic 3.25% 2.63% 2.52%

2018 Estimated Average Household Income $46,197 $75,638 $85,137

2018 Estimated Median Household Income $26,839 $58,938 $63,548

2018 Estimated Per Capita Income $23,743 $32,101 $36,109

2018 Estimated Total Businesses 1,004 5,954 14,555

2018 Estimated Total Employees 19,695 82,195 231,612

16 ACTUAL SITE

RENT ROLLLEASE TERM RENTAL RATES

TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS

Jared The Galleria 6,076 11/28/2003 1/31/2024 Current - $34,617 $5.70 $415,406 $68.37 Absolute NNN 2 (5-Year)

of Jewelry 11/28/2023 10% $38,079 $6.27 $456,947 $75.21 Increase of 10%

(Corporate Guaranty) in the 4th year of

each option period

Signage Ground Lease Rent $417 - $5,000 -

Note: Signage rent is $9,600/Yr., of which $4,600 is sent to the predecessor-in-interest pursuant to a deed restriction. The net $5,000/Yr is what the current Landlord collects.

For financing options and loan quotes, please contact our SRS Debt & Equity team at [email protected].


FINANCIAL INFORMATION

Price: $3,995,000

Net Operating Income: $420,406

Cap Rate: 10.52%

Guaranty: Corporate

PROPERTY SPECIFICATIONS

Year Built: 2003

Rentable Area: 6,076 SF

Land Area: 1.28 Acres

Address: 451 W. 14 Mile Road, Madison Heights, MI 48071

17 REPRESENTATIVE PHOTOS

BRAND PROFILE


JARED THE GALLERIA OF JEWELRYJared The Galleria Of Jewelry, the leading off-mall destination specialty retail jewelry chain in the US, is operated by Signet Jewelers Limited, the world’s largest retailer of diamond jewelry. Signet Jewelers operates over 3,500 stores..

Company Type: Subsidairy Parent: Signet Jewelers 2018 Employees: 24,8882018 Revenue: $6.51 Billion 2018 Net Income: $519.30 Million 2018 Assets: $5.84 Billion

2018 Equity: $2.50 Billion

• ACTUAL SITE *STATISTICS ARE FOR 2017

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are pro-vided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive sub-market conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

1000+PROPERTIES CURRENTLY REPRESENTED

600+CLIENTS REPRESENTED IN 2016

$2.6B*TRANSACTION VALUE

20+OFFICES

250+BROKERS, PROFESSIONALS, AND STAFF

#1LARGEST REAL ESTATE FIRM

EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA

SINGLE TENANT ABSOLUTE NNN INVESTMENT OPPORTUNITY · At Home, and JCPenney. Other nearby...

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