applebee`s - walmart supercenter outparcel

APPLEBEE’S - WALMART SUPERCENTER OUTPARCEL
WA R R E N , M I C H I G A N
EXCLUSIVE OFFERING
DISCLAIMER
This Offering Memorandum has been prepared by The Shopping Center
Group LLC (“TSCG”) for use by a limited number of parties to evaluate the
potential acquisition of Applebee’s, Walmart Supercenter Outparcel, Warren,
Michigan (the “Property”). All projections have been developed by TSCG,
Owner and designated sources, are based upon assumptions relating to the
general economy, competition, and other factors beyond the control of TSCG
and Owner, and therefore are subject to variation. No representation is made
by TSCG or Owner as to the accuracy or completeness of the information
contained herein, and nothing contained herein is or shall be relied on as a
promise or representation as to the future performance of the Property. Although
the information contained herein has been obtained from sources deemed
to be reliable and believed to be correct, TSCG, Owner and its employees
disclaim any responsibility for inaccuracies and expect prospective purchasers
to exercise independent due diligence in verifying all such information. Further,
TSCG, Owner and its employees disclaim any and all liability for representations
and warranties, expressed and implied, contained in, or for omissions from, the
Offering Memorandum or any other written or oral communication transmitted
or made available to the recipient.
The Offering Memorandum does not constitute a representation that there has
been no change in the business or affairs of the Property or Owner since the date
of preparation of the Offering Memorandum. Analysis and verification of the
information contained in the Offering Memorandum is solely the responsibility
of the prospective purchaser.
Southern
California
Additional information and an opportunity to inspect the property will be made
available to interested and qualified prospective investors upon written request.
Owner and TSCG each expressly reserve the right, at their sole discretion, to
reject any or all expressions of interest or offers regarding the property and/or
terminate discussions with any entity at any time with or without notice. Owner
shall have no legal commitment or obligations to any entity reviewing this
Offering Memorandum or making an offer to purchase the property unless and
until such offer is approved by Owner, a written agreement for the purchase
of the property has been fully executed, delivered and approved by Owner
and its legal counsel, and any obligations set by Owner thereunder have been
satisfied or waived.
This Offering Memorandum and the contents, except such information which
is a matter of public record or is provided in sources available to the public,
are of a confidential nature. By accepting this Offering Memorandum, you
agree that you will hold and treat it in the strictest confidence, that you will not
photocopy or duplicate it, that you will not disclose this Offering Memorandum
or any of the contents to any other entity (except White
to outside
Plains advisors retained by
you, if necessary, for your determination of whether or not to make a proposal
Manhattan
and from whom you have obtained an agreement of confidentiality)
without
the prior written authorization of Owner or TSCG and that you will use the
information in this Offering Memorandum for the sole purpose of evaluating
your interest in the property and you will not use the Offering Memorandum
Richmond
Norfolkto the interest of
or any of the contents in any fashion or manner
detrimental
Louisville
Owner or TSCG. If you have no interest in the Raleigh
property, please return the
Offering Memorandum to TSCG.
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Exclusive Listing
Presented By:
Mark D. Cooley
Director of Investment Sales
[email protected]
T. Neal Pringle, Jr. CCIM
Director of Investment Sales & Finance
[email protected]
Daniel Earles
Director of Investment Sales
[email protected]
Atlanta Office
300 Galleria Pkwy
Atlanta, GA 30339
770.955.2434
TABLE OF CONTENTS
EXECUTIVE SUMMARY
5 5 I n t r od uc ti o n
I n v es t men t Hi gh li gh ts
PROPERTY OVERVIEW
6 6
7
7
8
10
11
P r o jec t Hi sto r y
Sit e P lan
Sit e D e sc ri pti o n
I m p r ov em en t Featu res
R e t a il A eri al
Ten a n t P ro f i le
Lea s e Ter m s
MARKET OVERVIEW
12
13
Tr a d e A rea Dyn am i c s
D em o g raph i c O v er v i ew
EXECUTIVE SUMMARY
INTRODUCTION
The Shopping Center Group (“TSCG”) has been retained on an
exclusive basis to offer for sale a 100% interest in a single tenant
Applebee’s (the “Property”), a 5,500 square foot casual dining
restaurant located along Twelve Mile Road in Warren, Michigan.
Situated with excellent visibility and multiple access points in the midst
of a densely populated area, the Applebee’s was built in 1996 and
renovated in 2014, and is strategically located to provide convenient
access to a large number of residents and nearby employees.
SUMMARY OF SALIENT FACTS
8025 Twelve Mile Road
Warren, Macomb County,
Michigan 48093
Address
Price
$1,600,000
Cap Rate
4.68%
NOI
$74,939
The Property is an outparcel of a brand new, 185,000 square foot
Walmart, which opened in March 2014. The prime site provides
direct access to Highway 53, a major north–south route that connects
several suburbs in eastern Michigan.
Ownership
Applebee’s is ideally located within a heavily populated, residential
area with over 106,000 residents within a three mile radius. There
are several major employers located nearby including General
Motors, U.S. Manufacturing, Johnson Controls and more. With the
recent opening of Walmart, several additional retailers are expected
to open in the vicinity within the coming months.
Total GLA
5,500 SF
Land Area
± 0.968 Acres
Applebee’s is the world’s largest casual dining brand with more than
2,000 restaurants in 49 states and 16 countries. The company has
increased focus on becoming more competitive and differentiated
in the casual dining industry with expectations of maintaining their
position at the top.
Located along a major corridor with over 49,000 vehicles per day,
this well–situated, newly remodeled restaurant is positioned for
sustained sales growth due to its excellent location both in front of a
brand new Walmart and convenient to major employers.
APPLEBEE’S – WARREN, MICHIGAN
Fee Simple
Year Built
1996
Renovation
2014
Occupancy
100%
Lease Structure
Parking
NNN Ground Lease
±69 spaces (12.55 per 1,000 SF)
INVESTMENT HIGHLIGHTS
•
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100% leased, largest casual dining restaurant in U.S.
Over 16 years left on lease; four 5 year options
10% rent increases every 5 years
Outparcel to brand new Walmart (opened in March 2014)
Newly remodeled in 2014
3–Mile Population: 106,164
3–Mile Average Household Income: $57,278
Traffic Count: 49,400 AADT (Van Dyke Avenue)
5
PROPERTY OVERVIEW
PROJECT HISTORY
SITE PLAN
The Applebee’s is a 5,500 square foot casual dining restaurant
located along Twelve Mile Road a mile north of Interstate 696 in
Warren, Michigan.
EAST TWELVE MILE ROAD
The Property was built and initially occupied in 1996 by Applebee’s
and recently renovated in 2014.
VAN DYKE AVENUE
APPLEBEE’S – WARREN, MICHIGAN
6
PROPERTY OVERVIEW
SITE DESCRIPTION
IMPROVEMENT FEATURES
Size
Location
The Property is located on the northern side of Twelve Mile Road near The property contains 5,500 square feet of gross leasable area
the intersection of Van Dyke Avenue in Warren, Macomb County, (GLA).
Michigan.
Building Dimensions
The building is approximately 100 feet wide and 55 feet deep.
Visibility and Signage
The Applebee’s restaurant has excellent visibility and a prominent
pylon sign on Twelve Mile Road with planned signage on the Exterior Finishes
The building features a brick façade with decorative canopies over
Walmart pylon sign.
pedestrian entrances and windows.
Frontage
The Property has approximately 280 feet of frontage along Twelve Windows
Three sides of the building have full sized, aluminum frame glass
Mile Road.
windows.
Access
Applebee’s features multiple points of ingress and egress along both
Twelve Mile Road and Van Dyke Avenue. Van Dyke Avenue provides
access to Interstate 696 via an interchange approximately 1 mile
south of the Property.
Utilities and Services
All basic utilities are available including electricity, water and sewer,
telephone, and gas.
Parking Lot
The Applebee’s contains asphalt paved parking for 69 cars at a
ratio of 12.55 per 1,000 square feet.
Landscaping
The entranceway, perimeter and concrete islands throughout the
parking area are attractively landscaped with flowering shrubs and
trees.
APPLEBEE’S – WARREN, MICHIGAN
7
PROPERTY OVERVIEW
RETAIL AERIAL
APPLEBEE’S – WARREN, MICHIGAN
8
PROPERTY OVERVIEW
RETAIL AERIAL
APPLEBEE’S – WARREN, MICHIGAN
9
PROPERTY OVERVIEW
TENANT PROFILES
www.applebees.com
DineEquity: (NYSE: DIN)
Franchisee: TSFR Apple Venture LLC
With more than 2,000 restaurants in 49 states, 16 countries and one U.S. territory, Applebee’s is the world’s largest casual dining brand.
Founded in 1980 in Atlanta, Georgia by Bill and T.J. Palmer, Applebee’s has always been dedicated to full service, consistently good
food, reasonable prices and quality service in a neighborhood setting. Today, the company is focused on building upon this heritage
and maintaining Applebee’s brand position at the top of the casual dining industry by becoming more competitive and differentiated in
the casual dining segment of the restaurant industry.
Formerly known as IHOP, DineEquity purchased Applebee’s in 2007 and made a new commitment to brand revitalization and
franchising. By October 2012, DineEquity successfully completed the transition of Applebee’s to a 99% franchised restaurant system.
With more than 3,600 restaurants combined in 17 countries, over 400 franchisees and approximately 200,000 team members,
DineEquity is one of the largest fullservice restaurant companies in the world.
TSFR Apple Venture LLC is part of a family of Michigan–based restaurant companies started in 1981 by the Schostak Family, which
owns, operate or has an investment in more than 160 restaurants including fast food, family dining and casual dining and employs more
than 4,000 people throughout Michigan. The business is led by Mark Schostak and professional managers Bill Angott and Mike Devlin,
all Michigan natives and veterans in the restaurant industry. As part of its operating group, TSFR Apple Venture LLC has an experienced
and stable senior management team.
APPLEBEE’S – WARREN, MICHIGAN
10
PROPERTY OVERVIEW
LEASE TERMS
Lease Term
The current lease expires September 20, 2032
Roof
Tenant’s Responsibility
Rent
08/01/2016 – 07/31/2021: $74,939
08/01/2021 – 07/31/2026: $82,433
08/01/2026 – 09/20/2032: $90,676
Assignment & Subletting
Tenant shall have no right to assign or sublet the Demised Premises
without the written consent of Landlord, which consent shall not be
unreasonably withheld.
Options
Four, 5 year options:
• 09/31/2032 – 09/20/2037: $99,744
• 09/21/2037 – 09/20/2042: $109,718
• 09/21/2042 – 09/20/2047: $120,690
• 09/21/2047 – 09/20/2052: $132,759
Repairs & Maintenance
Tenant’s Responsibility
Utilities
Tenant’s Responsibility
Taxes
Tenant’s Responsibility
Insurance
Tenant’s Responsibility
APPLEBEE’S – WARREN, MICHIGAN
11
MARKET OVERVIEW
TRADE AREA DYNAMICS
Applebee’s is located within Macomb County in the city of Warren.
The trade area has seen its population remain stable over the past
decade and projections show slight growth over the next five years.
The estimated population within 3 miles of the Property is 106,164,
while the average household income is $57,278.
Located across the street from Applebee’s is The General Motors’
Technical Center, which is home to over 16,000 GM engineers,
designers, and technicians and has been the center of the company’s
engineering effort since its inauguration in 1956.
They continue to improve and expand their facilities, coupled by
Applebee’s is a 5,500 square foot casual dining restaurant located in the creation of an estimation of 2,600 jobs with the estimated
a heavily populated residential and industrial district, approximately completion date of 2018.
1 mile north of Interstate 696 in Warren, Michigan.
The facility is the first of two Information Technology Operations and
The Property caters to both local residents and workers, due to its Command centers that bring in–house GM’s global IT infrastructure
ideal location bordering both residential neighborhoods and major and consolidate a network of multiple sites. The two centers will
regional employers, including General Motors, U.S. Manufacturing, integrate and streamline all aspects of product development,
Johnson Controls and more. The Property is an outparcel to a brand manufacturing, marketing, sales and OnStar applications to speed
new 185,000 square foot Walmart, which opened in March access to any GM employee anywhere in the world.
2014. The current investments of General Motor’s new data center
and other renovations within the area have caused a ripple effect, GM recently reported 2016, First Quarter Net Income of $2.0
inviting more retailers, hotels, housing, etc.
Billion, which marks the continuing profits for the automaker.
Tech Plaza, which is adjacent to the Walmart Supercenter, is
expected to open in the near future with over 130,000 SF of retail
space. This heavy concentration of customers will provide stable,
long–term business for Applebee’s.
APPLEBEE’S – WARREN, MICHIGAN
The United States Army TACOM (Tank–automotive and Armaments
Command) is located less than 1 mile from Applebee’s. The military
and civilian employees at this facility find and implement technology
and logistics solutions from tank–automotive and armaments
weapons systems research and development, through procurement
and fielding, to sustainment and retirement to support America’s
armed forces.
12
MARKET OVERVIEW
DEMOGRAPHIC OVERVIEW
APPLEBEE’S – WARREN, MICHIGAN
13
Exclusive Listing Presented By The Shopping Center Group
Mark Cooley
Director of Investment Sales
Neal Pringle, CCIM
Director of Investment Sales & Finance
Daniel Earles
Director of Investment Sales
P770.955.2434
P770.955.2434
P813.961.1812
[email protected]
[email protected]
[email protected]