kirts office park

KIRTS OFFICE PARK
Troy, Michigan
The Property
Building Summary
Kirts Office Park (“the Property”) is an eight (8) building,
218,723 square foot, single-story office portfolio
clustered on a two campus, 16.38 acre site. The offering
allows investors to achieve excellent risk adjusted,
opportunistic returns through the continued lease up
and value added repositioning of the portfolio. The
Property is currently 54% occupied to quality tenants
such as the GSA, Ajax Paving, Yellow Pages and First
American Title.
Summary
Total SF
Leased
Built
800 Kirts Blvd
31,366
92.9%
1986
820 Kirts Blvd
31,366
32.1%
1984
830 Kirts Blvd
31,366
52.2%
1986
1172 Kirts Blvd
32,662
100%
1986
1200 Kirts Blvd
30,000
0%
1987
1228 Kirts Blvd
14,881
100%
1987
1250 Kirts Blvd
34,930
29.5%
1986
1282 Kirts Blvd
12,152
44.2%
1987
218,723
54.3%
Portfolio
Asset Overview
Address
800, 820, 830, 1172, 1200, 1228, 1250, 1282 Kirts Boulevard, Troy, MI
Submarket
Troy (Big Beaver Corridor)
Property Type
Eight Building, Single Story Portfolio
Portfolio RBA
218,723
Acres
16.38
Parking
4.1/1,000 (896 surface spaces)
Built
1984-1987
Construction
EFIS and masonry clad, steel frame ribbon glass
Kirts Office Park
Major Tenants
Tenant
SF
Lease Exp.
GSA
32,662
7/31/19
Ajax Paving Industries
13,463
10/31/15
NS International
17,849
7/31/16
Yellow Pages
10,083
3/31/13
First American Title
8,188
9/30/12
Copy Corps Michigan
6,723
1/31/12
Blue Rock Technologies
5,582
12/31/16
Avatech Solutions
5,090
4/30/14
Troy, Michigan
Investment Highlights
Asset Level
Detroit Office Market Advantage
• Opportunity to increase occupancy and to lease
the Property to economic stabilization from its
current 54% occupancy level.
• Landlords in the Detroit market realize stronger
leasing economics compared to other major
Midwestern markets.
• In-place NOI of $1,001,357.
• Kirts Office Park fills a strategic position as a single
story office product within a predominately Class
A market.
• The GSA represents 15% of the portfolio leased
through 2019.
• Ability to sell into or refinance asset into an
improved capital markets environment in the
future.
• Ability to roll in-place tenants to higher rents
as the market improves over the next several
years when the market should have reached full
recovery.
• Available to acquire asset at attractive low
investment basis that is well below replacement
cost in an infill market. The Property is expected
to sell well below replacement value, which is
estimated to be over $125 per square foot for
similar high quality property.
Market Level
• The geographic center of the Detroit office
and residential communities, Kirts Office Park
is located in prosperous Oakland County, the
second most populous county in Michigan.
• Oakland County is expected to add
approximately 29,000 jobs over the next three
years, positively impacting the unemployment
rate falling from 9.8% by the end of 2011 to 9.1%
by 2013.
• GM raised a record $20.1 billion IPO in 2010
eliminating government ownership of over 50%.
• Located along Kirts Road, the Property benefits
from its infill location and access to main
transportation arterials and deep amenity base in
the surrounding area.
• The Property is surrounded by newer highquality office building stock and accommodates
multiple user needs in the North and South Troy
submarket.
• There is very little vacant land in local area
for future development, which will aid market
recovery.
Desirable Big Beaver Corridor Location
• The Big Beaver Corridor is the most desirable
suburban submarket of Detroit and is well served
by a wide variety of services, retail, restaurants,
and hotels.
• The Somerset Collection, one of the nation’s
top grossing retailer centers, encompassing 1.4
million square feet, provides the finest experience
in luxury shopping at one end of Big Beaver Road
and a high-end outlet-style Troy Marketplace at
the opposite end, home to REI and Nordstrom
Rack.
• Area hotels include the Troy Marriott and the
Somerset Inn, both on Big Beaver Road within
½ mile from Kirts Office Park in addition to
Candlewood Suites located next door.
Kirts West
Kirts East
75
r Dr
ente
C
Troy
1228
1200
1280 1250
Kirts East
ive
Crooks Road
Kirts West
830
1172
800
820
Kirts Boulevard
Thomas A. Gorman
Gary P. Nussbaum
Bill Harvey
Managing Director
Managing Director
Senior Vice President
312.881.7019
312.881.7090
248.932.2840
[email protected]
[email protected]
[email protected]
Transwestern
32255 Northwestern Hwy.
Suite 206
Farmington Hills, MI 48334