offering memorandum.
Best Buy
Auburn Hills, MI | High-Income Suburb
S Baldwin Rd
Brown Rd
/ (83,600 AADT)
GREAT LAKES CROSSING
Actual Site
$7,565,737
9.01% CAP Rate
12.40% CoC Return
in Front of the 2nd Largest Regional
••20-Year NNN Lease to Corporate Parent ••Directly
Shopping Center in Michigan – Great Lakes
Crossing
••
Excellent Interstate Frontage
••
•
•
of the Major Anchors in Auburn Mile
••One
••
Shopping Center – Additional Anchors
~ 6 Years Remaining
3% Rental Increase in Oct. 2015
AADT - 83,600 along I-75
Include Target, Staples, Costco and Meijer
This property is listed in conjunction with Arizona-licensed
This property isRetail
listedAdvisors
in conjunction
with Michigan-licensed
realbroker).
estate broker Kwekel Companies. www.maffiateam.com
S.W. (James
Mitchell, designated
Confidentiality & Disclosure
Newmark Cornish & Carey (“Broker”) has been retained on an exclusive basis to market the property described herein (“Property”).
Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for
the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be
made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer
results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser
will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems
appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of
the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the
express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that
a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and
has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners,
shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own
investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections
contained in the pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to
accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed
to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
Michael Maffia
Senior Managing Director
415.445.5144
mmaffia@ccareynkf.com
CA RE License #01340853
Putnam Daily
VP/Transaction Manager
415.445.5107
pdaily@ccareynkf.com
CA RE License #01750064
901 Mariners Island Blvd, Suite 120 • San Mateo, CA 94404 • Tel 415.373.4060 • Fax 415.373.4060 • www.maffiateam.com
Table of Contents
•Property Information........................................................................................................................1
•Tenant Information.......................................................................................................................... 2
•About the Area................................................................................................................................ 3
•Site Plan......................................................................................................................................... 4
•Aerials............................................................................................................................................ 5
•Location Maps................................................................................................................................ 7
•Demographics.............................................................................................................................. 10
Property Information
Location
The property is located at 300 Brown Road in Auburn Hills, Michigan.
Lot Size
Approximately 4.47 acres, or 194,713 square feet.
Improvements
An approximately 45,520 square foot retail building for Best Buy.
Lease
Leased to Best Buy Co., Inc., for 20 years from October 2000 to October 2020, at a current annual rent of $662,002 that
increases in October 2015 to $681,861. There are three five-year options to renew the lease. The rent increases by 3% every five years throughout the initial term and option periods as indicated. The lease is triple net with the tenant responsible for taxes, insurance, and all maintenance, including roof and structure.
Annual
Income
Price
Years
Annual Rent
Return
1-5
$624,000
N/A
6-10
$642,720
N/A
11-15
$662,002
N/A
16-20 (Capitalized Rent)
$681,861
9.01%
21-25
$702,317
9.28%
(Option 1)
26-30 (Option 2)
$723,387
9.56%
31-35
$745,088
9.85%
(Option 3)
$7,565,737 (9.01% Return)*
*The price is caluclated by capitalizing the rent effective in October 2015. Seller will escrow any difference at close of
escrow.
1
Possible Financing
Financing
The property will be delivered free and clear of permanent financing. A possible new loan may be secured in the amount
of $4,500,000 at an interest rate of 4.55% fixed for 5 years, amortized over 25 years and due in ten years with annual
payments of $301,684. Other options are also available.
Cash Flow
Years 1-5
Price
$7,565,737
Net Income
$681,861
Loan Amount
<4,500,000>
Debt Service
<301,684>
Equity
$3,065,737
Cash Flow
$380,177
Cash-on-Cash Return
12.40%
2
Tenant Information
Best Buy Co., Inc. (NYSE: “BBY”), is an innovative Fortune 100 growth company that continually strives to create superior
customer experiences. Through more than 1,400 retail stores across the United States, including large-format and Best
Buy Mobile stores, the Company connects customers with technology and entertainment products and services. Best
Buy sells consumer electronics, home-office products, entertainment software, appliances, and related services. A
Minneapolis-based company, its operations include: Best Buy (BestBuy.com), Future Shop (FutureShop.ca), Geek Squad
(GeekSquad.com), Magnolia Audio Video (Magnoliaav.com), and Pacific Sales Kitchen and Bath Centres (PacificSales.
com). Best Buy plans to double its online retail presence in the next three to five years.
For the quarter ended February 2014, Best Buy reported revenue of $14.47 billion with net income of approximately $293
million and net worth of approximately $3.989 billion. Ranked #61 on the 2013 Fortune 500 list, Best Buy has a Standard
& Poor’s rating of “BB.”
3
About the Area
Site
Information
The property is one of the major anchors in the 624,212 square foot Auburn Mile shopping center located along a mile long
stretch of Interstate 75 (83,600 AADT) between Baldwin and Joslyn Roads. Auburn Mile shopping center is also anchored by
Target, Staples, Costco and Meijer. Additional tenants in and around the shopping center include Olive Garden, Wendy’s,
Ethan Allen, Applebee’s, Jo-Ann, Comerica, Logan’s Roadhouse, Sam’s Club and Home Depot.
Directly in front of the property, across Interstate 75, is the Great Lakes Crossing, the second largest regional shopping
center in Michigan. Great Lakes Crossing mall has over 180 stores, a 25-screen AMC Star movie theater, Michigan’s largest
food court (1,000 seats) and seven full-service restaurants. The mall is anchored by Burlington Coat Factory, Bass Pro
Outdoor World, Sports Authority, TJ Maxx, Marshalls and Bed Bath & Beyond. Additional tenants in the mall include Coach,
J.Crew, Saks Fifth Avenue OFF 5th, Lord & Taylor Outlet, Sprint, GameStop and Panda Express. Less than half a mile west,
across South Baldwin Road, is the 400,000 square foot Baldwin Commons Shopping Center anchored by Kohl’s, Michaels,
Old Navy, Petco, DSW and Nordstrom Rack. Additional tenants in and around the shopping center include Babies “R” Us,
Dollar Tree, Ulta, Tilly’s, Five Below, Party City, Panera Bread, RadioShack and Starbucks.
The General Motors Orion Assembly, a 4.3 million square foot plant, is located a mile and a half east of the property. The
plant has over 1,800 employees and produces the Chevrolet Sonic and Buick Verano. In its 29 year history, the Orion plant
has produced 4.6 million vehicles for General Motors and holds the distinction of becoming the first GM facility to receive
the Clean Corporate Citizen designation by the State of Michigan.
General
Overview
Located northwest of Detroit, Auburn Hills roughly follows the course of Interstate 75 and is home to a prosperous business
community. The city is home to over 60 international corporations and is headquarters to numerous businesses, such as
Chrysler Corporation and BorgWarner. The city is also home to the Walter P. Chrysler Museum, Volkswagen of America, and
the Palace of Auburn Hills where the Detroit Pistons play. The city also hosts Great Lakes Crossing, which is the second
largest regional shopping center in Michigan.
Today, the city’s many tech and office buildings cause its population to swell from less than 20,000 residents to 80,000
during the workday. Industrial parks, office complexes, research facilities and light manufacturing businesses are located
throughout Auburn Hills and along the I-75 corridor. The city is strategically located with easy access to several major
interstate highways and is a short driving distance to two international airports.
Many areas of Auburn Hills still have a suburban atmosphere, but land is being developed quickly, especially in the retail
sector. Diversifying its economy, Auburn Hills welcomes new retailers and service providers. Committed to quality growth,
the city enforces strict codes to maintain the charm that originally attracted both residents and businesses to Auburn Hills.
4
Site Plan
45,520 SF
5
Aerial | Close-Up View
Brown Rd
/ (83,600 AADT)
6
S Baldwin Rd
Aerial | Mid-Range View
Brown Rd
/ (83,600 AADT)
GREAT LAKES CROSSING
Aerial | Distant View
BALDWIN COMMONS
General Motors
Orion Assembly
Brown Rd
Auburn Mile
/ Lapeer
83
Rd
/(
GREAT LAKES CROSSING
Great Lakes
Golf & Sports
Complex
,60
0A
AD
T)
Pinnacle
Corporate
Center
dwin
S Bal
Fieldstone
Golf Club
Rd
Owen
Elementary
School
Fieldstone
Village
The Palace
of Auburn Hills
Location Map
Site
Location Map
Site
Location Map
Site
Demographics
300 Brown Rd
Auburn Hills, MI 48326
Market Profile
300 Brown Rd, Auburn Hills, Michigan, 48326
Ring: 1 mile radius
Population Summary
2000 Total Population
2010 Total Population
2012 Total Population
2012 Group Quarters
2017 Total Population
2012-2017 Annual Rate
Household Summary
2000 Households
2000 Average Household Size
2010 Households
2010 Average Household Size
2012 Households
2012 Average Household Size
2017 Households
2017 Average Household Size
2012-2017 Annual Rate
2010 Families
2010 Average Family Size
2012 Families
2012 Average Family Size
2017 Families
2017 Average Family Size
2012-2017 Annual Rate
Housing Unit Summary
2000 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2010 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2012 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2017 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
Median Household Income
2012
2017
Median Home Value
2012
2017
Per Capita Income
2012
2017
Median Age
2010
2012
2017
Latitude: 42.70725
Longitude: -83.29908
1 mile
3 miles
5 miles
956
1,319
1,411
24
1,550
1.90%
36,707
38,333
38,149
257
38,035
-0.06%
123,815
124,153
123,974
4,458
124,292
0.05%
303
3.00
399
3.25
424
3.27
465
3.28
1.89%
282
3.78
303
3.79
336
3.78
2.06%
14,229
2.56
14,733
2.58
14,604
2.59
14,582
2.59
-0.03%
9,672
3.18
9,591
3.19
9,494
3.20
-0.20%
45,645
2.62
46,923
2.55
46,755
2.56
47,043
2.55
0.12%
30,610
3.14
30,474
3.13
30,339
3.15
-0.09%
331
73.1%
18.4%
8.5%
15,064
65.2%
29.3%
5.5%
48,654
62.1%
31.7%
6.2%
429
65.3%
27.7%
7.0%
453
66.0%
27.6%
6.4%
493
68.8%
25.6%
5.7%
16,382
57.2%
32.8%
10.1%
16,328
55.8%
33.6%
10.6%
16,351
56.2%
32.9%
10.8%
53,012
56.5%
32.1%
11.5%
52,842
55.5%
33.0%
11.5%
53,058
56.2%
32.5%
11.3%
$56,657
$65,668
$46,154
$52,868
$48,466
$54,718
$137,798
$150,235
$123,985
$141,103
$128,849
$142,706
$28,694
$31,799
$24,672
$27,512
$25,970
$29,069
38.0
38.3
38.5
35.5
35.7
36.2
35.6
35.8
36.2
Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households.
Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by
all persons aged 15 years and over divided by the total population.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
12
Market Profile
Demographics
300 Brown Rd
Auburn Hills, MI 48326
300 Brown Rd, Auburn Hills, Michigan, 48326
Ring: 5 mile radius
2012 Households by Income
Household Income Base
Latitude: 42.70725
Longitude: -83.29908
1 mile
3 miles
5 miles
424
14,604
46,755
<$15,000
$15,000 - $24,999
11.6%
8.0%
17.1%
11.4%
15.6%
11.0%
$25,000 - $34,999
$35,000 - $49,999
7.8%
16.3%
10.9%
13.3%
10.3%
14.1%
$50,000 - $74,999
18.2%
18.8%
18.2%
$75,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
14.4%
17.5%
3.1%
10.2%
10.8%
4.2%
10.6%
11.9%
4.1%
$200,000+
Average Household Income
2017 Households by Income
Household Income Base
3.3%
3.4%
4.1%
$71,795
$62,936
$66,120
465
14,582
47,043
10.1%
5.8%
16.4%
8.7%
14.8%
8.5%
5.2%
14.2%
20.6%
17.2%
19.6%
3.7%
3.7%
$80,494
9.0%
12.3%
21.3%
12.1%
11.7%
4.8%
3.6%
$70,028
8.1%
12.9%
21.1%
12.6%
12.5%
5.0%
4.4%
$74,001
299
2.3%
12.7%
45.8%
12.4%
10.4%
7.0%
8.4%
0.7%
0.0%
0.0%
0.0%
$164,154
9,110
7.3%
30.9%
24.4%
16.2%
10.4%
5.0%
3.2%
0.9%
1.3%
0.2%
0.1%
$147,342
29,308
7.1%
27.3%
27.0%
14.4%
9.2%
6.8%
5.3%
1.5%
1.2%
0.2%
0.1%
$155,643
Total
<$50,000
$50,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 - $299,999
$300,000 - $399,999
$400,000 - $499,999
339
0.9%
7.1%
41.9%
18.3%
14.5%
7.4%
9.1%
0.6%
9,194
4.1%
25.2%
25.2%
22.5%
12.8%
4.8%
3.2%
0.7%
29,802
4.1%
22.8%
27.1%
20.1%
11.3%
6.7%
5.2%
1.2%
$500,000 - $749,999
$750,000 - $999,999
$1,000,000 +
0.0%
0.0%
0.0%
1.3%
0.2%
0.1%
1.2%
0.2%
0.0%
$177,838
$157,516
$164,522
<$15,000
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000+
Average Household Income
2012 Owner Occupied Housing Units by Value
Total
<$50,000
$50,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 - $299,999
$300,000 - $399,999
$400,000 - $499,999
$500,000 - $749,999
$750,000 - $999,999
$1,000,000 +
Average Home Value
2017 Owner Occupied Housing Units by Value
Average Home Value
13
Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest dividends, net rents,
pensions, SSI and welfare payments, child support, and alimony.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
300 Brown Rd
Auburn Hills, MI 48326
300 Brown Rd, Auburn Hills, Michigan, 48326
Ring: 5 mile radius
Latitude: 42.70725
Longitude: -83.29908
1 mile
3 miles
5 miles
1,319
38,330
124,158
6.7%
7.7%
7.8%
7.6%
7.0%
7.1%
10 - 14
15 - 24
6.1%
11.1%
7.2%
13.5%
7.1%
15.1%
25 - 34
13.8%
13.2%
12.9%
35 - 44
45 - 54
55 - 64
15.2%
15.7%
11.4%
14.5%
15.0%
11.0%
14.4%
15.1%
11.1%
65 - 74
7.6%
5.8%
5.8%
75 - 84
85 +
3.6%
1.0%
3.1%
1.3%
3.1%
1.3%
75.4%
73.1%
74.4%
1,412
38,149
123,974
6.8%
7.9%
6.2%
10.8%
13.7%
14.9%
15.3%
11.9%
7.9%
3.7%
1.0%
75.3%
7.7%
7.5%
7.1%
13.3%
13.4%
14.1%
14.6%
11.6%
6.2%
3.1%
1.3%
73.5%
7.0%
7.0%
7.0%
14.9%
13.1%
14.0%
14.7%
11.6%
6.2%
3.1%
1.4%
74.8%
1,549
6.8%
8.0%
6.4%
10.0%
13.4%
14.6%
14.3%
12.3%
9.4%
3.8%
1.0%
75.1%
38,035
7.8%
7.5%
7.2%
12.6%
13.4%
13.8%
13.6%
12.2%
7.4%
3.2%
1.4%
73.5%
124,294
7.0%
7.0%
7.1%
14.2%
13.2%
13.7%
13.7%
12.2%
7.5%
3.2%
1.4%
74.9%
648
671
18,666
19,667
61,072
63,081
693
718
18,604
19,545
61,065
62,910
Males
760
18,547
61,224
Females
790
19,489
63,068
2010 Population by Age
Total
0-4
5-9
18 +
2012 Population by Age
Total
0-4
5-9
10 - 14
15 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
18 +
2017 Population by Age
Total
0-4
5-9
10 - 14
15 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
18 +
2010 Population by Sex
Males
Females
2012 Population by Sex
Males
Females
2017 Population by Sex
14
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
300 Brown Rd
Auburn Hills, MI 48326
300 Brown Rd, Auburn Hills, Michigan, 48326
Ring: 5 mile radius
2010 Population by Race/Ethnicity
Total
Latitude: 42.70725
Longitude: -83.29908
1 mile
3 miles
5 miles
1,320
38,332
124,151
84.5%
7.1%
72.3%
16.4%
69.4%
19.9%
American Indian Alone
Asian Alone
0.6%
3.6%
0.5%
2.6%
0.5%
3.2%
Pacific Islander Alone
0.1%
0.0%
0.0%
Some Other Race Alone
Two or More Races
Hispanic Origin
2.0%
2.2%
6.1%
4.8%
3.3%
13.4%
3.8%
3.3%
10.9%
36.1
57.8
57.9
White Alone
Black Alone
Diversity Index
2012 Population by Race/Ethnicity
Total
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
1,411
38,148
123,975
83.8%
7.4%
70.9%
17.4%
68.1%
20.7%
0.6%
3.7%
0.1%
2.1%
2.3%
6.5%
37.7
0.6%
2.7%
0.0%
5.0%
3.5%
13.8%
59.4
0.5%
3.4%
0.0%
3.9%
3.4%
11.2%
59.3
1,551
81.7%
8.4%
0.8%
4.0%
0.1%
2.5%
2.5%
7.7%
42.0
38,035
67.8%
19.6%
0.6%
2.8%
0.0%
5.4%
3.7%
14.9%
62.8
124,291
65.2%
22.8%
0.5%
3.6%
0.0%
4.2%
3.6%
12.1%
62.3
1,319
98.2%
82.9%
26.8%
21.5%
29.9%
2.8%
2.0%
15.4%
1.8%
1.8%
0.0%
38,333
99.3%
83.0%
25.5%
17.4%
33.9%
3.6%
2.6%
16.3%
0.7%
0.6%
0.1%
124,153
96.4%
79.9%
24.7%
16.7%
32.6%
3.4%
2.5%
16.5%
3.6%
1.9%
1.7%
2017 Population by Race/Ethnicity
Total
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
2010 Population by Relationship and Household Type
Total
In Households
In Family Households
Householder
Spouse
Child
Other relative
Nonrelative
In Nonfamily Households
In Group Quarters
Institutionalized Population
Noninstitutionalized Population
15
Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from different
race/ethnic groups.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
300 Brown Rd
Auburn Hills, MI 48326
300 Brown Rd, Auburn Hills, Michigan, 48326
Ring: 5 mile radius
2010 Households by Type
Total
Households with 1 Person
Households with 2+ People
Family Households
Husband-wife Families
With Related Children
Other Family (No Spouse Present)
Other Family with Male Householder
With Related Children
Other Family with Female Householder
With Related Children
Nonfamily Households
All Households with Children
Multigenerational Households
Unmarried Partner Households
Male-female
Same-sex
2010 Households by Size
Total
1 Person Household
2 Person Household
3 Person Household
4 Person Household
5 Person Household
6 Person Household
7 + Person Household
2010 Households by Tenure and Mortgage Status
Total
Owner Occupied
Owned with a Mortgage/Loan
Owned Free and Clear
Renter Occupied
Latitude: 42.70725
Longitude: -83.29908
1 mile
3 miles
5 miles
400
21.8%
78.3%
70.5%
55.3%
26.8%
15.3%
5.0%
3.5%
10.3%
14,734
27.9%
72.1%
65.6%
44.6%
21.4%
21.1%
5.2%
3.0%
15.9%
46,923
28.0%
72.0%
65.2%
44.1%
20.7%
21.1%
5.2%
3.0%
15.9%
6.5%
7.8%
10.9%
6.5%
10.9%
6.8%
37.6%
35.9%
35.0%
3.8%
6.8%
6.0%
0.8%
3.9%
7.4%
7.0%
0.4%
3.8%
7.4%
6.8%
0.5%
400
21.8%
36.0%
16.5%
14.8%
7.0%
3.0%
1.0%
14,733
27.9%
31.2%
16.3%
13.7%
6.7%
2.7%
1.6%
46,924
28.0%
31.4%
16.2%
13.7%
6.5%
2.5%
1.6%
399
70.2%
54.6%
15.8%
29.8%
14,733
63.6%
47.8%
15.8%
36.4%
46,923
63.8%
48.9%
14.9%
36.2%
Data Note: Households with children include any households with people under age 18, related or not. Multigenerational households are families with 3 or more parentchild relationships. Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the
householder. Multigenerational and unmarried partner households are reported only to the tract level. Esri estimated block group data, which is used to estimate
polygons or non-standard geography.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
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