offering memorandum 7-eleven - · pdf filegas pumps ..... 6. 7-eleven | roseville, mi 5...

7-ELEVENROSEVILLE, MI

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OFFERING MEMORANDUM

EXCLUSIVE LISTINGAGENTS

JEFF MILLERAssociate

jef fery.mi l [email protected] 424.220.7263MOB 817.239.1566LIC # 02013110 (CA)

KYLE MATTHEWSChairman & CEO

LIC # 6505399495 (MI )BROKER OF RECORD

TABLE OF CONTENTS

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ASSET OVERVIEW4TENANT OVERVIEW6

PROPERTY DETAILS8AREA OVERVIEW12

ASSET OVERVIEW

4

INVESTMENT HIGHLIGHTS

DENSE DEMOGRAPHICS IN A STRONG RETAIL CORRIDOR

• Over 260,000 people within a 5-mile radius of the subject property with an average household income of $63,263

• Strategically positioned on a signalized corner on the intersection of Little Mack Avenue and Masonic Boulevard, which connects both Gratiot Avenue (± 86,000 ADT) and I-94 (± 108,000 ADT)

• Outside of the Macomb Mall which opened in 1964, over $30 million dollars has been poured into improvements since 2013 by Lormax Stern and year-over-years sales shot up 50 percent in 2015

• Retailers in the immediate area include: DICK’s Sporting Goods, Home Depot, Target, Ulta, H&M, Office Max, Toys “R” Us, Petco, Michaels, Burlington Coat Factory, Guitar Center, Staples, JC Penny, Starbucks, Panera Bread, Chipotle, and McDonald’s, amongst others

INVESTMENT GRADE PROPERTY

• Corporately guaranteed lease with 7-Eleven, Inc. backed by AA- Investment-grade credit (Standard & Poor’s)

• 7-Eleven is the world’s largest convenience store chain with more than 60,000 stores in 18 countries

• Absolute NNN ground lease investment with zero landlord responsibilities and a tenant that has been there since 1999 still in the original lease term

OFFERING MEMORANDUM

7-ELEVEN19901 Masonic BlvdRoseville, MI 48066

List Price .........................................................................................................$1,671,890

CAP Rate - Current ................................................................................................7.25%

Gross Leasable Area ..................................................................................... ± 3,114 SF

Lot Size ...................................................................................................... ± 0.63 Acres

Year Built ....................................................................................................................1999

Gas Pumps ...................................................................................................................... 6

7-ELEVEN | ROSEVILLE, MI 5

Annualized Operating DataMonthly Rent Annual Rent Increases Cap Rate

Current - 3/31/2019 $10,101.00 $121,212 $38.92 7.25%

Option 1 $11,616.15 $139,394 $44.76 8.34%

Option 2 $13,358.57 $160,303 $51.48 9.59%

Option 3 $15,362.36 $184,348 $59.20 11.03%

Option 4 $17,666.71 $212,001 $68.08 12.68%

Tenant Summary

Tenant Trade Name 7-Eleven, Inc.

Type of Ownership Ground Lease

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 4/1/1999

Rent Commencement Date 4/1/1999

Lease Expiration Date 3/31/2019

Term Remaining on Lease ± 1.75 Years

Increases 15% Increases

Options Four, 5-Year Options

OFFERING MEMORANDUM6

7-ELEVENPRIVATE WWW.7-ELEVEN.COM

7-Eleven is the world’s largest convenience store chain operating, franchising and licensing more than 60,000 stores in 18 countries and is also one of the nation’s largest independent gasoline retailers. As the pioneer of the convenience store concept, 7-Eleven strives to meet the needs of convenience-oriented guests by providing a broad selection of fresh, high-quality products and services at everyday fair prices, speedy transactions and a clean, friendly shopping environment. Each store maintains a selection of approximately 2,500 different products and services tailored to meet the needs and preferences of its local clientele. Stores typically vary in size from 2,400 to 3,000 square feet and are most often located on corners to maximize visibility and allow for easy access.

The company’s iconic products have become a substantial part of American culture from its well-known Big Gulp® fountain soft drink and Big Bite® grill items to the Slurpee® beverage and its fresh-brewed coffee. 7-Eleven’s food service offerings bring guests a proprietary line of prepared-fresh-daily and daily delivered deli sandwiches, wraps, breakfast sandwiches and a wide assortment fruits, salads and baked goods. Serving guests 24 hours a day is one of the cornerstones of 7-Eleven’s business.

MARKETING & COMPANY STRATEGYWith nonstop innovation, 7-Eleven and its product development teams continue to introduce new products as they search for new flavors, better recipes and useful inventions to satisfy time-constrained customers. Keeping pace with the ways technology is redefining how people shop, 7-Eleven has invested in software and business processes that have revolutionized store operations.

Furthermore, stores reap the benefits from the strong marketing campaigns and advertisements, including national TV and radio commercials, social media, special events and promotions and even public relations support.

GEOGRAPHIC REACHThe company operates, franchises and licenses approximately 10,700 stores in the U.S. and Canada. Of the close to 8,200 stores the company operates and franchises in the United States, more than 6,700 are franchised. Outside of the U.S. and Canada, there are more than 49,300 7-Eleven and other convenience stores in Japan, Taiwan, Thailand, South Korea, China, Malaysia, Mexico, Singapore, Australia, the Philippines, Indonesia, Norway, Sweden, Denmark and United Arab Emirates.

No. of Locations (all) ± 60,000

No. of Employees ± 48,000

Headquartered Irving, Texas

Year Founded 1927

TENANT OVERVIEW

OVERVIEW


THE OFFERING

PARCEL MAP

Property Name 7-Eleven

Property Address 19901 Masonic Blvd

Roseville, MI 48066

Assessor’s Parcel Number 08-14-04-276-020

Zoning

Site DescriptionNumber of Stories One

Year Built / Renovated 1999

Gross Leasable Area (GLA) ± 3,114 SF

Lot Size ± 0.63 Acres (27,443 SF)

Type of Ownership Ground Lease

Parking ± 10 Surface Spaces

Parking Ratio 3.21 : 1,000 SF

Landscaping Professional

Topography Generally Level

ConstructionFoundation Concrete Slab

Framing Steel

Exterior Brick

Parking Surface Asphalt

Roof Flat

2017 Est. Population10,817

2017 Est. Households4,844

2017 Est. Average Household Income

$58,561

PROPERTY DEMOGRAPHICS




$61,019




$63,263

1-MILE 5-MILE3-MILE

PROPERTY DETAILS

Macomb Mall

Masonic Blvd

Little M

ack Avenue

Subject Property

IMMEDIATE TRADE AREA

Macomb Mall

Mas

onic

Blv

d

Subject PropertyLittle Mack Avenue

SURROUNDING TENANTS

7-ELEVEN | ROSEVILLE, MI 11117-ELEVEN | ROSEVILLE, MI

Masonic Blvd

Litt

le M

ack

Ave

nue

DowntownDetroit

Shores Shopping Center

Rose Shores Athletic Club

DETROIT, MIAnchoring the second-largest economic region in the Midwest, behind Chicago, Detroit is the most populous city in Michigan and the center of the Detroit metropolitan area, which is among the most important hubs in the United States. Detroit is a major port on the Detroit River, a strait that connects the Great Lakes system to the Saint Lawrence Seaway, and is home to the busiest international crossing in North America: The Ambassador Bridge.

The city of Detroit and other private-public partnerships have attempted to catalyze the region’s growth by facilitating the building and historical rehabilitation of residential high-rises in the downtown, thereby creating a zone that offers many business tax incentives. As a result, many recreational spaces have been built such as the Detroit RiverWalk, Campus Martius Park, Dequindre Cut Greenway, and Green Alleys in Midtown, which is one of the most successful areas within Detroit.

ECONOMIC SNAPSHOTIn Detroit’s economy, the most heavily represented sectors are automotive manufacturing, with General Motors being one of the most significant of these companies, finance, technology, and healthcare. Several major corporations are based in the city, including three Fortune 500 companies. Companies of note headquartered in the city include: General Motors, Quicken Loans, Ally Financial, Compuware, Shinola, American Axle, Little Caesars, DTE Energy, Lowe Campbell Ewald, Blue Cross Blue Shield of Michigan, and Rossetti Architects. About 80,500 people work in downtown Detroit, comprising one-fifth of the city’s employment base.

AREA OVERVIEW

12 OFFERING MEMORANDUM

DETROIT AREA MAJOR EMPLOYERS

137-ELEVEN | ROSEVILLE, MI

Comerica Park is a combination ballpark, theme park, and baseball museum. A carousel, a ferris wheel, a huge water feature in center field and a museum of baseball history on the main concourse are some of the attractions. The park is most famous as the home of the Detroit Tigers baseball team.

COMERICA PARK

Along the Detroit River are huge skyscraper complexes. Dominating them all is the Renaissance Center, with the 73-story Marriott Hotel and six other towers containing offices, shops, theaters, restaurants, conference space, and public institutions. This is a central feature on the skyline.

GM RENAISSANCE CENTER

ROSEVILLE, MIRoseville is a city located along Lake St. Clair less than 30 minutes north of downtown Detroit in Macomb County. This charming city is comprised of a culturally diverse population that is very engaged in the community.

As Michigan’s first certified Redevelopment Ready Community, Roseville features a wide variety of residential, commercial and industrial opportunities. The city enjoys convenient access to both Interstates 94 and 696, making it a gateway to nearly 4 million residents in the 4-county area. Over the years, Roseville has engaged in a proactive approach to attracting and retaining businesses has led to reinvestment and expansion of existing the city and its existing properties. Furthermore, the area’s affordable housing stock has created opportunities for families looking to relocate. A drive down Gratiot Avenue reveals a large selection of restaurants and retail outlets, including the Macomb Mall, which has been around since 1964.

14 OFFERING MEMORANDUM

Roseville is home to companies in the automotive, military, printing, paper recycling, and food service industries. Approximately 681 acres of Roseville are devoted to industrial property. The city is just minutes away from key air and sea ports and has direct connections to major rail routes serving local, interstate and international trade

routes and destinations, making its desirable to many industries. Proximity to Interstates 94 and 696 specifically provides residents and businesses convenient access to any location in the greater Detroit area and the amenities that come with it. Additionally, the Groesbeck corridor and CN Railway make Roseville desirable to many industries.

LOCAL BUSINESS CLIMATE

+48,000RESIDENTS

681 ACRESINDUSTRIAL PROPERTY


MACOMB MALLOnce on the verge of closing, Macomb Mall has undergone a rebirth with $30 million invested into renovations since 2013. The enclosed shopping center now boasts a wave of new tenants and 95% occupancy across its 900,000 SF of leasable area. A thriving retail showcase that provides ample opportunity for up-and-coming businesses, Macomb Mall features prestigious national brand stores such as Dick’s Sporting Goods and Kohl’s as well as a variety of recognized retailers such as Ulta, H&M and Lane Bryant. Year over year sales have increased since Lormax Stern’s purchase of the property, which is a central part of Roseville’s Gratiot corridor.

Macomb Mall’s new look and lineup have revived it as a regional shopping destination, drawing visitors from both the neighborhood and the broader market area: Within 10 miles of the mall, the population totals almost 860,000 people, surpassing the typical mall’s consumer base of 250,000 people. In addition to its position to draw from a large population base, the mall also benefits from a lack of shopping center competition with the struggling Eastland Mall being the closest at 7 miles away. Sears’ closing in June of 2017 has made way for the popular At Home home décor retailer and leaves space for another retailer with a bright future.

157-ELEVEN | ROSEVILLE, MI

WON BOMA METRO DETROIT TOBY 2017 AWARD IN REGIONAL SHOPPING CENTER

“A SOLID, STABLE SHOPPING DESTINATION”

-CHRIS BROCHERT, PARTNER AT LORMAX STERN

“SEARS’ CLOSING BRINGS A GREAT OPPORTUNITY FOR THE MALL AND THE

SURROUNDING AREA AS A WHOLE”

-MATT DROZD, PROPERTY MANAGEMENT DIRECTOR AT LORMAX STERN


This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of 7-Eleven located at 19901 Masonic Blvd, Roseville, MI 48066 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

CONF IDENT IAL I TY & D ISCLA IMER STATEMENT

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EXCLUSIVE LISTING AGENTS:

JEFF MILLERAssociate

jef fery.mi l [email protected] 424.220.7263MOB 817.239.1566LIC # 02013110 (CA)

KYLE MATTHEWSChairman & CEO

LIC # 6505399495 (MI )BROKER OF RECORD

offering memorandum 7-eleven - · pdf filegas pumps ..... 6. 7-eleven | roseville, mi 5...

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