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Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

TRACTOR SUPPLY CO.6850 WHITMORE LAKE ROADWHITMORE LAKE (ANN ARBOR), MI 49189

Offering Memorandum

AERIAL PHOTO TRACTOR SUPPLY CO.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070384


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US HWY 2367,100 CPD

D O W N T O W NANN ARBOR

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TRACTOR SUPPLY CO.



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EXECUTIVE SUMMARY


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TRACTOR SUPPLY CO.

TRACTOR SUPPLY CO.6850 Whitmore Lake RoadWhitmore Lake (Ann Arbor), MI 49189

FINANCIAL SUMMARY

Price $3,734,000

Down Payment 28% $1,041,563

Total Net Rentable Area 22,670 SF

Price Per SF $165 PSF

Cap Rate 9.22%

Net Cash Flow After Debt Service $62,511

Year Built 2007

Lot Size 5.3 Acres

LEASE SUMMARY

Lease Type Double-Net (NN) Lease

Tenant Tractor Supply Co.

Roof & Structure Landlord Responsible

Rent Commencement Date May 1, 2008

Lease Expiration Date May 31, 2028

Lease Term Remaining 10 Years

Rental Increases 10% Increase in Year 16 and in Options

Renewal Options 4, 5 Year Options

BASE RENT $344,304

Net Operating Income $344,304

Debt Service $281,793

Net Cash Flow After Debt Service 6.00% $62,511

Year 1 Principle Paydown (10/1/2018) $95,816

Total Return 15.20% $158,328

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

Current - 4/30/2023 $344,304 9.22%

5/1/2023 - 5/31/2028 $378,734 10.14%

OPTIONS ANNUAL RENT CAP RATE

Option 1 $416,608 11.16%

Option 2 $458,269 12.27%

Option 3 $504,095 13.50%

Option 4 $554,505 14.85%

LOAN SUMMARY

Original Loan Amount $3,322,500

Amortization 25 Years

Loan Origination Date 7/1/2009

Loan Maturity Date 8/1/2034

Interest Rate 7.00%

Approximate Loan Balance (as of 10/1/2018) $2,692,437

Annual Debt Service $281,793

EXECUTIVE SUMMARY

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TRACTOR SUPPLY CO.



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TENANT OVERVIEW

Tractor Supply Company (NASDAQ: TSCO) is in its 80th year of operation and, since being founded in 1938, has grown to become the largest rural lifestyle retail store chain in the United States. With more than 28,000 team members, over 1,700 stores in 49 states and an e-commerce website, Tractor Supply is passionate about serving its unique niche, as a one-stop shop for recre-ational farmers, ranchers and all those who enjoy living the rural lifestyle.

Tractor Supply offers an extensive mix of products nec-essary to care for home, land, pets and animals with a focus on product localization, exclusive brands and legendary customer service that addresses the needs of the Out Here lifestyle. The Company leverages its physi-cal store assets with digital capabilities to offer custom-ers the convenience of purchasing products they need anytime, anywhere and any way they choose at the ev-ery day prices they deserve.

As of June 30, 2018, the Company operated 1,725 Trac-tor Supply stores. Tractor Supply Company also owns and operates Petsense, a small-box pet specialty supply retailer focused on meeting the needs of pet owners, primarily in small and mid-size communities, and offer-ing a variety of pet products and services.

www.tractorsupply.com




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LOCATION OVERVIEWINVESTMENT HIGHLIGHTS• Ten Years Remaining on Corporate Lease with Tractor Supply Co.

• Ann Arbor MSA – 245,861 Residents in Growing Trade Area

• Excellent Visibility – Adjacent to US Hwy 23 (67,100+ Cars per Day)

• Average Household Income Exceeds $122K in 5-Mile Radius

• 8 Miles North of Ann Arbor and 45 Miles West of Detroit

• 331,140+ Daytime Employees in Trade Area

• Surrounded by Farms

• One Mile from Whitmore Lake High School

PROPERTY DESCRIPTION

Income 3-Miles 5-Miles 10-Miles2017 Est. Average Household Income $98,453 $122,837 $103,2492017 Est. Median Household Income $72,037 $86,610 $73,1722017 Est. Per Capita Income $38,909 $48,069 $42,008

Population 3-Miles 5-Miles 10-Miles2022 Projection 6,388 26,000 254,9862017 Estimate 6,239 24,645 245,861Growth 2017 - 2022 2.39% 5.50% 3.71%

Households 3-Miles 5-Miles 10-Miles2022 Projections 2,573 10,300 102,8962017 Estimate 2,461 9,625 98,380Growth 2017 - 2022 4.55% 7.02% 4.59%

DEMOGRAPHICS

The community of Whitmore Lake is situated within Michigan’s Detroit-Warren-Ann Arbor combined statistical area – the state’s largest CSA with over 5.32 million residents.

Whitmore Lake is situated in Washtenaw County, a productive agricultural region and an attractive commercial development zone. The county is home to over 1,200 farms, totalling over 170,150 acres in farm land. Washtenaw County is ranked in the top 10 in Michigan for agricultural categories such as organic farming, direct to consumer sales, sheep, goat, horse, and pony operations, and aquaculture.

Only 8 miles north of Ann Arbor, Whitmore Lake benefits from its close proximity to this bustling, thriving city. Located in southeast Michigan’s Lower Peninsula, Ann Arbor lies at the center of a greater collection of communities in Washtenaw County. With so many thriving communities nearby, Ann Arbor has become a cultural melting pot and urban oasis. It is an exciting university town, culinary hotspot, and a tech hub with a walkable downtown that includes world-class arts and culture.

Ann Arbor is home to the University of Michigan, which is the dominant institution of higher learning in the city. This shapes the economy significantly as it employs a majority of the residents for its staff and medical center. The university greatly benefits Ann Arbor and the surrounding area as it positions the city in Michigan’s emerging start-up scene. The University of Michigan spins off an increasing number of advances in the life sciences and other fields into entrepreneurial start-ups. According to the Detroit Free Press, Ann Arbor is quickly becoming Michigan’s own Silicon Valley.

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LOCAL MAP

Williams-Sonoma

MAP

7.7 MILESDowntown

Ann Arbor, MI

45 MILESDowntownDetroit, MI

8.5 MILESUniversity of

Michigan

33.7 MILESDetroit Metropolitan

Wayne County Airport

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a care-ful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and finan-cial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed fa-cilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be inter-rupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

Net Leased Disclaimer

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

exclusively listedJAMIE MEDRESSSenior Managing Director InvestmentsPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

ALEX FRANKELAssociate AdvisorCOLUMBUS OFFICETel: (614) 360-9061Fax: (614) [email protected]

MARK RUBLESenior Managing Director InvestmentsPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

STEVEN CHABENBroker of RecordSOUTHFIELD OFFICETel: (248) 415-2600License: 6502387903

Exclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

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