Embed Size (px)
Citation preview
Ca
pita
l Ma
rke
ts |
Inv
estm
en
t Pro
pe
rties
Benihana1985 West Big Beaver Road | Troy, Michigan
O f f e r i n g M e m o r a n d u m
Table of Contents
Executive Summary 3Investment Highlights .......................... 4Investment Overview ........................... 5Property Summary .............................. 6Photos ................................................ 7
Market Overview 8Market Summary ................................ 9Location Maps .................................. 11Demographics .................................. 14
Sale Comparables 15
Financials 18Financial Analysis ............................. 19Tenant Overview ............................... 21Lease Abstract .................................. 22Year One Cash Flow Estimates .......... 23
For More Information Please Contact:
BIll O’COnnOrSenior Vice President+1 248 351 2045 [email protected]
DavID HesanO Vice President+1 248 351 2014 [email protected]
CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.
This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.
This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form.
These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.
Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.
The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.
Affiliated Business Disclosure and Confidentiality Agreement
Executive Summary
4 Benihana - Troy
InvestMent HIgHlIgHts
stable Cash Flow, Benihana Just extended early
Benihana just exercised their lease extension early, extending their lease an additional five-years through February, 2021 on this commercial condominium.
strong Historical store sales, Healthy rent-to-sales ratio
Benihana has excellent store sales and has historically been paying percentage rent, with a rent-to-sales ratio that is under 7.0%. Sales have been trending upward for over six consecutive years. Annual sales for 2013 topped $5.19 million. A continued upward sales trend will bring greater return to the purchaser. Minimal landlord responsibilities
Benihana is responsible for reimbursing the landlord for all operating expenses for Building A of this commercial condominium. great location, access and traffic
The property is in a great location with direct frontage along Big Beaver Road with traffic counts of 42,000+ VPD and 65,000 VPD along Crooks Road. Benihana is less than one mile from the Somerset Collection, an upscale luxury “super” mall consisting of 1.5 million square feet of retail space anchored by Macy’s, Nordstrom, Saks Fifth Avenue and Neiman Marcus.
top tier Demographics
Population of over 83,000 residents with an average household income of $99,000, all within a three-mile radius.
5 Benihana - Troy
tHe OFFerIng
CBRE, Inc. has been retained by current ownership as the exclusive marketing advisor for the disposition of the Benihana Restaurant located at 1985 West Big Beaver Road in Troy, Michigan.
OFFerIng sUMMarY
The Benihana single tenant investment opportunity is being offered at $5,145,000 or a cap rate of 7.0% and a price per square foot of $496.
InvestMent OvervIew
Benihana is on their initial 20-year lease for their restaurant of approximately 10,363 square feet in Building A of this commercial condominium. Benihana recently extended their lease early for an additional five years through February, 2021. The lease includes a percentage rent clause in which the tenant is responsible for paying percentage rent on top of their base rental payments. The scheduled base rental income includes the percentage rent income which is based on the trailing 12 months of reported sales (8/2013 - 7/2014). The lease calls for one additional five-year renewal option in which they must provide notice of 120 days. Benihana is responsible for reimbursing the landlord for their pro rata share of common area maintenance, real estate taxes and insurance. Additionally, Benihana recently contributed $70,000 for the parking lot to be renovated. Headquartered in Miami, Benihana is the nation’s leading operator of Japanese theme and sushi restaurants with 95 restaurants nationwide, including 62 Benihana restaurants, 25 RA Sushi restaurants and eight Haru sushi restaurants. In addition, 16 franchised Benihana restaurants are operating in the United States, Latin America and the Caribbean. In 2012 the company was acquired by Angelo, Gordon & Co. L.P., a privately-held registered investment advisory dedicated to alternative investing.
The Benihana Restaurant is located in the heart of Troy, less than one mile from the Somerset Collection, an upscale luxury “super” mall consisting of 1.5 million square feet of retail space anchored by Macy’s, Nordstrom, Saks Fifth Avenue and Neiman Marcus.
6 Benihana - Troy
PrOPertY:Benihana 1985 W. Big Beaver RoadTroy, Michigan 48084
COUntY: Oakland County
ParCel nUMBer: To Be Determined
BUIlDIng sIze / lanD area:
Approximately 10,363 Square Feet / TBD (Part of a Commercial Condo)
OCCUPanCY: 100%
Year BUIlt / renOvateD: 1979 / 2006
nUMBer OF tenants: One
PrOPertY sUMMarY
CaP ratePrICe Per sqUare
FOOt
ASking PRiCe$5,145,000
7.00% $496.48
zOnIng: Commercial
nUMBer OF FlOOrs: One
ParkIng: Asphalt Paved
FrOntage: Approximately 100’
exterIOr walls: Brick
rOOF: Rubber Membrane
strUCtUre: Structural Steel Columns
FOUnDatIOn: Poured Concrete
HvaC: Roof Mounted Units
7 Benihana - Troy
Photos
Market Overview
9 Benihana - Troy
Market sUMMarY
area Overview
The subject property, a commercial condominium, is located along the south side of Big Beaver Road, west of Crooks Road and east of Somerset Collection Mall which consists of 1.5 million square feet. City of troy, Michigan
Troy is located in Oakland County, Michigan. It is Oakland County’s largest city and the 11th largest city in the State of Michigan. In 2011, Troy was ranked the safest city in Michigan and was ranked 22nd on a list of “Best Places to Live” in the United States by CNN Money. Troy is home to many different attractions including Somerset Collection mall which features over 180 stores, Oakland Mall and Walsh College.
Oakland County
Oakland County is home to 61 cities, townships and villages. The population was 1,202,362 as of the 2010 census. It is among the ten highest income counties in the United States and home to Oakland University, a large public university. I-75 is the main highway that runs north and south in the region serving Flint, Pontiac, Troy and Detroit. Oakland County is also serviced by I-96, I-275 and I-696.
© 2014 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed tobe correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes anyresponsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using theInformation. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced.
Layout ID:P01 MapId:1884861
BenIHana
Somerset Collection Mall
10 Benihana - Troy
AREA OVERVIEW - Somerset Mall
Somerset Collection Mall is home to the most luxurious retailers in the State of Michigan. With almost 1.5 million square feet of space and over 180 stores and restaurants, Somerset Mall attracts people from all over making the area busy and bustling all times of year. Well known retailer, Macy’s, owns 300,000 square feet and is the largest store in Somerset. Other prestegious retailers like Neiman Marcus, Nordstrom, Saks Fifth Avenue, Ralph Lauren, Gucci, Louis Vuitton, Michael Khors, Cole Haan, Salvatore Ferragamo, Tiffany & Co. and Burberry make Somerset a mall above the rest.
Somerset origanally opened its doors in 1969 and expanded the South side in 1992. Just four years later in 1996, the mall opened Somerset North adding 940,000 square feet of space. The north and south sides of Somerset mall are connected by Somerset’s own “Skywalk.” The Skywalk is one of the first skywalks of its kind in the country, featuring a moving sidewalk to move shoppers between Somerset Collection South and Somerset Collection North. This climate-controlled walkway spans the six-land boulevard, Big Beaver Road, and is 700 feet long.
This mall features 7,000 surface and covered parking spots and sits on 68.5 acres of land. It is located only two miles west of the I-75 Expressway and less than a mile from the subject property, Benihana. This mall attracts countless people making Benihana’s location extremely valuable for attracting hungry shoppers along with many others.
www.thesomersetcollection.com
11 Benihana - Troy
© 2014 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRELimited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient maydeem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID:L11 MapId:1887458
Layout ID: MapId:
SUBJECT PROPERTY
T R OY A R E A V I E W 1 9 8 5 W E S T B I G B E AV E R R O A D - T R OY, M I C H I G A N
BIRMINGHAM
location Maps
© 2014 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct,its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kindwith respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change andany property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID:P11 MapId:1886200
Layout ID: MapId:
SUBJECT PROPERTY
1 9 8 5 W E S T B I G B E AV E R R O A D - T R OY, M I C H I G A N
© 2014 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRELimited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient maydeem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID:L11 MapId:1886186
Layout ID: MapId:
SUBJECT PROPERTY
R E G I O N A L A R E A V I E W 1 9 8 5 W E S T B I G B E AV E R R O A D - T R OY, M I C H I G A N
12 Benihana - Troy
© 2014 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRELimited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient maydeem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID:L11 MapId:1886167
Layout ID: MapId:
A E R I A L V I E W O F T H E S U R R O U N D I N G A R E A
SUBJECT PROPERTY
1 9 8 5 W E S T B I G B E AV E R R O A D - T R OY, M I C H I G A N
location Maps
13 Benihana - Troy
location Maps
west Big Beaver road
west Big Beaver road
west Big Beaver road
shared Parking
shared Parking
14 Benihana - Troy
1985 W Big Beaver Rd
1 mile radius
1985 W Big Beaver Rd
3 mile radius
1985 W Big Beaver Rd
5 mile radius
2014 Estimated Population 7,664 83,898 237,2362019 Projected Population 7,924 85,558 240,9702010 Census Population 7,391 82,190 233,2972000 Census Population 7,252 83,263 238,187
Growth 2010-2014 3.69% 2.08% 1.69%Growth 2014-2019 3.40% 1.98% 1.57%
2014 Estimated Median Age 37.01 41.56 42.252014 Estimated Average Age 37.81 40.81 41.26
2014 Estimated Households 3,464 36,780 99,7672019 Projected Households 3,600 37,762 102,0542010 Census Households 3,319 35,753 97,3072000 Census Households 3,434 36,226 98,430
Growth 2010-2014 4.37% 2.87% 2.53%Growth 2014-2019 3.93% 2.67% 2.29%
2014 Est. Average Household Size 2.19 2.27 2.36
2014 Est. Median Household Income $68,875 $70,534 $68,1632019 Prj. Median Household Income $70,957 $75,152 $73,2722000 Cen. Median Household Income $65,822 $66,715 $66,645
2014 Est. Average Household Income $93,498 $99,316 $94,3932014 Estimated Per Capita Income $42,259 $43,539 $39,696
2014 Estimated Housing Units 4,176 40,153 107,0032014 Estimated Occupied Units 3,464 36,780 99,7672014 Estimated Vacant Units 712 3,373 7,236
2014 Est. Owner Occupied Units 1,183 25,574 73,8002014 Est. Renter Occupied Units 2,280 11,206 25,967
2014 Est. Median Housing Value $222,110 $184,661 $177,4842014 Est. Average Housing Value $245,689 $244,027 $236,259
©2014 - CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Source: Nielsen
Prepared On: 9/2/2014 12:46:23 PM Page 1 of 5
Demographic Report
DeMOgraPHIC PrOFIle
Sale Comparables
16 Benihana - Troy
sales COMParaBles
Building Name Address
Year Built
Building Size (SF)
Sale Date Sales Price Price/SFOccupancy
at SaleCap Rate
Term Remaining
(Years)Comments
Benihana 1985 W. Big Beaver Road Troy, MI
1979 / 2006
10,363 $5,145,000 $496 100% 7.00% 6.0
Benihana is on their initial 20 year and just did an early extension of their lease extending them through 2/4/2021 with six years remaining.
1Applebee's 2101B Greentree Rd Pittsburgh, PA
N/A 4,377 6/11/2014 $965,000 $220 100% 7.75% 5.0
At the time of sale, Applebee's had just over five years remaining on their original lease term. This 4,377 square foot Applebee's sits on a 0.45 acre parcel. This comparable sold for just over $220.00 per square foot.
2Applebee's Ground Lease 13855 Eureka Road Southgate, MI
1992 5,137 5/7/2014 $1,354,000 $264 100% 5.50% 10.7
Applebee’s recently signed an extension keeping them through February 19, 2025. The property is 5,137 square feet located on a 0.95 acre parcel. Applebee’s is on an absolute NNN ground lease in which they are responsible for procuring and paying for all operating expenses directly which includes repairs and replacements of the roof, structure, parking areas and driveways. Tenant is Applebee's International, Inc.
3Taco Bell Ground Lease 13865 Eureka Road Southgate, MI
N/A 2,135 5/7/2014 $1,020,000 $478 100% 5.25% 13.0 Taco Bell recently extended their ground lease through 2027.
4T.G.I. Friday's 14400 Buck Hill Rd Burnsville, MN
1993 5,895 1/10/2014 $1,572,000 $267 100% 6.50% 6.0
This 5,895 square foot retail building was sold for just over $266.00 per square foot. The property was built in 1993 and is occupied by a T.G.I. Friday's which had six years remaining on its lease.
5Red Lobster 4550 NW Loop 410 San Antonio, TX
2010 7,564 12/23/2013 $2,390,000 $316 100% 6.49% 7.0 This Red Lobster comparable sold at a cap rate of 6.49% for just over $315.00 per square foot. The 7,564 square foot property sits on 1.49 acres of land.
6LongHorn Steakhouse 1921 W Dorothy Ln Dayton, OH
2003 5,355 11/7/2013 $1,021,500 $191 100% 7.00% 5.0
This 5,355 square foot LongHorn Steakhouse sold at a cap rate of 7.00% for just over $190.00 per square foot. The building sits on a 1.57 acre parcel of land and was 100% occupied at the time of sale.
7Red Robin 1231 N Germantown Pky Cordova, TN
2007 6,381 9/11/2013 $1,964,286 $308 100% 7.00% 9.0 On September 11, 2013, the 6,381 square foot restaurant building sold for just over $307 per square foot. This Red Robin sits on a 1.68 acre parcel of land.
$292 6.50% 8.0 Average Term RemainingAll Comparable Averages
17 Benihana - Troy
sales COMParaBles
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
1 2 3 4 5 6 7
7.75%
5.50% 5.25%
6.50% 6.49%
7.00% 7.00%
Average Cap Rate
Average Cap Rate 6.50%
Subject Property 7.00%
CaP rate analYsIs
The average cap rate for sales of similar restaurant transactions is 6.50 percent; therefore, the subject property, with six years remaining at an asking cap rate of 7.00 percent, is priced in line with the market.
Financials
19 Benihana - Troy
FInanCIal analYsIs
PrOPertY OvervIew
PrOPertY: Benihana 1985 West Big Beaver RoadTroy, Michigan 48084
BUIlDIng sIze: Approximately 10,363 Square Feet
PrOPertY tYPe: Single Tenant Retail
Year BUIlt / renOvateD: 1976 / 2006
ParCel sIze: Portion of 2.07 acres (Part of a Commercial Condo)
tYPe OF OwnersHIP: Fee Simple Ownership of the Commercial Condo
CUrrent OCCUPanCY: 100%
FInanCIng
FInanCIng OPtIOns: The asset is being offered free and clear of existing financing on an all cash basis
CaP ratePrICe Per sqUare
FOOt
ASking PRiCe$5,145,000
7.00% $496.48
20 Benihana - Troy
FInanCIal analYsIs
lease OvervIew
lease COMMenCeMent: 2/5/1996
lease exPIratIOn: 2/4/2021 (recently extended five years)
lease terM: 6 Years Remain
lease tYPe:
NNN, the is responsible for reimbursing for all operating expenses, property insurance and real estate taxes. The landlord is responsible for the repairs, maintenance and replacement to the roof and structure.
rental rate
Annual Rent Monthly Rent Rent per SF
CUrrent rent 2/1996-2/2021: $140,000 $11,667 $13.51
t12 PerCentage rent: (8/2013 - 7/2014)
$220,078 $18,340 $21.24
tOtal InCOMe: $355,447 $29,621 $34.30
renewal OPtIOns:The lease is equipped with one, five-year renewal option with 120 days noticed. All terms of the initial lease shall remain the same.
21 Benihana - Troy
tenant OvervIew
Benihana is one of the largest Asian restaurant chains in the United States by revenue and restaurant locations. Benihana Inc. is a Florida-based American restaurant company founded in 1964. It is headquartered in Doral, Florida but owns and franchises over 70 Japanese cuisine restaurants around the world. The concept of this restaurant includes the meals being theatrically prepared by a knife-wielding, joke-telling chef who keeps the experience lively and entertaining. The first restaurant was opened in 1968 in Chicago and the company has grown tremendously since. Benihana Inc. expanded by purchasing the Haru and RA Sushi restaurants after 1995. Today it thrives because of its exciting atmosphere and scrumptious Japanese cuisine.
22 Benihana - Troy
FInanCIals - lease aBstraCt
PrOPertY: Maxwell’s International, Inc.
tenant: Benihana
lease tYPe: NNN
COMMenCeMent Date: 2/5/1996
exPIratIOn Date: 2/4/2021
lease terM:Initial 20 year lease, with current five-year extension
CUrrent rent:Current rent: $140,000 per Year / $13.51 per SF
rental esCalatIOns: None
reIMBUrseMent
MetHOD:Tenant is responsible reimbursing the landlord for all operating expenses
renewal OPtIOns: One, five-year option remains.
renewal nOtIFICatIOn: 120 Days
lanDlOrD rePaIrs:
The landlord is responsible for paying for all operating expenses and billing Benihana for all operating expenses. The landlord is responsible for roof and structure.
rIgHt OF FIrst reFUsal:
The tenant shall have a right of First Refusal to purchase the real estate and improvements subject to the Lease on any transfer of same according to the price and terms as received from a third-party, in a bona fide offer, for a period of 30 days after receipt of notice from the Landlord.
terMInatIOn OPtIOn: None.
PerCentage rent:
In addition to rent, tenant shall pay 8% of sales up to $2,400,000 in annual sales per lease year and 6% of sales above $2,400,000 of annual sales per Lease Year. The percentage rent paid for the time period of 8/1/2013 - 7/31/2014 was $220,078.
23 Benihana - Troy
FInanCIals - Year One CasH FlOw estIMates
Price $5,145,000Down Payment All Cash Rentable Square Feet 10,363Price per Square Foot $496.48CAP Rate 7.00%
Income 2/2015 - 1/2016 Per Month Per SFBase Rent
100% 10,363 SF $140,000 $11,667 $13.51Total Base Rent $140,000 $11,667 $13.51
Percentage Rent (Trailing 12 Months 8/2013 - 7/2014) $220,078 $18,340 $21.24
Scheduled Base Rental Revenue $360,078 $30,006 $34.75
Expense Reimbursement RevenueInsurance $0 $0 $0.00Common Area Maintenance $0 $0 $0.00Real Estate Taxes $0 $0 $0.00
Total Expense Reimbursement Revenue $0 $0 $0.00
Gross Potential Income $360,078 $30,006 $34.75
Effective Gross Income $360,078 $30,006 $34.75
Operating Expense Estimates Insurance $0 $0 $0.00Common Area Maintenance $0 $0 $0.00Real Estate Taxes $0 $0 $0.00Total Common Area Expenses $0 $0 $0.00
Replacement Reserve $0.00 $0 $0.00 $0.00Total Expenses $0 $0 $0.00
Net Operating Income $360,078 $30,006 $34.75
Replacement Reserve $0.25 $2,591 $215.90 $0.25
Net Cash Flow Before Debt Service $357,487 $29,791 $34.50
Benihana
Year One Cash Flow Estimates
Benihana Maxwell's International, Inc. 2/5/1996 - 2/4/2021 6 Years Remain
Assumes All Cash Transaction
(Approximately)
CBRE © 2014 All Rights Reserved. All information included in this proposal pertaining to CBRE including but not limited to its operations, employees, technology and clients are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto.
This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
Ca
pita
l Ma
rke
ts |
Inv
estm
en
t Pro
pe
rties
For More Information Please Contact:
BIll O’COnnOrSenior Vice President+1 248 351 [email protected]
DavID HesanOVice President+1 248 351 [email protected]
