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Big Boy & Steak HouseO
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1222 HURON (US-23), TAWAS, MI, 48730 | BIG BOY & NORTHWOODS STEAK HOUSE RESTAURANT FOR SALE ..............................................................................................................................................................................................
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Big Boy & Steak HouseCONTENTS
Exclusively Marketed by:
Larry MillerPresident989-790-2611License # [email protected]
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.
01 Executive Summary Investment Summary 5 Location Summary 6
02 Property Description Property Features 8 Aerial Map 9
03 Financial Analysis Income & Expense Analysis 11 Multiyear Cash Flow Assumptions 12 Cash Flow Analysis 13 Disposition Sensitivity Analysis 15
04 Demographics Demographics 17 Demographic Charts 18
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 The Miller Group and itshould not be made available to any other person or entity without the written consent of The Miller Group. 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 thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to The Miller Group.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 inthe subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Miller Group has not made any investigation, and makes no warranty or representation withrespect 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 presenceor absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition orbusiness 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 reliable; however, The Miller Group has not verified, and will not verify, any of the informationcontained herein, nor has The Miller Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness ofthe 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 ofinvestigating the subject property.
Big Boy & Steak House Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER:
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT THE MILLER GROUP FOR MORE DETAILS.Copyright © 2019 CREOP, LLC. All Rights Reserved.
Big B
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Executive Summary
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Investment Summary
Location Summary
Big Boy & Steak House Investment Summary | 05
OFFERING SUMMARYADDRESS 1222 Huron (US-23)
Tawas MI 48730COUNTY HuronMARKET ResortSUBMARKET TawasBUILDING SF 9,248 SFLAND SF 175,111 SFYEAR BUILT 1982YEAR RENOVATED 2007OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARYOFFERING PRICE $1,200,000PRICE PSF $129.76OCCUPANCY 100 %NOI (CURRENT) $127,992CAP RATE (CURRENT) 10.67 %
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2018 Population 1,406 4,936 6,6902018 Median HH Income $45,353 $42,793 $43,4582018 Average HH Income $61,135 $57,697 $58,194
This property involves two restaurants, one a Steak House and the othera BIg Boy. Being located in a stable northern community and still enjoyrecreational and resort populations, they both offer a variety of cuisinesthat has proved to be very successful. Now that the highway constructionis complete the restaurants will do even better.The only reason for sellingis the owners would like to retire.
Big Boy & Steak House Location Summary | 06
These restaurants are located in a prime location on thenorth side of East Tawas on a point where US-23 continuesNorth and the beach access to the East. Prime location forMichigan summer and winter tourism and continues tomaintain a local strong economy.
Regional Map
Locator Map
Big B
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Property Description
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Property Features
Aerial Map
Parcel Map
Additional Maps
Property Images
Big Boy & Steak House Property Features | 08
PROPERTY FEATURESNUMBER OF TENANTS 1BUILDING SF 9,248LAND SF 175,111LAND ACRES 4.02YEAR BUILT 1982YEAR RENOVATED 2007# OF PARCELS 1ZONING TYPE Highway Service Comm.BUILDING CLASS RestaurantTOPOGRAPHY LevelLOCATION CLASS ANUMBER OF STORIES OneNUMBER OF BUILDINGS 2LOT DIMENSION IrregularNUMBER OF PARKING SPACES 108MIXED USE PossibleNUMBER OF PADS 0STREET FRONTAGE See BrokerCORNER LOCATION yesNUMBER OF INGRESSES MultipleNUMBER OF EGRESSES Multiple
MECHANICALHVAC GFAFIRE SPRINKLERS wetELECTRICAL / POWER AdequateLIGHTING Fluorescent
CONSTRUCTIONFOUNDATION SlabFRAMING WoodEXTERIOR Stone and woodPARKING SURFACE AsphaltROOF Asphalt 3 yrs oldLANDSCAPING Quality
TENANT INFORMATIONMAJOR TENANT/S Two Restaurants
Big Boy & Steak House Aerial Map | 09
Big B
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Financial Analysis
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Income & Expense
Multiyear Cash Flow Assumptions
Vacant Space/2nd Gen Leasing
Multiyear Cash Flow Projections
Disposition Sensitivity Analysis
Big Boy & Steak House Income & Expense Analysis | 11
INCOME CURRENT
Retail Sales Percent Revenue $1,221,875
Effective Gross Income $1,221,875
Less: Expenses $1,093,883
Net Operating Income $127,992
EXPENSES CURRENT
Operating Expenses (2018) $266,743
Cost of goods Sold $827,140
Total Operating Expense $1,093,883
Expense / SF $118.28
% of EGI 89.52 %
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
Big Boy & Steak House Multiyear Cash Flow Assumptions | 12
GLOBALSale Price $1,200,000
Big Boy & Steak House Cash Flow Analysis | 13
CASH FLOWCalendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueRetail Sales Percent Revenue $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875Effective Gross Income $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875 $1,221,875Operating ExpensesOperating Expenses (2018) $266,743 $266,743 $266,743 $266,743 $266,743 $266,743 $266,743 $266,743 $266,743 $266,743Cost of goods Sold $827,140 $827,140 $827,140 $827,140 $827,140 $827,140 $827,140 $827,140 $827,140 $827,140Total Operating Expense $1,093,883 $1,093,883 $1,093,883 $1,093,883 $1,093,883 $1,093,883 $1,093,883 $1,093,883 $1,093,883 $1,093,883Net Operating Income $127,992 $127,992 $127,992 $127,992 $127,992 $127,992 $127,992 $127,992 $127,992 $127,992
Effective Gross Income vs Operating Expenses Cash Flow
Big Boy & Steak House Cash Flow Analysis | 14
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 10.67 % 10.67 % 10.67 % 10.67 % 10.67 % 10.67 % 10.67 % 10.67 % 10.67 % 10.67 %CAP Rate 10.67 % 10.67 % 10.67 % 10.67 % 10.67 % 10.67 % 10.67 % 10.67 % 10.67 % 10.67 %Operating Expense Ratio 89.52 % 89.52 % 89.52 % 89.52 % 89.52 % 89.52 % 89.52 % 89.52 % 89.52 % 89.52 %Gross Multiplier (GRM) 0.98 0.98 0.98 0.98 0.98 0.98 0.98 0.98 0.98 0.98Breakeven Ratio 89.52 % 89.52 % 89.52 % 89.52 % 89.52 % 89.52 % 89.52 % 89.52 % 89.52 % 89.52 %Price / SF $129.76 $129.76 $129.76 $129.76 $129.76 $129.76 $129.76 $129.76 $129.76 $129.76Expense / SF $118.28 $118.28 $118.28 $118.28 $118.28 $118.28 $118.28 $118.28 $118.28 $118.28Income / SF $132.12 $132.12 $132.12 $132.12 $132.12 $132.12 $132.12 $132.12 $132.12 $132.12
Big Boy & Steak House Disposition Sensitivity Analysis | 15
5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE PSF PROCEEDS AFTER
LOAN PAYOFFIRR
0.25% $51,196,800 $5,536 $51,196,800 115.88%0.50% $25,598,400 $2,768 $25,598,400 88.98%0.75% $17,065,600 $1,845 $17,065,600 75.00%1.00% $12,799,200 $1,384 $12,799,200 65.82%1.25% $10,239,360 $1,107 $10,239,360 59.09%1.50% $8,532,800 $923 $8,532,800 53.85%1.75% $7,313,829 $791 $7,313,829 49.59%2.00% $6,399,600 $692 $6,399,600 46.03%2.25% $5,688,533 $615 $5,688,533 42.98%
10 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE PSF PROCEEDS AFTER
LOAN PAYOFFIRR
0.25% $51,196,800 $5,536 $51,196,800 49.08%0.50% $25,598,400 $2,768 $25,598,400 39.91%0.75% $17,065,600 $1,845 $17,065,600 34.95%1.00% $12,799,200 $1,384 $12,799,200 31.61%1.25% $10,239,360 $1,107 $10,239,360 29.12%1.50% $8,532,800 $923 $8,532,800 27.17%1.75% $7,313,829 $791 $7,313,829 25.56%2.00% $6,399,600 $692 $6,399,600 24.21%2.25% $5,688,533 $615 $5,688,533 23.05%
Big B
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Demographics
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Demographic Details
Demographic Charts
Big Boy & Steak House Demographics | 17
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 1,554 5,342 7,186
2010 Population 1,443 5,084 6,887
2018 Population 1,406 4,936 6,690
2023 Population 1,390 4,884 6,624
2018 African American 4 19 28
2018 American Indian 5 21 34
2018 Asian 21 57 68
2018 Hispanic 38 108 139
2018 White 1,322 4,691 6,374
2018 Other Race 15 34 46
2018 Multiracial 39 110 136
2018-2023: Population: Growth Rate -1.15 % -1.05 % -1.00 %
2018 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 76 287 381
$15,000-$24,999 87 276 359
$25,000-$34,999 83 299 387
$35,000-$49,999 111 392 546
$50,000-$74,999 139 425 578
$75,000-$99,999 59 202 281
$100,000-$149,999 68 211 287
$150,000-$199,999 22 70 92
$200,000 or greater 15 37 51
Median HH Income $45,353 $42,793 $43,458
Average HH Income $61,135 $57,697 $58,194
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 842 3,050 4,090
2010 Total Households 672 2,245 3,022
2018 Total Households 661 2,198 2,962
2023 Total Households 659 2,192 2,956
2018 Average Household Size 2.09 2.11 2.14
2000 Owner Occupied Housing 541 1,699 2,349
2000 Renter Occupied Housing 169 597 705
2018 Owner Occupied Housing 481 1,522 2,139
2018 Renter Occupied Housing 180 676 823
2018 Vacant Housing 205 961 1,307
2018 Total Housing 866 3,159 4,269
2023 Owner Occupied Housing 479 1,519 2,135
2023 Renter Occupied Housing 180 674 822
2023 Vacant Housing 207 969 1,317
2023 Total Housing 866 3,161 4,273
2018-2023: Households: Growth Rate -0.30 % -0.25 % -0.20 %
Source: esri
Big Boy & Steak House Demographic Charts | 18
1 Mile Radius 3 Mile Radius 5 Mile Radius
2018 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2018 Population by Race
Big Boy & Steak House Demographic Charts | 19
2018 Household Occupancy - 1 Mile Radius
Average Income Median Income
2018 Household Income Average and Median
Big Boy & Steak House
Exclusively Marketed by:
Larry MillerPresident989-790-2611License # [email protected]
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