FOR SALE · 2019. 6. 28. · 27995 Halsted Road, Suite 150 Farmington Hills, MI 48331 Phone: (248) 488-2620 landmarkcres.com CONTACT US FOR SALE MADHOUSE BAR & GRILL 32787 Stephenson

27995 Halsted Road, Suite 150Farmington Hills, MI 48331

Phone: (248) 488-2620

landmarkcres.com

CONTACT US

FOR SALEMADHOUSE BAR & GRILL32787 Stephenson Hwy, Madison Heights, MI

SCOTT SONENBERG

Associate [email protected]

(248) 488-2620

LOUIS J. CIOTTI

Associate Broker [email protected]

(248) 488-2620

ANTHONY J. VITALE

Associate [email protected]

(248) 488-2620

2

CONFIDENTIALITY DISCLAIMER

Landmark Commercial Real Estate Services, Inc. (“BROKER”) has been retained by the Owner to sell the 100% fee simple title of this asset. The Broker isthe exclusive agent for the sale of this asset. The Broker has prepared the Property Information with information provided by the Owner, from sourcesdeemed to be reliable. The Potential Purchaser will conduct its own due diligence of The Property, independently and without reliance upon BROKER of theOwner. Information furnished herein, the Offering Memorandum (the “OM”) is intended solely for the Potential Purchaser and its affiliates (“Recipients”)for its review of the acquisition of the Madhouse Bar & Grill building at 32787 Stephenson Hwy, Madison Heights, Michigan 48071 (“Property”).

All information in the OM (“Confidential Information”) shall be deemed confidential. Confidential Information shall not include any information which isgenerally available to the public or which becomes available to the Recipients on a non-confidential basis from a source that is or was under no obligationnot to disclose such information.

In consideration of Broker and disclosure of the confidential information, the recipient shall not at any time, attempt in any manner to deal directly in anymanner or circumvent Broker.

Unless otherwise agreed in writing or required by law, the Recipients will not use, disclose, or reveal any Confidential Information for any purpose otherthan in connection with the proposed transaction to any persons or entities other than those employees, officers, directors, bankers, advisors,representatives, or agents (collectively, “Representatives”) who clearly need such access to perform their employment, fiduciary or contractual duties to theRecipient and to actively and directly participate in the evaluation of the Confidential Information. Additionally, Recipients shall not directly contact anyonedirectly associated with the Property without the express written consent of the Owner or Broker.

Recipients agree not to contact or initiate contact with the Tenants, at any time, either directly or indirectly. Unless such approval is specifically granted inwritten from the Owner or Broker.

This agreement shall be governed by the laws of the Michigan, and in any action brought to enforce the terms hereof, Recipients hereby irrevocablyconsents to jurisdiction and venue in the Circuit Court for the County of Macomb, State of Michigan, or the United States District Court, whichever theOwner may elect. The invalidity or unenforceability of any provision of this agreement as applied to a particular occurrence or circumstance shall not affectthe validity of or enforceability of any of the other provisions of this agreement or the applicability of such provisions as the case may be. This agreementshall inure to the benefit of and may be enforced by the Owner and its successors and assigns and shall be binding on the Recipients, its officers, directors,partners, agents, members, representatives and successors in interest. If any portion of this agreement becomes the subject of litigation or arbitration, theprevailing party in such suit or proceeding shall be entitled to reimbursement for its reasonable costs, expenses and attorney’s fees incurred, includingthose incurred in connection with any appeals. A copy of this agreement delivered by facsimile transmission shall be binder on both parties.

Madhouse Bar & Grill • Madison Heights, MI

TABLE OF CONTENTS

3

Investment Highlights 4

Macro Aerial 5

View Southeast 6

View Northwest 7

View Northeast 8

View North 9

Offering Summary 10

Location Map 11

Survey 12

Site Plan 13

Market Narrative 14

Oakland County’s Top Employers 15

Demographics 16

Our Team 17


4Madhouse Bar & Grill • Madison Heights, MI

INVESTMENT HIGHLIGHTSINVESTMENT HIGHLIGHTS

New Renovations – Extensive interior and exterior improvements completed in 2017, which include a new parking lot, roof, HVAC systems; along with the tenant contributing the full build out and kitchen to the interior of the premises.

Quality Real Estate – Subject site sits on 1.37 AC in the heart of one of Metro Detroit’s most dominant retail corridors which is home to the super-regional mall, Oakland Mall. The property is adjacent to Interstate 75 (152,800 cpd) and offers direct access to both Stephenson Hwy and 14 Mile Rd.

Rent Increases – Rent increases in years four and six which will provide upside for the buyer.

Strong Office and Industrial Market – Madhouse Bar and Grill is located in the heart of “Automotive Alley”, the top Michigan location for automotive research and development facilities.

Exceptional Demographics – 303,915 people within five mile radius with average household incomes over $79,000.

Experienced Operator – Owner operator has 30+ years of restaurant experience.

Significant Employment Population – The trade area includes 41,086 businesses which employ 539,028 people. This employment population solidifies the trade area as a strong dining destination.

PRICING

Price: $1,650,000.00 ($234.34/SF)

Cap Rate: 7.69%


MACRO

6

VIEW SOUTHEAST


7

VIEW NORTHWEST


8

VIEW NORTHEAST


9

VIEW NORTH


10

OFFERING SUMMARYRENT SCHEDULE

Months Monthly Rent Annual Rent

0-9(11/01/16-07/31/17)

$0.00 $0.00

10-36(08/01/17-09/30/19)

$10,570.50 $126,846.00

37-60 (10/01/19-09/30/21)

$11,891.81 $142,701.75

61-129(10/01/21-07/31/27)

$14,094.00 $169,128.00

(Lease Expiration July 2027)

1st Option Period11-15 $15,750.00 $189,000.00

2nd Option Period16-20 $16,916.67 $203,000.00

3rd Option Period21-25 $18,083.33 $217,000.00

(Lease Expiration July 2047)PROPERTY DETAILS

Year Built/Renovated: 1984/2017

Square Feet: 7,041

Land Area: 1.37 AC

Taxes: $16,475.94

PRICING

Price: $1,650,000.00 ($234.34/SF)

Cap Rate: 7.69%

LEASE DETAILS

Tenant: Madison Equities, LLC

Guarantor: Curtiss Pagels, Personally for the first three years of the lease

Lease Term: 10 Years + 9 Months (129 Months)

Lease Type: NNN

Landlord Responsibilities:

Foundation, Roof, and Exterior Lights

Lease Commencement: November, 2016

Rent Commencement: August, 2017

Lease Expiration: July, 2027


ANN ARBOR

DETROIT

FLINTGRAND RAPIDS

TRAVERSECITY


LOCATION MAP

MADHOUSE BAR & GRILL32787 Stephenson Hwy, Madison Heights, MI

STERLINGHEIGHTS

TROY

ST. CLAIR SHORESSOUTH FIELD

WARREN

GROSSE POINTE

12

SURVEY


13

SITE PLAN



MARKET NARRATIVE

GREAT REAL ESTATEThe subject property is located in one of the most developed retail corridors in Metro Detroit. The property is in close proximity to Oakland Mall.

OAKLAND MALLThe super-regional shopping mall has 1,500,000 square feet. The anchor stores are Macy's, JCPenney, Sears, At Home, and Field & Stream.

STRONG OFFICE AND INDUSTRIAL MARKET The property is situated amongst the top automotive research and development facilities.

EXCEPTIONAL DEMOGRAPHICS 310,598 people within five mile radius with average household incomes over $91,000.

SIGNIFICANT EMPLOYMENT POPULATION The trade area includes 18,394 businesses which employ 233,533 people. This employment population solidifies the trade area as a strong dining destination.

OAKLAND COUNTY’S TOP EMPLOYERS

15

COMPANY # OF EMPLOYEES

Beaumont Hospitals 17,896

FCA US LLC 12,564

General Motors Co 9,242

Ascension Michigan 4,408

U.S. Postal Service 4,195

Oakland County U.S. Government 3,432

Henry Ford Health System 3,405

Trinity Health 3,098

Magna International of America 2,199

Comerica Bank 2,163


16

POPU

LATI

ON

2017 Estimated Population 9,702 113,072 310,5982022 Projected Population 9,876 115,118 317,0702010 Census Population 9,462 108,055 297,1632000 Census Population 9,364 110,353 303,337Projected Annual Growth 2017 to 2022 0.4% 0.4% 0.4%Historical Annual Growth 2000 to 2017 0.2% 0.1% 0.1%

HO

USE

HO

LDS 2017 Estimated Households 4,478 50,266 133,835

2022 Projected Households 4,623 51,903 138,5522010 Census Households 4,250 47,111 125,3742000 Census Households 4,296 48,159 127,100Projected Annual Growth 2017 to 2022 0.6% 0.7% 0.7%Historical Annual Growth 2000 to 2017 0.2% 0.3% 0.3%

RA

CE

2017 Est. White 79.6% 79.9% 79.2%2017 Est. Black 7.0% 6.7% 7.9%2017 Est. Asian or Pacific Islander 9.1% 10.0% 9.7%

2017 Est. American Indian or Alaska Native 0.3% 0.3% 0.3%

2017 Est. Other Races 4.1% 3.1% 3.1%

INC

OM

E 2017 Est. Average Household Income $71,626 $81,736 $91,8882017 Est. Median Household Income $56,086 $65,431 $72,5722017 Est. Per Capita Income $33,067 $36,443 $39,695

BU

SIN

ESS 2017 Est. Total Businesses 919 7,219 18,394

2017 Est. Total Employees 14,546 88,817 233,533

DESCRIPTION 5 MILE3 MILE1 MILE

EXCEPTIONAL DEMOGRAPHICS


OUR TEAM

17

LOUIS J. CIOTTIASSOCIATE BROKER | [email protected] Ciotti is a graduate of Oakland University with a Bachelor of Arts degree in Broadcast Communications and Business. He began hisreal estate brokerage career thereafter at Signature Associates, quickly distinguishing himself as a top producer winning multiple awards.Louis specializes in shopping center leasing and investment sales as well as retail tenant representation accounts. He has developedvaluable expertise in the sale of service station portfolios and bank dispositions, understanding the needs of his institutional clients. Louishas an aggressive, energetic and friendly style that serves his clients and customers well. At Landmark, Louis has continued expanding onhis territorial expertise and dominance while bolstering his full service approach to retail real estate requirements.

SCOTT SONENBERGASSOCIATE | [email protected] Sonenberg is a graduate of Western Michigan University, with a Bachelor of Arts degree in Business Management. Scott spent thelast two years working with A.F. Jonna Development where he gained valuable experience in shopping center leasing and site selection fornumerous national, regional, and local retailers. His positive energy and keen eye for deals, combined with a flair for multi-tasking, hashelped Scott complete a large volume of transactions on an annual basis. Now at Landmark, Scott will build on his early success as a salesassociate working on shopping center leasing, retail tenant representation, and investment sales.

ANTHONY J. VITALEASSOCIATE | [email protected] Vitale is a graduate of Wayne State University with a Bachelor of Arts degree in Business Management. Prior to joining Landmark,Anthony began his career in real estate at the Thomas Duke Company specializing in retail and office sales and leasing. Anthony quicklydemonstrated an acute understanding of the human dynamics that influence business decisions to the advantage of his clients. Hisambition, drive and organizational skills have enabled him to complete a substantial volume of transactions on a yearly basis. He is atrusted fiduciary to his clients. As a team member at Landmark, Anthony will continue to build on his success focusing on shopping centerleasing, retail tenant representation, and investment sales throughout southeast Michigan.


Documents

FOR SALE · 2019. 6. 28. · 27995 Halsted Road, Suite 150 Farmington Hills, MI 48331 Phone: (248) 488-2620 landmarkcres.com CONTACT US FOR SALE MADHOUSE BAR & GRILL 32787 Stephenson