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451 W. 14 MILE ROAD, MADISON HEIGHTS, MICHIGAN
SINGLE TENANT ABSOLUTE NNN INVESTMENT OPPORTUNITY
ACTUAL SITE
2 ACTUAL SITE SRS NATIONAL NET LEASE GROUP
EXCLUSIVELY MARKETED BYBRAD GIBBSVICE PRESIDENTSRS REAL ESTATE PARTNERS8343 Douglas Avenue, Suite 200Dallas, TX 75225
DL: 214.560.3238 | M: 214.435.4866
[email protected] | TX License No. 611900
Broker of Record: Frank Rogers | MI License #6502417063
MICHAEL CARTERFIRST VICE PRESIDENT
SRS NATIONAL NET LEASE GROUP101 W Big Beaver Road, Suite 14 Troy, MI 48084
DL: 248-688-0630 | M: 586-549-4260
[email protected] | MI License No. 6501180257
FRANK ROGERS FIRST VICE PRESIDENT
SRS NATIONAL NET LEASE GROUP101 W Big Beaver Road, Suite 14 Troy, MI 48084
DL: 248.688.0631 | M: 810.348.3324
[email protected] | MI License No. 6502417063
3 ACTUAL SITE
CONTENTS
8PROPERTY OVERVIEW
AERIALS | SITE PLAN | LOCATION MAP
16FINANCIALS
RENT ROLL | BRAND PROFILE
5INVESTMENT SUMMARY
OFFERING SUMMARY | INVESTMENT HIGHLIGHTS
14AREA OVERVIEW
DEMOGRAPHICS
SRS NATIONAL NET LEASE GROUP
5 ACTUAL SITE
INVESTMENT SUMMARY
SRS National Net Lease Group is pleased to present the rare opportunity to acquire the fee simple (land & building ownership) in Jared, The Galleria of Jewelry, a corporate guaranteed, absolute NNN, investment property located in Madison Heights, MI. The lease is corporately guaranteed by Sterling Jewelers, Inc., a subsidiary of Signet Jewelers Limited (NYSE: SIG). The tenant has approximately 5 years remaining in their current term with 2 (5-year) option periods to extend. The lease features a 10% rental increase in Nov. 2023, growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities, ideal for an out-of-state, passive investor. The site also features additional rent from a 50 year signage ground lease agreement with 21 years remaining.
The subject property is ideally positioned at the hard corner intersection of W. 14 Mile Road (47,800 VPD) and Barrington Street, with excellent visibility and street frontage. Additionally, the site is also located just off Interstate 75 (165,800 VPD), the primary commuter thoroughfare traveling in and out of Detroit with direct on/off ramp access. Jared, The Galleria of Jewelry is located across from Oakland Mall, a 1,500,000 SF center anchored by Macy’s, At Home, and JCPenney. Other nearby national/credit retailers include Target, Sam’s Club, Meijer, Kohl’s, DSW Designer Shoe Warehouse, Bed Bath & Beyond, and more, which increases consumer draw to the subject trade area. The 5-mile trade area is supported by a population of over 302,000 with an average household income of $85,000.
SRS NATIONAL NET LEASE GROUP
6 ACTUAL SITE
OFFERING SUMMARY
SRS NATIONAL NET LEASE GROUP
PROPERTY SPECIFICATIONS
Pricing: $3,995,000
Net Operating Income: $420,406
Cap Rate: 10.52%
Guaranty: Corporate
Tenant: Sterling Jewelers, Inc.
Lease Type: Absolute NNN
Landlord Responsibilities: None
OFFERING
Rentable Area: 6,076 SF
Land Area 1.28 Acres
Property Address: 451 W. 14 Mile Rd, Madison Heights, MI 48071
Year Built: 2003
Parcel Number: 44-25-02-226-001
Ownership: Fee Simple (Land & Building Ownership)
7 ACTUAL SITE
INVESTMENT HIGHLIGHTS
SRS NATIONAL NET LEASE GROUP
Corporate Guaranteed | Scheduled Rental Increase | Options to Extend
• Sterling Jewelers, Inc. guaranteed lease• Sterling Jewelers, Inc. is a subsidiary of Signet
Jewelers Limited (NYSE: SIG)• Approximately 5-years remaining in the current
term with 2 5-year options to extend• 10% rental increase scheduled for Nov. 2023,
increasing NOI and hedging against inflation• Annual store sales over $4MM• Additional rent from 50-year signage ground
lease with 21 years remaining
Strong Demographics In 5-mile Trade Area• More than 302,000 residents and 231,600
employees support the trade area• $85,137 average household income
Hard Corner Location | Along Primary Commercial Thoroughfare | Interstate 75
• Situated at the hard corner intersection of W. 14 Mile Road (47,800 VPD) and Barrington Street
• Located adjacent to the on/off ramps to Interstate 75 with 168,500 vehicles per day
• Excellent visibility with prominent street frontage along W. 14th Mile
Absolute NNN | Fee Simple Ownership | Zero Landlord Responsibilities
• Tenant pays for CAM, taxes, insurance and maintains all aspects of the premises
• No landlord responsibilities• Ideal, management-free investment for an out-
of-state, passive investor
Across From 1.5MM SF Oakland Mall | Nearby National/Credit Tenants
• Subject property is located across from Oakland Mall, a 1,500,000 SF enclosed mall anchored by Macy’s, At Home, and JCPenney
• Nearby national/credit retailers in the immediate trade area include Target, Sam’s Club, Meijer, Kohl’s, DSW Designer Shoe Warehouse, Bed Bath & Beyond, and more
• Retail strength of the immediate trade area increases consumer draw to the site
8 SRS NATIONAL NET LEASE GROUPACTUAL SITE
PROPERTY OVERVIEW
W.14 Mile Road 1 Access Point
Barrington Street 1 Access Point
6,076 SF
Improvements
There are approximately 52 parking spaces on the
owned parcel. The parking ratio is approximately
8.56 stalls per 1,000 SF of leasable area.
Parking
Parcel Number: 44-25-02-226-001 Acres: 1.28
Square Feet: 55,800 SF
Parcel
B-3:General Business District
Access Zoning
PARCEL MAP
2003
Year Built
W.14 Mile Road 47,800 Cars Per Day
Chrysler Freeway/ Interstate 75 165,800 Cars Per Day
Traffic Counts
CONCORD DR.
W. 14 MILE RD.
CARS PER DAY
CARS PER DAY
13,800
47,800
9 ACTUAL SITE SRS NATIONAL NET LEASE GROUP
LAMPHERE HIGH SCHOOL
BISHOP FOLEY CATHOLICHIGH SCHOOL
OAKLAND MALL1,500,000+ SF
JOHN R RD.
INTERSTATE 75 CARS PER DAY
CARS PER DAY
32,600
165,800
10 ACTUAL SITE SRS NATIONAL NET LEASE GROUP
W. 14 MILE RD.
CARS PER DAY47,800
11 ARTIST RENDERING SRS NATIONAL NET LEASE GROUP
CARS PER DAY47,800
BARRINGTON
ST.
PALMER AVE.
W. 14 MILE RD.
13 ACTUAL SITE
LOCATION MAP
SRS NATIONAL NET LEASE GROUP
DETROIT17 Min 12 miles
MADISON HEIGHTS
2018 ESTIMATED POPULATION1 Mile ....................................................... 8,026
3 Mile ................................................... 116,099
5 Mile ................................................... 302,266
2018 AVERAGE HOUSEHOLD INCOME1 Mile ................................................... $46,197
3 Mile ................................................... $75,638
5 Mile ................................................... $85,137
2018 ESTIMATED TOTAL EMPLOYEES1 Mile ..................................................... 19,695
3 Mile ..................................................... 82,195
5 Mile ................................................... 231,612
14
AREA OVERVIEWMadison Heights, Michigan Madison Heights is a city in Oakland County of the U.S. state of Michigan. It is a suburb of Detroit. As of the July 1, 2015, its estimated population was 30,198.
Madison Heights is part of Oakland County’s Automation Alley. There are more than 1,300 commercial and industrial businesses and services within the city’s 7.2 square miles, and the city is proud to have a majority of small businesses, as well as more than 100 major companies within its borders, such as Best Buy, Coca Cola, Commercial Steel Treating Corporation, Costco, CVS Pharmacy, Henkel Technologies, Home Depot, Meijer, Micro Center, Ogura Corporation, Sam’s Club, Hungry Howie’s, Target, UPS, WOW!, Culver’s, and Sears. The city has 23 shopping centers, 11 hotels, more than 860,000 square feet of office space, and seven industrial parks that include 10,000,000 square feet. The Hungry Howie’s Pizza corporate headquarters is located in Madison Heights. Madison Heights is also home to Moosejaw.
Madison Heights was originally a part of the Royal Oak Township. It was incorporated as a city on January 17, 1955. Over the years, a large number of commercial and industrial businesses have sprung up in this city. Historical sites near the city of Madison Heights include the Historic Fort Wayne, the Fox Theater Building and Cranbrook, which is home to the Canadian Museum of Rail Travel. Children will particularly enjoy visiting the Detroit Zoo and the Red Oaks Waterpark.
Madison District Public Schools and Lamphere Public Schools have public schools serving Madison Height. Madison Heights is also home to Bishop Foley Catholic High School, a private school. Four Corners Montessori Academy is a public charter school also located in Madison Heights. The Japhet School was located in Madison Heights until 2013, when it moved to Clawson. Air transportation is available at the Detroit City Airport.
Oakland County is a county located in the U.S. state of Michigan, located in the northwest of the Detroit metropolitan area. As of the July 1, 2015, its estimated population was 1,242,304, making it the second-most populous county in Michigan, behind neighboring Wayne County. The county seat is Pontiac. The county was founded in 1819 and organized in 1820.
The county’s knowledge-based economic initiative, coined “Automation Alley”, has developed one of the largest employment centers for engineering and related occupations in the United States. The County of Oakland counterpart in public education (K-12) is the Oakland Schools, an Intermediate school district. The following airports are located in neighboring counties:
SRS NATIONAL NET LEASE GROUP
15
AREA DEMOGRAPHICS
SRS NATIONAL NET LEASE GROUP
DEMOGRAPHICS 1 MILE 3 MILES 5 MILES
2018 Estimated Population 8,026 116,099 302,266
2023 Projected Population 8,139 118,564 309,440
2010 Census Population 7,793 112,405 291,589
Projected Annual Growth 2018 to 2023 0.28% 0.42% 0.47%
Historical Annual Growth 2010 to 2018 0.36% 0.39% 0.44%
2018 Estimated Households 4,027 49,073 127,686
2023 Projected Households 4,080 50,156 130,841
2010 Census Households 3,958 47,455 122,909
Projected Annual Growth 2018 to 2023 0.26% 0.44% 0.49%
Historical Annual Growth 2010 to 2018 0.21% 0.41% 0.46%
2018 Estimated White 65.56% 78.90% 78.88%
2018 Estimated Black or African American 10.52% 6.81% 7.02%
2018 Estimated Asian or Pacific Islander 19.08% 10.87% 10.68%
2018 Estimated American Indian or Native Alaskan 0.34% 0.28% 0.28%
2018 Estimated Other Races 1.61% 0.60% 0.56%
2018 Estimated Hispanic 3.25% 2.63% 2.52%
2018 Estimated Average Household Income $46,197 $75,638 $85,137
2018 Estimated Median Household Income $26,839 $58,938 $63,548
2018 Estimated Per Capita Income $23,743 $32,101 $36,109
2018 Estimated Total Businesses 1,004 5,954 14,555
2018 Estimated Total Employees 19,695 82,195 231,612
16 ACTUAL SITE
RENT ROLLLEASE TERM RENTAL RATES
TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS
Jared The Galleria 6,076 11/28/2003 1/31/2024 Current - $34,617 $5.70 $415,406 $68.37 Absolute NNN 2 (5-Year)
of Jewelry 11/28/2023 10% $38,079 $6.27 $456,947 $75.21 Increase of 10%
(Corporate Guaranty) in the 4th year of
each option period
Signage Ground Lease Rent $417 - $5,000 -
Note: Signage rent is $9,600/Yr., of which $4,600 is sent to the predecessor-in-interest pursuant to a deed restriction. The net $5,000/Yr is what the current Landlord collects.
For financing options and loan quotes, please contact our SRS Debt & Equity team at [email protected].
SRS NATIONAL NET LEASE GROUP
FINANCIAL INFORMATION
Price: $3,995,000
Net Operating Income: $420,406
Cap Rate: 10.52%
Guaranty: Corporate
PROPERTY SPECIFICATIONS
Year Built: 2003
Rentable Area: 6,076 SF
Land Area: 1.28 Acres
Address: 451 W. 14 Mile Road, Madison Heights, MI 48071
17 REPRESENTATIVE PHOTOS
BRAND PROFILE
SRS NATIONAL NET LEASE GROUP
JARED THE GALLERIA OF JEWELRYJared The Galleria Of Jewelry, the leading off-mall destination specialty retail jewelry chain in the US, is operated by Signet Jewelers Limited, the world’s largest retailer of diamond jewelry. Signet Jewelers operates over 3,500 stores..
Company Type: Subsidairy Parent: Signet Jewelers 2018 Employees: 24,8882018 Revenue: $6.51 Billion 2018 Net Income: $519.30 Million 2018 Assets: $5.84 Billion
2018 Equity: $2.50 Billion
• ACTUAL SITE *STATISTICS ARE FOR 2017
This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are pro-vided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive sub-market conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.
1000+PROPERTIES CURRENTLY REPRESENTED
600+CLIENTS REPRESENTED IN 2016
$2.6B*TRANSACTION VALUE
20+OFFICES
250+BROKERS, PROFESSIONALS, AND STAFF
#1LARGEST REAL ESTATE FIRM
EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA