Triple Net Leased Max Erma's for Sale | The Boulder Group

NET LEASED INVESTMENT OFFERING

Max & Erma’s 4255 Baldwin Road Auburn Hills, MI 48326 (Detroit MSA)

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TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING

TABLE OF CONTENTS

1)

Confidentiality & Disclaimer

2)

Executive Summary

3)

Property Overview

4)

Aerial

5)

Site Plan

6)

Maps

7)

Tenant Profile

8)

Demographic Comparison Report

9)

Location Overview

10)

Contact Information

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CONFIDENTITALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING

CONFIDENTIALITY & 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 The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified 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. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group 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.

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EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING

EXECUTIVE SUMMARY The Boulder Group is pleased to exclusively market for sale a single tenant absolute net leased Max & Erma’s property located in the Detroit MSA. The 6,264 square foot Max & Erma’s restaurant is ideally located at an Interstate 75 interchange in a dominant retail destination that attracts consumers from throughout parts of Michigan and nearby Canada. Located across the street is the Great Lakes Crossing Outlets, which features over 180 shops and 1.4 million square feet of retail. Max and Erma’s has approximately nine years remaining on their twenty year lease that expires April 30, 2023. The lease features a 7.5% rental escalation in 2018. Max & Erma’s is a casual dining restaurant chain that is known for their award-winning burgers, locally brewed beer and fresh-baked chocolate chip cookies as well as many other menu items. Max & Erma’s is a wholly owned subsidiary of American Blue Ribbon Holdings, the 8th largest full service restaurant holdings company in the United States.

The Max & Erma’s is located across the street from the Great Lakes Crossing Outlets. Great Lakes Crossing Outlets is Michigan’s largest and dominant outlet shopping center with a strong mix of fashion department store outlets, manufacturer’s outlets, and category-dominant stores. Notable retailers within the development include Polo Ralph Lauren, Coach, Michael Kors, Lacoste, J. Crew, Hugo Boss, Talbots, and many other premium retailers. The development also features a 25-screen AMC Theatre and Sea Life Michigan Aquarium (scheduled to open Spring 2015). Approximately 20% of Great Lakes Crossing Outlets’ shoppers are tourists traveling 60 miles or more and come from throughout the Midwest and Canada. Further establishing this corridor as a dominant retail destination is the presence of many big box national retailers in the immediate vicinity. Surrounding notable retailers include Costco, Sam’s Club, Target, Home Depot, Meijer, Kohl’s, Best Buy, and many others.

The 2.89 acre Max & Erma’s parcel is located at a high profile Interstate 75 interchange on Baldwin Road. Interstate 75 experiences traffic counts in excess of 85,000 vehicles per day. Baldwin Road is a heavily trafficked north-south thoroughfare in the northwest suburbs. The average annual household income within a one mile radius is in excess of $73,000. Additionally, there are approximately 125,000 people living within a five mile radius.

Max & Erma’s has approximately 9 years remaining on their absolute net lease that expires April 30, 2023. The lease features a 7.5% rental escalation in 2018. There are approximately 70 Max & Erma’s locations throughout parts of the Midwest and East Coast. Max & Erma’s is a wholly owned subsidiary of American Blue Ribbon Holdings, the 8th largest full service restaurant holdings company in the United States and have over 646 restaurants.

INVESTMENT HIGHLIGHTS • Located within a regionally dominant retail destination in the Detroit MSA • 7.5% rental escalation in 2018 • No landlord responsibilities • Guarantor is the 8th largest full service restaurant holding company in the United States • Located at a high profile Interstate 75 (85,000 VPD) interchange • Baldwin Road is a primary north-south thoroughfare • Located across the street from Great Lakes Crossing Outlets, a 1.4 million square foot development that is Michigan’s largest and dominant outlet shopping center • Other notable retailers located in the immediate vicinity include Costco, Sam’s Club, Target, Home Depot, Meijer, Kohl’s, and Best Buy

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PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING

PROPERTY OVERVIEW

Price:

$2,970,250

Cap Rate:

7.60%

Rent Schedule:

NOI

Escalation Date

$225,750 $242,681

5/1/18

Lease Expiration Date:

April 30, 2023

Tenant:

Max & Erma’s

Year Renovated:

2003

Lease Type:

NNN

Building Size:

6,264 SF

Land Size:

2,896 SF

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AERIAL NET LEASED INVESTMENT OFFERING

AERIAL

N

75

85,000 VPD

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SITE PLAN NET LEASED INVESTMENT OFFERING

SITE PLAN

75

N

LAKE VILLAGE BLVD

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MAPS NET LEASED INVESTMENT OFFERING

MAPS

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TENANT PROFILE NET LEASED INVESTMENT OFFERING

TENANT PROFILE Max & Erma’s is a casual dining restaurant chain based in Columbus, Ohio. It operates throughout parts of the Eastern and Midwestern United States, and was founded in 1972 by Todd Barnum and Barry Zacks. In 2010, the chain was acquired by American Blue Ribbon Holdings. Max & Erma’s is a casual dining restaurant chain that is known for their award-winning burgers, locally brewed beer and fresh-baked chocolate chip cookies as well as many other menu items.

American Blue Ribbon Holdings is the 8th largest full service restaurant holding company in the United States.

As of July 2012, they operated 646 restaurants in 43 states and served over 90 million guests annually. They had $1.2 billion of total annual revenue and employed over 32,000 people. Their brands include O’Charley’s, Village Inn, Bakers Square, Ninety Nine and Max & Erma’s.

Tenant Website: Number of Locations: Headquarters:

www.maxandermas.com 70 Columbus, OH

Parent Website: Employees: Headquarters:

www.abrholdingss.com 32,000+ Nashville, TN

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DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING

DEMOGRAPHIC COMPARISON REPORT

Population Total Population Total Households

1-mi

3-mi

5-mi

38,361 16,918

252,568 106,437

515,306 199,818

$54,042 $73,224

$45,483 $65,196

$44,130 $63,679

Income Median Household Income Average Household Income

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LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING

LOCATION OVERVIEW Auburn Hills is a distinguished leader in southeast Michigan, known not only for its 22 high-technology parks, but also for having world-renowned retail, entertainment and manufacturing. Home to more than 21,000 residents, it also serves as Michigan’s global business address, with 40 international corporations from 32 countries housed here, including many world and North American headquarters. Auburn Hills’ residents enjoy the amenities of city and suburban living with parks, a revitalized downtown district and a welcoming city complex with a library and community center.

Additionally, the city has five colleges and universities, the award winning Palace of Auburn Hills entertainment complex and Great Lakes Crossing Outlets, one of the state’s largest destination shopping centers, providing a variety of cultural, social and educational opportunities to residents, workers and visitors.

Detroit is the largest city in the state of Michigan and the county seat of Wayne County. At the time of the 2010 U.S. Wayne County was ranked as the 15th most populous county in the United States with a population of 1,820,584. The Detroit MSA is the 13th most populated metropolitan area in the United States with 4,296,250 residents. The Detroit metropolitan area, commonly referred to as Metro Detroit, is widely known as the automobile industry hub of North America. Most notably, Detroit is known for the “Big Three” automobile companies, General Motors, Ford and Chrysler, all headquartered in Metro Detroit. The Detroit auto industry employs over 70,000 people.

Downtown Detroit is home to the Compuware world headquarters, Blue Cross Blue Shield, HP Enterprise Services, and Quicken Loans, who recently relocated its headquarters and 4,000 employees downtown. Detroit also benefits from the casino gaming industry. Detroit is the largest city in the United States to offer casino resort hotels and is home to the MGM Grand Detroit, MotorCity Casino and Greektown Casino.

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CONTACT INFORMATION NET LEASED INVESTMENT OFFERING

CONTACT INFORMATION

666 Dundee Road, Suite 1801 Northbrook, IL 60062 Randy Blankstein President 847.562.0003 randy@bouldergroup.com

Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com

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