lumber liquidators lumber liquidators in central michigan 5901 Brockway Rd, Saginaw, MI Representative Photo

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1 Representative Photo lumber liquidators lumber liquidators in central michigan 5901 Brockway Rd, Saginaw, MI John Andreini (415) CA DRE#: Zeb Ripple [415] CA DRE#: Chris Kostanecki [415] CA DRE#: Chris Peters [415] CA DRE#:

2 NEWLY RENOVATED LUMBER LIQUIDATORS IN EXCELLENT RETAIL TRADE AREA OF CENTRAL MICHIGAN Investment Highlights PURCHASE PRICE.... $966,194 CAP RATE % PRICE / SQ FT... $ IN-PLACE NOI...$74,880 RENTABLE SF... 6,240 SF YEAR BUILT/RENOVATED /2014 PROPERTY HIGHLIGHTS > Excellent retail location: pad at entrance to a Wal-Mart Supercenter > Area retailers include Menards, Aldi, Applebee s, GNC, Payless, Dollar Tree, and many others > Low rent: only $12/ft. annually > Two dedicated monument signs TENANT - CREDIT > Revenues have increased annually by $100 million over the past 3 years > Revenues of over $1 billion in 2013 > Tenant has 315 retail locations in North America > Company has NO DEBT > Tenant has never posted a year-over-year decline in sales since going public in 2007 LEASE DETAILS > 7 year corporate lease > 10% rental increases in the option periods > Tenant responsible for HVAC and interior non-structural elements > Landlord responsible for roof & structure Representative Photo LUMBER LIQUIDATORS 2

3 Nouvel Catholic Central High School Weiss Street aw Stre 47 Mackin GREEN ACRES Weiss et St. Thomas Aquinas School H&R BLOCK 58 31,800 DAILY State Street 58 Lawndale Road Hemmeter Thompson Middle School 11, 250 DA ILY Arthur Hill High School 47 N Center Road Arrowwood LY 0 DAI Road 13,40 nd Midla Bro DETROIT St. Stephen White Pine Middle School ckw ay Roa d Chester F. Miller SAGINAW COUNTRY CLUB LUMBER LIQUIDATORS 3

4 Representative Interior Photo Income & Expense PRICE $966,194 Price Per Square Foot: $ Capitalization Rate: 7.75% Total Rentable Area (SF): 6,240 Lot Size (Acres) 0.86 Year Built / Renovated: 2001/2014 STABILIZED INCOME Per Square Foot Scheduled Rent $12.00 $74,880 Effective Gross Income $12.00 $74,880 LESS Per Square Foot Taxes NN $0.00 Insurance NN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $74,880 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. LUMBER LIQUIDATORS 4

5 Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/ FT Yearly Rent/ FT Lumber Liquidators 6, $74,880 $6,240 $74,880 $1.00 $12.00 Option $81,120 $6,760 $81,120 $1.08 $13.00 Option $87,360 $7,280 $87,360 $1.17 $14.00 Current Totals: 6,240 $74,880 $6,240 $74,880 $1.00 $12.00 *Store opening February 28th, 2014 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Representative Photo LUMBER LIQUIDATORS 5

6 Tenant Lumber Liquidators Lumber Liquidators, headquartered in Colonial Heights, VA, prides itself on having one of the largest inventories of prefinished and unfinished hardwood floors in the industry. The company negotiates directly with the mills, eliminating the middleman, thus providing discounted rates to their customers. Lumber Liquidators is an environmentally conscientious company only purchasing from suppliers who practice sustainable harvesting, which allows forests to heal and re-grow faster. Founded in 1993 by Tom Sullivan in the back of a trucking yard in Stoughton, MA, the company opened its first store in 1996 in West Roxbury, MA, selling 150 sq ft of flooring the first day. Just eight months later, a second store opened in Hartford, CT. By 2004, the company was bursting at the seams and opened a new 306,000 sq ft production center in Toano, VA. Over the past 20 years the company has grown steadily, with stores in 46 states and over 1,000 employees. For the 2013 calendar year, Lumber Liquidators reported total revenue of $1 billion+, up an impressive 23% from the same period the year prior. Gross margins for 2013 also offered a notable increase, moving from 38% margins in 2012 to 41.1% margins in Representative Photo LUMBER LIQUIDATORS 6

7 Regional Map HIGH VISIBILITY LOCATION IN GREAT RETAIL AREA - AT ENTRANCE TO A WAL-MART SUPERCENTER LUMBER LIQUIDATORS LUMBER LIQUIDATORS 7

8 Saginaw, MI Saginaw is a city in and the county seat of Saginaw County, Michigan, and is part of the Flint/Tri-Cities region. As of the 2010 census, the city s population was 51,508, and part of a metropolitan statistical area encompassing a population of 307,940. In the early 19th century Saginaw was a thriving lumber town. By the late 20th century, however, the city had become an important industrial and manufacturing center, with the automotive industry leading the way. Most notably, manual transmission assemblies, steering gear boxes, and power steering pumps were manufactured in Saginaw. At the height of manufacturing in the 1960 s and 1970 s, the city and neighboring Buena Vista Township hosted 12 General Motors plants, an Eaton Manufacturing plant, and numerous smaller companies. Demographics Population 1 Mile 3 Miles 5 Miles 2013 Population 8,273 53,841 92, Income 2013 Average Household Income $55,833 $60,523 $54, Median Household Income $41,340 $44,480 $39,241 Top Employers in Saginaw County Employer # of Employees (Approx.) Nexteer Automotive 4,200 Covenant Healthcare 4,129 St. Mary s of Michigan 2,200 Hemlock Semiconductor Corp. 1,766 Copyright 2014 [Capital Pacific Real Estate Brokerage Company] Morley Companies 1,600 LUMBER LIQUIDATORS 8