Del Taco-Roseville, MI-OM - Landmark Investment Sales · 8 OFFERING SUMMARY Del Taco • Roseville, MI PROPERTY DETAILS Year Built: 2006 Land Area: 27,234 SF Rentable Square Feet:

27995 Halsted Road, Suite 150Farmington Hills, MI 48331

Phone: (248) 488-2620

landmarkinvestmentsales.com

CONTACT US

OFFERING MEMORANDUM

KEVIN J. BAKER

[email protected]

(248) 488-2620

DANIEL H. KUKES

[email protected]

(248) 488-2620

JASON M. GREENSPAN

[email protected]

(248) 488-2620

KYLE J. SIMON

[email protected]

(248) 488-2620

DEL TACO32439 Gratiot Ave, Roseville, MI 48066

2

Landmark Commercial Real Estate Services, Inc. d/b/a Landmark Investment Sales (“BROKER”) has been retained by the Owner to sell the 100% fee simpletitle of this asset. The Broker is the exclusive agent for the sale of this asset. The Broker has prepared the Property Information with information providedby the Owner, from sources deemed to be reliable. The Potential Purchaser will conduct its own due diligence of The Property, independently and withoutreliance upon BROKER of the Owner. Information furnished herein, the Offering Memorandum (the “OM”) is intended solely for the Potential Purchaserand its affiliates (“Recipients”) for its review of the acquisition of the freestanding Del Taco restaurant located at 32439 Gratiot Ave, Roseville, MI(“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 Oakland, 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.

CONFIDENTIALITY DISCLAIMER

Del Taco • Roseville, MI

TABLE OF CONTENTS

3

Executive Summary 5

Tenant Profile 7

Offering Summary 8

Market Overview 9

Macomb Mall Site Plan 11

Survey 12

Demographics 13

Our Team 14


KEVIN J. BAKERPrincipal

[email protected](248) 488-2620

DANIEL H. KUKESPrincipal


JASON M. GREENSPANAssociate


KYLE J. SIMONAssociate


SUBJECT PROPERTY

4Del Taco • Roseville, MI

5

EXECUTIVE SUMMARYPROPERTY DETAILS

Address: 32439 Gratiot Ave, Roseville, MI

Lot Size: 0.63 acre

Tenant: DT Venture, LLC

PRICING

Price: $1,883,333

Square Footage: 2,945 SF

Cap Rate: 6.00%

In-Place NOI: $113,000

INVESTMENT HIGHLIGHTS

STRONG OPERATOR DT Venture, LLC owns five (5) Del Taco locations in Michigan and will

be opening two more locations in the near future. The operator isTEAM Schostak Family Restaurants which owns over 100 restaurantsincluding Applebee’s, Olga’s Kitchen, and MOD Pizza. DT Venture,LLC financials are available upon request.

IRREPLACEABLE LOCATION Del Taco is situated along Gratiot Avenue (57,300 cpd) on the pad of

the Macomb Mall (933,000 SF). The mall has been recently revitalizedwith tenant signings of Dick’s Sporting Goods, ULTA Beauty, rue21,H&M, Shoe Carnival, Old Navy, Sprint, Bath & Body Works, Chipotle,Potbelly, and T-Mobile.

STRONG RETAIL TRADE AREA The site is surrounded by success stories of strong sale volumes

including multiple big-box, junior-box, quick serve restaurants, andsit-down restaurants. Inquire with broker for specific volumes.

DENSE, IN-FILL, AND GROWING DEMOGRAPHICS The immediate trade area features over 113,300 people in a 3-mile

radius earning average household incomes exceeding $66,800/year.This is an ideal demographic for Del Taco as evidenced by theirhistorical sales.

RENT-TO-SALES RATIO The rent is based on an 8.75% rent-to-sales ratio, a ratio considered

healthy and widely acceptable according to industry standards.


VIEW SOUTHEAST


7

TENANT PROFILE


DEL TACO OVERVIEWMarket Cap: $531.4MSales (2016): $434M Net Income (2016): $20.9MRevenues (2016): $452MWebsite: https://www.deltaco.com/

TENANTDT Venture, LLC owns five Del Taco locations (soon to be seven) inMichigan. The operator is TEAM Schostak Family Restaurants.

TEAM Schostak Family RestaurantsTEAM Schostak currently operates over 100 restaurants across thefollowing brands: Del Taco, Applebee’s, MOD Pizza, and Olga’s Kitchen. Inoperation since the early 1980’s, TEAM Schostak has significantlyexpanded and diversified its portfolio across different restaurant conceptswhich at one point also included 60 Burger King Restaurants. TEAMSchostak currently operates five Del Taco restaurants (soon to be seven) inthe metro-Detroit area. http://teamschostak.com/

Del TacoDel Taco offers a unique variety of both Mexican and American favoritessuch as burritos and fries, prepared fresh in every restaurant's workingkitchen with the value and convenience of a drive-thru. Del Taco's menuitems taste better because they are made with quality ingredients likefresh grilled chicken and carne asada steak, hand-sliced avocado, hand-grated cheddar cheese, slow-cooked beans made from scratch, and newcreamy Queso Blanco. Founded in 1964, today Del Taco serves more thanthree million guests each week at its more than 550 restaurants across 14states.

8

OFFERING SUMMARY


PROPERTY DETAILSYear Built: 2006

Land Area: 27,234 SF

Rentable Square Feet: 2,945 SF

Ownership: Fee simple

Taxes: Tenant pays

Insurance: Tenant pays

CAM: Tenant pays

Landlord Responsibilities: None

LEASE DETAILSOriginal Lease Term: 15 years

Remaining Lease Term: 15 years

Lease Type: Absolute net

Lease Expiration: 15 years from closing (COE)

Tenant: DT Venture LLC

Guarantor: DT Venture LLC

RENT SCHEDULE YEAR ANNUAL PSF1-5 $113,000 $38.376-10 $121,475 $41.25

11-15 $130,586 $44.34Option 1: Years 16-20 $140,380 $47.67Option 2: Years 21-25 $150,908 $51.24Option 3: Years 26-30 $162,226 $55.09Option 4: Years 31-35 $174,393 $59.22Option 5: Years 36-40 $187,473 $63.66Option 6: Years 41-45 $201,533 $68.43


MARKET OVERVIEWINCREDIBLE REAL ESTATEDel Taco is situated along Gratiot Ave (57,300 CPD) with exceptional visibility and frontage. Located at the outlot of MacombMall (933,000 SF) which has undergone a massive renovation and transformation.

DENSE, IN-FILL, AND GROWING DEMOGRAPHICSThe immediate trade area features over 113,300 people in a 3-mile radius earning average household incomes exceeding$66,800/year. This is an ideal demographic for Del Taco as evidenced by their historical sales.

STRONG TENANT DEMANDThe Macomb Mall (Gratiot corridor) trade area is experiencing significant revitalization and demand from tenants. The followingtenants have signed new leases: Dick’s, ULTA, H&M, Old Navy, rue21, Potbelly, Chipotle, AT&T, and Party City, to name a few.

STRONG RETAILER/RESTAURANT VOLUMESSite is surrounded by success stories of strong sale volumes including multiple big box, junior box, quick serve restaurants, andsit-down restaurants. Inquire with broker for specific volumes.

VIEW SOUTHWEST


11

MACOMB MALL SITE PLAN


MACOMB MALL933,000 SF

New Leases: Dick’s Sporting Goods ULTA Old Navy H&M rue21 Shoe Carnival Potbelly AT&T Chipotle Payless Shoes Champs Sports Visionworks Bath & Body Works

12

SURVEY


POPU

LATI

ON

2017 Estimated Population 11,621 113,353 264,6982022 Projected Population 12,068 116,289 271,4762010 Census Population 11,429 111,153 259,5312000 Census Population 11,727 113,835 265,912Projected Annual Growth 2017 to 2022 0.8% 0.5% 0.5%Historical Annual Growth 2000 to 2017 -0.1% - -

HO

USE

HO

LDS 2017 Estimated Households 5,161 48,701 113,0182022 Projected Households 5,428 50,702 117,6662010 Census Households 4,951 46,832 109,5242000 Census Households 5,034 46,974 110,423Projected Annual Growth 2017 to 2022 1.0% 0.8% 0.8%Historical Annual Growth 2000 to 2017 0.1% 0.2% 0.1%

RA

CE

2017 Est. White 77.4% 80.6% 80.1%2017 Est. Black 16.2% 13.7% 13.9%2017 Est. Asian or Pacific Islander 2.2% 2.3% 2.7%

2017 Est. American Indian or Alaska Native 0.4% 0.3% 0.3%

2017 Est. Other Races 3.8% 3.0% 2.9%

INC

OM

E 2017 Est. Average Household Income $63,197 $66,890 $70,7962017 Est. Median Household Income $49,504 $52,389 $54,9812017 Est. Per Capita Income $28,071 $28,818 $30,394

BU

SIN

ESS 2017 Est. Total Businesses 506 4,059 9,139

2017 Est. Total Employees 6,797 43,036 90,013

DESCRIPTION 1 MILE 3 MILE 5 MILE

DEMOGRAPHICS


OUR TEAM

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JASON GREENSPANASSOCIATE | [email protected] Greenspan graduated from the University of Michigan in 2012 with a Bachelor of Arts degree in Political Science and Sociology. Jason also received a Juris Doctor in 2015 fromMichigan State University College of Law where he concentrated in business and corporations. He passed the Michigan Bar Examination in July 2015. Starting in 2011, and while in lawschool, Jason interned at Landmark Investment Sales identifying, sourcing, and underwriting investment grade properties. With law school behind him and six years of experience in realestate investment sales, Jason has participated in the closing of over $100,000,000 and continues to source investment opportunities across the country. Jason specializes in therepresentation of buyers and sellers of institutional grade single tenant properties, high profile unanchored retail centers, grocery anchored centers, and power centers.


KEVIN J. BAKERPRINCIPAL | [email protected] Baker is a Principal and Co-Founder of Landmark Investment Sales. Kevin specializes in the sale of retail shopping centers and single tenant net lease investmentproperties across all property types. He currently represents some of the nation’s largest institutional funds, private equity funds, and high net worth investors in listinginvestment properties all over the country. Since 2010, Kevin has closed deals totaling over 6,500,000 SF valued at over $750,000,000. Prior to 2010, Kevin workedextensively at Landmark as a broker specializing in tenant representation and landlord representation completing in excess of 100 lease & sale transactions. Kevinjoined Landmark in 2005 as a Sales Associate. Prior to Landmark, Kevin attended Michigan State University and University of Michigan-Dearborn where he studiedfinance. Kevin began his real estate career in 2001 when he founded Baker Real Estate Holdings, specializing in acquisition and management of a student housingportfolio at Michigan State University.

DANIEL H. KUKESPRINCIPAL | [email protected] Kukes is a Principal and Co-Founder of Landmark Investment Sales. Daniel specializes in the sale of retail shopping centers, medical office, and single tenant netlease investment properties across all property types. He currently represents some of the nation’s largest institutional real estate funds, private equity group, and highnet worth investors in acquiring and listing investment properties all over the country. Since 2010, Daniel has closed deals totaling over 6,500,000 SF valued at over$750,000,000. Daniel joined Landmark in 2009 as an Associate Broker. He began his real estate career at NAI Farbman where he focused on shopping center leasingand retail tenant representation. After five years at NAI Farbman, Daniel joined DAP Investments as a partner responsible for retail development, acquisitions andleasing. While there, he developed several single tenant and shopping center projects in Michigan and Illinois. Daniel is a graduate of Michigan State University with aBachelor of Arts degree in Pre-Law & Society.

KYLE J. SIMONASSOCIATE | [email protected] Simon graduated from Michigan State University with a Bachelor of Arts degree in Professional Writing and received his Juris Doctor degree from the MichiganState University College of Law in 2017. He passed the Michigan Bar Examination in July 2017. While in law school he concentrated on securities regulation andmortgage finance. His capstone work on the topics of CMBS and Dodd-Frank won him the Honigman Securities Law Writing Competition featured at the MidwestSecurities Law Institute. Kyle began at Landmark in 2014 as an intern of the Investment Sales team. During his tenure, he sourced thousands of investment grademedical and retail real estate contacts across the United States. Demonstrating exceptional drive, Kyle earned a full-time brokerage position at Landmark following hisacademic career.

Documents

Del Taco-Roseville, MI-OM - Landmark Investment Sales · 8 OFFERING SUMMARY Del Taco • Roseville, MI PROPERTY DETAILS Year Built: 2006 Land Area: 27,234 SF Rentable Square Feet: