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Page | 1 Avison Young | Confidential Offering Memorandum

1 5 1 70N. COMMERCE DRIVEDEARBORN, MI 48120

CONFIDENTIALOFFERING MEMORANDUM

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FOR VIRTUAL TOU

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https://my.matterport.com/show/?m=7168a897U2k


Page | 2 Page | 3Avison Young | Confidential Offering Memorandum Avison Young | Confidential Offering Memorandum

TA BLE OF CONTENTS

E X E C U T I V ES U M M A R Y

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P R O P E R T YD E S C R I P T I O N

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S A L EC O M P A R A B L E S

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F I N A N C I A LO V E R V I E W

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M A R K E TO V E R V I E W

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0 1 E X E C U T I V E S U M M A R Y

Investment Highl ights

$3,700,000ASKING PRICE

6.5%CAP RATE

BRAND NEW 10-YEAR LEASE UPON

COMMENCEMENT

LIMITED LANDLORDRESPONSIBILITIES

ANNUAL RENTESCALATIONS

PALO ALTO GRADE FACILITY ENHANCEMENTS

ABSOLUTE TRIPLE NET (NNN)


The Council is an international semi-government, revenue sharing organization (Council) that is leading a world-wide public/private economic development program to deploy the Digital Economy Platform (DEP) that digitizes the global USD 169 trillion B2B marketplace. Global public and private sector leaders view this initiative as the “Next Big Thing” similar to how electricity, the micro-computer, the Internet and mobile communications have positively connected and impacted our societies.

The public sector involves governments representing 75% of the world’s population. The private sector will encompass the world’s leading technology, e-commerce, finance, and insurance firms, generating USD 1.5 trillion revenues with a 4.7 million workforce. The Council’s objective is to increase the world’s GDP by 17%, creating more than 400 million jobs and generating a new USD 20.5 trillion digital services market industry by 2030, nearly ten times the world’s current oil and gold production combined.

A wholly owned subsidiary of the Council, will sign a brand new 10-year lease at the close of escrow. The lease will be absolute triple-net (NNN) in nature, requiring zero landlord responsibilities, and will include 2% escalations through the course of the initial term, with three (3) five (5) year renewal options.

The 15,000 square foot building is fixed on 1.50 acres along N. Commerce Drive in the Dearborn, MI submarket. The site serves as the Council’s CEO office operation with an immaculate, newly renovated build-out with Palo Alto technology style improvements including employee cafeteria, fitness facility, locker room / sauna, digitally connected conference and breakout rooms, solar panel system, and much more.

The Of fer ing

0 1 P R O P E R T Y D E S C R I P T I O N


Proper ty Descr ipt ion

Property Snapshot

Property Address 15170 N. Commerce DriveDearborn, MI 48120

County Wayne

Parcel Number 32-10-191-04-011

Property Type Single-Tenant Corporate Office Building

Current Occupancy 100%

Net Rentable Area 15,000 SF

Year Built 1983

Land Area 1.50 Acres

Zoning I-A

Parking 35+ Surface Spaces

Frontage Commerce Drive

Structure Concrete Block

Foundation Concrete

Exterior Walls Brick

Recent Infrastructure Updates: 2016 to DateHVAC Units maintained semi annual

Generac Generator Maintained annually

Solar Panel Cut bill in half in summer months; Main-tained annual

Motion Flood Lights New

Flag Poles Five (5) total flag poles

Metro Security System New

Outdoor/Indoor Cameras Audio & visual

Entry Points Six (6) entry points plus separate shipping entry

Basketball Court Added

Site Overv iew

COMMERCE RDCOMMERCE RD

Recent Infrastructure Updates: 2016 to Date (Con’t)

LandscapingSurrounding arbs for privacy, flower and

courtyard beds, paved courtyard and kitchen patio, annual plants, 9 zone sprinkler system

Parking Added parking spots

Refuse Secure dumpster shed

Roof New

Windows Tinted

Cafeteria New

Entrance/Lobby

Hik Vision access card readers, 90 inch SMART TV with Apple TV, granite floors,

globe art installation (logo, color change), custom guest seating area, handicap acces-sible guest restrooms, guest coffee station

Lobby Board Room

TV, AV equipment, overlooking courtyard, block out roller shades, granite custom

table, Herman Miller chairs, copper ceiling installation

Executive Lobby/OfficesFour (4) offices, custom woodwork with

granite, ceiling art & fixture, one (1) en suite bathroom

CEO Office

En suite full bath with shower and bidet with motion lighting and hidden panel, motorized

blinds; en suite mini fridge, custom seating, custom desk, seating and storage credenzas

with granite, custom desk with group and individual features, TV & AV equipment, cop-

per ceiling art work with logo, Google Nest thermostat unit

Open Areas

Custom work Apple stations, paved park with trees, grass and workstations. Herman Miller chairs, printing station, two (2) meet-

ing rooms


Site Plan Floor P lan


Proper ty Overv iew

COMMERCE DR N

COMMERCE DR NINTERSTATE

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RETUNDA DR

RETUNDA DR

GREENFIELD RD

GREENFIELD RD

Tenant & Company Overv iew

The Council is a global leader of 21st century innovation that empowers the Digital Economy towards achieving sustainable economic growth impacting the lives of citizens around the world.

The Council was established as a semi-government revenue sharing organization (RSO) to collaborate with public, IGO/NGO, academic and private sectors worldwide and deliver new digital tools demanded by the world’s citizens to improve trade efficiency, reduce trade costs and boost trade towards reenergizing the global economy.

The Council is governed by four Regional Councils which are located in each of the four world regions — Americas, Asia, Europe, and Middle-East and Africa. Each Regional Council has a governance and equity structure designed to offset geopolitical and monopolistic concerns, together involving 28 semi-government organizations representing the voice of their respective regions and countries.

The Council innovative solution to empower the Digital Economy has two critical components:

1. A Technology Development Arm: that maintains and enhances the Digital Economy Platform that digitally connects the participants in the marketplace and represents the engine that powers the global Digital Economy.

2. A Global Deployment Network: comprised of leading Commerce, Insurance, Finance, and Technology organizations selected through a transparent, equal opportunity process. These trusted organizations are deploying a Digital Economy Platform to the real economy participants, at no cost, delivering unprecedented benefits, including trade cost reduction, increased trade, ease of access to finance and insurance, and the creation of more than 400 million jobs by 2030.

The Council is monitored by the a Global Coalition (Coalition), a Swiss-based nonprofit, global Public/Private Partnership. the Coalition coordinates with prominent thought leaders from around the world to ensure the continuous enhancement of the best digital practices to achieve efficient and secure global trade in the 21st century. The Council, a founding member of GCEL, has gained the support of more than 150 countries and 26 Inter-governmental/Nongovernmental Organizations worldwide, and its private-sector member companies alone exceed 2.7 million personnel and serve approximately 60% of global GDP.

“The Digital Economy Platform (DEP) will be deployed by the world’s top technology companies, as well as national e-commerce, finance, and insurance firms that generate USD $1.5 trillion in revenues and a workforce in excess of 4.7 million. These organizations will digitize the USD 168 trillion B2B marketplace, unleashing USD 20.5 trillion in new digital services by 2030.”

- Council Chairman & CEO


0 3 S A L E C O M P A R A B L E S

Sale Comparables Map

Copyrighted report licensed to Avison Young - 1002945. 9/15/2020

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Sale Comparables

Building Name 22060 Beech StreetDearborn, MI

KinderCare4900 Evergreen Road

Dearborn, MI

Roses Plaza203-227 Middlebelt Road

Garden City, MI

Davita Dialysis1185 Monroe Street

Dearborn, MI

5524-5540 Schaefer RoadDearborn, MI

Dollar Tree Store Development

2545 S. Schaefer HighwayDetroit, MI

Walgreens8706 N. Telegraph Road

Dearborn, MI

5709 S. Telegraph RoadDearborn Heights, MI

Year Built 1999 1988 2006 1951 1946 1958 1997 1947

Building Size 16,800 SF 7,472 SF 16,260 SF 10,250 SF 7,064 SF 11,985 SF 13,905 SF 14,490 SF

Sale Date 6/1/2020 7/8/2019 Under Contract 5/31/2018 2/23/2018 12/1/2017 9/19/2019 12/24/2017

Sale Price $4,250,000 $2,000,000 $1,100,000 Asking $2,675,000 $1,370,000 $1,512,350 $2,025,000 $7,400,000

Price/SF $229.78 $267.67 $67.65 $260.98 $193.94 $126.19 $145.63 $510.70

Cap Rate 8.5% 6.20% 8.55% 7.66% 8.25% - 7% 6.40%

NOI $361,250 $124,000 $94,050 $204,905 $113,025 - $141,750 $473,600

Rent/SF $21.20 NNN - - $19.95 NNN $16.00 NNN - $10.19 NNN $32.68 MG

Term Remaining 20+ years - 79 months 48 months - 130 months

Comments

On 6/1/2020, the 18,496 SF single tenant office medical building at 22060 Beech Street was sold for

an undisclosed price. The property is occupied by Beaumont Heart & Vascular Center, which has occu-pied the property since 1999 on a

net lease.

11 out of 13 units are occupied, , approximately 3,000 SF was avail-

able at time of sale.

Built in 1951 & renovated in 2005, this DaVit Dialysis clinic was 100%

leased at the time of sale. Total expenses are estimated at $57,901/

annum.

Buyer confirmed that the 9,673 SF Triple Net property sold for $1.37

Million, cash transaction, on Febru-ary 23, 2018.

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This existing Walgreens was pur-chased as a Triple Net Investment

opportunity.The sale date, sale price, time under contract, cap rate, and no financing

(cashpurchase), were confirmed with the

broker involved. The in-place net operating income was reported to

be $141,750, yielding anactual cap rate of 7%.

On December 24, 2017 theretail building located at5709 S Telegraph Rd in

Dearborn Heights MI soldfor estimated $7.4 million.

The asset was purchased byLancor Equities, out of Chicago.

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0 4 F i n a n c i a l O v e r v i e w

Lease A bstract

Tenant Name Council Subsidiary

Lease Type Absolute Triple Net (NNN)

Commencement Date Close of escrow

Lease Terms 10 years from commencement date

Concluded Year One Rent $232,500 - $255,000

Rent Escalations 2% annual escalations

Renewal Options Three (3) five (5) year renewal options

Option to Purchase Potential

Termination Option None

Operating Costs

Real Estate Taxes: Tenant shall pay, when due and payable to the municipality or taxing authority, all Real property taxes.

Insurance: Tenant shall, at its own expense, keep in force and effect all insurance.

Common Areas: The tenant shall at all times, at its own cost and expense, procure and pay all common area mainte-nance (including repair and replacement) items including roof and structure, parking areas, lighting, landscaping, HVAC

systems, etc.

Landlord Responsibilities None

Roof & Strucure Tenant shall, at its own cost and expense, maintain and keep in good repair all parts of the building, Including the –roof and structure.


0 5 M A R K E T O V E R V I E W

Market | Locat ion Overv iew

Dearborn, Michigan is the headquarters of Ford Motor Company. Accordingly, it comes to no surprise that approximately 10% of the office space in Dearborn is occupied by the automotive goliath and other associated automobile suppliers. Despite concerns surrounding the Covid-19 pandemic, there is good market optimism as Dearborn boasts daytime populations in excess of 150,000 residents, and remains a top tier sub-market that is valued at over $1 billion.

The market takes advantage of the significant amount of white-collar jobs in the finance and professional business sectors that are in the outer suburbs of Detroit, as well as its proximal location between Detroit proper and Ann Arbor, Michigan, shadowed by the new Ford Motor Company redevelopment. Average vacancy rates of 8.5% are reported with 4-5 Star properties reporting higher rates while lower-ranked properties have been reporting below-average vacancy rates less than 7%. Market rents are sitting at just above $20/SF.


OFFERED EXCLUSIVELY BY:

INVESTMENT CONTACT:

Jacob J. ZammitAssociate

D: +1 313 209 4118E: [email protected]

Avison Young 2111 Woodward Avenue

Detroit, MI 48201

VIEW THE PROPERTY IN 3D

Virtual Tour

Area Overv iew

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1 Univeristy of Dearborn

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2 Henry Ford Medical Center-Fairlane

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3 Fairlane Call

4 Ford Product Development Center

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5 Detroit Metropolitan Airport

6 Ford Dearborn Development Center

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7 Ford Motor Company Export Operations

8 Ford Motor Company Manufacturing

9 Central Michigan University Dearborn

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10 Roush Industries

11 Ambassador Bridge

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Subject Property


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