NEW YORK | CHICAGO | TAMPA | SAN FRANCISCOOFFERING MEMORANDUMTRADE NET LEASE WITH CONFIDENCE
TRUGREEN3116 DIXIE AVENUE SW, GRAND RAPIDS MSA, MI
INDUSTRIAL
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM2
All materials and information received or derived from B Plus E FL LLC, its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither B Plus E FL LLC, its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party B Plus E FL LLC will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. B Plus E FL LLC makes no warranties and/or representations regarding the veracity, completeness, or relevance of any
financial data or assumptions. B Plus E FL LLC does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property.
Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by B Plus E FL LLC in compliance with all applicable fair housing and equal opportunity laws.
DISCLOSURE
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM3
Tim HainDirector
Camille RenshawCEO & Co-Founder
Michael Patrick DeighanMI License #: 6502404895
EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTS
TENANT OVERVIEW
LEASE ANALYSIS
BUILDING SPECS
LOCATION OVERVIEW
GRAND RAPIDS INDUSTRIAL MARKET
SURROUNDING TENANTS MAP
DEMOGRAPHICS
OUR STORY
04
05
06
07
08
09
10
11
12
13
. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
. . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
CONTENTS
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM4
TRUGREEN
ADDRESS 3116 Dixie Ave. SW, Grandville, MI, 49418
ASKING PRICE $1,500,000
ASKING CAP RATE 6.15%
LEASE TERM 10 Years
PPSF $104.90
NOI $92,400
BUILDING SIZE +/- 14,300 SF
LAND AC +/- 1.41 AC
PROPERTY TYPE Industrial
YEAR BUILT 1985
EXECUTIVE SUMMARY
OFFERING PRICE$1,500,000
CAP RATE6.15%
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM5
INVESTMENT HIGHLIGHTS
HIGHLIGHTSRECENT SIGNIFICANT BUILDING UPGRADESImprovements include new HVAC units, upgrades to the parking lot, fencing, warehouse upgrades, and LED lighting throughout. The expected completion for the improvements is late December 2019.
STRONG TENANT FINANCIALSThis investment features a corporately guaranteed lease from TruGreen Lawn Care, the official lawn care partner of the PGA Tour. TruGreen saw revenues in excess of $1B in 2018. Continued success has allowed the company to expand its footprint across the U.S. to over 300 branches.
NEW 10-YEAR LEASETruGreen just recently signed a new 10-year lease, extending a 34 year history at this location.
INTERNET PROOF BUSINESSTruGreen is a service oriented business which insulates the investment from the rapidly growing e-commerce industry, sheltering it from web based competitors such as Amazon.
MISSION CRITICAL LOCATIONThis location is responsible for serving commercial and residential customers in 80+ zip codes around Grand Rapids.
LOCATED IN DESIRABLE INDUSTRIAL PARKThe property is located in a dense industrial park surrounded by a variety of quality tenants. Notable surrounding tenants include: Nabisco, Harbor Foam, PODS, Airgas, Viking Spas, Hadley, and K&M Tire.
INDUSTRIAL ASSET CLASSIndustrial properties are strong long-term performing assets with minimal turn-over costs compared to other property types. Additionally, the expansion of e-commerce is a strong tail wind that will continue to drive occupancies in this sector for years to come.
HEALTH OF GRAND RAPIDSINDUSTRIAL MARKETGrand Rapids has an industrial vacancy rate of 2.7% exemplifying the health of the industrial sector in the region. As well as a diverse pool of sectors such as medical device manufacturing, food processing, and aerospace. This diversity is an indicator of health and stability in this market.
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM6
TENANT OVERVIEW
TRUGREEN LAWN CARE, TruGreen is America’s #1 lawn care company serving over 2.3 million residential and commercial customers. TruGreen specializes in multiple areas such as lawn, tree and shrub care, and mosquito control services. With over 40 years of experience in the lawn care industry TruGreen is a national company that takes pride in having local experts in each of its over 300 branches. The TruGreen team is comprised of certified and licensed specialists, scientists, agronomists, horticulturalists and field representatives. The company is dedicated to excellent service which is why each associate completes extensive training on their innovative products and state-of-the-art equipment. In September of 2018, TruGreen announced they would be working with Glympse, the pioneer of real-time location technology, to deliver real-time tracking of TruGreen associates. This will allow TruGreen customers to see where their associate is and when they will arrive through the TruGreen app. As the largest lawn care company in the nation, TruGreen routes more than 100,000 jobs to customers homes and businesses every day. Giving this level of insight delivers an unparalleled experience to TruGreen customers proving their commitment to customer satisfaction.
Lawn Care ProviderOFFICIAL PGA
$1.35 BillionFY 2017 REVENUE EMPLOYEES
14,000+ Employees
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM7
TRUGREEN
NOI $92,400
RPSF +/- $6.46
LEASE COMMENCEMENT June 1, 2019
LEASE TERM 10 Years*
RENT INCREASE In Options
RENEWAL OPTIONS 2 ; 5-Year
LEASE TYPE NN
GUARANTOR TruGreen Limited Partnership
LANDLORD RESPONSIBILITIES Roof & Structure
* Denotes option period
LEASE ANALYSIS
RENT SCHEDULE
TERM ANNUAL INCREASE
Yea r 1 - 1 0 $ 9 2 , 4 0 0 N OT A P P L I C A B L E
Yea r 1 1 - 1 5 * $ 1 0 8 , 0 0 0 1 7 %
Yea r 1 6 - 2 0 * $ 1 1 7 , 6 0 0 9 %
* One-time termination option available until December 1, 2023 with rent paid through May 31, 2024
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM8
BUILDING SPECS
TRUGREEN PROPERTY SPECS
PROPERTY MIX 58% Industrial | 42% Office
CONSTRUCTION Steel
FLOOR THICKNESS 6”
BUILDING FAR 0.24
ZONING I-1
DRIVE-IN DOORS 3 ; 16’ X 12’
CEILING HEIGHT 16’ - 18’
PARKING 77 Spaces
LED Light Fixtures Throughout Warehouse
LIGHTINGFive New HVAC
Units
HVAC
New Gate Installed for Secure Parking Lot
PROPERTYHeaters Inside the
Warehouse Area
WAREHOUSE
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM9
GRAND RAPIDS, MI
LOCATION OVERVIEW
GRAND RAPIDS is the second-largest city in Michigan. The city sits on the Grand River which is about 30 miles east of Lake Michigan. The Grand Rapids MSA has a population of over 1,005,000 residents. Grand Rapids is nicknamed the Furniture City as it is home to five of the world’s leading office furniture companies. These companies include American Seating, Steelcase, Haworth and Herman Miller. Additionally, many other large companies call Grand Rapids home such as Bissell, Meijer Grocery, and Spectrum Health. Spectrum Health is West Michigan’s largest employer with over 26,000 staff. What is known as the Grand Rapids Medical Mile is home to world-class facilities focused on health services. They include the Meijer Heart Center, Lemmen-Holton Cancer Pavilion, and Butterworth Hospital which is a level 1 trauma center. According to reports by Headlight Data and Forbes, Grand Rapids is one of the fastest growing economies in the nation ranking No.7 overall. In just 5-years the Grand Rapids gross regional product grew by 21.8%.
MAJOR EMPLOYERSCOMPANY NUMBER OF EMPLOYEES
Spectrum Health
Meijer
Mercy General Health Partners
Amway Corporation
Gentex Corporation
Perrigo
Herman Miller
Steel Case
Grand Valley State University
Lacks Enterprises, Inc.
26,000
10,340
6,200
4,000
3,900
3,800
3,621
3,500
3,306
2,800
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM10
GRAND RAPIDS INDUSTRIAL MARKET
Industrial Vacancy 2.7%
Distribution/Warehouse 2.1%
Manufacturing 2.5%
Under Construction SF 190,000 SF
12-Month Avg. Delivered SF 77,300 SF
KEY METRICS | GRAND RAPIDS
INDUSTRY HIGHLIGHTS
FOOD & AGRICULTURE - $91.4BThe Food & Agriculture industry in Michigan Contributes $91.4 Billion Annually to the states economy.
2,500 MANUFACTURING COMPANIESThere are 2,500 Manufacturing Companies Growing in the Western Michigan Region.
SCIENCE & ENGINEERING - 13THRanked 13th in the U.S. for individuals in Science & Engineering Occupations as a Percentage of Working.
NOTABLE WEST MI MANUFACTURERS
MANUFACTURING JOB GROWTH 2013 - 2018
WEST MICHIGAN has a strong manufacturing industry. The region has developed a strong presence in the medical device manufacturing, food processing, and aerospace sectors. This diversity is an excellent indicator of stability in the Western Michigan industrial sector. The manufacturing job growth is due to many out-of-market companies moving into Western Michigan and also numerous companies expanding existing operations in this region.
DISTRIBUTION IN GRAND RAPIDS, MI. Grand Rapids has easy access to major markets with their robust infrastructure. Companies can reach 10 major markets within a 7-hour drive time. Additionally, the Michigan rail system is the country’s 12th largest rail system, further exemplifying the robust infrastructure Grand Rapids has to offer
90
100
110
120
130
YEAR2013 2014 2015 2016 2017 2018
NUM
BER
OF
JOBS
*
98.6
103.3108.0
111.8115.2
117.9
*Number of Jobs shown in increments of Ten-Thousand
Image source (above): Industry Report - Manufacturing in West Michigan, see www.rightplace.org
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM11
DIXIE AVENUE SW
REMICO STREET SW
SURROUNDING TENANTS MAP
N
S
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM12
DEMOGRAPHICS
POPULATION
2019 TOTAL POPULATION
2024 POPULATION
POP GROWTH 2019 - 2024
AVERAGE AGE
7 , 5 6 7
7 , 7 9 9
3 . 0 7 %
3 7 . 1 0
1 8 3 , 6 4 9
1 9 0 , 5 4 6
3 . 7 6 %
3 5 . 7 0
5 5 8 , 8 8 3
5 8 3 , 5 7 1
4 . 4 2 %
3 5 . 9 0
1 MILE 5 MILES 10 MILES
1 MILE 5 MILES 10 MILES
1 MILE 5 MILES 10 MILES
HOUSEHOLDS
HOUSING
MEDIAN HOME VALUE
MEDIAN YEAR BUILT
$ 1 4 1 , 8 1 8
1 9 6 6
$ 1 3 6 , 2 8 6
1 9 6 7
$ 1 5 7 , 4 1 7
1 9 7 3
2019 TOTAL HH
MEDIAN HH INCOME
AVG HOUSEHOLD SIZE
3 , 0 0 1
$ 5 2 , 9 3 3
2 . 5 0
6 7 , 3 5 9
$ 5 1 , 3 9 9
2 . 7 0
2 0 9 , 9 9 9
$ 5 6 , 5 7 0
2 . 6 0
10 MILES
5 MILES
1 MILE
TRUGREEN | GRAND RAPIDS, MSA BENETLEASE.COM13
B+E is a modern investment brokerage firm, specializing in net lease real estate and 1031 exchanges. We help clients buy and sell single tenant real estate. Founded by deeply experienced brokers, B+E redefines trading through an intuitive end-to-end transaction platform comprising of user-friendly dashboards and an AI-driven exchange — all leveraging the largest data set in the net lease industry. Complementing senior talent with exceptional technology, B+E's proprietary process affords greater speed, unrivaled transaction efficiencies, and stronger asset value. With offices in New York, Chicago, Tampa, and San Francisco, our brokers trade property for our clients across the US. B+E allows virtually anyone to confidently trade net lease real estate.
THIS IS OUR STORY
TRADE NET LEASE WITH CONFIDENCENew York | Chicago | Tampa | San Francisco
646.770.0659
NEW YORK261 Madison Ave., 9th FLR,
New York, NY 10016
TAMPA2303 North Florida Ave.,
Tampa, FL 33602
CHICAGO980 North Michigan Ave.,
Chicago, IL 60611
SAN FRANCISCO303 Sacramento St., 4th FLR
San Francisco, CA 94111