OFFERING MEMORANDUM WALMART 2640 Crossing Circle, Traverse City, MI 49684 DANIEL H. KUKES KEVIN J. BAKER DOUG PASSON ROBERT BENDER Principal dkukes@landmarkcres.com (248) 488-2620 Principal kbaker@landmarkcres.com (248) 488-2620 Partner dpasson@fortisnetlease.com (248) 254-3407 Partner rbender@fortisnetlease.com (248) 254-3406
OFFERING SUMMARY PRICING Price: $9,009,872 Cap: 6.25% LEASE DETAILS Original Lease Term: Remaining Lease Term: 30 years 8 years, 2 months RENT SCHEDULE Term Monthly Rent Annual Rent PSF Current 10/18/2026 $46,926 $563,117 $3.64 Lease Type: Ground Lease Lease Expiration: 10/18/2026 Tenant: Wal-Mart Real Estate Business Trust Guarantor: None Option Periods 10/19/2026 10/18/2031 $47,865 $574,379 $3.72 10/19/2031 10/18/2036 $48,822 $585,866 $3.79 10/19/2036 10/18/2041 $49,799 $597,584 $3.87 10/19/2041 10/18/2046 $50,795 $609,535 $3.95 10/19/2046 10/18/2051 $51,811 $621,726 $4.02 10/19/2051 10/18/2056 $52,847 $634,161 $4.10 10/19/2056 10/18/2061 $53,904 $646,844 $4.19 10/19/2061 10/18/2066 $54,982 $659,781 $4.27 10/19/2066 10/18/2071 $56,081 $672,976 $4.36 10/19/2071 10/18/2076 $57,203 $686,435 $4.44 PROPERTY DETAILS Year Built: Land Area: Rentable Square Feet: Ownership: Taxes: Insurance: CAM: Landlord Responsibilities: 1996; expanded in 2009 (29,355 SF) 10.69 acres 154,492 SF Fee simple Tenant responsible Tenant responsible Tenant responsible None 2
INVESTMENT HIGHLIGHTS GRAND TRAVERSE CROSSING WALMART WALMART EXPANSION Walmart has reported strong sales at this location and expanded its footprint by 29,355 SF in 2009. Walmart s decision to expand speaks to the strength of this location, co-tenant sales, and the shopping center s positioning across from Grand Traverse Mall (290,000 SF anchored by Target, TJ Maxx, Macy s, and JCPenney). GRAND TRAVERSE CROSSING Grand Traverse Crossing is the dominant power center in Traverse City, MI. Anchor co-tenants include Home Depot, PetSmart, Ulta, Books-A- Million, Dollar Tree, and a new HomeGoods (lease to be executed soon). The main thoroughfare in front of the center, Airport Road, sees over 26,000 cars per day. Traverse City, MI TRAVERSE CITY, MICHIGAN Traverse City is the county seat of Grand Traverse County, and is the largest city in the 21-county northern Michigan region. The city attracts 500,000 tourist visitors annually through festivals, beaches, vineyards, skiing areas, and its national lakeshore. National Cherry Festival 3
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TENANT PROFILE TENANT Walmart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. It also owns and operates Sam's Club retail warehouses. As of January 31, 2018, Walmart has 11,718 stores and clubs in 28 countries, operating under 59 different names. Walmart is the world's largest company by revenue, as well as the largest private employer in the world with 2.3 million employees. It is a publicly traded family-owned business, as the company is controlled by the Walton family. Walmart was the largest U.S. grocery retailer in 2016, and 62.3 percent of Walmart's US $478.614 billion sales came from U.S. operations. WALMART OVERVIEW Market Cap: $258B Headquarters: Bentonville, AR Revenue: $550B Stock Symbol: WMT Website: https://www.walmart.com 6
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DEMOGRAPHICS DESCRIPTION 1 MILE 3 MILE 5 MILE POPULATION HOUSEHOLDS RACE INCOME BUSIN ESS 2018 Estimated Population 2,572 26,973 45,249 2023 Projected Population 2,602 27,424 45,871 2010 Census Population 2,347 25,590 42,760 2000 Census Population 1,981 22,670 38,437 Projected Annual Growth 2018 to 2023 0.2% 0.3% 0.3% Historical Annual Growth 2000 to 2018 1.7% 1.1% 1.0% 2018 Estimated Households 1,359 12,802 20,397 2023 Projected Households 1,414 13,408 21,321 2010 Census Households 1,193 11,802 18,743 2000 Census Households 952 9,966 16,086 Projected Annual Growth 2018 to 2023 0.8% 0.9% 0.9% Historical Annual Growth 2000 to 2018 2.4% 1.6% 1.5% 2018 Est. White 90.0% 92.3% 93.2% 2018 Est. Black 2.1% 1.4% 1.0% 2018 Est. Asian or Pacific Islander 1.6% 1.2% 1.1% 2018 Est. American Indian or Alaska Native 1.4% 1.3% 1.2% 2018 Est. Other Races 4.9% 3.9% 3.5% 2018 Est. Average Household Income $49,994 $63,336 $71,908 2018 Est. Median Household Income $40,714 $50,034 $56,898 2018 Est. Per Capita Income $26,692 $30,394 $32,669 2018 Est. Total Businesses 598 3,773 5,117 2018 Est. Total Employees 6,967 43,320 55,163 9
OUR TEAM DANIEL H. KUKES PRINCIPAL dkukes@landmarkcres.com Daniel 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 net lease investment properties across all property types. He currently represents some of the nation s largest institutional real estate funds, private equity group, and high net worth investors in acquiring and listing investment properties all over the country. Since 2010, Daniel has closed deals totaling over 8,000,000 SF valued at over $1,000,000,000. Daniel joined Landmark in 2009 as an Associate Broker. He began his real estate career at NAI Farbman where he focused on shopping center leasing and retail tenant representation. After five years at NAI Farbman, Daniel joined DAP Investments as a partner responsible for retail development, acquisitions and leasing. While there, he developed several single tenant and shopping center projects in Michigan and Illinois. Daniel is a graduate of Michigan State University with a Bachelor of Arts degree in Pre-Law & Society. KEVIN J. BAKER PRINCIPAL kbaker@landmarkcres.com Kevin 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 investment properties across all property types. He currently represents some of the nation s largest institutional funds, private equity funds, and high net worth investors in listing investment properties all over the country. Since 2010, Kevin has closed deals totaling over 8,000,000 SF valued at over $1,000,000,000. Prior to 2010, Kevin worked extensively at Landmark as a broker specializing in tenant representation and landlord representation completing in excess of 100 lease & sale transactions. Kevin joined Landmark in 2005 as a Sales Associate. Prior to Landmark, Kevin attended Michigan State University and University of Michigan-Dearborn where he studied finance. Kevin began his real estate career in 2001 when he founded Baker Real Estate Holdings, specializing in acquisition and management of a student housing portfolio at Michigan State University. JASON GREENSPAN ASSOCIATE jgreenspan@landmarkcres.com Jason 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 from Michigan 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 law school, Jason interned at Landmark Investment Sales identifying, sourcing, and underwriting investment grade properties. With law school behind him and six years of experience in real estate investment sales, Jason has participated in the closing of over $150,000,000 and continues to source investment opportunities across the country. Jason specializes in the representation of buyers and sellers of institutional grade single tenant properties, high profile unanchored retail centers, grocery anchored centers, and power centers. 10