OFFERING MEMORANDUM - Flint, Michigan - LoopNet
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Flint, Michigan
OFFERING
MEMORANDUM 4577 Miller Road
Flint, Michigan 48507
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected
Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square
sales with little or no record of actual performance, or footage of the property and improvements, the presence or
The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the
obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical
Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial
information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s
investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject
no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure
accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable;
intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify,
As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus &
responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters
completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding
purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All
thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of
opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein.
to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release
Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE
Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising
Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc.
the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any
net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package.
evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended
to indicate or imply affiliation with, or sponsorship or
Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or
should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing
leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing
suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective
written consent of Marcus & Millichap. This Marketing Brochure customers.
Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information
risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS.
this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation,
guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the
4577 Miller Road, Flint, MI 48507
Table of Contents Investment Highlights 4 Financial Analysis 5 Concept Overview 6 Surrounding Area 7 Location Overview 8 Property Photos 9-11 Surrounding Area Photos 12 Local Map 13 Regional Map 14 Demographics / Market Overview 15-16
Investment Highlights
PRICE: $10,901,455 | CAP: 7.15% | RENT: $779,454
About the Investment
✓ Phenomenal Performing Location
✓ Long-Term, 20-Year Absolute Triple Net (NNN) Lease
✓ Approximately 17.6 Years Remaining
✓ Two Percent (2.00%) Annual Rental Increases
✓ Corporate Guarantee
✓ Two (2), Ten (10)-Year Tenant Renewal Options, Bringing the Potential Lease Term to
40 Years
About the Location
✓ Dense Retail Corridor | Target, Best Buy, J.C. Penny, Kohl’s, Hobby Lobby, Burlington,
Sears, T.J. Maxx, Macy’s, Office Depot, Barnes & Noble, Pet Smart and Many More
✓ Excellent Demographics | Population Exceeds 275,000 Individuals Within a Ten-Mile
Radius
✓ Strong Real Estate Fundamentals | Located Less Than Six-Miles from University of
Michigan – Flint | 8,000 Students
✓ Strong Traffic Counts | Over 33,000 and 90,000 Vehicles Per Day on Miller Road and
U.S Interstate 75.
✓ Bishop International Airport | Located Approximately Two-Miles Away | Serves Over
One-Million Passengers Per Year
✓ Positive Location Fundamentals | Located Walking Distance From GM Factory | Over
300 Employees
About the Tenant / Brand
✓ Art Van Furniture has been Successfully Operating for Nearly 60 Years
✓ Acquired by Private Equity Firm Thomas H. Lee Partners in March of 2017
✓ Nearly 200 Stores in Nine States | Illinois, Indiana, Iowa, Kentucky, Maryland,
Michigan, Ohio, Pennsylvania, and Virginia | Still Expanding
✓ Revenue of $1.4 Billion
✓ Over 5,700 Employees
✓ Brand Produces High Quality Furniture at Affordable Prices
✓ Growing Industry | $111.47 Billion Furniture Retail Industry with Revenue Growth of
2.5% in 2017
Art Van Furniture – Flint, MI 4
Financial Analysis
PRICE: $10,901,455 | CAP: 7.15% | RENT: $779,454
PROPERTY DESCRIPTION RENT SCHEDULE
Property Art Van Furniture Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%)
Year 1 $734,497 $61,208 -
Property Address 4577 Miller Road
Year 2 $749,187 $62,432 2.00%
City, State, ZIP Flint, Michigan 48507 $764,171 $63,681 2.00%
Year 3
Year Built 1974 Year 4 $779,454* $64,955 2.00%
Estimated Building Size 56,578 Year 5 $795,043 $66,254 2.00%
Estimated Lot Size +/- 3.56 Acres Year 6 $810,944 $67,579 2.00%
Year 7 $827,163 $68,930 2.00%
Type of Ownership Fee Simple
Year 8 $843,706 $70,309 2.00%
THE OFFERING Year 9 $860,581 $71,715 2.00%
Purchase Price $10,901,455 Year 10 $877,792 $73,149 2.00%
CAP Rate 7.15% Year 11 $895,348 $74,612 2.00%
Year 12 $913,255 $76,105 2.00%
Annual Rent $779,454
Year 13 $931,520 $77,627 2.00%
Rent Per Square Foot $13.78
Year 14 $950,151 $79,179 2.00%
LEASE SUMMARY Year 15 $969,154 $80,763 2.00%
Property Type Net-Leased Miscellaneous Year 16 $988,537 $82,378 2.00%
Year 17 $1,008,307 $84,026 2.00%
Tenant / Guarantor AVF Parent, LLC
Year 18 $1,028,473 $85,706 2.00%
Original Lease Term 20 Years
Year 19 $1,049,043 $87,420 2.00%
Lease Commencement March 1, 2017 Year 20 $1,070,024 $89,169 2.00%
Lease Expiration March 31, 2037 *Based off of the March 2020 Rental Increase
Lease Term Remaining 17.6 Years INVESTMENT SUMMARY
Lease Type Absolute Triple-Net (NNN) Marcus & Millichap is pleased to present the exclusive listing for an Art Van Furniture located
at 4577 Miller road in Flint, Michigan. The site consists of roughly 56,578 rentable square feet
Roof & Structure Tenant Responsible of building space on estimated 3.56-acre parcel of land. This Art Van Furniture is subject to a
st
Rental Increases 2% Annually 20-year absolute triple-net (NNN) lease, which commenced March 1 , 2017. The current
annual rent is $779,454 and is scheduled to increase by two percent annually. There are two,
Options to Renew Two (2), Ten (10)-Year Option Periods ten-year tenant renewal options.
Art Van Furniture – Flint, MI 5
Concept Overview
About Art Van Furniture General Information
Founded Eastpointe, MI - 1959
Art Van Furniture Inc. is furniture retail chain that operates nearly 200 stores Website www.artvan.com
across the Midwest operating under the following brands: Art Van Furniture, Art Number of Locations Approximately 200
Van PureSleep, Art Van Flooring, Scott Shuptrine Interiors, Levin Furniture, Wolf
Furniture, and Gardiner Wolf Furniture. Founder, Mr. Van Elslander began his
Representative Photo
career in Detroit, opening his first store in 1959. He was committed to creating a
brand that had quality furniture at affordable prices. Van Elslander also wanted
to create a company with impeccable customer service. In 1959, Elslander was
the only employee, today, Art Van’s furniture employs over 5,700 workers. Art
Van’s Furniture offers mattress stores, flooring stores, and a full service e-
commerce website.
Art Van Furniture has branded itself as a home fashion revolutionary through
reinventing and modernizing classic furniture. Art Van Furniture allows their
customers to customize their stylish furniture and mix and match patterns,
fabrics, colors, and finishes according to their personal taste.
In March of 2017, Art Van completed an equity recapitalization in partnership
with now majority shareholder Thomas H. Lee Partners. Since its founding in
1974, THL has raised over $22 billion of equity capital, acquired over 140
portfolio companies and completed over 360 add-on acquisitions which
collectively represent a combined enterprise value at the time of acquisition of
over $200 billion.
In November of 2017, Art Van Furniture announced that it has acquired two
privately-held Pennsylvania furniture companies, Pittsburgh-based Levin
Furniture and Altoona-based Wolf Furniture, adding 35 Levin Furniture stores
and 18 Wolf Furniture showrooms.
Art Van Furniture – Flint, MI 6
Surrounding Area
Genesee Valley
Center (125 stores)
Art Van Furniture – Flint, MI 7
Location Overview
Property Address: 4577 Miller Road, Flint, MI 48507
The Art Van Furniture property is situated on Miller Road, which boasts average
daily traffic counts of 33,000 vehicles. Miller Road intersects and serves as an
access road to Interstate 75 and Interstate 69, which bring an additional 90,700 ADTC: 33,000
and 84,000 vehicles, respectively, into the immediate area. There are more than
24,500 individuals residing within a three-mile radius of the property and more
than 92,000 individuals within a five-mile radius of the property.
The subject property benefits from being well-positioned in a very dense retail
corridor consisting of national and local tenants, academic institutions and
shopping centers all within close proximity of this property. Major national
tenants in the area include: Target, Best Buy, Hobby Lobby, Kohl’s, Macy’s,
Burlington, Office Depot, Barnes & Noble, Sears, Pet Smart, J.C. Penney as well as
many others. Genesee Valley Center is located directly across the street from the
subject property. It features 125 stores in over 1.3 million square feet, and a
65,000 square feet outdoor shopping village. The subject property also benefits
from its close proximity to several academic institutions. Most notable and only
six-miles from the subject property is The University of Michigan-Flint, home to
more than 8,000 students. Kettering University, also in the immediate area, has a
total enrollment of roughly 2,000 students.
Flint is the largest city in, and county seat of Genesee County, Michigan, United
States. Located along the Flint River, 66 miles northwest of Detroit, it is a principal
city within the region known as Mid Michigan. According to the 2010 census, Flint
has a population of nearly 105,000 people, making it the seventh largest city in
Michigan. The Flint metropolitan area is located entirely within Genesee County.
Since its incorporation in 1855 the city has grown to be the center of the fourth
largest metropolitan area in Michigan with a population of approximately
426,000. Flint has a history with strong ties to the automotive industry including
being the home of the Flint Sit-Down Strike of 1936-1937, which played a vital role
in the formation of the United Auto Workers. Today, Flint is home to numerous
attractions, bringing people from all over the country to the city each year.
ADTC: 84,000
Art Van Furniture – Flint, MI 8
Property Photo Art Van Furniture – Flint, MI 9
Property Photo Art Van Furniture – Flint, MI 10
Property Photo Art Van Furniture – Flint, MI 11
Surrounding Area Photo Art Van Furniture – Flint, MI 12
Local Map
Property Address: 4577 Miller Road, Flint, MI 48507
Bishop International
Airport (FNT)
Detroit Metropolitan Wayne
County Airport (DTW)
Art Van Furniture – Flint, MI 13Regional Map
Property Address: 4577 Miller Road, Flint, MI 48507
MICHIGAN
Art Van Furniture – Flint, MI 14Demographics
Property Address: 4577 Miller Road, Flint, MI 48507
3 Mile 5 Miles 10 Miles
POPULATION
2023 Projection 24,753 91,529 277,975
10 Miles 2018 Estimate 24,895 92,614 279,315
2010 Census 25,541 95,500 288,552
2000 Census 26,354 101,985 305,761
INCOME
Average $54,033 $53,100 $56,080
5 Miles Median $40,478 $40,343 $41,484
Per Capita $22,987 $21,795 $22,363
3 Mile
HOUSEHOLDS
2023 Projection 10,584 37,317 110,974
2018 Estimate 10,538 37,372 110,228
2010 Census 10,941 39,036 115,295
2000 Census 11,377 41,483 120,161
HOUSING
2018 $92,677 $90,329 $96,730
EMPLOYMENT
2018 Daytime Population 40,025 115,561 285,400
2018 Unemployment 4.58% 5.47% 5.87%
2018 Median Time Traveled 24 Mins 25 Mins 27 Mins
RACE & ETHNICITY
White 79.85% 66.97% 65.32%
Native American 0.03% 0.04% 0.03%
African American 14.25% 26.81% 28.78%
Asian/Pacific Islander 1.30% 1.17% 1.13%
Art Van Furniture – Flint, MI 15Market Overview
City: Flint | County: Genesee | State: Michigan
Flint is the largest city in, as well as the county seat of Genesee
County, Michigan. Located along the Flint River roughly 70-miles northwest
of Detroit, it is the principal city within the region known as the Mid
Michigan. Flint was originally founded as a village by fur trader Jacob Smith
in 1819 and became a major lumbering area on the historic Saginaw Trail
during the 19th century. Today, Flint is home to numerous attractions,
bringing people from all over the country to the city each year. There are
several colleges and universities located within the city limits, including The
University of Michigan-Flint, which is one of three campuses in the
University of Michigan system and home to more than 8,000 students, as
well as Kettering University, a 4.5-year cooperative education based
Science, Technology, Engineering and Mathematics (STEM) university in
Flint. The city is served by Bishop International Airport (FNT), which is
included in the FAA’s National Plan of Integrated Airport Systems and
experiences traffic of approximately 1,000,000 passengers each year.
There are several renowned hospitals located in the city including Hurley
Medical Center, which features an ACS verified Level I Trauma Center.
Major Employers
Employer Estimated # of Employees
General Motors 13,504
Geriatric Otrach Clinic/Care MGT 2,650
Genesee Health Center 2,400
McLaren Flint 2,000
AI Flint LLC 1,100
Walmart 1,051
Dortch Enterprises LLC 1,000
University of Michigan-Flint 914
County of Genesee 913
Mott Community College 850
Flint, Michigan WGS Global Services LC 780
Art Van Furniture – Flint, MI 16EXCLUSIVE NET-LEASE OFFERING MI BROKER OF RECORD: Steve Chaben Marcus & Millichap MI: 650238790
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