Petco Sterling Heights, MI | Detroit MSA - PETCO CONSIDERING IPO IN 2021
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PE TCO CO NSID ERING IP O IN 2021
OFFERING MEMORANDUM
Petco
Sterling Heights, MI | Detroit MSA
This property is listed in conjunction with Michigan-licensed real estate broker Kwekel Companies. www.preservewestcapital.com
TABLE OF CONTENTS
PROPERT Y HIGHLIGHTS 1 AERIALS 5
PROPERT Y INFORMATION 2 ABOUT THE AREA 7
TENANT INFORMATION 3 DEMOGRAPHICS 9
SITE PL AN 4
Disclaimer MGM Capital Corp dba Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property
described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute
Putnam Daily
Partner
the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed
financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of 415.445.5107
intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and putnam@preservewc.com
make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you,
CA RE License #01750064
you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price,
terms, ability to close the transaction and such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition
Kevin Delehanty
of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person Senior Managing Director
without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the 415.445.5132
information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller
kdelehanty@ngkf.com
and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation
and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, CA RE License #00843404
members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such
pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must
Michael Maffia
independently confirm the accuracy of the projections contained in the pro forma.
Managing Partner
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied,
415.373.4060
to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers
a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a mike@preservewc.com
purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with CA RE License #01340853
respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
www.preservewestcapital.com
PROPERT Y HIGHLIGHTS
Property Highlights
• Corporate Net Lease to Petco with Approximately 6
Years Remaining
- Scheduled 5% Rental Escalation at Options
- Tenant Exercised 7-Year Option Demonstrating
Commitment to Site
• Excellent Access and Visibility at Signalized
Intersection Along Dense Retail Corridor
- 149,820 Combined AADT
• Robust Demographics within 5 Mile Radius
- Average Household Income of $92,077
- Population of 253,092
• Prominent Retail Location within Dense Hall
ADT)
Hall Rd (108,860 A Road/”Golden Corridor” Commercial Corridor
- Nearby Anchor Tenants Include Target, Sam’s
Club, Costco, CVS, Mejier, Walmart Supercenter,
and More
Schoenherr
- Adjacent to Numerous Major Shopping Centers
• Sterling Heights is Detroit’s Second-Largest Suburb
• Significant Economic Development and Investment
Activity in Sterling Heights
Rd (40,960 AADT)
Coming Soon
- Fiat Chrysler Automobiles Invested $1.49 Billion
in 2016 to Retool Production Lines at their
Sterling Heights Assembly Plant to Build the
Next-Generation Ram 1500 Pickup Truck
- BAE Systems Invested Approximately $80 Million
in their Sterling Heights Facilities from 2016-2017
• Approximately 21 Miles from Downtown Detroit
PRESERVE WEST CAPITAL | 1
PROPERT Y INFORMATION
PRICE
$4,499,000
9.00% Return
Location Lease
The property is located at 13701 Lakeside Circle in Sterling Heights, Michigan. Originally leased to Petco Animal Supplies Stores, Inc. for 14 years
from November 2005 through October 31, 2018 and recently extended
an additional 7 years through May 31, 2026 at a current annual rent of
Lot Size $404,876. There are three (3) five-year options to renew the lease, with
Approximately 3.1 acres or 135,036 square feet. rent to increase by 5% at the start of each option period. The lease is
net with tenant responsible for all taxes, insurance, and maintenance,
excluding roof and structure.
Improvements
A 20,594 square foot retail building for Petco. Annual Rent
Parking Years Annual Rent Return
There is ample parking available on site.
Years 10-21 (Current) $404,878 9.00%
Financing Years 22-26 Option 1 $425,266 9.45%
This property will be delivered free and clear of permanent financing. Years 27-31 Option 2 $446,478 9.92%
Years 32-36 Option 3 $468,719 10.42%
PRESERVE WEST CAPITAL | 2
ABOUT THE TENANT
Petco sells pet food, supplies, toys,
accessories, and certain types of live
animals at more than 1,500 locations
across the United States and Mexico,
including 65 smaller-footprint Unleashed
by Petco locations. The company employs
more than 27,000 staff, sells more than
More than 1,500 locations across 10,000 different pet-related products for
dogs, cats, fish, reptiles, birds, and small
mammals, and provides a complete array
the U.S. and Mexico. of pet care services, including grooming,
dog training, in-store veterinary care and
wellness services, in-store vaccination
clinic, and pet washing stations. The
company was acquired in 2015 by CVC
Capital Partners and the Canadian Pension
Plan Investment Board for $4.6 billion.
PRESERVE WEST CAPITAL | 3
SITE PLAN
20,594 SF
Coming Soon
SCHOEHNERR ROAD
LE
RC
CI
DE
SI
KE
LA
NORTHBAY DRIVE
AERIAL NORTHWEST VIEW
UTICA PARK PLACE HALL ROAD CROSSING
Hall Rd
(108,86
0 AADT
)
)
AADT
,960
Rd (40
err
o enh
S ch Coming Soon
CLINTON VALLEY MALL
ir
side C
LakeAERIAL EAST VIEW
LAKESIDE MALL
Macomb Community College
Center Campus
Henry Ford Macomb
Hospital
)
DT
A
A
0
,86 Lakesid
e Cir
0 8
(1
l Rd
al
H
Coming Soon
T)
rr Rd (40,960 AAD
SchoenheABOUT THE AREA
General Overview
Sterling Heights (population 132,470) is a city in Macomb
County and Detroit’s second-largest suburb. The city is the
fourth-largest city in Michigan, and is consistently ranked
one of Michigan’s safest cities with a population of more than
100,000. The greater Detroit region benefits from a broad
economic base in manufacturing, research & development,
healthcare, biotechnology, advanced manufacturing, defense,
technology, professional services, and more. Major companies
operating in Macomb County and Metro Detroit include
Ford Motor Company, Mitsubishi, General Motors, Fisher
Corporation, BAE Systems, General Dynamics, General Electric
SITE Aviation, Oshkosh Defense, AIM Plastics, Dynamic Plastics,
AGM Automotive, Cosworth, Fiat Chrysler Automobiles US,
Grupo Antolin, Protojet, Schaller, Stahl’s, Ultraform Industries,
Futuramic, VSE Corporation, Navistar Defense, Enmark
Systems, Enertron LLC, Apex Digital Solutions, Applied
Systems Corporation, and more.
Sterling Heights benefits from an established economic
base as a regional retail hub, with numerous major shopping
centers located along the Hall Road commercial corridor. In
addition, the city is home to the Sterling Heights Assembly
Plant of Fiat Chrysler Automobiles, which employs more than
10,000; in recent years, the has company invested nearly
$850 million in a state-of-the-art, 425,000-square-foot paint
shop, $165 million to add a 1-million-square-foot body shop,
and $1.49 billion to retool the production lines to build the
next-generation Ram 1500 pickup truck. In addition, BAE
Systems, a major defense contractor, operates two facilities in
the city: a 164,000 square foot building, opened in 2012, that
serves as a center for engineering, development, and program
management for military ground vehicles, representing a $58
million investment; and a new $12 million 12,800 square foot
stand-alone facility built in 2017. In addition, Christian Financial
Credit Union has invested $12 million in developing a new
40,000 square foot headquarters facility in the city.ABOUT THE AREA
Site Information
The subject property benefits from a prominent retail location
with excellent access and visibility adjacent to Lakeside Mall
SITE adjacent to the signalized intersection of Schoenherr Road
(40,960 AADT) and the Hall Road retail corridor (108,860
AADT). The site benefits from robust demographics with a
population of 253,092 and average household income of
$92,077 within a five mile radius.
The property is strategically located in close proximity to
shopping centers and other major retail tenants and benefits
from excellent co-tenancy adjacent to a new Total Wine &
More. Nearby shopping centers include Lakeside Mall, anchored
by Macy’s and slated for mixed-use redevelopment featuring
additional entertainment tenants; Clinton Valley Mall Shopping
Center, featuring Hobby Lobby and Office Depot; Sterling Center
Shopping Center, with tenants including Pier 1; Shelby Corners,
anchored by Target and Dollar Tree; Northpointe, featuring
Dick’s Sporting Goods and PetSmart; Utica Park Palace,
anchored by Sam’s Club, Best Buy, Harbor Freight Tools, and At
Home; Delco Plaza, featuring Dunham’s Sports and Bed Bath
& Beyond; Hall Road Crossing, anchored by Michael’s; Shelby
Town Center, anchored by CVS, and more. Other major retail
tenants in the surrounding area include Costco, Meijer, Walmart
Supercenter, Kroger, Walgreens, and more.DEMOGRAPHICS
13701 Lakeside Cir | Sterling Heights, MI 48313
Major Employers in # of
Sterling Heights Employees
FCA US, LLC 10,177
2020 POPULATION AVG. HOME VALUE AVG. HOUSEHOLD INCOME
Ford Motor Company 3,910
253,092 $235,660 $92,077 Administrative Employer 2,800
Services, LLC
General Dynamics 2,670
Population Summary 1 Mile 3 Miles 5 Miles
2010 Total Population 9,903 100,267 240,919 Utica Community Schools 1,637
2020 Total Population 10,327 105,250 253,092
2025 Total Population 10,582 108,363 260,316
Mayco International/ 1,324
Stonebridge Industries
2020-2025 Annual Rate 0.49% 0.58% 0.56%
Average Household Income Detroit Media Partnership 1,000
2020 $81,092 $84,054 $92,077
2025 $88,711 $91,699 $101,329 Lakeside Associates 1,000
Average Home Value
2020 $219,600 $215,276 $235,660 Walmart 850
2025 $238,146 $235,271 $254,992
BAE Systems 600
PRESERVE WEST CAPITAL | 9BUILDING CAPITAL WITH CONFIDENCE Putnam Daily Kevin Delehanty Michael Maffia Partner Senior Managing Director Managing Partner 415.445.5107 415.445.5132 415.373.4060 putnam@preservewc.com kdelehanty@ngkf.com mike@preservewc.com CA RE License #01750064 CA RE License #00843404 CA RE License #01340853
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