net leased for sale in Detroit MSA

1. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Max & Erma’s
4255 Baldwin Road
Auburn Hills, MI 48326 (Detroit MSA)

2. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
1) Confidentiality & Disclaimer
2) Executive Summary
3) Property Overview
4) Aerial
5) Site Plan
6) Maps
7) Tenant Profile
8) Demographic Comparison Report
9) Location Overview
10) Contact Information
TABLE OF CONTENTS
TABLE OF CONTENTS

3. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to
be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person
or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide
summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the
subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The
Boulder Group has not made any investigation, and makes no warranty or representation. The information contained
in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group
has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any
investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy
or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the
information set forth herein.
CONFIDENTIALITY & DISCLAIMER
CONFIDENTITALITY & DISCLAIMER

4. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
The Boulder Group is pleased to exclusively market for sale a single tenant absolute net leased Max & Erma’s property located
in the Detroit MSA. The 6,264 square foot Max & Erma’s restaurant is ideally located at an Interstate 75 interchange in a
dominant retail destination that attracts consumers from throughout parts of Michigan and nearby Canada. Located across
the street is the Great Lakes Crossing Outlets, which features over 180 shops and 1.4 million square feet of retail. Max and
Erma’s has approximately nine years remaining on their twenty year lease that expires April 30, 2023. The lease features
a 7.5% rental escalation in 2018. Max & Erma’s is a casual dining restaurant chain that is known for their award-winning
burgers, locally brewed beer and fresh-baked chocolate chip cookies as well as many other menu items. Max & Erma’s is a
wholly owned subsidiary of American Blue Ribbon Holdings, the 8th largest full service restaurant holdings company in the
United States.
The Max & Erma’s is located across the street from the Great Lakes Crossing Outlets. Great Lakes Crossing Outlets is Michigan’s
largest and dominant outlet shopping center with a strong mix of fashion department store outlets, manufacturer’s outlets, and
category-dominant stores. Notable retailers within the development include Polo Ralph Lauren, Coach, Michael Kors, Lacoste,
J. Crew, Hugo Boss, Talbots, and many other premium retailers. The development also features a 25-screen AMC Theatre and
Sea Life Michigan Aquarium (scheduled to open Spring 2015). Approximately 20% of Great Lakes Crossing Outlets’ shoppers
are tourists traveling 60 miles or more and come from throughout the Midwest and Canada. Further establishing this corridor
as a dominant retail destination is the presence of many big box national retailers in the immediate vicinity. Surrounding
notable retailers include Costco, Sam’s Club, Target, Home Depot, Meijer, Kohl’s, Best Buy, and many others.
The 2.89 acre Max & Erma’s parcel is located at a high profile Interstate 75 interchange on Baldwin Road. Interstate 75
experiences traffic counts in excess of 85,000 vehicles per day. Baldwin Road is a heavily trafficked north-south thoroughfare
in the northwest suburbs. The average annual household income within a one mile radius is in excess of $73,000. Additionally,
there are approximately 125,000 people living within a five mile radius.
Max & Erma’s has approximately 9 years remaining on their absolute net lease that expires April 30, 2023. The lease features
a 7.5% rental escalation in 2018. There are approximately 70 Max & Erma’s locations throughout parts of the Midwest and East
Coast. Max & Erma’s is a wholly owned subsidiary of American Blue Ribbon Holdings, the 8th largest full service restaurant
holdings company in the United States and have over 646 restaurants.
INVESTMENT HIGHLIGHTS
• Located within a regionally dominant retail destination in the Detroit MSA
• 7.5% rental escalation in 2018
• No landlord responsibilities
• Guarantor is the 8th largest full service restaurant holding company in the United
States
• Located at a high profile Interstate 75 (85,000 VPD) interchange
• Baldwin Road is a primary north-south thoroughfare
• Located across the street from Great Lakes Crossing Outlets, a 1.4 million square foot
development that is Michigan’s largest and dominant outlet shopping center
• Other notable retailers located in the immediate vicinity include Costco, Sam’s Club, Target, Home Depot, Meijer, Kohl’s,
and Best Buy
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

5. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
PROPERTY OVERVIEW
PROPERTY OVERVIEW
Price: $2,970,250
Cap Rate: 7.60%
Rent Schedule: NOI Escalation Date
$225,750
$242,681 5/1/18
Lease Expiration Date: April 30, 2023
Tenant: Max & Erma’s
Year Renovated: 2003
Lease Type: NNN
Building Size: 6,264 SF
Land Size: 2,896 SF

6. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
AERIAL
AERIAL
N
85,000 VPD75

7. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
SITE PLAN
SITE PLAN
LAKE VILLAGE BLVD
N
75

8. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
MAPS
MAPS

9. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Max & Erma’s is a casual dining restaurant chain based in Columbus, Ohio. It operates throughout parts of the
Eastern and Midwestern United States, and was founded in 1972 by Todd Barnum and Barry Zacks. In 2010,
the chain was acquired by American Blue Ribbon Holdings. Max & Erma’s is a casual dining restaurant chain
that is known for their award-winning burgers, locally brewed beer and fresh-baked chocolate chip cookies as
well as many other menu items.
American Blue Ribbon Holdings is the 8th largest full service restaurant holding company in the United States.
As of July 2012, they operated 646 restaurants in 43 states and served over 90 million guests annually. They
had $1.2 billion of total annual revenue and employed over 32,000 people. Their brands include O’Charley’s,
Village Inn, Bakers Square, Ninety Nine and Max & Erma’s.
Tenant Website: www.maxandermas.com
Number of Locations: 70
Headquarters: Columbus, OH
Parent Website: www.abrholdingss.com
Employees: 32,000+
Headquarters: Nashville, TN
TENANT PROFILE
TENANT PROFILE

10. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Population 1-mi 3-mi 5-mi
Total Population 38,361 252,568 515,306
Total Households 16,918 106,437 199,818
Income
Median Household Income $54,042 $45,483 $44,130
Average Household Income $73,224 $65,196 $63,679
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORT

11. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Auburn Hills is a distinguished leader in southeast Michigan, known not
only for its 22 high-technology parks, but also for having world-renowned
retail, entertainment and manufacturing. Home to more than 21,000
residents, it also serves as Michigan’s global business address, with 40
international corporations from 32 countries housed here, including many
world and North American headquarters. Auburn Hills’ residents enjoy the amenities of city and suburban living
with parks, a revitalized downtown district and a welcoming city complex with a library and community center.
Additionally, the city has five colleges and universities, the award winning Palace of Auburn Hills entertainment
complex and Great Lakes Crossing Outlets, one of the state’s largest destination shopping centers, providing a
variety of cultural, social and educational opportunities to residents, workers and visitors.
Detroit is the largest city in the state of Michigan and the county seat of Wayne County. At the
time of the 2010 U.S. Wayne County was ranked as the 15th most populous county in the
United States with a population of 1,820,584. The Detroit MSA is the 13th most populated
metropolitan area in the United States with 4,296,250 residents. The Detroit metropolitan
area, commonly referred to as Metro Detroit, is widely known as the automobile industry hub
of North America. Most notably, Detroit is known for the “Big Three” automobile companies,
General Motors, Ford and Chrysler, all headquartered in Metro Detroit. The Detroit auto industry employs over
70,000 people.
Downtown Detroit is home to the Compuware world headquarters, Blue Cross Blue Shield, HP Enterprise
Services, and Quicken Loans, who recently relocated its headquarters and 4,000 employees downtown. Detroit
also benefits from the casino gaming industry. Detroit is the largest city in the United States to offer casino resort
hotels and is home to the MGM Grand Detroit, MotorCity Casino and Greektown Casino.
LOCATION OVERVIEW
LOCATION OVERVIEW

12. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
CONTACT INFORMATION
CONTACT INFORMATION
666 Dundee Road, Suite 1801
Northbrook, IL 60062
Randy Blankstein
President
847.562.0003
randy@bouldergroup.com
Jimmy Goodman
Partner
847.562.8500
jimmy@bouldergroup.com