New Double Net Lease 100 Research Parkway, Dundee, MI Property Summary: This state of the art research, development and manufacturing class A facility is is comprised of a 47,184 sf building located on 5.0 acres which is is leased for 3 years to Tecumseh Products Company, a publicly traded company. The facility provides the prototype manufacturing of new Tecumseh engines, compressors and other first of its kind components which are then integrated into product lines. The building has its own waste water treatment facility for manufacturing as well as every electrical power option imaginable. The property is is just off a major highway interchange which contains McDonald s, Wendy s, Taco Bell, Amoco, Burger King, B.P., Arby s, Bob Evans, Applebee s and Holiday Inn. Dundee, Michigan is is located 20 miles North of Toledo, Ohio and 20 minutes south of Ann Arbor, the home of the University of Michigan. Detroit Metro International Airport is is 28 miles away. Major employers include Ford Motor Co (2,000 employees), Visteon Automotive Systems (1,400), Monroe Auto Equipment Co (500), Guardian Industries Corp (500), La-Z-Boy Inc (500) and North Star Steel (490). Neighboring properties include Diamond Electric Manufacturing Co, H & N Manufacturing, Cardinal Services, Spirit Ford, BP and Cabela s, whose current location in Dundee (directly across Highway 23) is is the nation s largest outdoor outfitting store. Global Engine Alliance, a joint venture of Daimler Chrysler Corporation, Mitsubishi, and Hyundai, has begun construction of an automobile engine plant in the Industrial Park. All of the property due diligence material and third party reports are current. Price and Cap: We offer this property at $5,267,050 ($111.63 psf), which is is a 10.75% cap rate on NOI of $566,208 ($12 psf). Seller financing is is available.
Lease Summary: Term: 36 months Rent: $566, 208 ($12 psf) (paid in monthly installments of $47,184) Escalations: Flat throughout term Rent Commencement: 1/1/2008 Expiration Date: Last day of 36 th th calendar month following Commencement Date Options: None Termination/Master Lease: Tenant can terminate the lease on the last day of months 9, 12, 18, 24, 30. Notice of termination must be given 90 days prior. In the event tenant exercises its option to terminate the lease early, Seller will pay all remaining base rent and tenant expenses obligations through the remainder of the base term, as well as using best efforts to secure a replacement tenant. Lease Type: This is is a double net lease. Landlord responsibilities include repairing and replacing the roof, outer walls, capital improvements to equipment, systems and landscaping. Landlord also pays real estate taxes, and is is reimbursed monthly by Tenant as additional rent. Tenant is is responsible for all utilities; trash and snow removal; lawn maintenance; repair of any damages caused by Tenant and paying general insurance
Tenant Information: Tecumseh Products Company (NASDAQ: TECUA www.tecumseh.com ) Tecumseh Products Company engages in the manufacture and sale of compressors, electrical components, and engine and power train products. The compressors are used in household refrigerators, freezers; room air conditioners; commercial and residential air conditioning systems; and commercial refrigeration applications, including freezers, dehumidifiers, display cases, and vending machines. The electrical components comprise AC and DC electric motors, blowers, gear motors, and linear actuators for applications in the automotive, appliance and consumer durables, heating and cooling equipment, computer and office equipment, industrial machinery, commercial, aerospace, and healthcare industries. The engine and power train products include two- and fourcycle gasoline engines for lawn and garden, and other consumer and light commercial applications; and transmissions, transaxles, and related parts for use in lawn and garden tractors and riding lawn mowers. Tecumseh Products Company offers its products to original equipment manufacturers and aftermarket distributors through sales staff and independent sales representatives. Tecumseh Products Company has over 18,500 full time employees and operates in North America, South America, Europe, the Middle East, and Asia, with products sold in over 120 countries. The company was founded in 1930 and is is headquartered in Tecumseh, Michigan. Revenue was $1.81 billion in 2006.
Subject Property Nation s largest outdoor outfitting store Hotel Dealer Dundee Travel Center & Gas Tubby s Subs Shop
Prototype & Equipment Room Research & Development Research & Development Building Systems
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Subject Property Dealer Research & Development Building
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Subject Property Exit #17 Subject Property Ford Motor Flat Rock Lazy Boy Headquarters Lake Erie
Canada Canada is USA s largest trading partner and this crossing has the largest amount of trade per day out of any crossing in North and South America, at over $500 mm a day. Subject Property Tecumseh Headquarters
8 Hour Drive Time
DEMOGRAPHIC PROFILE 2000 Census, 2007 Estimates & 2012 Projections Calculated using Proportional Block Groups Lat/Lon: 42.2985235/-83.7479245 100 Research Parkway Dundee, MI MARITAL STATUS RACE INCOME AGE HOUSEHOLDS POPULATION & SEX Dec-07 3.00 mi radius 5.00 mi radius 7.00 mi radius 2007 Estimated Population 89,011 139,826 187,620 2012 Projected Population 90,298 142,864 193,971 2000 Census Population 86,297 133,975 176,341 1990 Census Population 84,315 120,641 157,396 Historical Annual Growth 1990 to 2007 0.3% 0.9% 1.1% Projected Annual Growth 2007 to 2012 0.3% 0.4% 0.7% 2007 Est. Households 33,288 54,806 74,468 2012 Est. Households 33,470 55,622 76,473 2000 Census Households 32,945 53,446 71,255 1990 Census Households 30,944 45,836 60,458 Historical Annual Growth 1990 to 2007 0.4% 1.2% 1.4% Projected Annual Growth 2007 to 2012 0.1% 0.3% 0.5% 2007 Population 0 to 9 Years 8.6% 9.9% 10.7% 2007 Population 10 to 19 Years 15.4% 13.6% 13.1% 2007 Population 20 to 24 Years 18.7% 14.1% 13.0% 2007 Population 25 to 44 Years 30.3% 31.8% 32.5% 2007 Population 45 to 59 Years 15.4% 17.5% 18.0% 2007 Population 60 to 74 Years 7.9% 8.8% 8.7% 2007 Population 75 Years Plus 3.7% 4.3% 4.0% 2007 Est. Median Age 31.4 33.4 33.5 2007 Male Population 50.4% 49.8% 49.8% 2007 Female Population 49.6% 50.2% 50.2% Married Base (15yrs+) 75,924 118,030 157,017 Never Married 52.9% 45.1% 42.6% Now Married 35.2% 41.0% 43.2% Separated, Divorced or Widowed 11.9% 13.8% 14.2% Households with Kids 23.0% 25.5% 26.9% Average Household Size 2.3 2.3 2.3 2007 Est. HH Income $200,000 or More 7.1% 8.3% 7.7% 2007 Est. HH Income $150,000 to 199,999 5.9% 6.7% 6.6% 2007 Est. HH Income $100,000 to 149,999 13.4% 15.1% 15.1% 2007 Est. HH Income $75,000 to 99,999 11.5% 12.3% 12.5% 2007 Est. HH Income $50,000 to 74,999 15.5% 16.6% 17.2% 2007 Est. HH Income $35,000 to 49,999 12.0% 12.3% 12.5% 2007 Est. HH Income $25,000 to 34,999 8.7% 8.1% 8.5% 2007 Est. HH Income $15,000 to 24,999 10.2% 8.8% 8.7% 2007 Est. HH Income $0 to 14,999 15.7% 11.8% 11.3% 2007 Est. Average Household Income $71,544 $78,757 $76,705 2007 Est. Median Household Income $62,948 $69,737 $69,274 2007 Est. Per Capita Income $28,491 $32,325 $31,691 Number of Businesses 4,458 7,581 9,592 Total Number of Employees 101,082 149,815 181,976 2007 Estimated Population 89,011 139,826 187,620 2007 Est. White Population 72.9% 73.6% 73.4% 2007 Est. Black or African American 7.5% 8.0% 9.3% 2007 Est. American Indian & Alaska Native 0.2% 0.2% 0.2% 2007 Est. Asian & Pacific Islander 15.3% 14.3% 13.0% 2007 Est. Two or more and Other Races 4.0% 3.9% 4.1%