O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96...

28
C LARK P ROFESSIONAL O FFICE P LAZA II O F F E R I N G M E M O R A N D U M Y PSILANTI (A NN A RBOR MSA), M ICHIGAN

Transcript of O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96...

Page 1: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

CLARK PROFESSIONALOF F I C E PL A Z A II

O F F E R I N G M E M O R A N D U M

YP S I L A N T I (AN N AR B O R MSA), MI C H I G A N

Page 2: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

N O N - E N D O R S M E N T & D I S C L A I M E R N O T I C E

C O N F I D E N T I A L I T Y & D I S C L A I M E R

Th e information contained in the following Marketing Brochure is proprietary and strictly confi dential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should

not be made available to any other person or entity without the written consent of Marcus & Millichap. Th is Marketing Brochure has been prepared to provide summary, unverifi ed information to

prospective purchasers, and to establish only a preliminary level of interest in the subject property. Th e information contained herein is not a substitute for a thorough due diligence investigation.

Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected fi nancial

performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and

Federal regulations, the physical condition of the improvements thereon, or the fi nancial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy

of the subject property. Th e information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verifi ed, and will not

verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of

Marcus & Millichap Real Estate Investment Services, Inc.

© 2018 Marcus & Millichap. All rights reserved.

N O N - E N D O R S E M E N T N O T I C EMarcus & Millichap is not affi liated with, sponsored by, or endorsed by any commercial tenant or lessee identifi ed in this marketing package. Th e presence of any corporation's logo or name is not

intended to indicate or imply affi liation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affi liates or subsidiaries, or any agent, product, service, or commercial

listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Activity ID: XXXXXX

A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N L Y.P L E A S E C O N S U LT Y O U R M A R C U S & M I L L I C H A P A G E N T F O R M O R E D E T A I L S .

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

Page 3: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

E X C L U S I V E L Y L I S T E D B Y

SI LVA N A GR A F

INVESTMENTS ASSOCIATE

DETROIT OFFICE

DIRECT: (248) 415-2622 // CELL: (734) [email protected]

LICENSE: MI 6501391492

PAU L E. KE R B E R

SENIOR VICE PRESIDENT INVESTMENTS

DETROIT OFFICE

DIRECT: (248) 415-2612 // CELL: (313) [email protected]

LICENSE: MI6502130233

Page 4: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

TABLE OF CONTENTS

M A R K E T O V E R V I E W / / 2 1

04

E X E C U T I V E S U M M A R Y / / 0 5

01P R O P E R T Y D E S C R I P T I O N / / 0 9

02

F I N A N C I A L A N A L Y S I S / / 1 6

03

Page 5: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Executive Summary

O F F E R I N G S U M M A R Y

S U M M A R Y O F T E R M S

I N V E S T M E N T O V E R V I E W

I N V E S T M E N T H I G H L I G H T S

S E C T I O N 1

Page 6: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

O f f e r i n g S u m m a r y

CL A R K PRO F E S S I O N A L OF F I C E PL A Z A II

Price $6,967,000

NOI $300,078

Rentable Square Feet 26,797 SF

Price Per Square Foot $260.00

Rent Per Square Foot $20.00 NNN

Lease Type Gross & NNN

Year Built/Renovated 1984/2004

Vacant Space 5,680 SF

Leased Space 21,117 SF

Number of Buildings One

Number of Stories Four

Lot Size 1.91 Acres

Type of Ownership Fee Simple / Condominiums

E x e c u t i v e S u m m a r y 6

Page 7: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

E x e c u t i v e S u m m a r y 7

Page 8: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

• Anchored by Two High Credit Medical Health Systems• 65% Leased to Trinity Health and University of Michigan Hospital• Excellent Location Across from St. Joseph/Trinity Hospital Campus• Directly Cabled to St. Joseph Mercy Hospital Campus• Ideal for Owner/User or Investor with Upside• Ypsilanti Close to Ann Arbor, Low Vacancy Market • Long Term Tenancy in Place with Annual Rent Increases• Quick Access to US-23 and I-94• 25 Minutes from the Detroit Airport (DTW)

I n v e s t m e n t H i g h l i g h t s

Marcus & Millichap has been retained by ownership to exclusively market and sell an excellent medical offi ce condominium investment

located in Ypsilanti, Michigan. Situated a mile east of Ann Arbor and across from the large St. Joseph Mercy Hospital (Trinity Healthcare)

complex, this 7-unit condominium opportunity is in the Clark Professional Offi ce Plaza II Building. Th e offi ce suites take up the entire

second and fourth fl oors and a portion of the third fl oor of this 40,400 square foot four-story building. While this facility is just “off -

campus” from the St. Joseph Mercy Hospital it has direct cable connections to the Hospital and has long been occupied by physician

groups serving a part of the massive $18B Trinity Healthcare service. Trinity Healthcare is one of the largest Catholic medical providers

in the U.S. serving over 30 million people in 22 states. Trinity Health has 94 hospitals and 107 continuing care locations employing

129,000 people.

Currently Trinity Healthcare credit supports the lease on a suite of 14,417 square feet or 53.80 percent of the space, while another 6,700

square feet, or 25 percent is leased by the prominent University of Michigan Health System. U of M has in place a joint venture with

Trinity Healthcare and occupy space with a physical presence in the St. Joseph Mercy Hospitals both here in Ypsilanti and in nearby

Chelsea. 21 percent of the space remains vacant making this investment ideal for the healthcare provider, doctor group or professional

looking for space for their practice while securing very stable, low risk cash fl ow. Th e property is priced for the owner/user who can

acquire this medical or offi ce space for a value below market comparables and replacement costs. Additional condominium units in the

building are available to purchase allowing for a more complete ownership of the entire asset. With the acquisition of these units off ered

it is important to note that the investor will have over 65% majority stake in the Condominium Association providing greater control

over many aspects of both ownership and management.

Clark ProfessionalOffice Plaza II

C l a r k R o a d , Y p s i l a n t i , M I

Anchored by Two High Credit Medical Health Systems78% Leased to Trinity Health and University of Michigan HospitalExcellent Location Across from St. Joseph/Trinity Hospital CampusDirectly Cabled to St. Joseph Mercy HospitalIdeal for Owner/User or Investor with UpsideClose to Ann Arbor, Low Vacancy Market Long Term Tenancy in Place with Annual Rent IncreasesQuick Access to US-23 and I-9425 Minutes from the Detroit Airport (DTW)

E x e c u t i v e S u m m a r y 8

Page 9: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Property Description

T H E P R O P E R T Y

L O C A L A N D R E G I O N A L M A P S

A E R I A L M A P

F L O O R P L A N

S E C T I O N 2

Page 10: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Property Description // CL A R K PR O F E S S I O N A L OF F I C E PL A Z A II

THE OFFERING

Property Clark Professional Office Plaza II

Property Address 3145 W Clark Rd, Ypsilanti, MI 48197

Zoning B3

Ownership Seven Condominium Units

SITE DESCRIPTION

Number of Stories Four

Year Built 1984/2004

Lot Size 1.91 Acres

Rentable Square Feet 26,797 SF

Landscaping Professional

Topography Flat

MECHANICAL

HVAC Throughout

Fire Protection Fully Sprinklered

Utilities All Local Providers

Elevator 2 - 2,500lb Dover - 16 Passenger

INTERIOR

Walls Painted Drywall

Ceilings Acoustical Tile

Floor Coverings Commercial Tile and Carpet

Rest Rooms Men’s and Women’s to Code

CONSTRUCTION

Foundation Concrete

Framing Steel

Exterior Brick

Parking Space 79

Parking Ratio 3.93/1,000 SF

Roof Flat

P r o p e r t y D e s c r i p t i o n 10

Page 11: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

P r o p e r t y D e s c r i p t i o n 11

Page 12: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

CLARK PROFESSIONAL

OFFICE

PLAZA II

TrinityHealth

Hospital

University of Michigan

Hospital

P r o p e r t y D e s c r i p t i o n 12

Page 13: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

C l a r k P r o f e s s i o n a lO f f i c e P l a z a I I

P r o p e r t y D e s c r i p t i o n 13

Page 14: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Hospital

E x e c u t i v e S u m m a r y 14

Page 15: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Site Plan // CL A R K PR O F E S S I O N A L OF F I C E PL A Z A II

Vacant Space - 5, 680 SF University of Michigan

Fourth FloorSecond Floor Th ird Floor

Trinity Health

E x e c u t i v e S u m m a r y 15

Page 16: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Financial Analysis

P R I C I N G D E T A I L S

T E N A N T S U M M A R I E S

R E N T R O L L S U M M A R Y

S E C T I O N 3

Page 17: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Property Details / / CL A R K PR O F E S S I O N A L OF F I C E PL A Z A II

CL A R K PRO F E S S I O N A L OF F I C E PL A Z A II

Price $6,967,000

NOI $300,078

Rentable Square Feet 26,797 SF

Price Per Square Foot $260.00

Rent Per Square Foot $20.00 NNN

Lease Type Gross & NNN

Year Built/Renovated 1984/2004

Vacant Space 5,680 SF

Leased Space 21,117 SF

Number of Buildings One

Number of Stories Four

Lot Size 1.91 Acres

Type of Ownership Fee Simple / Condominiums

F i n a n c i a l A n a l y s i s 17

Page 18: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Cash Flow & Expenses / / CL A R K PR O F E S S I O N A L OF F I C E PL A Z A II

Potential Gross Revenue $556,199 Base Rental Revenue $524,014 Absorption & Turnover Vacancy 0 Scheduled Base Rental Revenue $524,014 CPI & Other Adjustment Revenue

Expense Reimbursement Revenue CAM $42,018 Real Estate Taxes $25,177 Insurance $2,513 Management Fee 0 Total Reimbursement Revenue $69,708

Total Potential Gross Revenue $593,722 General Vacancy 0

Eff ective Gross Revenue $593,722

Operating Expenses CAM $168,055 Real Estate Taxes $100,696 Insurance $10,050 Management Fee $14,843

Total Operating Expenses $293,644Net Operating Income $300,078

Note: Th e above income and expenses refl ect an actual vacancy of 21.20% of the total space.

F i n a n c i a l A n a l y s i s 18

Page 19: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Pricing Details / / TR I N I T Y HE A LT H

LEASE SUMMARY

Property Subtype Medical Office

Tenant Trinity Health

Rent Increases 3.00% Every Year

Guarantor Trinity Health

Lease Type Gross

Lease Commencement May 2018

Lease Expiration April 2023

Lease Term 5 Years

Renewal Options Yes

LEASE SUMMARY ~ 11,207 SF

YEAR ANNUAL RENT MONTHLY RENT RENT/SF

Current $283,933.44 $23,661.12 $25.34

Year 3 $292,451.40 $24,370.95 $26.10

Year 4 $301,224.96 $25,102.08 $26.88

Year 5 $310,261.68 $25,855.14 $27.68

Trinity Health is an American non-profi t Catholic health system operating 93 hospitals in 22 states, including 120 continuing care locations encompassing home care, hospice, PACE and senior living facilities. Based in Livonia, Michigan, Trinity Health employs more than 120,000 people including 5,300 physicians. Sponsored by Catholic Health Ministries, Trinity Health operates facilities in the US states of Alabama, California, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania and South Dakota.

In May 2000, Trinity Health was formed through a merger between Holy Cross Health System in South Bend, Indiana, and Mercy Health Services in Farmington Hills, Michigan. Th e new organization initially comprised 25 health ministries across seven states—California, Idaho, Indiana, Iowa, Maryland, Michigan and Ohio—with 45,000 employees and 7,000 physicians. Trinity Health’s headquarters were established fi rst in Farmington Hills, Michigan, and later in Novi, Michigan. At the time, Trinity Health was the 10th largest health system in the nation and the fourth largest Catholic health care system in the country, by total number of hospitals and total bed count, respectively. It operated 47 acute-care hospitals, 432 outpatient facilities, 32 long-term care facilities, and numerous home health offi ces and hospice programs in 10 states. It acquired St. Mary’s Hospital in Waterbury, Connecticut in 2015.

In 2018, revenue increased to $18.3 billion. Total assets of $26.2 billion were recorded, with operating income of $401.3 million. As of June 30, 2018, it had 94 acute care hospitals, and reached 22 states. In September of 2018, Trinity Health formed Trinity Health Mid-Atlantic with three other hospitals.

LEASE SUMMARY ~ 3,210 SF

YEAR ANNUAL RENT MONTHLY RENT RENT/SF

Current $93,402.96 $7,783.58 $29.10

Year 3 $96,205.08 $8,017.09 $29.97

Year 4 $99,091.20 $8,257.60 $30.87

Year 5 $102,063.96 $8,505.33 $31.80

F i n a n c i a l A n a l y s i s 19

Page 20: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Pricing Details / / UN I V E R S I T Y O F MI C H I G A N HO S P I TA L

LEASE SUMMARY

Property Subtype Medical Office

Tenant University of Michigan Hospital

Rent Increases 2.50% Every Year

Guarantor University of Michigan Hospital

Lease Type Net

Lease Commencement June 2017

Lease Expiration May 2022

Lease Term 5 Years

Renewal Options None

LEASE SUMMARY

YEAR ANNUAL RENT MONTHLY RENT RENT/SF

Current $140,787.96 $11,732.33 $21.01

Year 3 $144,307.56 $12,025.63 $21.54

Year 4 $147,915.24 $12,326.27 $22.08

Michigan Medicine, formerly the University of Michigan Health System (UMHS), is the wholly owned academic medical center of the University of Michigan in Ann Arbor. As a non-profi t entity, Michigan Medicine uses positive operating margins to fund continued advances in patient care, education, research, and the facilities needed to support these functions.

Michigan Medicine has a high-volume surgical center with a total of 66 operating rooms. Th e construction of the $523 million Children and Women’s Hospital and the $132 million Eye Center expansion added 18 operating rooms to the health system for a total of 82 operating rooms. Outpatient care is provided at the main medical campus in Ann Arbor and at numerous satellite locations.

Michigan Medicine has nearly 26,000 employees. In all, the Michigan Medicine community accounts for more than half of the entire University of Michigan faculty/staff headcount across all campuses. Th e Michigan Visiting Nurses, a wholly owned part of the Michigan Health Corporation, provides a broad range of home care services in a 13-county area of southeastern Michigan. Th ese include home nursing, specialty treatments, therapy, and palliative care. It also provides public and employer-based immunization services.

F i n a n c i a l A n a l y s i s 20

Page 21: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Rent Roll Summary // CL A R K PR O F E S S I O N A L OF F I C E PL A Z A II

TENANT NAME FLOOR SFBUILDING

SHARE

LEASE COMMENCEMENT

LEASE EXPIRATION

RENT PER YEAR

RENT PER MONTH

RENT

PER SFCHANGES

ON

CHANGES

TO LEASE TYPE

OPTION TO RENEW

Trinity Health 11,207 41.82% May 2018 April 2023 $283,933.44 $23,661.12 $25.34 May 2020 $292,451.40 Gross YesTrinity Health 3,210 11.98% May 2018 April 2023 $93,402.96 $7,783.58 $29.10 May 2020 $96,205.08 Gross

U of M Hospital 6,700 25.00% June 2017 May 2022 $140,787.96 $11,732.33 $21.01 June 2020 $144,307.56 NetVACANT 5,680 21.20%

TOTAL OCCUPIED SQUARE FEET 21,117 78.80%TOTAL AVAILABLE SQUARE FEET 5,680 21.20%

TOTAL 26,797 100%

F i n a n c i a l A n a l y s i s 21

Page 22: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Market Overview

L O C A T I O N O V E R V I E W

M A R K E T R E S E A R C H

D E M O G R A P H I C S

S E C T I O N 4

Page 23: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Ypsilanti/Ann ArborM i c h i g a n

M S A P o p u l a t i o n3 5 7 , 0 2 9

M a r k e t O v e r v i e w 23

Page 24: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Ypsilanti commonly shortened to Ypsi, is a city in Washtenaw County in the U.S. state of Michigan,

perhaps best known as the home of Eastern Michigan University. As of the 2010 census, the city’s

population was 21,018. Th e city is bounded to the north by Superior Township and on the west, south,

and east by Ypsilanti Township. Ypsilanti is located 6 miles (10 km) east of Ann Arbor and about 18

miles (29 km) west of the Detroit city limits.

Ypsilanti is home of St. Joseph Mercy Hospital (Trinity Health), the second largest employer in

Washtenaw County. It is also the home of Eastern Michigan University and Washtenaw Community

College which are a great source of talent for the area businesses and institutions. Ypsilanti greatly

benefi ts from its close proximity to Ann Arbor, the University of Michigan and its prominent health

system (Michigan Medicine). Michigan Medicine has increasing its presence in Ypsilanti by occupying

space inside the campus of St Joseph Mercy Hospital and at the Ypsilanti Health Center.

Ypsilanti is most well-known for its heritage of automotive leadership and era-defi ning advancements

in aviation production, making it the perfect location for the innovative American Center for Mobility

(AMC) which is located in Willow Run. Th e AMC is comprised of 500 AC of testing grounds for

revolutionary mobility technology that aims to decrease traffi c fatalities by 80-90% in the U.S.

AUTOMOTIVE HISTORY

Ypsilanti has played an important role in the automobile industry. From 1920 to 1922, Apex Motors

produced the “ACE” car. It was in Ypsilanti that Preston Tucker (whose family owned the Ypsilanti

Machine Tool Company) designed and built the prototypes for his Tucker ‘48.

In 1945, Henry J. Kaiser and Joseph W. Frazer bought the nearby Willow Run B-24 Liberator bomber

plant from Ford Motor Company, and started to make Kaiser and Frazer model cars in 1947. Th e last

Kaiser car made in Ypsilanti rolled off the assembly line in 1953, when the company merged with

Willys-Overland and moved production to Toledo, Ohio. General Motors purchased the Kaiser Frazer

plant, and converted it into its Hydramatic Division (now called its Powertrain division), beginning

production in November 1953. Th e GM Powertrain Division ceased production at this facility in 2010.

Ypsilanti Overview

• US-12 Travels East to Detroit and West Toward Chicago

• US-23 to the West

• US-12 Loop Route Th rough Downtown

• M-17 Connects Ypsilanti with Ann Arbor

• Border-to-Border Trail

• Ann Arbor Transportation Authority Operates Within the Downtown Area

TR A N S P O RTAT I O N

M a r k e t O v e r v i e w 24

Page 25: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

A bustling downtown and charming tree-lined neighborhoods make Ann Arbor a safe and ideal place to live, learn, work and raise a family. More than 118,087 residents live

within the city’s 28 square miles, and Ann Arbor regularly receives national attention as one of the best places to live in the United States.

Ann Arbor is a hub for excellence in education and boasts fi ve colleges and universities. Th e city’s acclaimed public school system has adapted a comprehensive academic

achievement plan to help ensure all students are successful. Endless opportunities for recreation are available in Ann Arbor, which operates 157 parks with trails, golf, canoe liveries,

tennis courts, athletic fi elds and more. One of the most environmentally friendly cities around, Ann Arbor has a progressive recycling program and takes great measures toward

the preservation of the city’s green space.

CITY INFORMATION CITY HIGHLIGHTS

Ann Arbor Overview

• Total Area: 28.7 square miles

• Student Enrollment (2016): 44,718

• Population (2016): 120,782

• Home to the highly acclaimed University of Michigan, one of the foremost research universities in

• the United States.

• Two Major Hospital Systems: Th e University of Michigan Health System & St. Joseph Mercy and Trinity Health

• Vibrant Local Economy with 2.5% Unemployment Rate.

• Highly Educated Workforce

AGE RANGE % OF POPULATION

<10 Years 8%

10-17 Years 6%

18-24 years 31%

25-34 Years 17%

35-44 Years 10%

45-54 Years 9%

55-64 Years 9%

65+ Years 11%

EDUCATION LEVELS % OF POPULATION

Master’s Degree or Higher 45%

Bachelor’s Degree 29%

Small College or Associate’s Degree 15%

High School Diploma or Equivalent 7%

Less Th an High School Diploma 3%

TOP 5 EMPLOYERS # OF EMPLOYEES

University of Michigan 33,225

Trinity Health 7,435

General Motors 5,500

Ann Arbor Public Schools 2,225

Faurecia North Ameirca 1,664

M a r k e t O v e r v i e w 25

Page 26: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Washtenaw County has a vibrant economy accompanied by an array of educational and cultural

opportunities. It is home of Th e University of Michigan and Eastern Michigan University. Th ere are

74 other universities within a 50-mile radius. As a consequence of multiple education opportunities,

Washtenaw County has a highly educated population. 60.4% of the inhabitants have at least a college

degree and 41% have a graduate degree.

Washtenaw County has a healthy workforce with an unemployment rate of only 2.5%. Th ere are more

than 18,000 businesses and a total labor force of 195,052 people. In 2017, the leading industries in

Washtenaw County were Health Care and Social Services, Education, Retail, Hospitality and Food

Services. 62,737 jobs come from the Healthcare and Social Services sector. Health Diagnosing and

Treating Practitioners account for 8.22% of the talent pool (19,114 professionals).

Th e median household income is $66,636 (12% higher than the national average). 53.93% of the

households earn more than the national average each year with 48,664 households making above

$100K.

“Quality of Life” is a critical factor in helping Ann Arbor / Ypsilanti area achieve its consistent inclusion

in “Top Cities” lists. By any standard, the Ann Arbor and Ypsilanti areas are uncommonly blessed with

the elements that make for a full and enriching life, whether its looking at arts and cultural events,

recreational activities, educational resources or opportunities to explore the traditions and lifestyles of

people of diverse nationalities and cultures. Washtenaw County and in particular, the Ann Arbor/Ypsi

area, is considered an emerging national tech hub by venture capital publications.

Washtenaw County Overview

M a r k e t O v e r v i e w 26

Page 27: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

Demographics / / CL A R K PR O F E S S I O N A L OF F I C E PL A Z A II

INCOME 1-MILE 3-MILES 5-MILES

$0 - $ 14,999 22.1% 15.6% 16.1%

$15,000 - $24,999 16.2% 10.8% 10.0%

$25,000 - $34,999 12.7% 10.5% 9.8%

$35,000 - $49,999 14.3% 13.3% 12.8%

$50,000 - $74,999 15.3% 14.8% 15.5%

$75,000 - $99,999 7.9% 10.9% 11.5%

$100,000 - $124,999 5.0% 7.6% 8.1%

$125,000 - $149,999 2.5% 5.0% 5.0%

$150,000 - $200,000 2.4% 4.9% 5.4%

$200,000 to $249,999 0.6% 2.7% 2.5%

$250,000 + 1.0% 3.9% 3.5%

Median HH Income $34,315 $49,742 $51,746

Per Capita Income $26,190 $36,780 $33,759

Average HH Income $51,196 $82,182 $80,316

HOUSEHOLDS 1-MILE 3-MILES 5-MILES

2000 Households 4,847 26,149 68,481

2010 Households 5,039 26,693 70,173

2018 Households 5,272 27,898 73,801

2023 Households 5,395 28,456 75,891

2018 Average HH Size 1.93 2.13 2.21

2018 Daytime Population 9,150 81,613 298,333

2000 Owner Occupied Housing Units 15.4% 39.6% 41.5%

2000 Renter Occupied Housing Units 81.3% 55.1% 54.3%

2000 Vacant 3.3% 5.3% 4.3%

2018 Owner Occupied Housing Units 15.0% 40.9% 42.1%

2018 Renter Occupied Housing Units 85.0% 59.1% 57.9%

2018 Vacant 2.1% 5.6% 4.3%

2023 Owner Occupied Housing Units 15.0% 40.9% 42.1%

2023 Renter Occupied Housing Units 85.0% 59.1% 57.9%

2023 Vacant 2.1% 5.6% 4.3%

POPULATION 1-MILE 3-MILES 5-MILES

2000 Population 10,074 62,026 171,249

2010 Population 10,040 60,610 171,406

2018 Population 10,561 63,927 183,279

2023 Population 10,717 64,656 187,028

M a r k e t O v e r v i e w 27

Page 28: O FFERING MEMORANDUM · 2019. 7. 16. · Year 3 $292,451.40 $24,370.95 $26.10 Year 4 $301,224.96 $25,102.08 $26.88 Year 5 $310,261.68 $25,855.14 $27.68 Trinity Health is an American

SI LVA N A GR A F

INVESTMENTS ASSOCIATE

DETROIT OFFICE

DIRECT: (248) 415-2622 // CELL: (734) [email protected]

LICENSE: MI 6501391492

PAU L E. KE R B E R

SENIOR VICE PRESIDENT INVESTMENTS

DETROIT OFFICE

DIRECT: (248) 415-2612 // CELL: (313) [email protected]

LICENSE: MI6502130233

E X C L U S I V E L Y L I S T E D B Y