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  • P R E S E N T E D B Y

    OFFERING MEMORANDUM

    ADVIA CREDIT UNION 27100 Woodward Avenue • Royal Oak, MI 48067

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

    Non-Endorsements Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates 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.

    ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

    Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

    2

  • N E T L E A S E D D I S C L A I M E R

    Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

    The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

    As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

    Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

    Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

    Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

    By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

    3

  • TABLE OF CONTENTS

    FINANCIAL ANALYSIS 01

    INVESTMENT OVERVIEW 02 Location Overview

    Regional and Local Map

    Aerial Photo

    SALES COMPARABLES 03

    MARKET OVERVIEW 04 Market Analysis

    Demographic Analysis

    ADVIA CREDIT UNION

    4

  • ADVIA CREDIT UNION

    5

    FINANCIAL

    ANALYSIS

  • CAP Rate Price Price/SF InitialCash-on-Cash

    LEASE SUMMARY8.00% $1,750,000 $437.50 10.70% 7.78% $1,800,000 $450.00 9.96%

    7.57% $1,850,000 $462.50 9.26% Tenant: advia credit union

    7.37% $1,900,000 $475.00 8.60% Guarantor: Corporate Guarantee

    7.18% $1,950,000 $487.50 7.97% Credit Rating: 0 Years

    Rent Commencement: 2/28/2018

    Operating Information Initial Lease Term 5 Years

    NOI as of 2020 $140,000

    Options:

    5 Year Option Rent/SF $35.00

    Gross Leasable Area 4,000 SF

    Financing Lease Type: NNN

    New Acquisition Financing $1,295,000

    Loan To Value 70.00% $35.00/SF $2.92/SF/Month $140,000 Annual Rent

    Interest Rate 4.75% Base Rent: Amortization Period 25

    Loan Constant 6.84%

    Annual Debt Service Payment $88,596 Rent Increases: 2.00%

    Year 1 Debt Service Coverage 1.58

    Year 1 Debt Yield 10.81%

    Year 1 Net Cash Flow After Debt Service $51,404

    27100 Woodward Avenue, Royal Oak, MI 48067 PRICING AND VALUATION MATRIX

    NOTES: INTEREST RATE IS TIME SENSITIVE AND SUBJECT TO CHANGE. CONTACT YOUR LOCAL MARCUS & MILLICHAP CAPITAL CORPORATION REPRESENTATIVE.

    PROPERTY NAMEADVIA CREDIT UNION

    PRICING AND VALUATION MATRIX

    PROPERTY NAMEADVIA CREDIT UNION

    6

    PRICING AND VALUATION MATRIXPRICING AND VALUATION MATRIX

    PROPERTY NAMEADVIA CREDIT UNION

    PRICING AND VALUATION MATRIX

    PROPERTY NAMEADVIA CREDIT UNION

    6

    PRICING AND VALUATION MATRIX

    6

    7.57%               $1,850,000                   $462.50 9.26%

  • #

    PROPERTY SUMMARY OFFERING SUMMARY

    #

    NOTES

    ADVIA CREDIT UNION

    7

    OFFERING SUMMARY

  • ADVIA CREDIT UNION

    8

    INVESTMENT

    OVERVIEW

  • 12

    TENANT PROFILES

    ADVIA CREDIT UNION

    9

    Advia Credit Union

    Advia Credit Union was established in 1935 and currently has assets of $1.37 billion, 27 branch

    locations, 360 employees. Operating in Michigan, Illinois and Wisconsin with over 130,000

    members, Advia is financially strong, positioned within the top 10 credit unions in Michigan, and

    within the top 3 percent of credit unions in the United States. Total assets increased by over

    $163 million in 2016, which equates to nearly 13.80 percent annual growth.

    Headquartered in Parchment, Michigan, their full-service branch locations and surcharge-free

    ATM locations keep growing. Advia offers easy-access financial solutions to anyone living,

    working or attending school within the southern peninsula of Michigan; as well as, a growing

    number of counties in Wisconsin and Illinois. The credit union is chartered by the state of

    Michigan and deposits are federally insured up to $250,000 per depositor by the National Credit

    Union Administration. General Information

    Tenant Name Advia Credit Union

    Website www.adviacu.org

    Headquartered Parchment, Michigan

    Rentable Square Feet 4,000 SF

    Percentage of RBA 100.00%

    Lease Commencement 1/31/2018

    Lease Expiration 1/31/2023

    No. of Locations 27+

  • 12

    TENANT PROFILES

    ADVIA CREDIT UNION

    10

    Core Values • Act with Integrity • Drive Progress • Keep People at the Core • Build & Strengthen Relationships

    Service Promises • I promise to do what is right. • I promise to be your advocate for innovative solutions. • I promise to provide you with knowledge and resources to help 

    you be successful. • I promise to treat you with professionalism and respect.

    Mission To provide financial advantages to its members.

    Highlights • Established in 1935 • $1.37 Billion in Assets • 27 Branch Locations • Operating in Michigan, Illinois and Wisconsin with

    over 130,000 members • Total Assets Increased by over $163 Million in 2016 • Nearly 13.80 Percent Annual Growth

  • 12

    TENANT PROFILES

    ADVIA CREDIT UNION

    11

    Advia Locations

    Southwest Michigan 4308 West Main St, Kalamazoo, MI 49006 5039 Comstock Ave, Kalamazoo, MI 49048 825 M‐89 Plainwell, MI 49080 901 East Milham Rd., Portage, MI 49002 8224 N. 32nd St. Richland, MI 49083 6869 West Q Ave., Kalamazoo, MI 49009 706 N. Westnedge, K