Investment Highlights

Seasoned Tenant Mix | 100% Service-Based and Essential Retailers | Long-Standing Operating History | Expiring Leases with No Option Periods

• Seasoned Tenants:
  • Merchants Marketplace has a seasoned tenant roster, eight (8) of the center’s twelve (12) tenants signed leases between 1995 and 2008.
  • These spaces amount to approximately 75% of the current annual base rent.
• Excellent Historical Occupancy – 98% Occupied:
  • Merchants Marketplace has only had four (4) vacancies since 2015, which combined amount to less than 9% of total GLA.
  • The most recent lease of 6,665 square feet to Eleven11 events, was the result of a landlord buy-out of the prior tenant, further lending to tenant demand.
• Recent Lease Extensions with 25% + Rent Increases:
  • Two leases were recently extended with no landlord contributions.
  • Both extensions increased the in-place rents 25% and 45% respectively
• End-Cap Lease-Up Opportunity, Approved Drive-Thru Plans:
  • The only vacancy is the outparcel end-cap, just 1.88% of total GLA.
  • This space also has approved plans to allow for a drive-thru, creating a much larger prospective tenant pool.
• No Option Periods:
  • Three (3) tenants, two of which signed leases between 2005 and 2009 have leases which are expiring within the next three years and/or have no option periods remaining, providing for the ability to structure a new lease or the ability to bring in another tenant(s).
  • There is also a tenant which has one option remaining but at market rent. The most recent lease for a space which is 20% larger and has inferior positioning was signed at a rent which is 12% higher than the tenant is currently paying.
• Annual Increases:
  • Eight (8) of the center’s tenants have annual increases providing for an excellent hedge against inflation. These increases range between 2.00% and 3.00% annually.
  • Approximately half of the total GLA as well as annual base rent in the center is subject to leases which provide for annual increases.
• Recession Proof Tenant Mix – Service-Oriented & Essential Retailers:
  • Merchants Marketplace is 100% occupied by “recession-proof” tenant mix of service oriented and essential retailers thereby increasing customer traffic to the Property.
  • These tenants cover sectors including medical services and device sales, pharmacy, grocery, events, health & beauty, education, fitness, dining, and more.

Favorable NNN Leases |$14.41 Avg Rents | Select Reimbursement for Capital Expenditures

• Merchants Marketplace (“The Property”) features 13 suites totaling 63,805 SF of space, with spaces ranging from 1,200 SF to 16,788 SF and 98.12% occupancy.
• All tenants are currently under NNN leases which require full reimbursement for taxes, insurance, and common area maintenance. In addition, all of the leases provide for a management/administrative fee charge and many of the leases also provide that tenants are to reimburse for certain capital expenditures.
• The average rent in the center is only $14.41psf allowing for future potential upside whether via negotiating new leases with existing tenants, or leasing to new tenants.

Great Visibility | Easy Ingress & Egress | Ability to Capture Local & Commuter Traffic

• The Property is strategically located at the corner of the signalized intersection of W 12 Mile Rd and Middlebelt Rd, offering excellent visibility and exposure.
• In addition, the Property features four curb-cuts, two on each roadway, along with designated turn-in lanes on both roads offering convenient customer access regardless of the direction of travel.
• The Property is situated just one mile from the on and off ramps to Interstate-696 (Walter P. Reuther Fwy) creating consistent traffic flow and increasing the likelihood of capturing daily commuters. I-696 runs East to West and connects to I-10 which leads to Detroit. Via I-696, it takes 25 minutes to reach Detroit, 37 minutes to Ann Arbor, and an hour to Lansing.
• Route 10 offers easy and direct access in and out of Detroit as it begins at the nearest interchange to the Property and runs Southeast into Downtown Detroit.

Strategic Neighborhood Center | Excellent Demographics | 60,500+ Residents | $139,000+ Avg HH Income | Residential | Schools | Medical | Franklin Hills Country Club – #26 Best Course in MI | Oakland Hills Country Club – #2 in MI, #20 in U.S., #54 in World

• Residential:
  • The Property is surrounded by numerous residential communities, making it an ideal neighborhood center. Within three miles of the Property are over 60,500 residents with an average household income exceeding $139,000, providing for greater disposable income.
  • The Property sits directly across Middlebelt Rd from The Retreat at Farmington Hills and Strawberry Lane Apartments, two well occupied multi-family developments with 424 units and 124 units, respectively.
  • Residential communities within the area also include, but are not limited to:
    • Kendallwood – 824 Homes
    • Woodcreek – 330 Homes
    • Timbercrest – 165 Homes
    • Holly Hill Farms – 139 Homes
• Schools
  • The Property benefits from being in close proximity to numerous area schools providing for consistent traffic flow to and from the area. These schools include but are not limited to:
    • North Farmington High School – 1,266 students
    • Mercy High School – 696 students
    • East Middle School – 665 students
    • Wood Creek Elementary School – 382 students
    • Kenbrook Elementary School – 377 students
    • St Fabian Pre-K and Elementary School – 302 students
    • Oakland Community College – Orchard Ridge Campus – 5,000 students.
• Medical
  • The Property is also in close proximity to numerous doctors’ offices, medical clinics, and specialty centers creating additional traffic flow both from patients and office employees.
  • Given that the local area hospitals are all 8+ miles from the Property, the presence of these offices lends to the affluency of the area and population demand.
• Country Clubs
  • The Property is just 5 minutes from Franklin Hills Country Club which is a private golf and country club featuring an 18-hole course that is ranked 26^th best in the state, driving range, pool, tennis courts, pickle ball courts, spaces to entertain and more.
  • As well, the Property is just 10 minutes from Oakland Hills Country Club, which is a private golf and country club that features the 2^nd best course in the state from 2013 to 2024. Rankings also include #20 in the country, #54 in the world, and feature on Golf Digest’s 100 Greatest every year since 1966. Furthermore, Oakland Hills recently announced a partnership with the USGA to host the 2034 and 2051 U.S. Opens and 6 other USGA Championships starting 2024.

Local Traffic Generators | Retail | The Hawk – Community Center | Costick Activities Center

• The Property is situated in close proximity to numerous area traffic drivers including other retailers, hotels, restaurants, and local businesses along both W 12 Mile and Orchard Lake Road, creating additional traffic to and from the area.
• In addition, the Property is located just a half mile from the Farmington Hills Community Center (The Hawk) which features two football fields, a baseball field, a track, five tennis courts, 10 pickle ball courts, a dog park, fitness center, theatre, aquatics center and more.

Excellent Daytime Population | 164,000+ Daytime Employees (5mi) | Office, Industrial, Manufacturing

• There are over 164,000 daytime employees who work within five miles of the Property, allowing for a broader potential customer base.
  • Highway 24, Route 10, I-696:
    • The Property sits just 2.5 miles west of the interchange where Highway 24, Route 10 and Interstate 696 converge. Within this area there is 16+ million SF of office, industrial, manufacturing and flex space occupied by companies such as Walgreens, CoStar, Ciena Healthcare, Citizens Bank, Aetna, Tenneco, and New York Life Insurance, among others.
  • I-276 & I-696:
    • Furthermore, the Property sits just 4.5 miles East of the interchange of I-275 and I-696 where there is approximately 15.9+ million SF of office, industrial, and flex space occupied by companies such as FedEx Ship Center, Blackberry QNX, TomTom, Nabisco, and Rolls-Royce Solutions America amongst others.
  • 12 Mile Rd & I-696:
    • Additionally, the area between I-696 and 12 Mile Rd features over 3+ million SF of office and industrial space home to companies such as Panasonic, Google, Greenpath Financial Wellness, Purem, Harman, Bosch, Neapco, ZF, JST (under development), and Mercedes Benz Financial, as well as the main R&D campus for Nissan, the Nissan Technical Center North America.