triatria - transwestern...farmington hills, mi transwestern is pleased to exclusively offer...

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32255 NORTHWESTERN HIGHWAY FARMINGTON HILLS, MI Transwestern is pleased to exclusively offer investors the opportunity to acquire a 100 percent fee simple interest in the TriAtria office building, located at 32255 Northwestern Highway in Farmington Hills, Michigan (“TriAtria or “the Property”). The building contains 236,921 square feet Class A office space, and is 86.1 percent leased overall. Constructed in 1986, the asset is being offered to qualified investors on an “as is” basis. TriAtria is among the highest quality Class A buildings in the Bloomfield/Farmington Hills submarket and in the suburban Detroit office market. The offering provides the investor stable, contractual cash flow backed by a long- term anchor tenant lease. The investor has the opportunity to purchase one of the premier assets in the marketplace as the local office mar- ket and economy begins to accelerate and strengthen. In addition to its strong cash flow, the investment offers ad- ditional upside potential through the lease-up of vacant space with rising rents in the submarket. The building is 86.1 percent leased by a desirable roster of tenants and is anchored by a 92,074-square-foot lease with Millennium Medical through December 31, 2024. TriAtria is located within the heart of the Bloomfield/Farmington Hills submarket, one of suburban Detroit’s strongest demograph- ic and most accessible submarkets. Farmington Hills is known as one of Michigan’s premier office markets because of its loca- tion along Northwestern Highway and the I-696/I-275 corridor in Oakland County, one of the most affluent counties in the U.S. The area’s desirable demographics place it at the upper end of the Detroit marketplace. The Property enjoys an infill location, with substantial impediments to new development including scarcity of new buildable sites and the high cost of new construction relative to market rental rates. The Property is offered free and clear of financing. A Class A, 236,921-Square-Foot Office Building with Long-Term Anchor Tenant and Value Upside 86.1 Percent Leased in High Demographic Location TRIATRIA TRIATRIA

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Page 1: TRIATRIA - Transwestern...FARMINGTON HILLS, MI Transwestern is pleased to exclusively offer investors the opportunity to acquire a 100 percent fee simple interest in the TriAtria office

3 2 2 5 5 N O R T H W E S T E R N H I G H W A YF A R M I N G T O N H I L L S , M I

Transwestern is pleased to exclusively offer investors the opportunity to acquire a 100 percent fee simple interest in the TriAtria office building, located at 32255 Northwestern Highway in Farmington Hills, Michigan (“TriAtria or “the Property”). The building contains 236,921 square feet Class A office space, and is 86.1 percent leased overall. Constructed in 1986, the asset is being offered to qualified investors on an “as is” basis.

• TriAtria is among the highest quality Class A buildings in the Bloomfield/Farmington Hills submarket and in the suburban Detroit office market. The offering provides the investor stable, contractual cash flow backed by a long-term anchor tenant lease.

• The investor has the opportunity to purchase one of the premier assets in the marketplace as the local office mar-ket and economy begins to accelerate and strengthen. In addition to its strong cash flow, the investment offers ad-ditional upside potential through the lease-up of vacant space with rising rents in the submarket.

• The building is 86.1 percent leased by a desirable roster of tenants and is anchored by a 92,074-square-foot lease with Millennium Medical through December 31, 2024.

• TriAtria is located within the heart of the Bloomfield/Farmington Hills submarket, one of suburban Detroit’s strongest demograph-ic and most accessible submarkets. Farmington Hills is known as one of Michigan’s premier office markets because of its loca-tion along Northwestern Highway and the I-696/I-275 corridor in Oakland County, one of the most affluent counties in the U.S. The area’s desirable demographics place it at the upper end of the Detroit marketplace.

• The Property enjoys an infill location, with substantial impediments to new development including scarcity of new buildable sites and the high cost of new construction relative to market rental rates.

• The Property is offered free and clear of financing.

A Class A, 236,921-Square-Foot Office Building with Long-Term Anchor Tenant and Value Upside 86.1 Percent Leased in High Demographic Location

TRIATRIATRIATRIA

Page 2: TRIATRIA - Transwestern...FARMINGTON HILLS, MI Transwestern is pleased to exclusively offer investors the opportunity to acquire a 100 percent fee simple interest in the TriAtria office

Detroit Market Advantage

On a comparative basis, landlords in the Detroit market realize stronger effective leasing economics when compared to other major Midwestern markets. Rents in suburban Detroit are on par with those in other Midwest suburban markets, yet tenant improvement allowances, leasing commissions and operating expenses are significantly lower. These attractive leasing metrics, in concert with the market improvement and economic recovery, are very favorable for office property owners in Detroit.

Best in Class Buildings in Bloomfield/Farmington Hills Market

Built in 1986, TriAtria has a high-image lobby and common areas with structured executive parking. The iconic building is recognized among the finest Class A buildings in the market. The building has benefited from long-term institutional ownership and is in excellent physical condition.

Desirable Tenant Mix & Long-term Anchor Tenancy

The building is leased to a diverse mix of strong corporate and local tenancy. The tenancy offers a mix of companies in a variety of industries including financial services, insurance and medical industries. The largest tenant is Millennium Medical which occupies 92,074 square feet through December 2024 and occupies the majority of the first floor. Credit tenants located at TriAtria include financial service firms Merrill Lynch, Willis of Michigan and Ameriprise.

Positive Leasing Momentum

TriAtria’s leasing activity has been strong relative to the market, with several recent renewals and a new 11-year lease for 92,074 square feet. A total of 118,295 square feet of new and renewal leases have been completed at TriAtria in the last 24 months. This leasing occurred as the market emerged from one of the most challenging environments in the marketplace’s history, further attesting to the inherent quality of the building. TriAtria is well-positioned to attract and retain tenancy in the future at increased rental rates as the Detroit and Bloomfield/Farmington Hills office markets continue their recovery.

T R I A T R I A

F A R M I N G T O N H I L L S , M I

TRIATRIA

Square Footage 236,921 SF

Percent Occupied 86.1%

Year One NOI $2,416,072

Anchor Tenants Millenium Medical (92,074 SF)

Merrill Lynch (33,959 SF)

Willis of Michigan (20,045 SF)

Ameriprise (8,700 SF)

The opportunity offers investors strong leveraged cash-flow and IRR metrics - core plus profile with value-add returns.

Detroit investment market is rapidly rising with increasing liquidity and data points.

The building is well positioned in the Northwestern Highway corridor from a leasing perspective. Both the building and competitive set out-perform the broader market.

Detroit is a lower cost tenancy market from a landlord perspective.Higher effective net rents than most midwest markets and lower transaction costs are attractive.

Average weighted lease term of 5.8 years. Millennium Medical, long-term tenant Merrill Lynch, and Willis of Michigan provide a strong base of cash flow from which to create future value through renewals and expansions.

Page 3: TRIATRIA - Transwestern...FARMINGTON HILLS, MI Transwestern is pleased to exclusively offer investors the opportunity to acquire a 100 percent fee simple interest in the TriAtria office

Strategic Location

TriAtria is strategically located in the northern, higher demographic portion of the office market along Northwestern Highway and just off I-696. Amenities in the area include several retail shopping centers, restaurants, hotels, golf courses and day cares.

Job Growth & Exceptional Oakland County Demographics

The subject property is located in Oakland County, which currently ranks in the top five most affluent counties in the nation. The Bloomfield/Farmington Hills submarket is considered by local, regional and national tenants as a preferred address due to its unmatched amenity base and ideal proximity to all areas of the Detroit MSA. Oakland County is expected to add approximately 41,000 jobs over the next three years. This will continue to positively impact the unemployment rate which is currently at 7.4 percent, well below the Detroit MSA average of 7.9 percent and the City of Detroit’s 14.5 percent rate.

T R I A T R I A

F A R M I N G T O N H I L L S , M I

Unemployment Rate in Detroit MSA17.5

15.0

12.5

10.0

7.5

5.0

2.5

1990 1995 2000 2005 2010

Shaded areas indicate US recessions

Page 4: TRIATRIA - Transwestern...FARMINGTON HILLS, MI Transwestern is pleased to exclusively offer investors the opportunity to acquire a 100 percent fee simple interest in the TriAtria office

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TriAtria

The information contained in this marketing brochure has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guaranty, warranty or repre-sentation about it. It is the responsibility of each prospective purchaser to independently verify its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example purposes only and do not represent the current or future performance of the property. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the value and condition of the property, the information contained in the marketing brochure, and the advisability of purchasing the property. This marketing brochure may be rescinded or altered and the property may be sold, leased or withdrawn from the market without notice. Brokers are not authorized to make any representations or agreements on behalf of the property owner or bind the property owner to any agreement for sale of the property.

All inquires should be directed to the attention of one of the following representatives:

TRANSWESTERN CHICAGO200 West Madison St., Suite 3300Chicago, IL 60606

GARY NUSSBAUMManaging [email protected]

THOMAS GORMANManaging [email protected]

DAVID MATHEISSenior [email protected]

TRANSWESTERN DETROIT32255 Northwester Highway, Suite 218Farmington Hills, MI 48334

BILL HARVEYSenior Vice President248.932.2840 [email protected]

T R I A T R I A

F A R M I N G T O N H I L L S , M I