Two-Tenant Drive-Thru Investment
For Sale
Contact for pricing
1275 Boardman Rd, Jackson, MI 49202
Two-tenant drive-thru building with long-term leases in Jackson, Michigan.
Property Size8,739 SF
Price / SF$335.62
Days on Market200
Property Features for 1275 Boardman Rd
General Information
Standard status
Active
Size
8,739 SF
Class
A
Property subtype
Retail
Zoning
PB
Building Details
Year Built
2006
Listing Agency:
CBRE - Phoenix
(859) 640-9498
Listed By:
Benjamin Farthing · License #AZ SA673557000
Source:
Crexi
Added: Feb 2
Changed: Aug 8
Last Checked: Aug 8 at 6:32AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of CBRE - Phoenix
Investment Insights
Based on property information with market context.
This investment opportunity features a two-tenant drive-thru building occupied by Panera Bread and Pizza Hut. The property operates under a master ground lease with an absolute triple-net (NNN) lease structure. Approximately 10 years of term remain, with two five-year option periods. Both Panera and Pizza Hut have operated at this location for approximately 20 years and recently exercised an early option to extend their leases. The property is strategically positioned as a hard corner outparcel to Jackson Crossing, a regional power center with approximately 420,238 square feet and approximately 1.8 million annual visitors. Nearby national retailers include Target, Lowe’s Home Improvement, Home Depot, Kroger, Ross Dress for Less, and TJ Maxx. Jackson Technology Park North, just north of the subject property, is an approximately 140-acre industrial development attracting manufacturing and technology companies to Jackson, expanding on the current employer base of TAC Manufacturing. The property contains 8739 square feet and is located at 1275 Boardman Rd, Jackson, MI 49202.
Key Highlights
- Two established tenants (Panera Bread and Pizza Hut) with a 20‑year operating history and recent lease extensions.
- Absolute triple‑net (NNN) lease structure, offering a passive investment opportunity.
- Approximately 10 years of remaining lease term with two (2), five (5) year option periods.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$83,032
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
2.83%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,660,640
$1.7M
Cap Rate 7%
$1,186,171
$1.2M
Cap Rate 9%
$922,578
$922.6K
Market Conditions
NOI Build-Up for 8,739 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$120.6K $13.80/SF
− Vacancy
−$9.9K −$1.13/SF
EGI
$110.7K $12.67/SF
− OpEx
−$27.7K −$3.17/SF
NOI
$83.0K $9.50/SF
Area
Jackson County, MI
Vacancy
8.20%
Lease Rate
$13.80 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,660,640
Cap Rate 7%
$1,186,171
Cap Rate 9%
$922,578
Alternative Uses
Best Use
Specialty Retail
$1.19M
$1.04M – $1.38M
NOI $83,032 @ 7.0% cap · market cap 2.83%
Second Best
Retail
$861.0K
$753.4K – $1.00M
NOI $60,268 @ 7.0% cap · market cap 2.05%
Theoretical Best
Office A
$1.40M
$1.22M – $1.63M
NOI $97,653 @ 7.0% cap · market cap 3.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
504
Businesses Nearby
742k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 26%
Shops & Services 23%
Apparel 18%
Superstores 13%
Target
Superstores
97,723 visits/mo
0.3 miles
Kohl's
Apparel
53,166 visits/mo
0.2 miles
Hobby Lobby
Shops & Services
35,806 visits/mo
0.2 miles
Five Below
Shops & Services
35,556 visits/mo
0.2 miles
Lowe's
Home Improvements & Furnishings
35,445 visits/mo
0.5 miles
Demographics for 49202, MI
19,359
Population
9,598
Households
2
Avg Household Size
37
Median Age
15%
College-Educated
91%
High-School Grad
12.7 sq mi
ZIP Area
1,524
Density / Sq Mi
$41,916
Median Household Income
$30,638
Median Earnings
$915
Median Rent
$104,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Two-tenant drive-thru building with long-term leases in Jackson, Michigan.
Where is this retail space located?
The property is located at 1275 Boardman Rd Jackson, MI.
What is the asking price?
The asking price for this property is $2,933,000.
What are key features of this property?
This property features: Two established tenants (Panera Bread and Pizza Hut) with a 20‑year operating history and recent lease extensions.; Absolute triple‑net (NNN) lease structure, offering a passive investment opportunity.; Approximately 10 years of remaining lease term with two (2), five (5) year option periods.
