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    2851 Russell St Detroit, MI 48207

    Sponsored
    For Sale
    $16,589,000

    48,960 SF, 7.67% Cap Rate, 15-Year Lease

    Property size:
    48,960 SF

    Description

    Added:
    Dec 11, 2024
    Days on Market:
    391
    Exceptional investment opportunity: a 48,960-square-foot Class A medical office building in Detroit, Michigan. This sale-leaseback property boasts a 15-year lease commencing January 1, 2024, and expiring December 31, 2039, with two 5-year renewal options. The tenant, a prominent mental health care provider in Wayne County, occupies the entire building. The building, constructed in 1987 and extensively renovated between 2020 and 2023 (with ongoing improvements), features a two-story structure on a 1.27-acre lot in a prime location within the historic Eastern Market district. The property offers ample on-site parking, a rare amenity in a downtown setting. The building's strong NOI of $1,272,960 contributes to an attractive 7.67% cap rate. The asking price is $16,589,000. The lease is structured as a triple-net lease (NNN) with rent of $26 per square foot for years 1-5, increasing by 15% for years 6-10 and again for years 11-15. This presents a compelling opportunity to acquire a stable, high-performing asset in a revitalizing urban area with potential for future expansion and redevelopment. The property's location within the vibrant Eastern Market, alongside over 150 businesses, ensures high visibility and accessibility. This is a rare opportunity to invest in a well-established medical facility with a long-term lease and significant upside potential.

    Property Features for 2851 Russell St

    General Information

    Property type
    Medical offices
    Square Feet
    48,960 SF
    Class
    A

    Building Details

    Year Built/Renovated
    1987/2020
    Buildings
    1
    Stories
    2

    HighLights

    • Seller financing available: 15‑year leaseback at $26/SF NNN, with 15% rent increases at years 5 and 10; no landlord responsibilities.
    • Prime location: Main street, Eastern Market, Detroit – one of the oldest and largest year‑round markets in the US, featuring over 150 businesses in a vibrant food‑centric district.
    • Ample parking: On‑site and public parking available, a rarity in downtown business districts.
    • Exceptional opportunity: Established in a 150‑year‑old market, benefiting from Detroit's revitalization and new residential growth; redevelopment potential.
    • Portfolio potential: Possible sale includes a separate 61,000 SF medical building (6309 Mack Ave, Detroit) leased to Team Wellness.
    Property Profile Location Intelligence

    Current Use by Public Records

    Medical offices

    Suggested Use

    Restaurant Realty agency Law Firm Building Supply Spa & Massage Dental Office Wholesale Shop Auto Repair Shop Hair Salon Nail Salon

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Detroit
    County
    Wayne
    State
    Michigan
    Longitude
    -83.042063
    Latitude
    42.348111

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    FAQs

    What type of property is this?
    Medical office - 48,960 SF, 7.67% Cap Rate, 15-Year Lease
    Where is this medical office located?
    The property is located at 2851 Russell St Detroit, MI.
    What is the asking price?
    The asking price for this property is $16,589,000.
    What are key features of this property?
    This property features: Seller financing available: 15-year leaseback at $26/SF NNN, with 15% rent increases at years 5 and 10; no landlord responsibilities.; Prime location: Main street, Eastern Market, Detroit – one of the oldest and largest year-round markets in the US, featuring over 150 businesses in a vibrant food-centric district.; Ample parking: On-site and public parking available, a rarity in downtown business districts.
    Request Owner's contact information
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    Realmo Value Estimation

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.

    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.

    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    2851 Russell St Detroit, MI 48207
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