27600 Middlebelt Rd, Farmington Hills, MI 48334

Property Details for 27600 Middlebelt Rd

Lot size

7.54 lot acres

Property type

Lifestyle centers

Property subtype

Power centers

Description

Merchants Marketplace, a 63,805 square foot retail center in Farmington Hills, Michigan, presents a compelling value-add investment opportunity. This two-building, single-story property sits on 7.54 acres and boasts 98.1% occupancy with twelve tenants, including nationally recognized brands like CVS Pharmacy, Aldi, Kroger, Food Lion, Publix, and Winn-Dixie. Built in 1995 and 2006, the center features a diverse mix of essential and service-oriented retailers, creating a "recession-proof" tenant base. The property benefits from a strong average rent of $14.41 per square foot, with significant upside potential. Several leases are expiring soon, or lack option periods, offering opportunities to increase rental income. Two recent lease extensions resulted in rent increases of 25% and 45%, respectively. Eight tenants have annual rent increases built into their leases, providing a hedge against inflation. The property's location is ideal, surrounded by residential communities with over 60,500 residents and an average household income exceeding $139,000. Furthermore, over 164,000 daytime employees work within a five-mile radius. The asking price is $11,253,000, representing an 8.25% cap rate and a NOI of $928,372. An end-cap outparcel with approved drive-thru plans is currently vacant, presenting an additional lease-up opportunity. All leases are NNN, with tenants responsible for taxes, insurance, and common area maintenance. Many leases also include reimbursement clauses for certain capital expenditures. This property offers a rare combination of strong existing performance, significant upside potential, and a prime location in a thriving market.

Location Insight

City

Farmington Hills

County

Oakland

State

Michigan

Longitude

-83.3391

Latitude

42.4985