37235-45 S Groesbeck Hwy Clinton Twp, MI 48036

📅 Acquisition The subject property at 37235 S Groesbeck Hwy was acquired on August 8, 2022, from its original owner. Built in 1973, this ±14,000 SF retail center had served the local community for decades. However, due to the combined impact of the COVID-19 pandemic and absentee ownership, occupancy had declined significantly at the time of acquisition. Only two long-term tenants remained, occupying a total of 2,835 SF at an average rent of $12/SF/YR. 🛠 Renovation & Stabilization Immediately following acquisition, the ownership undertook a comprehensive renovation strategy. Every aspect of the property was upgraded to modern standards, including: Full exterior improvements: new façade, signage, lighting (soffit, landscape, and parking lot), paint, mailboxes, and partial roof repair. Interior renovations for each vacant unit: custom flooring, drywall, new doors and hardware, toilets, vanities, plumbing, electrical, ductwork cleaning, and HVAC certifications. Code compliance: City Certifications, Fire Department approvals, and Certificates of Occupancy were secured for each unit. The property was repositioned with pandemic-resilient, essential-service businesses. The team engaged with the City Planner to ensure the tenant mix aligned with community needs and economic resilience. By January 2023, leasing demand surged. Ownership filled 12,635 SF of the plaza (90% occupancy), customizing each unit to suit tenant needs. Notably, restaurant fixtures in units 37327 and 37241 are owned by the landlord, adding asset value and future flexibility. 🔒 Long-Term Investment Strategy The long-term vision is to hold the property within an investment portfolio, with consistent cash flow and appreciation driven by strategic leasing and capital improvements. Key elements of the plan include: Tenant Mix: Anchored by essential service businesses such as a Thai restaurant, pizzeria, banquet center, multimedia company, furniture repair, and medical bi ling. Rental Upside: While current leases average $12/SF/YR, similar centers in the area lease between $14–$24/SF/YR. The stabilized income offers immediate yield, with room for rent escalations. Final Lease-Up Plan: The remaining vacancy (units 37243 and 37245) is slated for conversion into a coin laundry, a high-demand neighborhood amenity with recession-resistant cash flow. Refinancing Strategy: A long-term debt structure is planned to optimize cash flow by aligning monthly mortgage payments with stabilized rental income. Rent Growth Goal: Gradually increase lease rates to $14–$16/SF/YR over the next 3–5 years as tenant performance matures and surrounding redevelopment continues. With strong in-place cash flow, near-term value-add opportunities, and upside in market rent growth, 37235 S Groesbeck Hwy is positioned for sustainable long-term returns.