590 Lapeer Rd Lake Orion, MI 48362

Property Details for 590 Lapeer Rd

Year built

1980

Lot size

0.99 lot acres

Property size

2,923 SF

Zone code

BI

Property type

Drive through restaurants

APN

O -09-11-428-013

APU

O0911428013

Description

This exceptional investment opportunity presents a 1,100 square foot Starbucks located at 590 S Lapeer Rd, Orion Township, MI 48362. The property sits on a 0.99-acre lot and includes an outparcel to 1.93 acres of developable land, offering significant expansion potential. The Starbucks, built in 1980, operates under a Net Lease (NN) agreement with a corporate guarantee, ensuring consistent income. The current lease, commencing October 5, 2000, and expiring February 28, 2032, has a remaining term of 7.3 years, with five 5-year renewal options at 10% rent bumps each. The property boasts a 100% occupancy rate, generating a Net Operating Income (NOI) of $76,560, resulting in a 2.99% cap rate. The asking price is $2,560,000 ($2,327.27 per square foot). A new parking lot was installed in 2021, with the tenant paying an additional $7,600 annually as rent (amortized over a 10-year lease term). The property benefits from its location in an affluent area, with average household incomes of $77,000 within a 1-mile radius and $93,000 within a 5-mile radius. The area has approximately 58,000 residents within a 5-mile radius. This presents a rare chance to acquire a strong-performing, investment-grade tenant (S&P: A) property with substantial future development possibilities.