Monroe Shopping Center

Monroe, Michigan

Offering Summary

  • Status: active
  • Price: $4,300,000
  • CAP Rate: 8.08%
  • GLA: 57,184 SF
  • Net Operating Income: $347,343
  • Price/SF: $75.20
  • Year(s) Built: 1955
  • Year(s) Renovated: 1983
  • Lot Size (Acres): TBD Upon Lot Split
  • Major Tenants: Dollar Tree, Monroe College of Beauty, Fresenius, Once Upon A Child, Metro PCS
  • 72% Occupied, 57,184 SF Kroger Shadow-Anchored Community Shopping Center in Monroe, MI (Detroit MSA)
  • Kroger (NAP) is Leased thru April 2034 – Reliable Long-Term Shadow Anchor and Highly Successful Store Reporting Sales of Over $45 Million in 2019 – $558/SF
  • Kroger is a Major Traffic Driver – Store is Adjacent to Downtown and is the Only National Grocer Serving Residents South of the River; Primary Grocery Store Serving Approx. 40% of Monroe’s Population
  • High-Yield Value-Add Opportunity Priced Below Replacement Cost at $75/SF; 8.08% CAP on In-Place NOI Offering 11.3% Year 1 Cash-on-Cash Return & 22.9% 10-Year Leveraged IRR at List Price with Proposed Financing Terms
  • Significant Upside Opportunity – 11.1% Stabilized CAP Rate in Year 2 via Lease-Up of 15,872 SF Vacancy (18% of GLA) at $6/SF NNN – Potential to Subdivide into Smaller Units
  • Majority of GLA is Leased to National Tenants – Dollar Tree, Fresenius Kidney Care, Once Upon a Child, Metro PCS, Great Clips, and H&R Block
  • All Current Tenants Subject to Pro Rata NNN Leases, Fully Reimbursing for Landlord Operating Expenses
  • Dollar Tree Occupies 21% of GLA on NNN lease thru 2026 – Recent 5-Year Extension
  • Monroe College of Beauty Occupies 15.3% of GLA on NNN Lease thru June 2030 with 2% Annual Rent Increases
  • Sustained Rents in the Range of $14-$18/SF NNN for Small-Shop Units from 1,000 to 2,000 SF Demonstrates the Desirability & Demand for Small-Shop Space in the Center
  • “Daily Needs” Tenant Base with 9 Current Tenants Provides Diversity of Income and Shelters from E-Commerce & Economic Recession Risk
  • Fresenius Just Early-Extended Lease for 5 Years with 7.5% Rent Increase – Occupies 15% of GLA thru 2026
  • Dense Infill Location – 10,533 Residents & 4,278 Households within 1-Mi Radius
  • Located Along S Monroe Street with 900 Feet of Frontage and Traffic Counts of 17,000 VPD, Signalized Main Entrance with 5 Other Points of Ingress/Egress
  • Closest Grocery Store and Multi-Tenant Retail Center to Two I-76 Exits Serving Monroe (La Plaisance Road Exit and E Front Street Exit) – I-76 sees 65,500 VPD
  • Situated Along the I-75 Corridor Between Toledo, OH and Detroit – 30 Mins from Detroit Suburbs & 20 Mins from Toledo Suburbs
  • Additional Cross-Traffic from Kroger Fuel Station and Wendy’s Outparcels (not included in sale)
  • Located at Epicenter of Central/Downtown Monroe Retail – Adjacent Tenants Include CVS, Dollar General, AutoZone, McDonald’s, and Jimmy’ John’s, and Others Nearby Include KFC, Tim Hortons, Firestone, Verizon, Huntington Bank & Fifth Third Bank
  • Detroit MSA – Top 15 Metro in the U.S., Second Largest Metro in the Midwest with a Population of 4.3 Million; Home to Ford, General Motors, Fiat Chrysler, Quicken Loans, Several Major Health Systems, Energy Companies, Auto Suppliers, and More

Erin Patton

Senior Managing Director