375-391 south street, rochester, MI 48307

Once in a generation opportunity in Rochester Michigan. This 5-unit flex building on highly desirable South Street with I-2 Zoning. In 10 years of ownership the buildings have always been occupied, with a low turnover of tenants and have never had to advertise. Each unit is about 2400 square feet and has an office and restroom as well as a shop area that also has a restroom (Approximately 400 sq ft of office and 2000 warehouse and two restrooms per unit). One unit has two overhead doors, and the others have one. Each unit has approximately 1600 sq feet of additional outside storage in the back of each unit. The units are fully leased with 200/year per unit of monthly rent increases baked into the leases. The tenants are all under triple net leases, which means they are fully responsible for their units and the taxes associated with them. The parking lot has been recently repaired and the roof has been replaced in phases during the last ownership. Ownership expenses are very low – outside repairs and taxes associate with the business. Two leases terminate at the end of 2025 and three terminate in February of 2027. The February 2027 leases have two one-year extensions built in with rent rate negotiated between ownership and tenant. At a 7.5 cap rate the rent increases baked into the leases will drive the building value about 150,000 per year starting in 2025. The total return on this investment at the asking price is double digits. Market rates on this property are between

IDX provided courtesy of Realcomp II Ltd. via American Associates, Inc. REALTORS and Realcomp II Ltd., ©2024 Realcomp II Ltd. Shareholders Listing By: John Hawthorne of Keller Williams Realty-Great Lakes, Phone: (586) 541-4000