$ 1,100,000
375-391 SOUTH Street Rochester, MI 48307 2241
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$ 1,100,000
Est. payment | /mo
12,140 SqFt
$ 1,100,000
Est. payment | /mo
12,140 SqFt
Key Details
Property Type Commercial
Sub Type Commercial/Industrial
Listing Status Active
Purchase Type For Sale
Square Footage 12,140 sqft
Price per Sqft $90
MLS Listing ID 60333383
Annual Tax Amount $10,328
Lot Size 0.970 Acres
Acres 0.97
Lot Dimensions 275.00 x 153.00
Property Description
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 8 and 10 per square foot. Current tenants rent is well below market rate. There is a significant opportunity to strategically manage this property to achieve better results by moving rates to market over the next few years. At market rent it is estimated the building value will exceed 1,500,000. Land contract terms possible - 800,000 minimum down payment.
Location
State MI
County Oakland
Area Rochester (63152)
Zoning Commercial
Exterior
Waterfront No
Building
Foundation Slab
Water Public Water
Structure Type Block,Vinyl Siding
Others
Ownership Private
Financing Cash,Conventional
Provided through IDX via MiRealSource. Courtesy of MiRealSource Shareholder. Copyright MiRealSource.
Listed by Keller Williams Realty-Great Lakes
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