Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase Belle Mead Shopping Center, a 41,032 square foot neighborhood retail center located in Davison, Michigan. This opportunity is offered at a 9.75 percent CAP rate with an asking price of $2,005,000. The asset is 100 percent occupied and anchored by a Family Dollar. The Family Dollar and regional pet supply store on site account for 59.7 percent of the gross leasable area and roughly 52 percent of the rental income. Both occupants have been at the subject asset since 2005.The property is occupied by a selection of mostly regional tenants, all of whom are operating on gross leases. The tenants are responsible for utilities and reimburse the landlord for their pro-rata share. The Davison retail market suggests that the current average rent of $7.46 per square foot, should be significantly higher, closer to $13 per square foot. Doogies Pet Supply Store is currently paying $5.71 per square foot gross and occupy 37.4 percent of the gross leasable area. Additionally, there is an unutilized space at the front of the parcel that would be suitable for an outpad. The asset benefits from a large pylon that provides great visibility to drivers passing the site. The shopping center is easily accessible with multiple points of ingress and egress. The asset is shadow anchored by a regional grocery store. The roof was fully replaced in 2023 with a 5-year warranty in place. At the current asking price there is a day one cash-on-cash return of 13.6 percent, with currently available debt. The year-two CAP rate is projected to increase to 10.3 percent, as well as the cash-on-cash return to increase to 15.4 percent. Priced at $48.86 per square foot, this center could not be built today for triple the current asking price. Davison is located in Central Michigan, conveniently situated 10 miles east of Flint and 63 miles north of Detroit. This is a golden opportunity to purchase a fully stabilized cash flowing asset with low replaceable rents and additional development opportunity upside.