Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a three-tenant ‘Med-Tail’ property, located on a padsite to larger retail development that is actively being redeveloped by current ownership. The tenant mix is quite desirable, with the vast majority of the gross leasable area leased to medical users. Featuring a pediatric dentist, a health clinic for one of Northwest Indiana’s most prominent employers (Urschel Labs), as well as a UPS Store – these tenants have all operated at this location for more than a decade. The historical occupancy at this property is also impressive, with no vacancies in the last 10 years. The UPS Store ranks as one of the top locations in the country, with annual visits of over 107,000, equating to 273 visits per day, per Placer.AI. This statistic ranks this UPS location in the top 8 percent of their stores nationally. The tenants here have all signed multiple renewal options throughout their tenures at the property. Overall rents are modest and replaceable, averaging in the low-$20 per square foot range. The leases also feature annual rent increases that should increase a new owner’s Year Two Cap Rate more than 20 basis points. Also appealing, there are no renewal options remaining, meaning that a new owner could raise rents to market as all the leases roll in the next couple years. At the asking price, the property can be purchased below $300 per square foot, well under what it would cost to build a class A, masonry retail center today in a similarly compelling location. With the cost of debt becoming increasingly more attractive, this property can be financed with nearly positive leverage, as well as a total return – which includes paydown of mortgage principal – that is well in excess of the entry cap rate. Please reach out to Marcus & Millichap with additional questions and interest.