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2415- 2419 South Babcock St.
2419 S Babcock St, Melbourne, FL 32901
Listing Price: $3,200,000
Investment Overview
Marcus & Millichap is pleased to present the opportunity to acquire 2415–2419 S Babcock Street in Melbourne, Florida. The offering includes two adjacent buildings: 2415 S Babcock, an 8,520-square-foot Class A professional office center, and 2419 S Babcock, a ±12,800-square-foot multi-tenant retail center with a 6,400-square-foot sublevel. The office building features recent capital improvements including a new roof, upgraded HVAC units, refreshed pylon signage, and a modernized façade. The retail center has also undergone major renovations within the past year, including a new roof and HVAC systems. The lower level of the retail center will be delivered vacant, with a conservative projected income of $50,000/year ($7.85/SF), providing immediate value-add potential.
Both buildings are currently 100% occupied by long-term tenants operating under below market gross leases, creating a significant opportunity for a new owner to increase rental income through mark-to-market adjustments and conversion to NNN lease structures. The properties’ physical updates reduce near-term capital expenditure risk, while the in-place tenancy offers stable income and built-in upside.
Located in the heart of Melbourne, the properties benefit from strong surrounding demographics and economic fundamentals. Within a 3-mile radius, the population exceeds 60,000 with over 26,000 households, and projected growth of over 10% through 2029. The area also supports more than 43,000 daytime employees, driving demand for both professional services and retail businesses.
The Brevard County office and retail markets remain healthy, with average asking rents for similar office space at $22.98/SF, while the subject property sits well below market at $17.87/SF. Submarket vacancy rates have compressed to just 6.5%, indicating strong leasing momentum and limited availability. With the buildings fully occupied and significant value-add potential through lease restructuring and rent increases, this portfolio offers both stable cash flow and long-term upside.
2415- 2419 South Babcock St.
Investment Highlights
- Property Size – 6,400 Square Feet of Net Rentable Retail / Office Space on Ground Level
- Warehouse / Sublevel - 6,400 Square Foot Basement / Warehouse Space With Access from the Rear // Seller to Lease Back One Year of Rent at $50,000 ($9.35 P/SF) // Can also be Purchased Vacant at Closin
- Recently Renovated – New Roofs, HVAC Systems, Pylon Signage, and Modernized Façades
- Below-Market Gross Leases – Averaging $16.25/Square Feet vs. $22.50/Square Feet Market Average, Offering Rental Upside
- Opportunity To Convert Leases To NNN Structure – Significantly Increase Net Operating Income (All Tenants are on Short-Term Gross Leases)
- Strong Surrounding Demographics Growth – With 141,000+ Residents in the Five-Mile Radius and 10 Percent Growth Projected by 2029
- Demand Generators – Located Directly Across From Florida Institute of Technology with Frontage on Babcock Road (31,500 VPD)
- Prime Melbourne Location – Excellent Visibility, Access, and Proximity to key Demand Drivers
Exclusively Listed By
Listing Price: $3,200,000
Investment Highlights
- Property Size – 6,400 Square Feet of Net Rentable Retail / Office Space on Ground Level
- Warehouse / Sublevel - 6,400 Square Foot Basement / Warehouse Space With Access from the Rear // Seller to Lease Back One Year of Rent at $50,000 ($9.35 P/SF) // Can also be Purchased Vacant at Closin
- Recently Renovated – New Roofs, HVAC Systems, Pylon Signage, and Modernized Façades
- Below-Market Gross Leases – Averaging $16.25/Square Feet vs. $22.50/Square Feet Market Average, Offering Rental Upside
- Opportunity To Convert Leases To NNN Structure – Significantly Increase Net Operating Income (All Tenants are on Short-Term Gross Leases)
- Strong Surrounding Demographics Growth – With 141,000+ Residents in the Five-Mile Radius and 10 Percent Growth Projected by 2029
- Demand Generators – Located Directly Across From Florida Institute of Technology with Frontage on Babcock Road (31,500 VPD)
- Prime Melbourne Location – Excellent Visibility, Access, and Proximity to key Demand Drivers
Investment Overview
Marcus & Millichap is pleased to present the opportunity to acquire 2415–2419 S Babcock Street in Melbourne, Florida. The offering includes two adjacent buildings: 2415 S Babcock, an 8,520-square-foot Class A professional office center, and 2419 S Babcock, a ±12,800-square-foot multi-tenant retail center with a 6,400-square-foot sublevel. The office building features recent capital improvements including a new roof, upgraded HVAC units, refreshed pylon signage, and a modernized façade. The retail center has also undergone major renovations within the past year, including a new roof and HVAC systems. The lower level of the retail center will be delivered vacant, with a conservative projected income of $50,000/year ($7.85/SF), providing immediate value-add potential. Both buildings are currently 100% occupied by long-term tenants operating under below market gross leases, creating a significant opportunity for a new owner to increase rental income through mark-to-market adjustments and conversion to NNN lease structures. The properties’ physical updates reduce near-term capital expenditure risk, while the in-place tenancy offers stable income and built-in upside. Located in the heart of Melbourne, the properties benefit from strong surrounding demographics and economic fundamentals. Within a 3-mile radius, the population exceeds 60,000 with over 26,000 households, and projected growth of over 10% through 2029. The area also supports more than 43,000 daytime employees, driving demand for both professional services and retail businesses. The Brevard County office and retail markets remain healthy, with average asking rents for similar office space at $22.98/SF, while the subject property sits well below market at $17.87/SF. Submarket vacancy rates have compressed to just 6.5%, indicating strong leasing momentum and limited availability. With the buildings fully occupied and significant value-add potential through lease restructuring and rent increases, this portfolio offers both stable cash flow and long-term upside.
Exclusively Listed By
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