Investment Overview

Marcus & Millichap is pleased to offer, on an exclusive basis, the State Street Office Center. This is a solid investment opportunity to acquire a well-positioned, two-building professional office property in Ann Arbor, Michigan. These contemporary, modern two-story facilities total 27,547 square feet with eight suites in place. The buildings are in excellent condition and are close to the I-94 Freeway, downtown Ann Arbor and the University of Michigan campus. Owned by the original developer, these buildings represent a rare investment opportunity along one of the most highly trafficked and commercially active corridors in the Ann Arbor market. Developed in two phases in 2001 and then 2011, the property has a history of being at or near 100% leased for the great majority of its operational existence. Positioned less than two miles from downtown Ann Arbor and the University of Michigan campus, the properties benefit from exceptional visibility, strong vehicular traffic, and direct access to I-94 and US-23, offering regional accessibility across Southeast Michigan. The strategic location near one of the country’s leading public universities supports a dynamic tenant base, largely comprised of professional services, law and legal firms, and insurance corporate service. The tenants all have some longer-term history in the facility and there is some upside in that one small suite of 1,510 square feet or 5.48% is vacant. Ann Arbor is widely considered one of the most desirable investment markets in the Midwest, supported by a robust and recession-resistant economic base and a 375,000 MSA population. The University of Michigan, with over 50,000 enrolled students and employing more than 30,000 people, anchors the region. It provides an intellectual and entrepreneurial ecosystem that attracts venture capital, startup activity, and global research funding. Health care, technology, and automotive engineering particularly through institutions like University of Michigan Health Center, Michigan Medicine, Toyota and Hyundai are major economic drivers. With this broad market, the tenant base for office space is large, with relatively low vacancy rates and strong rental rates across high-traffic corridors like South State Street. Currently (June 15, 2025), CoStar shows the entire office stock in the identified “West of U.S. 23” submarket at 11.2M square feet, with the 4-star property vacancy at 7.10 percent and a market rent of $32.30 per sqaure foot.