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Shopping Strip

Buddy's Pizza & Vitamin Shoppe

5924 W Saginaw Hwy, Lansing, MI 48917

Listing Price: $4,819,092

Cap Rate
6.50%
Gross SF
9,942
Rentable SF
9,942
Price/Gross SF
$484.72
Lot Size
1.57 acres
Year Built
2014

Investment Overview

Marcus & Millichap is pleased to present this two-tenant retail center located at 5924 W Saginaw Hwy in Lansing, Michigan. The property is situated on a 1.57-acre parcel with ample parking and 9,942-square feet of rentable space. A new portion of the pavement and LED lighting in the parking lot were installed in 2020, and the roof is still under warranty. The anchor tenant, Buddy’s Pizza, executed a 15-year corporate NNN lease in 2020 and has 10% rent increases scheduled every five years. The tenant spent over $1 million to build-out the space. There are four, five-year options to renew and 10% rent increases in each of the option period. The next rent increase will occur in 2025. The restaurant is a Detroit-based chain, specializing in the Detroit-Style Pizza. Buddy’s currently has 21 locations throughout Michigan, with plans to open two additional restaurants in 2022. Vitamin Shoppe is also on a corporately guaranteed NNN lease with approximately two and a half years of term remaining. The tenant has two, five-year options, each with a 10% rent increase. The omni-channel retailer offers a variety of vitamins, minerals, herbs, specialty supplements and other heal and wellness products and currently has over 785 store locations nationally. The subject property is located within the dominant retail hub of the market with nearly nine million square feet of retail within a five-mile radius. Notable retailers in the immediate area include Target, Meijer, ALDI, Big Lots, Kroger, Kohl’s, Best Buy and TJ Maxx to name a few. There is little competition on the western edge of the Lansing market and occupancies are strong. As the State Capital, Lansing is a core, long term market. The economy in the Lansing-East Lansing MSA employs nearly 285,000 people and is anchored by state government and Michigan State University. The largest industries include Educational Services (33,940 people), Heath Care & Social Assistance (29,914 people), and Manufacturing (26,800 people). From 2017 to 2018, employment in the Lansing-East Lansing MSA grew at a rate of 2.02 percent, from 233k employees to 237k employees. The Buddy’s Pizza & Vitamin Shoppe center is an excellent opportunity to acquire a stable asset situated in a core retail market.

Investment Highlights

  • 100% Occupied Two-Tenant Retail Center | Corporately Guaranteed NNN Leases
  • Buddy's Lease Features 10% Rent Increases Every Five Years | Next Increase in 2025
  • Buddy's Spent Over $1 Million on Their Build-out
  • Minimal Landlord Responsibilities | Reimbursed by Tenants | New Roof in 2014, Still Under Warranty
  • Portion of Parking Lot and LED Parking Lot Lighting Installed in 2020
  • Core Retail Corridor - Nearly Nine Million Square Feet of Retail Within Five Miles
  • Nearby National Retail: Target, Meijer, ALDI, Kroger, Kohl's, Best Buy & TJ Maxx
  • More than 115,000 People Within Five Miles | Increasing Population Demographics

Exclusively Listed By

Shopping Strip

Buddy's Pizza & Vitamin Shoppe

Listing Price: $4,819,092

Cap Rate
6.50%
Gross SF
9,942
Rentable SF
9,942
Price/Gross SF
$484.72
Lot Size
1.57 acres
Year Built
2014

Investment Highlights

  • 100% Occupied Two-Tenant Retail Center | Corporately Guaranteed NNN Leases
  • Buddy's Lease Features 10% Rent Increases Every Five Years | Next Increase in 2025
  • Buddy's Spent Over $1 Million on Their Build-out
  • Minimal Landlord Responsibilities | Reimbursed by Tenants | New Roof in 2014, Still Under Warranty
  • Portion of Parking Lot and LED Parking Lot Lighting Installed in 2020
  • Core Retail Corridor - Nearly Nine Million Square Feet of Retail Within Five Miles
  • Nearby National Retail: Target, Meijer, ALDI, Kroger, Kohl's, Best Buy & TJ Maxx
  • More than 115,000 People Within Five Miles | Increasing Population Demographics

Investment Overview

Marcus & Millichap is pleased to present this two-tenant retail center located at 5924 W Saginaw Hwy in Lansing, Michigan. The property is situated on a 1.57-acre parcel with ample parking and 9,942-square feet of rentable space. A new portion of the pavement and LED lighting in the parking lot were installed in 2020, and the roof is still under warranty. The anchor tenant, Buddy’s Pizza, executed a 15-year corporate NNN lease in 2020 and has 10% rent increases scheduled every five years. The tenant spent over $1 million to build-out the space. There are four, five-year options to renew and 10% rent increases in each of the option period. The next rent increase will occur in 2025. The restaurant is a Detroit-based chain, specializing in the Detroit-Style Pizza. Buddy’s currently has 21 locations throughout Michigan, with plans to open two additional restaurants in 2022. Vitamin Shoppe is also on a corporately guaranteed NNN lease with approximately two and a half years of term remaining. The tenant has two, five-year options, each with a 10% rent increase. The omni-channel retailer offers a variety of vitamins, minerals, herbs, specialty supplements and other heal and wellness products and currently has over 785 store locations nationally. The subject property is located within the dominant retail hub of the market with nearly nine million square feet of retail within a five-mile radius. Notable retailers in the immediate area include Target, Meijer, ALDI, Big Lots, Kroger, Kohl’s, Best Buy and TJ Maxx to name a few. There is little competition on the western edge of the Lansing market and occupancies are strong. As the State Capital, Lansing is a core, long term market. The economy in the Lansing-East Lansing MSA employs nearly 285,000 people and is anchored by state government and Michigan State University. The largest industries include Educational Services (33,940 people), Heath Care & Social Assistance (29,914 people), and Manufacturing (26,800 people). From 2017 to 2018, employment in the Lansing-East Lansing MSA grew at a rate of 2.02 percent, from 233k employees to 237k employees. The Buddy’s Pizza & Vitamin Shoppe center is an excellent opportunity to acquire a stable asset situated in a core retail market.

Exclusively Listed By

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