26890 Adell Center Dr, Novi, MI 48375

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, freestanding Carvana investment property located in Novi, Michigan (Detroit MSA). The tenant, Carvana, LLC has approximately 17 years remaining with 4 (5-year) options to extend, demonstrating their long-term commitment to the site. The lease features increases equal to the lesser of (i) 7.92337% or (ii) 1.25x CPI throughout the initial term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor.

Founded in 2012, Carvana currently operates from 40+ locations and is ranked as a fortune 500 company. Carvana is among the largest and fastest growing online used car dealerships in the United States. From trading below $5 at the end of 2022, the stock has shot up around 38 times since then. Shares of CVNA closed at $226 in November of 2024. Over the past year, shares of CVNA have rocketed more than 500%, breezing past the broader market and its close peers, including CarMax (KMX), AutoNation (AN) and Sonic Automotive (SAH).

The asset is strategically located off Interstate 96, an arterial thoroughfare which serves over 152,000 vehicles per day. Furthermore, the site benefits from nearby access to Novi Road (36,400 VPD), West 12 Mile Road (34,400 VPD), and Grand River Ave (25,400 VPD), making this an ideal, centralized location with easy commutes. In addition, the subject property is located adjacent to Twelve Oaks Mall, a 1.5M SF super regional mall anchored by Nordstrom, Macy’s, Crate & Barrel, and more. Twelve Oaks Mall ranks in the top 93rd percentile of regional malls per placer.ai, greatly increasing consumer draw to the immediate subject trade area. Other nearby national/credit tenants include Walmart Supercenter, Hobby Lobby, TJ Maxx, Kohls, Marshalls, HomeGoods, Burlington, and more. Strong tenant synergy further increases consumer traffic to the subject trade area and promotes crossover tenant exposure. Moreover, the subject property is ideally positioned within walking distance from multiple apartment complexes including The Bond (260 units), The Residences at Sakura Novi (177 units), Mainstreet Village (389 units), and more, providing a direct residential consumer base from which to draw. The 5-mile subject trade area is supported by more than 166,000 residents and 125,000 daytime employees. Residents within a 3-mile radius boast an extremely affluent average household income of more than $151,000.