3555 W New Haven Ave, Melbourne, FL 32904

Prime Florida Location Below Market Rent

• Strategic Positioning: Located on Highway 192, Melbourne's primary retail corridor with significant daily traffic, providing exceptional visibility and access.
• Close to Key Developments: Proximity to Space Coast Town Centre, a 170-acre transformative mixed-use community featuring 6,200 homes, retail, dining, and entertainment options. This development is expected to drive foot traffic and increase property value over time.
• Economic Growth Hub: Melbourne is central to Florida’s Space Coast, renowned for its robust economy driven by aerospace, technology, and defense industries. Major employers like SpaceX, Blue Origin, Lockheed Martin, and Northrop Grumman continue to attract talent and investment to the area.

Stable and Growing Income Stream

• Strong Tenant: Northern Tool + Equipment is a reputable and established retailer with over 120 locations nationwide, providing confidence in tenant reliability.
• Secure Lease Terms:
  • Long-term lease with approximately 8 years remaining.
  • Scheduled 5% rental increases every 5 years provide steady income growth.
  • Three 5-year renewal options ensure long-term income stability.
• Minimal Landlord Responsibilities: The tenant handles taxes, insurance, and maintenance, limiting the landlord’s exposure to operational risks and costs.

Property Attributes

• Well-Maintained Asset: Built in 2006, the property has undergone recent capital improvements, reducing near-term maintenance risks.
• Generous Lot Size: Spanning 3.43 acres, the property allows for future redevelopment or expansion opportunities.
• Spacious Parking: 89 parking spaces with a favorable parking ratio (3.53/1,000 SF) cater to high customer traffic and support tenant success.
• Modern Construction: The 25,531 SF retail building is well-suited to Northern Tool's operational needs and adaptable for future tenants if necessary.

Economic and Demographic Advantages

• Growth-Oriented Market:
  • Melbourne has seen significant population growth
  • Average household income in the 1-mile radius is $113,090, indicating a strong customer base with purchasing power.
• Resilient Job Market: Ranked among the best for job growth and fastest-growing metros in the U.S., Melbourne is a magnet for innovation and talent.
• Lifestyle Appeal:
  • Named one of the top 3 places to live in Florida by U.S. News & World Report.
  • Attractive amenities like beaches, parks, and a vibrant downtown make it a desirable area for both businesses and residents.

Tenant Strength

• Diversified Revenue Streams: Northern Tool operates across retail, e-commerce, catalogs, and private label manufacturing, reducing dependency on any single revenue channel.
• Recession-Resilient Business Model: Offers essential tools and equipment to professional and DIY customers, maintaining demand even in economic downturns.
• Strong Brand Recognition: Over 40 years in business with a loyal customer base and a reputation for quality.

Investment Highlights

• Cap Rate: Attractive 5.25% cap rate for a property with a reliable tenant and stable lease structure.
• Future Upside:
  • Rental escalations ensure increasing returns over time.
  • The burgeoning Space Coast development will continue to enhance property value and desirability.
• Ease of Ownership:
  • Fee simple ownership provides complete control of the asset.
  • The lease significantly reduces the need for active property management, making this an ideal passive investment.

Competitive Market Position

• Located amidst strong national co-tenancy, including neighboring retail giants, ensuring high consumer traffic.
• The Space Coast's reputation as a hub for technological and economic advancement makes this property a key player in a thriving market.

This property is a rare opportunity to own a stable, income-producing asset with a strong tenant, in a high-growth region. Its strategic location, secure lease terms, and potential for value appreciation make it an excellent addition to any investor’s portfolio.