Babcock St Mixed Use Plaza / Owner User Opportunity
Value Add / Owner User Opportunity / Melbourne Fl - Space
Marketing description
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.
Investment highlights
Priced Well Below Replacement Cost: $155 PSF
New Roofs in 2024 / New HVAC / Paint & Façade Upgrades
Two-building portfolio totaling ±20,550 SF including Class A office, multi-tenant retail, and 6,050 SF of basement space.
Recently renovated assets with new roofs, HVAC systems, pylon signage, and modernized façades.
Below-market gross leases averaging $17.87/SF vs. $22.98/SF market average, offering rental upside.
Opportunity to convert leases to NNN structure and significantly enhance net operating income.
100% stabilized occupancy with long-term tenants providing immediate cash flow.
6,050 SF sublevel space can be delivered vacant or seller will lease back at $50,000/year ($9PSF)
Strong surrounding demographics with 60,000+ residents and 10% growth projected by 2029.
Dense employment base of 43,000+ daytime workers within a 3-mile radius.
Prime Melbourne location with excellent visibility, access, and proximity to key demand drivers.
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