Bittersweet Plaza
68% Occupied Value-Add Retail Center | Shadow Anchored By Martin's Super Market
Marketing description
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Bittersweet Plaza, a 36,531 square foot grocery shadow anchored retail center located in Mishawaka, just outside South Bend, Indiana. Priced at a 7.37% CAP on the current, in-place net operating income, the building is positioned to meaningfully cash flow at the asking price. The most compelling aspect of this opportunity is the optionality with which one can approach several complimentary value-add strategies.
Bittersweet Plaza is currently 68% occupied, with two vacant suites that will significantly add to the property’s cash flow once leased. The plaza will be conveyed along with a single tenant, triple drive-thru PNC Bank – with notably high deposits – as well as an additional half-acre developable outparcel. Adjacent to the outparcel, Martin’s leases a fuel station that currently pays $15,000 in ground rent annually. Though Martin’s has two years of term remaining on that lease, as well as two flat 5-year option periods, the long-term potential of the fuel station is enormous.
It is not as if this upside can all be unlocked overnight, but for a patient investor with time on their side, this is a rare opportunity to create value over the entirety of their hold period, while enjoying cash flow along the way.
By all accounts, the Martin’s Super Market is high performing, and though it is owned separately, Martin’s is still responsible for their pro rata share of parking lot expenses, and as a result are contributing substantially to the gross income of Bittersweet Plaza. This is important because Martin’s contributions to overall CAMs help ease the amount of expense leakage that one would typically see in a 68% occupied retail center.
Martin’s Super Market is known as the dominant grocer in this part of the country. Although Martin’s is currently owned by Spartan Nash, C&S Wholesale Grocers, the 8th largest privately held company in the United States, is in the process of acquiring them in a deal expected to close at the end of 2025.
Please reach out to Marcus & Millichap with additional questions about Bittersweet Plaza.
Investment highlights
Value-Add opportunity, shadow anchored by Martin’s Super Markets, with nearly 12,000 square feet (32% of the gross leasable area) currently vacant and in rent ready condition
In addition to the vacant shop space, the property includes a developable padsite, as well as a separately parceled PNC Bank (S&P Credit Rating ‘A’) with $163M in reported deposits and a Martin’s Fuel Station that is only paying $15,000 in annual rent
Priced at a 7.37% CAP on the current, in-place net operating income, with the ability to push the cap rate to nearly 10.4% by leasing up the vacant space
Given the asking cap rate and currently available debt, the property will cash flow substantially on day one while an investor executes their value-add strategy
Professionally managed retail center that has historically been well maintained with most operational inefficiencies smoothed out over the preceding years
30% of the property’s income comes from Martin’s (a subsidiary of SpartanNash, recently acquired by C&S Wholesale Grocers)
Although not included in the offering, the adjacent Martin’s Super Market has historically demonstrated robust per square foot sales figures and per Placer.AI is the 7th most visited location in their system – helping drive substantial traffic to the shopping center
Offered at an appealing acquisition basis of $133 per square foot
Mishawaka is located next to South Bend, Indiana, home of Notre Dame University – and part of the third largest MSA within the business friendly State of Indiana
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