Hillsborough Mixed-Use Center
Hillsborough Mixed-Use Center | 8.02% Cap Rate | $3,900,000
Marketing description
Marcus & Millichap is pleased to present the exclusive listing of Hillsborough Mixed-Use Center, a fully occupied, two-story mixed-use asset situated on a corner location along one of Tampa's highest-trafficked corridors. The property generates $312,877 in in-place NOI across 40 occupied spaces—12 ground-floor retail tenants and 28 second-floor suite operators—with no single tenant occupying more than 12.7% of the gross leasable area. Ownership has recently executed multiple lease renewals at increased rental rates, demonstrating strong tenant retention while increasing in-place cash flow.
Positioned 3.5 miles north of Downtown Tampa with direct I-275 access, the asset sits at the epicenter of one of the city's most active growth corridors. Marquee Square, a 354-unit mixed-income development, recently opened directly along E. Hillsborough Avenue, adding a significant new residential base within walking distance of the subject property. A second multifamily project, The Residences at East End (174 units), is scheduled for delivery in December 2026, further reinforcing near-term population density and retail demand immediately surrounding the site.
The broader Seminole Heights submarket has experienced dramatic appreciation, with home prices rising over 41% year-over-year as of early 2025, driven by limited inventory, proximity to Downtown Tampa, and strong demand from young professionals and families. The neighborhood's continued gentrification and infrastructure investment position this corridor for sustained tenant demand and long-term rent growth.
From an investment standpoint, the property offers a two-tier income profile—ground-floor retail averaging approximately $27.29/SF and second-floor beauty/professional suites averaging approximately $44.97/SF—with gross leases in place across both levels. Recent lease renewals at higher rental rates reinforce the property's leasing momentum while preserving meaningful near-term upside through the remaining lease rollover (WALT: 7.1 months for the ground floor and 5.5 months for the second floor), providing incoming ownership the flexibility to continue marking rents to market, selectively introduce NNN lease structures, and further enhance cash flow over time.
Investment highlights
8.02% Cap Rate on a Fully Occupied Asset — $312,877 in-place NOI across 40 occupied commercial tenant spaces with zero vacancy, providing immediate, stable cash flow from a highly diversified income stream.
Recent Leasing Momentum Demonstrates Strong Tenant Retention — Ownership has recently executed multiple lease renewals at increased rental rates, demonstrating strong tenant retention, continued demand for the property, and growth in in-place cash flow.
High-Visibility Corner Site | 48,000 VPD | 3.5 Miles to Downtown Tampa — Highly visible corner parcel with front and rear access, direct I-275 connectivity, and more than 330,000 residents within a 5-mile radius.
500+ New Apartment Units Delivering Along the Corridor — The 354-unit Marquee Square recently opened directly on E. Hillsborough Avenue, while the 174-unit Residences at East End is scheduled for delivery in December 2026, creating a significant long-term demand driver for the property's service-oriented tenant base.
Submarket Undergoing Active Gentrification — Seminole Heights continues to experience significant appreciation driven by limited inventory, proximity to Downtown Tampa, and continued demand from young professionals and families, supporting long-term tenant demand and rental growth.
Two-Story Concrete Block Construction on 0.92 Acres — Durable 1960/1975-built concrete block improvements situated on a highly visible 0.92-acre corner parcel with excellent long-term functionality.
Diversified Income Stream with No Tenant Concentration Risk — 40 occupied commercial tenant spaces across beauty, food service, insurance, electronics, and professional services, with no tenant occupying more than 12.7% of the gross leasable area, minimizing exposure to any single tenant vacancy.
Retail Lease Conversion Opportunity — Ground-floor retail spaces are currently structured as gross leases. As leases renew, incoming ownership has the opportunity to selectively transition retail tenants to NNN lease structures, reducing operating expense exposure while increasing long-term net operating income.
Strong Small-Bay Leasing Fundamentals — Recent lease renewals at increased rental rates reinforce continued demand for small-bay commercial space while preserving meaningful future upside through the remaining lease rollover.
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