1480 S W Bay Shore Drive, Suttons Bay, MI 49682

LONG-TERM CORPORATE TENANT WITH NATIONAL SCALE

The lease is guaranteed by US LBM Holdings, LLC, one of the largest privately held building materials distributors in the United States with more than 460 locations nationwide and approximately $6.8 billion in annual revenue. The property serves as an established building supply location in the Traverse City / Suttons Bay market, supporting contractors and customers throughout Northern Michigan.

IINDUSTRIAL NNN LEASE WITH BUILT-IN RENTAL GROWTH

US LBM recently renewed the lease through August 2031, leaving approximately 5.3 years remaining on the base term with one additional five-year renewal option featuring a 12.5% rental increase. The Industrial NNN lease structure provides stable and predictable cash flow with limited landlord responsibilities. Current rent of $3.00/ SF remains highly affordable for the tenant and supportive of long-term occupancy.

HIGHLY FUNCTIONAL INDUSTRIAL FACILITY WITH OUTDOOR STORAGE

The ±45,000 SF facility sits on ±4.90 acres with only 21.08% site coverage, allowing for ample outdoor storage, circulation, and operational flexibility. The property’s layout is well suited for building materials distribution and contractor-oriented operations, making it a functional and established part of the tenant’s regional footprint.

ATTRACTIVE YIELD WITH LOW RENT BASIS

The offering provides investors with a 7.75% cap rate backed by a national corporate tenant in a sector that has continued to demonstrate long-term demand fundamentals. With current rent well below replacement economics and market disruption risk limited by the property’s functionality and affordability, the asset offers durable in-place cash flow with future upside through contractual rent growth.

STRATEGICALLY LOCATED IN SUPPLY-CONSTRAINED

Located in Suttons Bay just outside Traverse City, the property benefits from strong regional demographics, affluent surrounding communities, and limited industrial inventory. The property also benefits from proximity to Cherry Capital Airport, Northern Michigan’s primary commercial airport serving more than 700,000 passengers annually. Northern Michigan continues to experience population growth and housing demand, supporting long-term need for building supply and contractor oriented industrial facilities in the region. Suttons Bay’s status as one of Northern Michigan’s premier vacation and second-home markets is driven by its access to Lake Michigan and Lake Leelanau, abundant recreational amenities, scenic vineyards and cherry orchards, and a growing wine, brewery, and craft beverage industry that attracts visitors year-round.