Listed by Matthews
$2,750,000
1701 W South Airport Rd
Details
Property Type Industrial
Sub Type Warehouse, Distribution
Square Footage 45,500
Cap Rate 7.20%
NOI $198,000
Occupancy 100%
Tenancy Single
Lease Type NNN
Lease Expiration 08/31/2031
Rent Bumps Yes
Lease Options One 5-year option with 10% rental increase
Price per SqFt $60
Class B
Year Built 1977
Year Renovated 2019
Acreage 4.460
Investment Type Net Lease
Lease Commencement 09/01/2021
Industrial NNN Lease With Built In Rental Growth | 45,500 SqFt
Investment highlights
- LONG-TERM CORPORATE TENANT WITH NATIONAL SCALE - The property is leased to US LBM Holdings, LLC, one of the nation's largest building materials distributors with more than 460 locations nationwide and approximately $6.8 billion in annual revenue. Located in Traverse City, the facility serves one of the most desirable and supply-constrained regions in Michigan, supporting contractors, residential development, and year-round construction activity throughout Northern Michigan.
- INDUSTRIAL 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 option featuring a 10% rental increase. The Industrial NNN lease structure provides dependable passive income while limiting landlord responsibilities. The combination of a national corporate guarantor and affordable in-place rent creates a durable long-term tenancy profile.
- HIGHLY FUNCTIONAL INDUSTRIAL FACILITY WITH OUTDOOR STORAGE - The ±45,500 SF facility sits on ±4.46 acres with 23.42% site coverage, allowing for efficient circulation, outdoor storage, and contractor-oriented operations. Renovated in 2019, the property is well configured for building materials distribution and serves as an important operational node within US LBM's regional network.
- ATTRACTIVE YIELD WITH LOW RENT BASIS - Offered at a 7.20% cap rate, the property presents an opportunity to acquire stable cash flow backed by a nationally recognized tenant in an industry with long-term demand drivers. The investment combines corporate credit, affordable in-place rent, and a highly desirable market location, positioning the asset as a compelling longterm industrial holding.
- TRAVERSE CITY MARKET FUNDAMENTALS SUPPORT LONG-TERM DEMAND - Traverse City continues to benefit from population growth, strong household incomes, tourism-driven economic activity, and ongoing residential development throughout the region. Limited industrial inventory and high barriers to new development in Northern Michigan continue to support demand for functional industrial and contractor supply facilities.
- Positioned adjacent to Cherry Capital Airport, the property benefits from strong visibility and accessibility along South Airport Road (36,800 vehicles per day) and Park Drive (11,400 vehicles per day). The location serves one of Northern Michigan's primary commercial corridors and provides direct access to the region's growing population, tourism economy, and affluent second-home communities.
Listing Contacts
Listed by Matthews
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$198,000.00
$16,500.00/mo
Valuation Metrics
0
DSCR
7.2%
Cap Rate
7.2%
ROI
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