Domino's
11 Years Remaining on Initial 15 Year Lease Term
Marketing description
Encore REIS is pleased to present the Domino's property located along US Highway 10 in Ludington, Michigan.
The building was retrofit for Domino's in 2022 whereby the tenant signed a 15-year lease with 2% annual rental increases, highlighting their long-term commitment to the site. The store opened in 2022 and quickly achieved a rent to sales ratio below 5.25%, underscoring the long-term viability of their tenancy. Placer AI ranks this as the second busiest Domino's location in Michigan by foot traffic.
The lease features minimal landlord responsibility with the tenant required to pay taxes directly, insure the building at the benefit of the landlord, and handle all day-to-day maintenance. Landlord responsibility is limited to roof, HVAC, and parking lot maintenance and repair above a certain dollar amount in a given year.
The property is situated on the hard corner intersection of E Ludington Ave (US-Hwy-10) and Nelson Rd featuring over 30,000 vehicles per day on average. US-Hwy 10 stretches from Bay City, Michigan (Lake Huron) to West Fargo, North Dakota, connecting from Michigan to Wisconsin through a ferry, the SS Badger, which runs from May through October.
Ludington is a coveted summer vacation destination situated along Lake Michigan. It is the county seat and largest city in Mason County. The city is located at the mouth of the Pere Marquette River at Lake Michigan and is host to Ludington State Park, Nordhouse Dunes Wilderness, and Manistee National Forest, making the area a popular tourist destination.
Investment highlights
- 11 Years Remaining on Initial 15 Year Lease Term - Provides long-term lease stability with a substantial term remaining.
- 2% Annual Rental Increases - Built-in rent growth creates steady income increases over time providing a hedge against inflation.
- Rent to Sales Ratio Below 5.25% - A low rent-to-sales ratio suggests the location is financially healthy for the tenant.
- Drive Thru Equipped Building - The drive-thru adds convenience for customers and supports strong sales volume.
- Retrofit to Tenant's Specs in 2022 - Recent upgrades tailored to the tenant reduce near-term capital needs.
- 29,000+ Vehicles Pass the Site Every Day - High daily traffic provides strong visibility and customer exposure.
- Located at a Signalized Intersection On US-10, Ludington's Main Retail Thoroughfare - This prime corner location offers excellent access and strong retail positioning.
- Coveted Northern Michigan Summer Vacation Community - The area benefits from seasonal tourism that can boost customer traffic and sales.
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