DETROIT, MI July 28, 2011 –Marc Strauss (middle right photo) and David Wells of Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, have secured the exclusive listing for a 139,056-square foot single-tenant net-leased Home Depot in Detroit (top left photo). The listing price is $17.6 million, which equates to a 7.5 percent cap rate.
Marc Strauss, a first vice president investments in Marcus & Millichap’s Fort Lauderdale office, and David Wells, a senior associate in the firm’s Miami office are exclusively representing the seller, a private entity.
Strauss and Wells have worked together to successfully execute several retail transactions in the $10 million and above price range in the past few years, which has generated outstanding results for a wide range of investors nationwide.
“Single-tenant net-leased assets in core primary and secondary locations remain the strongest retail property type,” says Strauss. “And since this is the only Home Depot in Detroit, it should garner significant demand from both local and out-of-state buyers,” explains Strauss.
“This property is expected to deliver strong returns over the long term and is secured by the investment-grade, BBB+ rating of Home Depot U.S.A Inc. Further strengthening the property’s position in the marketplace, there are 12 years remaining on Home Depot’s triple net lease, which has 10 five-year options,” he adds.
“Opportunistic investments like this will receive greater interest in the coming months,” adds Strauss.
“Home Depot has occupied this property since 2004 with strong store sales,” says Wells. “As the economy continues to improve, sales are expected to remain healthy and investors are looking for credit backed assets with significant lease term. An asset of this size with Home Depots investment grade credit rating doesn’t come to market very often.”
Located at 18700 Meyers Rd., the 12.22-acre site was formerly occupied by Kmart until Home Depot assumed its existing lease in 2004. The facility was originally constructed in 1997.
Contact: Stacey Corso, Public Relations Manager, (925) 953-1716
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