1551 Academy StFerndale, MI 48220

For Sale
$7,065,622

High-Yield Net Lease Investment

Overview

Added:
Dec 11, 2024
Days on market:
93
This exceptional investment opportunity presents a fee-simple interest in a 49,630-square-foot industrial distribution building located at 1551 Academy St, Ferndale, MI 48220. The property, built in 1985 and renovated in 2020, sits on a 1.52-acre lot and is currently 100% occupied by Gage, a prominent cannabis operator, under an absolute NNN lease with zero landlord responsibilities. The lease, commencing September 23, 2020, and expiring September 30, 2030, has a remaining term of approximately 5.9 years and includes two 10-year renewal options. The current annual net operating income (NOI) is $635,906, representing a 9.00% cap rate on the $7,065,622 asking price, or $142.37 per square foot. The lease features attractive 2.33% annual rent escalations, providing a hedge against inflation and increasing cash flow. This single-tenant property offers a passive investment with significant long-term value in a densely populated area, conveniently located 11 miles from downtown Detroit and with direct access to I-75. The property's APN is 25-35-126-021. This is a rare opportunity to acquire a high-performing, long-term net lease investment in a thriving market.

Highlights

  • Fee-simple ownership of a 49,630-square-foot industrial building in Ferndale, MI.
  • Absolute NNN lease with zero landlord responsibilities.
  • 100% occupied by a prominent cannabis operator with a lease expiring September 30, 2030, including two 10-year renewal options.
  • $7,065,622 asking price with a 9.00% cap rate and $635,906 annual NOI.
  • 2.33% annual rent escalations.

Property Details for 1551 Academy St

Property type
Other industrial properties, Distribution properties
Square Feet
49,630 SF
Year Built/Renovated
1985/2020
Buildings
1
Lot Size (sq. ft)
66,211 SF

Location Insight

City
Ferndale
County
Oakland
State
Michigan
Latitude
42.4589509
Longitude
-83.1141295
1551 Academy St, Ferndale, Michigan

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1551 Academy St
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