SRS Real Estate Partners’ National Net Lease Group has closed the $2.46 million sale of two, free-standing retail properties occupied by Starbucks and Subway in Kalamazoo, Michigan.
The Starbucks asset totals 2,085 square feet and includes a drive-thru, while the Subway asset totals 2,000 square feet. Located at 5241 and 5341 S. 9th St. in Kalamazoo, the two buildings were built in 2017 and are situated on a 1.25-acre parcel. Each tenant has eight years remaining on its lease.
SRS National Net Lease Group’s First Vice Presidents Michael Carter and Frank Rogers represented the seller, a Detroit-based private investor who owned the property for 1.5 years. The buyer, a Kalamazoo-based private investor, was also represented by Carter and Rogers. The transaction closed at a 5.58 percent cap rate, one of the lowest ever for a two-tenant asset in the state of Michigan.
The property is located just off the Interstate-94 exit and is surrounded by a number of national tenants including McDonalds, Wendy’s, Taco Bell, Speed-way, Jimmy John’s, Dunkin Donuts and Arby’s. The population within a five-mile radius exceeds 107,400 residents. Additionally, the property is close to Kalamazoo Valley Community College, four hotels and several sports venues. It is also across from a UPS Distribution Center, PNC Bank Operations Center and Dana Holding Corporation.
SRS’ National Net Lease Group, with more than $1.5 billion in assets currently listed for sale, successfully completed more than 400 transactions in 2019, across 35 states nationwide.
