Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a 3-tenant ‘Med-Tail’ property, located on a padsite to a larger retail development that is actively being redeveloped by current ownership.
The tenant mix is quite desirable, with 73% of the gross leasable area leased to everyone’s favorite retail tenant – dentists! Featuring a pediatric dentist and a general dentist, as well as a UPS Store – these tenants are all considered among the most sticky and high-performing service-oriented retail tenant types. This UPS Store ranks as one of the top locations in the country, with annual visits of over 106,000, equating to 290 visits per day, per Placer.AI. This statistic ranks this UPS location in the top 6% of their stores nationally. Marathon Health recently vacated their suite, and ownership backfilled it within less than 6 months of downtime to Dunes Dental Studio, who signed a new 10YR lease with 2% annual rent increases.
Both the UPS Store and Growing Smiles have signed multiple renewal options throughout their tenures at the property. Overall rents are modest and replaceable, averaging in the low-$20 per square foot range. Most appealing, both the UPS Store lease and Growing Smiles’ lease expire in less than 18 months with no additional renewal options at the tenant’s disposal. Given the volume of development activity within Cumberland Crossing, this should allow a new owner to push rents further as leases roll.
At the asking price, the property can be purchased below $300 per square foot, well under what it would cost to build a class A, masonry retail center today in a similarly compelling location.