1040 9 Mile RdFerndale, MI 48220

Property Details for 1040 9 Mile Rd

Year built

1978

Lot size

0.38 AC

Property size (Sq ft)

2,400 SF

Zone code

BI

Property type

Retail properties

Property subtype

Grocery and convenience stores

APN

24-25-28-479-004

APU

242528479004

Description

This exceptional investment opportunity presents a 2,580 square foot 7-Eleven convenience store located at 1040 W Nine Mile Rd, Ferndale, MI 48220. The property sits on a 0.37-acre lot in a high-traffic area, exceeding 36,000 cars daily at a signalized intersection. Boasting a strong location in downtown Ferndale, this Class B retail property benefits from a population exceeding 360,000 within a 5-mile radius. The current absolute NNN lease, with a corporate guarantee from 7-Eleven (A-rated credit), has a remaining term of 4.4 years, commencing April 1, 2024, and expiring March 31, 2029, with two 5-year renewal options. Rent increases are substantial, with a base 21% increase at each renewal plus CPI adjustments from 2019. The current NOI is $43,339, with a pro-forma NOI of $63,481, and a pro-forma cap rate of 6.05%. Built in 1978, the property is zoned C-2 Commercial and enjoys 100% occupancy. The asking price is $1,050,000, translating to $406.98 per square foot. This presents a compelling investment with significant upside potential due to substantial rent increases at renewal and a low rent-to-sales ratio. Ferndale's vibrant downtown, proximity to major roadways (Woodward Avenue and I-75), and its location within the Detroit metropolitan area further enhance this property's value and appeal.

• CAP approach

  CAP return

  Valuation

  6%

  $733,772

  6.5%

  $677,328

  7%

  $628,948

• Comparable approach

  Method

  Valuation

  Relative Method

  $565,730

  Geo Method

  $565,730

• Alternative Use

  Use

  Valuation

  Residential

  $571,352

  Hospitality

  $523,355

  Educational

  $435,425

  Medical

  $450,400

  Retail

  $677,328

Location Insight

City

Ferndale

County

Oakland

State

Michigan

Latitude

42.4606

Longitude

-83.1475

CBSA code

19820

CBSA name

DETROIT-WARREN-LIVONIA, MI METROPOLITAN STATISTICAL AREA

Property Tax & Assessments

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