2851 Russell StDetroit, MI 48207

Property Details for 2851 Russell St

Year built

1986

Lot size

0.88 AC

Property size (Sq ft)

24,179 SF

Zone code

B6

Property type

Medical offices

Property subtype

Medical centers

APN

05003449.

APU

5003449

Description

Exceptional investment opportunity: a 48,960-square-foot Class A medical office building in Detroit, Michigan. This sale-leaseback property boasts a 15-year lease commencing January 1, 2024, and expiring December 31, 2039, with two 5-year renewal options. The tenant, a prominent mental health care provider in Wayne County, occupies the entire building. The building, constructed in 1987 and extensively renovated between 2020 and 2023 (with ongoing improvements), features a two-story structure on a 1.27-acre lot in a prime location within the historic Eastern Market district. The property offers ample on-site parking, a rare amenity in a downtown setting. The building's strong NOI of $1,272,960 contributes to an attractive 7.67% cap rate. The asking price is $16,589,000. The lease is structured as a triple-net lease (NNN) with rent of $26 per square foot for years 1-5, increasing by 15% for years 6-10 and again for years 11-15. This presents a compelling opportunity to acquire a stable, high-performing asset in a revitalizing urban area with potential for future expansion and redevelopment. The property's location within the vibrant Eastern Market, alongside over 150 businesses, ensures high visibility and accessibility. This is a rare opportunity to invest in a well-established medical facility with a long-term lease and significant upside potential.

• CAP approach

  CAP return

  Valuation

  6%

  $5,699,400

  6.5%

  $5,260,980

  7%

  $4,885,200

• Comparable approach

  Method

  Valuation

  Relative Method

  $2,261,700

  Geo Method

  $2,261,700

• Alternative Use

  Use

  Valuation

  Industrial / Distribution

  $9,916,740

  Retail / Commercial

  $5,171,570

  Mixed-Use / Specialty

  $5,221,150

  Hospitality / Lodging

  $3,919,150

  Institutional / Educational

  $5,452,200

  Residential Income

  $6,379,080

  Multifamily

  $7,273,640

  Automotive / Energy

  $4,673,320

  Parking / Income-Based Land

  $1,545,500

  Restaurant / Food Service

  $2,860,730

  Healthcare / Senior Housing

  $5,284,440

Location Insight

City

Detroit

County

Wayne

State

Michigan

Latitude

42.3481

Longitude

-83.0421

CBSA code

19820

CBSA name

DETROIT-WARREN-LIVONIA, MI METROPOLITAN STATISTICAL AREA

Property Tax & Assessments

FAQs

How do I add a non-forward facing team member such as a broker coordinator or broker aide to a listing in order to ensure they get notifications on the property?

Please email our support team at [email protected] and they will add the team member.

How do I access a private listing?

Please contact the broker directly with the information provided on the listing. Once the broker approves your credentials he will make the information public to you.

How can I contact the broker?

We strongly encourage to message the broker through our portal by clicking on the “Envelope” icon next to the brokers photo on the property page. We’ve found brokers response time is much quicker via our messaging portal than phone as brokers are always on the go.

How do I unsubscribe from emails?

At the footer of each email you will find links to Reduce Email Frequency, Adjust Email Settings or Unsubscribe altogether. If you choose to Unsubscribe and are still receiving emails please reach out to us at [email protected].