Address: 19100 Kelly Rd, Detroit, Michigan, United States 48224
Cap Rate: 5.25%
Lease Type: Triple Net (NNN)
Annual Rent: $110,000
Net Operating Income: $110,000
Lease Term Remaining: 20 Years
Rental Increases: Lessor of Change in CPI or 1.25% Annually Starting Year 3
Options: Six (6), Five (5) Year Option Periods
Rentable Sq/Ft: 2,352 SF
Rent Sq/Ft: $46.77
Price Sq/Ft: $891
Lot Size: 0.55
Marcus & Millichap is pleased to present the exclusive listing for a Wendy’s located at 19100 Kelly Rd, Detroit, MI. The property consists of 2,352 square feet of building space and is situated on approximately 0.55 acres of land.
The tenant will enter into a brand new, 20-year triple-net (NNN) lease with absolutely no landlord responsibilities upon the day following the close of escrow. The lease will call for rental increases that will be the lesser of the change in CPI or 1.25% annually starting in Year 3. The rental increases will continue through the base term and into the six, five-year tenant renewal options. The lease will carry a guaranty from Meritage Hospitality Group, an experienced 318 unit operator and the second largest franchisee in the Wendy’s system.
This Wendy’s property is located at 19100 Kelly Road in Detroit, Michigan. Detroit is the most populous city in the State of Michigan, and the center of the third largest metropolitan area in the Midwest.
SURROUNDING RETAIL & POINTS OF INTEREST
The property is strategically located in a densely-populated residential area along a highly-trafficked thoroughfare with convenient access to downtown Detroit. Located on a hard-corner of a signalized intersection this Wendy’s is less than a mile south of Eastland Center, an 80+ store, enclosed, regional shopping mall, and many other major national retailers including McDonald’s, Home Depot, AutoZone, Family Dollar, CVS Pharmacy and many more. To the east of the property is the shore of Lake St. Clair, a 430-square mile freshwater lake that lies between the Canadian province of Ontario and Michigan, featuring beautiful beaches, yacht clubs, and recreational activities. There are also several country clubs less than two miles from the subject property, including Lochmoor Club and the Country Club of Detroit where nearby residents can enjoy fine dining, golf, and many other amenities. Additionally, the subject property benefits from being two miles from Ascension St. John Hospital, a 772-bed regional teaching hospital that employs over 1,300 people.
TRAFFIC COUNTS & DEMOGRAPHICS
This area has very strong demographics, with approximately 173,000 people residing within a three-mile radius and 353,000 people within a five-mile radius of the property. This property is ideally situated on Kelly Road, which experiences approximately 23,671 vehicles per day on average. Kelly Road intersects with Moross Road which brings an additional 31,387 vehicles into the immediate area daily.
Detroit, also known as the Motor City and Motown, is a global city rich in culture and history. Detroit and the surrounding region constitute a major center of commerce, most notably as home to America’s big three automobile companies: General Motors, Ford, and Chrysler. Detroit’s most heavily represented sectors are manufacturing, finance, technology, and health care. Detroit is the only U.S. city to have its four major sports teams play within its downtown district. Detroit is home to several institutions of higher learning including Wayne State University, which has over 27,000 students enrolled. In 2014 JPMorgan Chase announced that it was injecting $100 million into Detroit’s economy over the next five years, providing development funding for a variety of projects designed to increase employment. The New York Times listed Detroit as the 9th-best destination in its list of 52 Places to Go in 2017, while travel guide publisher Lonely Planet named Detroit the second-best city in the world to visit in 2018.
Broker of Record: Steve Chaben License #6502387903