SRS Real Estate Partners Completes $7.85 Million Sale of a CVS Pharmacy Property in Ann Arbor, MI

Troy, MI (August 24, 2023) – SRS Real Estate Partners announced today it has completed the $7.85 million sale of a 13,040-square-foot property occupied by CVS Pharmacy. The property was built in 1930 and is situated on .15 acres at 209 South State Street in Ann Arbor, MI, and is adjacent to University of Michigan. The property garnered a strong price per square foot of $602.

SRS Capital Markets Senior Vice President John Redfield represented the seller, a Northern California- based private investor. SRS Capital Markets Vice Presidents Michael Carter and Frank Rogers represented the buyer, a Michigan-based investment company.

“Through our national and local campaigning efforts, we sourced a 1031 exchange buyer who was seeking security close to home. Having more than 14 years remaining on an absolute triple net lease, this asset made it a very attractive investment for the investor’s portfolio,” said Rogers.

The CVS had Credit Tenant Lease (CTL) “zero cash flow” financing that was paid off at closing. Zero cash flow is a highly leveraged investment property that is structured so that the net operating income is equal to the loan payment, providing tax advantages.

“The seller gained equity through loan amortization and appreciation of the investment after originally purchasing the asset assuming in-place CTL financing,” said Redfield. “SRS sold the property free and clear of debt where we worked with the seller to set up defeasance to pay off the existing loan. The result provided the seller significantly more equity than current market pricing for zero cash flow assets.”

There are more than 165,000 residents and more than 163,000 employees within a five-mile radius of the property. It is also walking distance to Michigan Medicine, an 1,100-bed healthcare facility.

In 2022, SRS Capital Markets completed more than $2.8 billion in deal volume comprised of 705 transactions in 49 states. SRS currently has in excess of 550 properties actively on the market with a market value surpassing $2.8 billion.

About SRS Real Estate Partners

Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with more than 25 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit