Investment Offering
Auburn Hills, MI - Best Buy
300 Broan Road | Auburn Hills, MI 48326
$11,705,000
Price6%
Cap Rate$702,318
NOI45,790
± SF Offering GLADescription
SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN, corporate guaranteed, investment grade (S&P: BBB+), Best Buy investment property located in Auburn Hills, MI (Detroit MSA). The tenant, Best Buy Stores, L.P., exercised
their first option in 2020, providing an additional 5 years of firm term and demonstrating their commitment to the site. The lease features 3% rental increases at the beginning of each option period, growing NOI and hedging against inflation. The lease is guaranteed by the corporate entity (NYSE: BBY | S&P: BBB+), and is absolute NNN with zero landlord responsibilities, making this an ideal, management-free investment opportunity for a passive investor. With over 1,150 stores, Best Buy is the leading consumer electronics retailer in North America.
Location
Best Buy is strategically located near the signalized, hard corner intersection of Brown Road and Baldwin Road, averaging a combined 55,400 vehicles passing by daily. The asset benefits from direct on/off ramp access into Interstate 75 (71,300 VPD), a major north-south highway leading directly into Downtown Detroit, and connecting Florida to the U.S.-Canada border. Best Buy also benefits from excellent visibility via significant street frontage and a large pylon sign. The asset is ideally situated within a dense retail corridor, and is within walking distance to Baldwin Commons Shopping Center (388,966 SF), The Auburn Mile Shopping Center (413,524 SF), and Great Lakes Crossing Outlets (1,355,000 SF). The surrounding national/credit tenants include Target, Sam’s Club, The Home Depot, Costco Wholesale, ALDI, Menards, Kohl’s, and others. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure for the site. Furthermore, Best Buy is near numerous single-family communities and multi-family complexes including Mosaic of Auburn Hills (81 units), Baldwin Square Townhomes (90 units), Auburn Gate (584 units), and more, providing a direct residential consumer base from which to draw. The 5-mile trade area is supported by over 131,000 residents and 73,800 daytime employees. Residents within one mile of the subject property boast an affluent average household income of $104,810.
Documents & Links
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 Offering Memorandum |  |  |
Contact
Matthew Mousavi
Sr Managing Principal & Co-Head of National Net Lease
949.698.1116949.698.1116[email protected]CA #: 01732226
Patrick Luther, CCIM
Sr Managing Principal & Co-Head of National Net Lease
949.698.1115949.698.1115[email protected]CA #: 01912215