275 37th St NE
Rochester, MN 55906
Strip Center · Retail Property For Sale

Marcus & Millichap is pleased to present for sale the 37th Street Strip Center in Rochester, MN. The strip center is currently 100% occupied, providing current security with strong potential upside both in the near term and further out, as NE Rochester continues to experience strong development growth. Development work occurring in the immediate includes the following: HyVee Grocery, just to the west, recently completed a major remodel and expansion. Think Bank relocated from approximately 1 mile away to their new site directly across the street from the subject property. Behind Think Bank, there have been a major amount of new apartments and town homes built. Next to Think Bank, a new car wash is currently under construction. The former Shopko, just to the east, has been recently sold. The Shopko buyer, Haley Comfort Systems, has announced plans to develop a new showroom for their business while adding a restaurant site and additional retail. Rooster's Barn & Grill plans to open their third Rochester location, just to the east, adjacent to the former Shopko site. The subject property is located on 37th Street, a busy corridor featuring 25,000 cars per day. The existing leases are NNN with management fees charged to tenants, allowing the buyer to hire a management company and treat this as a passive investment. The majority of the leases in place have annual rent increases providing a hedge against inflation. Rochester is the county seat of Olmsted county and is the third-largest city in Minnesota. The city has been frequently recognized since the 1980's as one of the best places to live in the United States. Mayo Clinic has its world headquarters in Rochester and forms the core of Rochester's economy. As of 2019, Mayo employed 36,000+ people and draws more than 2 million visitors annually. Mayo Clinic is in the early stages of a $6 Billion expansion called Destination Medical Center (DMC) during which Mayo will add in excess of 30,000 new employees to their Rochester Campus. The stability of the economy in Rochester as well as expected future growth make this an attractive investment.