7.1% Cap Rate Melbourne Airport Retail Center 665 S Babcock St 6,890 SF 100% Leased Retail Building Melbourne, FL 32901 $3,800,000 ($551.52/SF) 7.11% Cap Rate

THIS AMAZING RETAIL CENTER IS LOCATED DIRECTLY ACROSS THE STREET FROM MELBOURNE INTERNATIONAL AIRPORT, AND SITS AT A SIGNALLIZED INTERSECTION WITH OVER 47,800 AVERAGE ANNUAL DAILY TRAFFIC COUNT. SOUTH BABCOCK STREET IS THE LARGEST STREET IN THE CITY OF MELBOURNE AND IS HOME TO MANY TOP RETAIL OUTFITS AND THE HIGHEST TRAFFIC COUNTS IN THE CITY! THE PROPERTY CONSISTS OF 2 RETAIL BUILDINGS, HOME TO HERTZ RENTAL CAR & TIRES PLUS FL INC.! BOTH TENANTS HAVE BEEN IN THIS LOCATION FOR OVER 4 YEARS AND HAVE LONG-TERM NNN LEASES IN PLACE! THE SITE IS ELIGIBLE FOR 100% BONUS DEPRECIATION DUE TO THE CAR WASH THAT IS ATTACHED TO THE TIRES PLUS AUTO-MACHANIC SHOP!
THE PROPERTY COMES WITH TIRES PLUS FLORIDA INC. ON S BABCOCK STREET AND HERTZ RENTAL CAR NEXT DOOR FACING S APPOLLO BLVD. TIRES PLUS HAS BEEN IN THIS LOCATION FOR OVER 6 YEARS AND JUST RECENTLY SIGNED A NEW 10-YEAR LEASE AT THE PROPERTY. THERE ARE TWO AUTO MACHANIC BAYS AND A CAR WASH WHICH THEY USE FOR THEIR CUSTOMERS WITH SIGNAGE DIRECTLY ON S BABCOCK STREET. HERTZ RENTAL CAR IS DIRECTLY NEXT DOOR AND HAS A LARGE OFFICE SPACE AS WELL AS MANY PARKING SPACES FOR THEIR RENTAL CARS. DUE TO THE CLOSE PROXIMITY OF THE AIRPORT, THEY HAVE BEEN AT THIS LOCATION FOR OVER 4 YEARS & JUST RECENTLY EXERCISED THEIR OPTION FOR ANOTHER 2 YEARS ON THEIR LEASE!
CURRENTLY TIRES PLUS INC. PAYS ($198,000) PER YEAR, AND HERTZ RENTAL CAR PAYS ($72,000) PER YEAR. BRINGING THE SITES' TOTAL NET INCOME TO OVER $270,000 PER YEAR! BOTH LEASES ARE NNN, LEAVING THE OWNER WITH NO EXPENSES AT THIS LOCATION. EACH HAS 2% ANNUAL RENTAL INCREASE IN THEIR LEASES, AND BOTH DO FANTASTIC SALES IN THIS LOCATION!
THE PROPERTY CURRENTLY BOASTS AN IN-PLACE CAP RATE OF 7.1%. WITH THE RENTAL INCREASES EVERY YEAR BUILT INTO THE CURRENT LEASES, THIS NUMBER WILL ONLY GROW! BY 2027, THE BUYER WILL EASILY SURPASS A CAP RATE OF 7.4% & THIS WILL RISE, A YEAR LATER TO A CAP RATE OF OVER 7.6%! THIS IS AN AMAZING RETURN FOR AN NNN ASSET THAT IS HANDS-OFF FOR THE BUYER & HAS TWO NATIONAL TENANTS IN PLACE ON LONG-TERM LEASES!