975 Cherry
Fully Leased Two Story Retail / Office Mix
Project Passed On
Watched and negotiated for over year, ended up being outbid by 0.1%.
The Pitch
East Hills is on the corner of Lake Drive, Diamond, and the vibrant Cherry Street. A triple corner between Downtown and affluent East Grand Rapids, this area used to be serviced by street cars and has a lot of character buildings.
This building is a centerpiece asset with both retail on the ground floor and office on the second floor. Fully leased, it had some room for improvement with some weaknesses built into the existing tenant leases.
The Numbers
This project is a return at TBD% target. The outcome depends strategy of renovate or rebuild.
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7.25% 5 Year Average Annual Return Cash-on-Cash.
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Renovate and Hold Long Term.
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15.49% Projected IRR in Event of Sale at 7% Exit Cap in the Event of Advantageous Sale.
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$25,000 Minimum
The Building.
2,400 SF vacant nearly condemned retail space on market for $189,000. Its condition includes collapsed roof and floor into a basement yet it has good bones to work with in terms of character. The other idea is to tear it down and build a 4 story luxury product.
The Neighborhood.
A long sweeping corridor featuring a lot of unique elements such as a high-end country club, prestigious high school, and proximity to large swaths of neighborhoods and river access just minutes north of downtown and the bustling medical mile.
The City.
Grand Rapids, MI is undergoing tremendous and continued growth as the fastest growing metropolitan area in Michigan and is presently experiencing a significant housing shortage.
Cherry Street Corridor.
Treelined brick road with retail on both sides, walkable urbanism doesn’t get much better than this small neighborhood..