Century Tech Center

Wixom, MI

Active

Kumo Capital has acquired the Century Technology Center, a 48,847 SF multi-tenant flex industrial facility in the fast-growing Detroit suburb of Wixom, MI. This fully occupied property was acquired at an attractive basis of $106.45/SF, presenting a compelling value-add opportunity with immediate and durable cash flow. The business plan focuses on optimizing below-market rents and converting gross leases to triple-net (NNN), creating significant upside potential.

Property Highlights

Significant Value-Add Potential: A clear path exists to increase the cap rate to 8.58% by year three and 10.94% by year five through strategic rent growth and lease conversions. This strategy is projected to grow Net Operating Income (NOI) by 29% within the first three years.
Tenant Composition: The property features a diverse mix of seven credit-worthy tenants and is anchored by national tenants Ford Motor Company and Leaf Home Security, who together occupy 27% of the gross leasable area.
Building Specifications: The facility offers varying unit sizes from 4,780 to 8,515 SF, 19’ clear heights, ten 14’ drive-in doors, and two shared loading docks.
Strategic Location: Situated in Wixom, one of Oakland County’s most affluent areas, the property has direct access to I-96 and other major logistical corridors. The immediate area boasts strong demographics, with a median household income above $90,000 and a population of more than 60,000 within a three-mile radius.

Overview

This investment combines the security of a fully leased asset with significant, clearly defined upside. By capitalizing on strong market fundamentals and executing a strategic lease-up plan, Kumo Capital will transform the property into a high-performing asset, providing investors the potential for double-digit cash-on-cash yields and a profitable exit.

Acquisition Advantage: The property was acquired at an attractive $106.45/SF basis from its original developer.
Lease Restructuring: The primary value-add component involves converting existing gross leases to a NNN structure, shifting operating expense responsibility to tenants and boosting NOI.
Tenant Retention: Existing tenants have made significant, hard-to-replicate improvements to their spaces, which supports long-term retention and occupancy stability.
Market Strength: The property is located in a strong industrial submarket with a low vacancy rate of 5.2% for similar assets, indicating healthy demand.