Lincoln Park Center

Lincoln Park, MI

Active

Kumo Capital has bolstered its holdings in Detroit, MI through the acquisition of the Lincoln Park Technical Center. This property is a fully occupied, strong performing asset with significant upside potential upon releasing. The business plan for Lincoln Park is to operate the property and bring tenants up to market rates as their leases roll.

Property Highlights

The Lincoln Park Technical Center is 107,411SF on roughly 7.5 acres of land. The property is 100% occupied with several tenants on below market leases, presenting an opportunity for additional upside.

Unit Specifications

Unit sizes range between 5,096 SF-15,467 SF, catering to a variety of tenant requirements
All units have 18’ clears and access via truck wells, drive-in doors, or both
The majority of units are comprised of predominantly warehouse, with one exception (marketing company with a heavy office distribution)

Tenant Composition

Multiple national companies reside here such as Sherwin Williams (paint supply and hardware store) and Windsor Machine (Car Seat, Headrest, and Armrest Manufacturer)
The remainder of the tenants are smaller warehousers or contractors
There are no automotive tenants or tenants who manufacture at the subject property

Exceptional Location

Seconds from Interstate 75 which connects Detroit to Ohio
The property will be less than 15-minutes from the Gordon Howie bridge to Canada (expected completion in the fall of 2025)

Overview

Kumo was able to land in the deal with a strong cap rate for year one (>9%). Kumo is aiming to continue increasing the property net operating income by bring rents to market as tenant leases expire.

Several tenants are paying between $4.00-$5.00/SF NNN when market is $5.75/SF NNN for comparable units (evidenced by lease comps and recent leases at subject property)
There is very little comparable product in densely populated immediate area, if a tenant decides not to renew, there is no shortage of replacement candidates