14255-14275 Eureka Rd
Southgate, MI 48195

Marcus & Millichap, on behalf of ownership as its exclusive advisor, is pleased to market for sale the leasehold interest in Southgate Shopping Center in Southgate, Michigan. The subject property is a 60% occupied, 71,066-square-foot retail center situated on 5.66 acres. Southgate Shopping Center is encumbered by a ground lease that currently expires in 2032, with options extending through 2102, providing the prospective purchaser with long-term control of the site. The current ground rent amount is fixed through 2047, with reasonable increases every 10 to 15 years thereafter. The center is leased to two junior box tenants, Salvation Army, and Dollar Castle, who occupy 60 percent of the gross leasable area. Both tenants are leased through September 2022 and September 2023, respectively. Dollar Castle is a Detroit-based discount chain with 9 locations throughout the Detroit metro. Both tenants have cheap and replaceable rents in-place, averaging $7.62 per square foot gross. There are two pending LOI’s on the 28,566-square-foot vacancy which creates a 17.06 percent pro forma capitalization rate if a lease were executed at the terms of the first LOI for the space. Southgate Shopping Center is located along Eureka Road, a major eastwest corridor that sees 32,667 cars per day. It is also just west of the signalized intersection of Eureka Road and Trenton Road, which sees a combined 49,043 cars per day. The immediate surrounding area is extremely dense with tightly-packed streets of single-family homes and a population of 15,745 within one mile. Expanding out to three and fivemile radii, the population grows to 92,948 and 215,249, respectively. Household income levels are right in line with middle-income figures, ranging from $61,500 to $64,200 within one, three, and five-mile radii. Prominent national tenants in the immediate vicinity include Kroger, Walmart, Meijer, Lowe’s, Planet Fitness, Michaels, Big Lots, Harbor Freight, CVS, Pet Supplies Plus, Dunham’s Sports, T.J. Maxx, OfficeMax, and dozens of chain restaurants. Southgate Center is approximately 13 miles southwest of Downtown Detroit and 7 miles east of the Detroit Metro Airport. The Detroit metropolitan area is ranked in the top 15 U.S. metros by population, and is home to 17 Fortune 500 companies and a population of over 4.3 million