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Bittersweet Plaza 306-338 N Bittersweet Rd 36,531 SF 20% Leased Retail Building Mishawaka, IN 46544 $6,627,776 CAD ($181.43 CAD/SF) 7.37% Cap Rate
Investment Highlights
- Value-Add opportunity, shadow anchored by Martin’s Super Markets, with nearly 12,000 square feet (32% of the gross leasable area) currently vacant
- Priced at a 7.37% CAP on the current, in-place NOI, with the ability to push the cap rate to nearly 10.4% by leasing up the vacant space
- 30% of the property’s income comes from Martin’s (a subsidiary of C&S Wholesale Grocers)
- In addition to the vacant space, the property includes a developable padsite, as well as a separately parceled PNC Bank and a Martin’s Fuel Station
- Given the asking cap rate and available debt, the property will cash flow substantially on day one while an investor executes their value-add strategy
- Offered at an appealing acquisition basis of $133 per square foot
Executive Summary
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Bittersweet Plaza, a 36,531 square foot grocery shadow anchored retail
center located in Mishawaka, just outside South Bend, Indiana. Priced at a 7.37% CAP on the current, in-place net operating income, the building is positioned to
meaningfully cash flow at the asking price. The most compelling aspect of this opportunity is the optionality with which one can approach several complimentary
value-add strategies.
Bittersweet Plaza is currently 68% occupied, with two vacant suites that will significantly add to the property’s cash flow once leased. The plaza will be conveyed along with a
single tenant, triple drive-thru PNC Bank – with notably high deposits – as well as an additional half-acre developable outparcel. Adjacent to the outparcel, Martin’s leases
a fuel station that is currently paying $15,000 annually. Though Martin’s has two years of term remaining on that lease, as well as two flat 5-year option periods, the longterm
potential of the fuel station is enormous.
It is not as if this upside can all be unlocked overnight, but for a patient investor with time on their side, this is a rare opportunity to create value over the entirety of their
hold period, while enjoying cash flow along the way.
By all accounts, Martin’s Super Market is high performing, and though it is owned separately, Martin’s is still responsible for their pro rata share of parking lot expenses,
and as a result are contributing substantially to the gross income of Bittersweet Plaza. This is important because Martin’s contributions to overall CAMs help ease the amount
of expense leakage that one would typically see in a 68% occupied retail center. Martin’s Super Market is known as the dominant grocer in this part of the country.
Martin’s is owned by C&S Wholesale Grocers, the 8th largest privately held company in the United States.
Please reach out to Marcus & Millichap with additional questions about Bittersweet Plaza.
center located in Mishawaka, just outside South Bend, Indiana. Priced at a 7.37% CAP on the current, in-place net operating income, the building is positioned to
meaningfully cash flow at the asking price. The most compelling aspect of this opportunity is the optionality with which one can approach several complimentary
value-add strategies.
Bittersweet Plaza is currently 68% occupied, with two vacant suites that will significantly add to the property’s cash flow once leased. The plaza will be conveyed along with a
single tenant, triple drive-thru PNC Bank – with notably high deposits – as well as an additional half-acre developable outparcel. Adjacent to the outparcel, Martin’s leases
a fuel station that is currently paying $15,000 annually. Though Martin’s has two years of term remaining on that lease, as well as two flat 5-year option periods, the longterm
potential of the fuel station is enormous.
It is not as if this upside can all be unlocked overnight, but for a patient investor with time on their side, this is a rare opportunity to create value over the entirety of their
hold period, while enjoying cash flow along the way.
By all accounts, Martin’s Super Market is high performing, and though it is owned separately, Martin’s is still responsible for their pro rata share of parking lot expenses,
and as a result are contributing substantially to the gross income of Bittersweet Plaza. This is important because Martin’s contributions to overall CAMs help ease the amount
of expense leakage that one would typically see in a 68% occupied retail center. Martin’s Super Market is known as the dominant grocer in this part of the country.
Martin’s is owned by C&S Wholesale Grocers, the 8th largest privately held company in the United States.
Please reach out to Marcus & Millichap with additional questions about Bittersweet Plaza.
Property Facts
Sale Type
Investment
Property Type
Retail
Property Subtype
Supermarket
Building Size
36,531 SF
Building Class
C
Year Built/Renovated
1992/2018
Price
$6,627,776 CAD
Price Per SF
$181.43 CAD
Cap Rate
7.37%
NOI
$488,688 CAD
Percent Leased
20%
Tenancy
Multiple
Building Height
1 Story
Loading Docks
4 Exterior
Building FAR
0.14
Lot Size
6.21 AC
Zoning
C-2 - Commercial
Parking
429 Spaces (11.74 Spaces per 1,000 SF Leased)
Frontage
619’ on N Bittersweet
Nearby Major Retailers
Property Taxes
| Parcel Number | 71-10-18-201-001.000-022 | Improvements Assessment | $2,783,496 CAD |
| Land Assessment | $700,203 CAD | Total Assessment | $3,483,700 CAD |
Property Taxes
Parcel Number
71-10-18-201-001.000-022
Land Assessment
$700,203 CAD
Improvements Assessment
$2,783,496 CAD
Total Assessment
$3,483,700 CAD
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Bittersweet Plaza | 306-338 N Bittersweet Rd
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