Silver Pointe & Silver Lake Shopping Center

Description:

Landmark Investment Sales is pleased to present Silver Pointe & Silver Lake Shopping Center in Fenton, MI. The two centers (being sold together) are anchored by VG’s Grocery Store (Spartan Stores - NASDAQ: SPTN) & includes a fuel station & other well-known national and regional tenants. At 97.27% occupied, the shopping center presents a stable investment opportunity while also allowing a buyer to increase rents over time & potentially develop two outlots. The subject property sits within the dominant retail corridor of Fenton & benefits from easy freeway access & high-income shoppers.

INVESTMENT HIGHLIGHTS
1. Stable Anchor Tenant – VG’s Grocery
• VG’s Grocery is a strong regional grocer with a loyal customer base. The tenant has a 30+ year operating history at the site. VG’s Grocery has been in the Fenton community since its founding in 1949.
• In 2008, Spartan Stores (NASDAQ: SPTN),) acquired VG’s Grocery, adding credit stability.
• VG’s reports strong historical sales data; trailing 3 year average sales exceeds $38M, over $600/psf with a health ratio of 2.9%
• VG’s has 7 years of remaining lease term and has proposed a $7M reinvestment into the site. This would
include a complete refresh / reimaging of the store’s interior and exterior façade. The investment
demonstrates long term commitment to this site.
• SpartanNash (NASDAQ: SPTN) is a Fortune 400 food solutions company headquartered in Byron Center, Michigan. Formed in 2013 through the merger of Spartan Stores and Nash Finch Company, SpartanNash operates in two main segments, wholesale and retail.

2. Prime Location in Growing Market with Diverse Tenant Mix
• Silver Parkway runs just off Owen Road (17,407 vehicles per day) and U.S. Highway 23, a major north-south artery with traffic counts exceeding 50,000 vehicles per day. Fenton, MI is considered one of the strongest retail corridors in the region due to a combination of location, tenant mix, consumer demographics, and accessibility.
• The surrounding area boasts above-average incomes, high homeownership, and a stable, educated population.
• The Silver Parkway corridor is well-balanced with a diverse tenant mix across different retail categories: grocery, home improvement, fashion, fitness, medical, banking, services, and dining. Silver Parkway has become a regional shopping destination hub, being home to major retailers such as Walmart, Target, Home Depot with TJ Maxx, Old Navy, Five Below, Michael’s PetSmart sitting adjacent to the subject property.

3. Value-Add and Upside Opportunities
• The new ownership group has an opportunity to increase current rents on over 20% of the GLA. Several tenants are operating under well below-market lease rates.
• The property offers two potential outlots presenting an opportunity to unlock additional value through new development or ground leases.
• There is active interest from national QSR operators, including a ground lease proposal subject to applicable approvals, validating the site’s visibility and strong retail fundamentals.
• These outlots provide an immediate path to increase NOI, attract high-traffic tenants, and enhance the long-term value of the center.

4. Recent Capital Improvements
• The center recently underwent a comprehensive facade transformation, significantly upgrading its curb appeal and marketability. The new exterior improvements enhance retailer visibility, and support tenant retention as well as rent growth.
• 2022 roof and parking lot replacement (resurfaced and re-striped parking lot).

Documents: