Medical Park Station
Closed105 Brookridge Drive, Madison, AL 35758
Property type
Retail
Price
$11,000,000
Building size
33,157 sf
Rentable area
33,157 SF
Year built
2014
Year renovated
Occupancy
Zoning code
Lot size
3.97 Acres
Sold/status
Sold · Date unknown
Sale price
$11000000
Net Operating Income
$713,093
Property description
Franklin Street is pleased to present Medical Park Station, a 33,157 SF street-front retail strip center in the booming Madison/Huntsville market. Huntsville, nicknamed The Rocket City, is by far the fastest growing metro in the state of Alabama and one of the fastest growing in the country as well. Among its many top rankings, it ranks as the #6 most affordable large city in the country. The Huntsville/Madison County community is the economic driver for the North Alabama Region, with a 16-county regional population of 1.3 million people. Huntsville’s most significant job sectors in Huntsville are Aerospace and defense, with NASA’s Marshall Space Flight Center and the U.S. Army’s Redstone Arsenal being two of the area’s largest employers. There are also many private sector opportunities for residents working in science, technology, engineering, and math, at companies including Boeing, SAIC, and Northrop Grumman. A Toyota manufacturing plant also provides many area jobs. Huntsville is considered the technology hub for the greater Southeast, a title that has contributed significantly to the city’s overwhelming growth rate. Huntsville’s population growth is driving unprecedented commercial, residential, and industrial construction totaling $1.5 billion. The retail sector in Huntsville has shown to be resilient. The metro’s vacancy rate, 2.8 percent, has been stable and is significantly lower than the 4.6 percent 10-year average. Rent growth has also improved steadily over the previous few quarters. Medical Park Station is made up of a mixture of strong national brands including T-Mobile, Dunkin', Taziki's, The Good Feet Store, GNC, MyEyeDr, Rumble Boxing, Any Lab Test Now, Army National Guard, and a mixture of local services tenants. The property is located on the heavily-traveled east west corridor Highway 72 which leads into downtown Huntsville. There is a significant barrier of entry, as construction costs for new competing product would require rents $15+ PSF higher than the existing rent roll and there are very limited developable parcels remaining as this corridor has been built out over recent years. This should allow a new investor the opportunity to continue to push rents as leases rollover. Medical Park Station is located across the street from the recently developed Clift Farm, which when fully built out will include 890 Multi-Family units, 365 Townhomes, 480 Single Family units, 350K SF of Office, and 400K SF of Publix-anchored Retail. Shop rents in Clift Farm are in the upper $30s PSF, proving the growth opportunity for this asset to catch up to. The Highway 72 corridor is home to major retail anchors including Target, Walmart, Lowe's, Home Depot, Marshalls, Michaels, TJMaxx, Petco, Sprouts, Hobby Lobby, among many others.
Property highlights
- High-Quality Street-Front Retail Center in Booming Huntsville Market
- Durable Income Stream: 5+ Years of WALT
- Two Large Pylons on Highway 72 (51,669 VPD) For Tenants
- Mark-to-Market Opportunity on Under Market Rents Across the Rent Roll With Projected 3.77% CAGR Over 10 Years
- Strong Built-In Rent Growth Appreciation Across Leases
- Affluent Submarket: $140,000+ Household Incomes
- Rapidly Growing Submarket: 17% Population Growth Expected Over Next 5 Years
- Across The Street From Clift Farm, The Dominant New Mixed-Use Development in the Area
- Barriers of Entry: New Construction Development would Require Rents $15+ PSF Higher than the Current Rent Roll