Jones Lang LaSalle Americas, Inc. (“JLL”), is pleased to exclusively offer for sale the fee-simple interest in the single-tenant Harbor Freight Tools (the “Property” or “Asset”) located at 701 Joe Mann Blvd, in Midland, MI. The tool and equipment retailer is ideally located in a highly visited retail corridor adjacent to Midland Mall, benefiting from the shopping center’s annual foot traffic of 2.8+ million visits. The building totals 14,587 SF across 2.93 acres and features an original 10-year lease with +7 years remaining, subject to multiple renewal options. Additionally, the adjacent vacant pad serves as a potential future value-add opportunity for buyers to develop.
Privately owned, Harbor Freight Tools has been in business since 1977 and now operates over 1,400 locations across 48 states that serve over 75 million customers. Harbor Freight continues to deliver an incredible assortment of quality tools to pros and DIYers alike at prices that are up to 80% less than competing brands.
The Property features a landlord-favorable double net lease providing limited responsibilities and full operating expense reimbursement. The lease also features 10.0% rent escalations every five years and five, five-year extension options. The Asset benefits from proximate national retail density that includes Home Depot, Target, Lowe’s, Marshalls, Kohl’s and Walmart.
Situated along Midland’s main retail corridor, the Property has superb visibility from multiple easily accessible thoroughfares with high traffic counts of 22,000+ VPD on average.
This excellent opportunity allows investors the ability to acquire one of the country’s most well-known tools and equipment retailers offering a passive and growing long-term cash flow, while providing incredible future value-add potential in the heart of Midland’s retail corridor.
Situated in Midland’s Premier Retail Corridor
- 2.4 Million SF of retail within a one-mile radius
- Strong demographics with an AHHI of $120,500+ within a 3-mile radius
- Located adjacent to Midland Mall, which generates 2.8 million visits annually
- Proximate to a high-performing Walmart Supercenter ranking in the 84th percentile for chain visits nationally and achieving annual foot traffic of 2.2 million
- Potential future Kroger development on neighboring parcel
- Less than one-mile from a Meijer grocer that ranks within the top 99 percentile for chain visits nationally with 2.4 million annual visits
- Other nationally recognized and highly visited retailers include Home Depot, Target, Lowe’s, Marshalls, Kohl’s, Five Below, ALDI, and more
Highway Interchange Location with Immediete Connection to Major Regional Thoroughfare
- 22,205+ VPD along U.S. Route 10
- 12,730+ VPD along Jefferson Avenue
- 4-Miles North of Downtown Midland
- 130-Miles Northwest of Detroit
Rapidly Expanding Tenant with Passive Lease Structure and Attractive Escalations
- NN lease results in minimal LL responsibilities limited to capital expenditures, fire and irrigation system repairs and roof/structural repairs, with taxes, insurance, and CAM passed through to the tenant
- Current roof warranty expires in 2027
- 5 options remaining with 10% increases in each provides an effective hedge against inflation
Future Value-Add Opportunity
- 2.93 acre site zoned (RC) Regional Commercial
- 20,800+ SF of undeveloped land located within premises currently leased by Harbor Freight Tools
- Potential for major value-add component