1517 S Michigan St

1517 S Michigan St is an 8,383 square foot masonry block structure built in 1949 with 12’ ceilings and a clear span interior. The property is located on the south side of downtown South Bend, with frontage along Michigan St and a short distance north from the signalized intersection with Indiana Ave. The parcel is located along a commercial thoroughfare but resides in a mixed-use area, with smaller commercial units and single family residential surrounding. The south side of Downtown South Bend is seeing significant investment and redevelopment, with major renovations occurring at Four Winds Field, new apartments being constructed as part of the Diamond View project, and the Momentum project, an entrepreneurial hub that will promote innovation and networking.
The Subject Property is currently divided into two suites. The front 4,704 SF is occupied by Fisher Auto Parts (formerly Hoffman Bros Auto Parts), a long-term tenant with term through March 31, 2030 (and a further two five-year renewal options). The rear 3,679 SF is occupied by a local user primarily utilizing the space for storage in a month-to-month lease situation. In addition, the property is benefited by a billboard lease through 2037. The property has a dedicated surface surface parking lot with 13 spaces, along with street parking and rear alley access. The surrounding corridor is home to a variety of auto-related businesses, including sales lots, salvage yard, car washes, mechanics, and detailers.
•100% occupied flex industrial/retail space further benefited by billboard income
•Central location on main north/south thoroughfare with synergetic nearby businesses
•Building split into front and rear suites with clear span open areas suitable for retail or warehousing Rear tenant paying below market value on a modified gross schedule in a month to month lease; opportunity to raise rents and NNN expenses (have tenant pay taxes and gas bill)
•Rear tenant pays for their own water and electric services
•Anchor tenant is fully NNN paying $8.50/SF with rental increases in both five year extension periods
•Landlord responsible for structural aspects and HVAC replacement
•Billboard pays $2,500 annually through 2037
•2020 Fischer Auto Parts lease included capital repairs to property