Telegraph Shops

Monroe, Michigan is an established regional city in southeastern Michigan along the western shore of Lake Erie, approximately 30 minutes south of Detroit and 40 minutes north of Downtown Toledo, with direct access to Interstate 75 connecting major Midwest logistics markets. Serving as the commercial and employment hub for Monroe County, the city draws retail traffic from surrounding suburban and rural communities while maintaining a stable residential base. Retail demand is supported by a diversified economy anchored by manufacturing, automotive supply chain, logistics, healthcare, and public-sector employment, reinforced by regional employers along the I-75 corridor. Ongoing logistics, manufacturing, healthcare, and infrastructure investment across the Detroit Toledo corridor, combined with stable residential development in Monroe and Frenchtown Township and limited new retail construction, have contributed to sub-4% vacancy, stable occupancy, and balanced supply-demand dynamics. These fundamentals position Monroe as a stable, low-volatility retail submarket characterized by consistent household incomes, durable tenant demand for essential and service-oriented uses, embedded rent growth potential, and long-term NOI stability driven by disciplined supply rather than speculative expansion.Telegraph Shops is a 100% occupied, three-tenant neighborhood strip center located on South Telegraph Road in Monroe, Michigan, within the greater Detroit-Toledo regional corridor. The ±4,604 SF property sits on approximately ±1.2 acres and is offered fee simple and free and clear at an attractive 8.25% cap rate and $116 PSF. Constructed in 1998, the center features durable physical attributes including a brick exterior, individually metered utilities, rear-positioned ground-mounted HVAC systems, ample surface parking with 40 spaces, and one point of two-way ingress and egress providing convenient access for service-oriented users. No near-term capital improvements are anticipated. The rent roll is anchored by Northwestern Mutual, occupying approximately 52% of the center, alongside First American Title, a subsidiary of a publicly traded national title insurance provider, and Delaney’s Counseling Services, a locally rooted mental health practice providing essential, appointment-based services. All tenants operate professional, service-based businesses with recurring demand and minimal exposure to e-commerce disruption, resulting in a weighted average lease term of approximately 2.9 years, with contractual rent increases in place for two of the three tenants. On an adjusted basis, in-place rents remain materially below prevailing market levels, creating clear mark-to-market upside through lease rollover, modified gross to NNN conversion, and alignment with observable market benchmarks. Northwestern Mutual is effectively paying approximately $5.22 PSF on a comparable NNN basis, materially below recent leasing activity in the immediate trade area averaging approximately $14.40 to $15.00 PSF NNN; Delaney’s Counseling Services is similarly leased below market after adjustment, while First American Title is closer to market but lacks contractual rent escalations. Located within an established Monroe trade area supported by solid household incomes, stable population trends, and a diverse employment base anchored by manufacturing, logistics, healthcare, and public-sector jobs, Telegraph Shops benefits from limited new retail construction, sub-4% market vacancy, and durable service-based tenancy, offering investors defensive in-place cash flow, embedded rent growth, and long-term NOI expansion potential without reliance on aggressive underwriting assumptions.