SRS Real Estate Partners Closes $6.92 Million Sale of Single-Tenant Grocery Property in Kalamazoo, Michigan

SRS Real Estate Partners has completed the $6.92 million sale of a single-tenant grocery property occupied by D&W Fresh Market at 2103 Parkview Avenue in Kalamazoo, Michigan, the firm announced Aug. 10. SRS Capital Markets Senior Vice President Jeff Gates represented the seller, a Toronto-based investor group, in the transaction. The buyer was an institutional investor.

Deal Details: NNN Lease, Corporate Guarantee, Infill Location

The freestanding property totals 29,000 square feet and sits on 2.33 acres. Originally built in 1955, the asset is fully occupied by D&W Fresh Market, which is operated by a subsidiary of C&S Wholesale. The lease is structured as a corporate-guaranteed absolute triple net (NNN), placing minimal responsibilities on the landlord and providing the buyer with stable, passive income.

The current lease runs through Dec. 31, 2031, leaving approximately five years of remaining term. Three five-year renewal options are included, which could extend D&W Fresh Market's occupancy at the site through 2046. At the reported sale price and building size, the transaction equates to roughly $239 per square foot.

D&W Fresh Market has operated at the Parkview Avenue location for decades, and the property has historically generated high sales per square foot, according to SRS Real Estate Partners.

Location and Market Fundamentals

The property is situated along one of Kalamazoo's primary retail corridors and is surrounded by national retailers and restaurants. More than 152,000 residents and approximately 120,000 employees are within a five-mile radius, providing a substantial consumer base that has supported the site's long-term performance.

The combination of dense infill positioning, essential retail tenancy, and a long operating history contributed to the asset's appeal for a passive, long-duration institutional buyer. Grocery properties are broadly viewed as resilient net-lease investments because consumer demand is recurring and tied to daily needs, and NNN structures limit landlord exposure while delivering predictable rent streams.

The building's 1955 vintage underscores that the transaction was valued primarily on location, tenant credit, and cash flow rather than new construction replacement cost — a dynamic common to older grocery boxes in proven, high-density retail corridors.

Broker Commentary

"Single-tenant grocery properties continue to be among the most sought-after net lease investments due to their ability to generate durable cash flow and perform well across economic cycles," Gates said. "This property stood out because of its long operating history, consistently high sales productivity, corporate-guaranteed absolute NNN lease and location within a dense infill retail corridor. Combined, those characteristics made it an exceptionally attractive acquisition for a long-term passive investor."

SRS Capital Markets Activity

SRS Capital Markets has completed more than $1.6 billion in deal volume across more than 400 transactions nationally so far this year, according to SRS Real Estate Partners. The firm currently has more than 900 properties actively on the market with a combined market value exceeding $4.3 billion.

Founded in 1986 and headquartered in Dallas, SRS Real Estate Partners operates 30 offices nationwide and provides commercial real estate services across retail, industrial, and capital markets.

Sources

SRS Real Estate Partners — Press Release: Single-Tenant Grocery Property in Kalamazoo, Michigan Sells for $6.92 Million