Size: 60,780 s.f. retail center
Location: Cumming (Atlanta), GA
Configuration: Bays range in size from 1,200sf – 3,000 s.f. plus a 4,000 s.f. Starbucks outparcel
Major Tenants: Shadow-anchored by The Avenues Forsyth, a 523,000 s.f. outdoor lifestyle center
Status at Purchase:
Date: February 3, 2011
Purchase Rate: $9,125,000
Four-Part Business Plan:
Lease-up vacant spaces:
Through an aggressive leasing plan 12 tenants were signed within two years (21,000 s.f.) and taking the occupancy from 61% to 100%. The remaining two vacant bays are currently under LOI for lease which will take the occupancy to 100%.
Stabilize tenant mix:
Rents were brought in-line with market.
Replaced weaker tenants with stronger operators.
Minimized accounts receivable issues and stabilized cash flow.
Reduce Operating Expenses:
Renegotiated vendor contracts utilizing SunCap’s existing platform and key vendor relationships.
Overall operating expenses were reduced by over $50,000 during the first year.
NOI increased by approx. $300,000 (from $850,000 to $1,200,000) during the first three years.
Status at Sale:
Date: October 10, 2014
Sale Price: $15,000,000
Equity Invested: $3,730,000
Forecast Investor Returns:
10+% current cash-on-cash
28+% IRR over 3.7 year hold
Investment Multiple: 2+