Size: 27,057 s.f. retail center + two out-parcels
Location: Buckhead (Atlanta), GA
Configuration: Free-standing CVS plus two retail strips
Major Tenants: Chase Bank and McDonald’s on out-parcels
Status at Purchase:
Date: June 29, 2012
Occupancy: 85% / Majority of tenants with short-term leases.
Purchase Price: $4,950,000
Date: As of June, 2013 100%
Occupancy/Lease Terms: Majority of tenants with long term leases.
Purchase Price: $7,100,000 (under contract)
Four-Part Business Plan:
Extend Expiring Leases:
Renewed Kaufman Tire lease (65,000 s.f.) through Nov. 2028.
Renewed CVS lease through Jan. 2019.
Renegotiated McDonald’s outparcel lease thru 2033 in exchange for a 2nd drive thru.
Lease-up vacant spaces:
Leased vacant spaces (which had been vacant for over two years) through an aggressive leasing plan and increasing occupancy to 100%.
Reduce Operating Expenses:
Renegotiated vendor contracts utilizing existing platform and key vendor relationships, reducing operating expenses over $20,000 during the first year.
NOI increased by approx. $90,000 ($460,000 to $550,000) during the first year.
Status at Sale:
Date: October 2, 2014
Occupancy Lease Term:100% / Majority of tenants with long term leases.
Purchase Price: $7,060,000
Equity Invested: $2,450,000
Forecast Investor Returns:
10+% current cash-on-cash
31+% IRR over 2.25 year hold
Investment Multiple: 2.5