PENN DUTCH PLAZA
PENN DUTCH PLAZA
Size: 155,622 s.f. retail center
Location: Margate (Broward County), FL
Description: Retail center with two out-parcels (existing bank and future development)
Penn Dutch Grocer, Florida Career College, YouFit Health Club, Bright Star Credit Union
Status at Purchase:
Date: October 16, 2015
Occupancy: 92%
Purchase Price: $18,500,000 ($119 psf / 7.8% cap rate)
Four-Part Business Plan:
Stabilize Tenancy:
Negotiate lease extensions with major tenants having upcoming renewals and lease vacant space.
Capture Outparcel Value:
Existing bank outparcel: sell separately at a compressed cap rate. New outparcel: develop and collect ground lease or sell separately.
Reduce Operating Expenses:
Actively manage property utilizing SunCap’s platform and key vendor relationships in order to reduce operating expenses.
Increase NOI: Increase NOI by 28% over a five year holding period.
Investment Returns:
Equity Invested: $7,067,600
Forecast Investor Returns:
10%+ current cash-on-cash
17+% IRR over five year hold;
Investment Multiple: 2.0
