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Case Studies
Industrial Building - Single Tenant
Rockland , California
- We were working with a commercial leasing broker with a national BBB rated company that needed to expand, and wanted to be in the Rockland area
- Due to a very tight market they could not find suitable space but they had located a vacant building for sale
- We signed a lease directly with the national company and then launched an LOI to the owner of the building
- Buying it vacant meant we had the upper hand on price and were able to negotiate a very reasonable price, while we had a signed lease for five years with a five year option in our pocket
- We structured a 65% leveraged transaction, and put a partnership together on the balance
- We had planned a three year holding period, but after one year we hit our bench mark and sold the deal
- Our investor group realized a 25% IRR net of all fees on their invested capital
Industrial Building - Multi Tenant 55,000 Square Foot
West Sacramento , California
- We purchased this property for $56 a square foot with a 20% vacancy factor
- While in escrow during tenant interviews we discovered one tenant that wanted to expand
- We immediately started working directly with him and negotiated a new lease
- His old lease had an “out” in it and we were able to create a new five year lease at above market rents by rolling tenant improvements into the lease rate
- This new lease lowered the vacancy factor and stabilized the tenant base
- After closing we took care of previous tenant issues and retained 100% of the previous occupants
- We sold the property after it hit our benchmark for $70 per square foot
- Our investor group realized a 34% IRR net of all fees on their invested capital
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