Sold Multi-Tenant Retail Center to Out of Area Investor

Challenges:

The 17,328 sq. ft. two-story retail center known as Yucca Loma Center was built by a local contractor as a personal investment and at that time was 60% vacant. In the down market, there were very few tenants looking to relocate or small business startups looking for retail and office space. Due to these facts, the developer was placed in financial hardship and was falling behind in the bridge and construction loan financing. The following were the conditional challenges:

• Meet the Seller’s requirements regarding disposing of the property at a minimum sale price to satisfy outstanding in-place financing, within a particular timeframe, and for the market’s best and highest value.
• Work diligently to retain the current tenants by renewing/extending without any Landlord concessions or lease rate reductions and attract new tenants to fill the vacant space in order to meet a minimum Cap Rate, so that it would be a sound investment to a prospective buyer.
• Secure a financially strong purchaser who would close quickly.

Solutions:

Utilizing our personal network and market knowledge, we were able to secure tenants from competing retail centers. Our marketing quickly enabled us to showcase the demographics, benefits and attributes of the new center which made it very attractive and created the incentive to move and pay a higher rental rate.

Results:

• Represented Seller (Owner/Developer) and sold newly constructed retail center for top dollar within specified timeframe to Investor.
• Represented Investor in the purchase of a stabilized retail center with a WALT of 7 years.
• Represented Seller/Developer, Investor and Tenants.