Harrisonburg, VA Retail Acquisition

[Cassidy Burns]

Investment Info:

Retail commercial investment investment in Harrisonburg.

Purchase price: $3,200,000
Cash invested: $800,000

1st Acquisition in our Commercial Opportunity Fund. We were able to negotiate great seller finance terms with 20% down, a 4% interest rate for the first 2 years, and a 5% interest rate for the remaining 8 years, fully interest-only. This asset is under rented ($9.62/ SQ FT) and our value add strategy is by placing long term leases into the 1 vacant space and bringing the other current tenants up to market value rents (~$14.50/SQ FT). We are justifying these eventual rental increases by investing back into the building and the tenants. We are doing exterior paint of the building, new lighting in the parking lot, exterior fence around the perimeter of the complex, and a new monument sign to help with tenant exposure.