All Forum Posts by: Michael Knudsen

Originally posted by @Broaderick Brown:

Need a agent in Houston don't hesitate to send me a pm.

 Thanks Broaderick, I look forward to connecting with you in the near future.  

Hello BP.  Through my brokerage services, I recently uncovered an off-market, multi-tenant commercial acquisition opportunity in the city of Long Beach that I felt was worth pitching to our community.  Below please find the salient deal points:

• Asking Price: $3.7MM | In-Place Cap: 7.1% | 100% Occupied | NNN Leases | ~15,000 Bldg. SF | 48,000+ SF lot | Signalized Corner
• Newer construction with no substantial deferred maintenance: Built in the late 1970's, the property has been very well maintained by the current owner. There is no material deferred maintenance, and the roof, plumbing, electrical and HVAC systems are all in solid condition.
• Functional "flex" facility: While the property is located in a heavily industrial area with immediate freeway access in close proximity to the booming Port of Long Beach and features ground-level roll up doors that are appealing to industrial tenants, the property also has many attractive qualities that appeal to conventional retail tenants, including:
  • Prominent location on a hard, signalized corner featuring over 65,000 combined vehicles per day 
  • Excellent visibility and frontage 
  • Ample parking (60 dedicated surface spaces at a ratio of 4.25/1,000 of rentable SF)
  • Located along a major bus line and only one city block from a Metro Blue Line stop, which drives additional potential customers to the site
• Strategic location: The property is only a few miles from the Port of Long Beach, and is also located on one of the primary east-west arterial roads connecting the predominantly residential and retail districts in the South Bay with the region's industrial zone. The fact the property is located in a predominantly industrial area is a net positive in my mind, as the immediate trade area is very under-served with regards to competing retail properties -- this is evidenced by the fact they are several long-term tenants who have been operating out of this location for decades.
• Immediate freeway access: The property is located a block from a major 710 Freeway interchange, which is an appealing traffic driver for retail tenants, and a convenient feature for light industrial tenants who want quick access to and from the port.
• 100% occupied center with strong mix of tenants: The rent roll features an excellent mix of both local mom and pops to regional and national credit tenants. One tenant is a large staffing firm that has over 20 locations throughout the Southland, while another tenant is an international, vertically integrated engineering consultancy that has 61 locations worldwide. A popular local restaurant has been an anchor tenant in the end-cap space since 1989. A local insurance agency just spent $40,000 of their own money for tenant improvements in their space. While there would be some potential rollover risk during the first year of ownership, the owner is willing to offer a rent guaranty in the form of a credit up front to compensate for this.
• Strong cash flow: The stabilized property is available at a 7-7.5% cap rate on in-place income, which has become exceedingly difficult to find in today's highly compressed property market throughout Los Angeles County.
• Below-market rents: The average monthly rental rate of $1.39 PSF NNN is below market, offering potential rental upside.
• High demand for space in facility: According to the current owner, he gets calls from prospective tenants off his leasing sign at the corner "on a daily basis" -- this allows him to line up backup tenants in the event he ever loses a current tenant on a rollover.
• Stable, long-term bonus income from billboard and telecom equipment: The annual NOI features over $23,000 generated from a prominent billboard sign and telecom equipment -- both of these leases have been in place since 1985 and 1998, respectively.
• 100% reimbursable, passive "NNN" leases: Every tenant is on a triple net lease -- each one includes provisions that pass through 100% of the operating costs associated with the property to the tenants, including any increases basis for property taxes and property management expenses. The current owner is willing to manage the property for up to a year to help during the transition until you are able to identify a long-term property manager for the site.

I am interested in investing my own money into this deal ($50-100K), and I am seeking additional investors to meet in person and explore the possibility of partnering on this transaction.  The cash flow is solid, and the long-term appreciation potential is tremendous.  Please email or call if you are interested in exploring this opportunity.  

I'd fly up for that.

Hello Zamir, Did you end up closing on this property? If so, I'm curious to hear how it has worked out for you. Regards, Mike

If you want to be a serious national triple netter, National CoStar is a must.  It's $400 a month for a single user, but it's the best $400 a month you'll ever spend in the business.  You simply need it to get going.  Unfortunately, CoStar will force all of the other agents in your office to sign up in order to upgrade to the national package, so this may not be a viable option for you.  I would also recommend focusing on a specific segment of the industry -- i.e. discount retail, fast food, banks, drugstores, etc. -- and farming that within a few dynamic trade areas across the country, as opposed to taking a "shotgun" approach and trying (likely futilely) to master everything.  If you want to take things a step further, focus on one tenant and learn everything you can about their business operations/stock performance, site selection criteria, preferred developer network, lease structure(s), cap rate trends, etc.  For instance, while I market myself as a specialist in "daily needs" retailers, I pretty much only cold call CVS owners in my target markets these days.      

For researching contact info for principals, LexisNexis is a must.  Their real estate research package runs $3K a year.  When you throw in ICSC membership/conventions and travel expenses out of state to view properties with clients, the costs add up pretty quickly in this space.   

If you're in LA and looking to cut down on your overhead, you should consider leaving your firm and getting an entry-level sales associate position at Matthews.  Kyle Matthews is an animal and has built an undeniable juggernaut.  

I am actually looking for another agent to focus exclusively on dollar stores in my office.  Feel free to reach out.  

I'm a retail net leased investment broker based in Los Angeles, and I specialize in single and multi-tenant retail properties leased to the national credit "daily needs" tenants ranging from the top grocers (The Albertsons Companies, The Kroger Company/Ralphs, Wal-Mart Neighborhood Center, Trader Joe's, Sprouts, Whole Foods), to the drug stores (Walgreens Boots Alliance/Rite Aid, CVS), to the discount retailers (Dollar Tree/Family Dollar and Dollar General). In terms of market focus, I am working hard to facilitate transactions within the major metro areas of Los Angeles, Orange County, San Diego, SF Bay Area, Seattle, Las Vegas, Dallas Forth Worth, Austin, Houston, Atlanta, Tampa, Orlando and South Florida. I am experienced and well-versed in abstracting complex commercial leases and managing the 1031 exchange process. I am working hard to enhance my knowledge of discounted cash flow modeling for portfolios/complex capital stacks in ARGUS, CMBS securitization, syndication and commercial construction/development.

I'm hoping to expand my network of developers and investors in single and multi-tenant net-leased properties nationwide -- particularly within the target markets listed above.  I hope to transition out of commercial real estate brokerage and into commercial syndication full time within the next year or two -- hopefully right in time to capitalize on the next down cycle!   

I look forward to becoming an active participant in this community, and hopefully putting deals together with some of you in the near future!  

Has to be the Panhandle.  That being said, if I were you, I'd try to find the best blend between housing prices and population growth/housing starts if capitalizing on long-term appreciation is your primary objective.    

https://en.wikipedia.org/wiki/List_of_Metropolitan...

http://www.bizjournals.com/orlando/news/2016/12/19...

Check out communities surrounding The Villages, Kissimmee and other tertiary parts of Orlando. Tertiary submarkets in the Fort Myers MSA look like great targets as well.  

William, I'm an active retail net lease investment broker with a solid background in shopping center leasing dating back to my days at CBRE. I'd be happy to take a look at the property and give you at least an initial assessment yon which tenants I think you should contact. If it's a former Goodyear site, I'm assuming that the building has service bays? You might want to reach out to Tires Plus first if they aren't in the area. They are a wholly-owned subsidiary of Bridgestone Firestone Retail Operations LLC, the sole licensed reseller for Bridgestone Firestone in North America. While they are a private company, they have thousands of locations nationally and the parent company guarantees their leases. If you land those guys, you could flip the deal for a nice profit. I probably have a buyer for that! Regardless, I would recommend that you hire a landlord rep broker who has a firm grasp on rental rates in the local market and also specializes in leasing single and multi tenant retail centers that attract national tenants. CBRE is probably your best bet, because they will have connections with the top retailers. Feel free to DM me.

1) Get a premium subscription for Retail Lease Trac (http://www.retailleasetrac.com) and contact tenants and/or their tenant rep brokers seeking similar space in your market directly. 2) Join the International Council of Shopping Centers (http://icsc.org) and pitch the deal to prospective tenants/their tenant rep brokers at their conventions, especially RECON, which is their primary convention held every May in Vegas. Incredible deal-making conference. This is what every retail needs to see in order to properly assess the viability of a prospective retail site: -Signalized corner, soft corner or mid block -Visibility, frontage and signage -Parking -Ingress/egress -Traffic counts -Population density in a 1, 3 and 5-mile radius -Ditto for median household income -Ditto for ethnic breakdown -Ditto for population growth rate -Ditto for residential and commercial development projects in the pipeline -Proximity to complementary national retailers -Proximity to direct competitors -Proximity to existing locations in the trade area -Lease structure (absolute NNN, modified NNN or NN for build to suits/reverse build to suits; or ground lease) -Rental rate -TI allowance, if any, for aforementioned BTS/Reverse BTS leases

Hello Kusum, I have a client based in LA who owns a portfolio of retail properties in the Greater Atlanta region, and he highly recommends Skyline Seven. http://skylineseven.com I'm brokering an NNN deal in Atlanta with one of their agents right now, and he's top notch. Hope this referral helps.