Purchase Price: $2,792,500
Total Project Cost: $2,900,000
Equity Required: $900,000
Development Timeline: N/A
Estimated Project Value: $3,650,000
Projected Return: 22.81%
Purchase Date: 1/31/2020
This is an irreplaceable asset with the heaviest industrial zoning in the City of Phoenix. The property consists of two parcels totaling 6.13 acres with structures sitting at approximately 34,000 square feet. The structures contain heavy cranes, 2,000 amps of power and a spacious canopy making this an ideal manufacturing site. The property is fully occupied by two tenants.
We purchased the property for $2.8M with strong tenants in place at under market rents which will provide good cash flow until we can renew the leases at market rents, providing the increase in NOI this property demands. Alternatively, we will have tenants vacate and sell the property at market price. Since we were able to acquire the property under market value due to the below market rents, we’ll have a safety net in the event the tenants vacate, allowing us to achieve upside via a new tenant or selling vacant to an owner user.