Power World Dealership Single Tenant NNN Retail Investment

[Alexander Scott]

Investment Info:

Retail commercial investment investment in Granby.

Purchase price: $1,990,000

Cash invested: $1,990,000

Power World Dealership - Single Tenant NNN Retail Investment

Building: 12,458 SF
Lot: 3.55 Acres
Taxes: $22,442 (2017)
YOC: 1999
Sale Price: $2,200,000
Purchase Price: $1,990,000
NOI: $189,095 (Annually)
Cap Rate: 9.5%
Tenant: Single Tenant
Lease Term: 5 year with a 5 year option

Seller: Looked to simplify portfolio
Buyer: Out of State Investor

What made you interested in investing in this type of deal?

I worked exclusively as the sellers broker on this deal. What made this investment unique was that it was a single tenant who sold power sport equipment and services in Grand County. This posed a certain amount of risk for the new owner incase the tenant was to ever leave. Fortunately the tenant had a new 5 year lease term with a 5 year option to renew and felt the location was part of their success as a business.

How did you find this deal and how did you negotiate it?

Referrals. 

How did you finance this deal?

This deal was an all cash deal.

How did you add value to the deal?

My business partner and I brought several skills to the table in the sale of this investment. We aggressively marketed the property to local and out of state buyers. We also performed an in-depth valuation of the property with actual numbers to represent what we felt the property was worth.

What was the outcome?

In the end we had a grateful seller who was happy to simplify his investment portfolio and a buyer who received a great return on his investment.

Lessons learned? Challenges?

This was a great first deal for 2019. I learned a great deal about Single tenant retail investments and how much truly goes into looking at a deal from all angles.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?