4 Acres, 39,000 sq ft + $6,000,000 Dev cost

[Chris Blackburn]

Investment Info:

Retail buy & hold investment in Salem.

Purchase price: $1,200,000
Cash invested: $6,000,000

This was purchased in 2018. It was 4 acres rectangle-shaped and 11x gable style buildings. A total of 39,000 sq ft of rentable space all pushed to the back of the property line. This allowed for additional development of the front space on a major road in Salem (Lancaster). https://youtu.be/PAzL5SxWd4s

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

Upside, extra land, lots of infrastructure in place

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

Loopnet, had been for sale for a LONG time- Really ugly

How did you finance this deal?

Cash

How did you add value to the deal?

updating the existing buildings and building new units I think the best option would have been a self-storage conversion. However- we decided to reface the fronts of the buildings and add glass roll-up doors. The first phase was expensive and the parking lot was expensive. We ended up building a commercial Sherwin Williams building in the front. Currently, we are building a C-Store, brewpub, and 2 spec buildings

What was the outcome?

We will know when the 2 spec buildings are leased. They have small units with great frontage- Looking at $2 a foot NNN. Should have $3M in equity in 3.5 years

Lessons learned? Challenges?

Really plan what the City/county will need when you develop. Costs and changes are expensive and painful.

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

AJ Nash Tradition Real Estate Partners Troy Willis Willamette Valley Bank Owen Construction