Small Midwest College Town Retail Center

[Steve Scharlau]

Investment Info:

Retail commercial investment investment in Winona.

Purchase price: $1,375,000
Cash invested: $275,000

4 tenant Retail property in the Super Walmart shadow

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

Triple Net lease(s)

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

Appraisal business contact. I had appraised similar properties.

How did you finance this deal?

Cash out refinance equity pulled from several residential investments.

How did you add value to the deal?

Improved the parking lot access by opening another driveway.
Created a second drive-thru window that became invaluable to the tenant during the 2020 pandemic.

What was the outcome?

Far better in/out traffic flow.

Lessons learned? Challenges?

Filling vacancy creates cash flow challenge. Gamestop tenant pulled out in 2016. Time frame to get a new tenant was almost a year. Sally Beauty (supply) occupied for 3 yrs. Now a Mega Laundry tenant is moving in. The time frame between tenants seems to be no less than 8 months even with best made plans.