RLW Hope Valley Point LLC, Durham NC

[Robert Wiley]

Investment Info:

Retail buy & hold investment.

Own seven of twelve commercial condo units at this shopping center comprising about 67% of total square footage.

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

Completed 1031 exchange.

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

Networked extensively for many weeks while organizing relocating from Mercer Island, WA. Wanted replacement property in hand before selling investment property in WA. Property was owned by investor group, met deal sponsor/syndicator at the right moment. Deal was off-market, timing was perfect for us both.

How did you finance this deal?

1031 Exchange.

How did you add value to the deal?

Hired property management firm, catching up deferred maintenance.

What was the outcome?

Pleased with tenant mix and resilience through Covid. Lost one business, now replaced.

Lessons learned? Challenges?

One unit was a cold shell in buildout for occupancy when I took ownership. When completed, tenant found there was no water to his hookup. Trip to the water meter box revealed there was no water meter, was never installed.

Thought my due diligence was comprehensive. Didn't think to go look at all the water meters.

There's a famous case in accounting where a company valued full tanks of salad oil. Turned out they were empty.

Moral: "Stick your finger in the salad oil."

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

REA manages property, pleased with them.