Investment Info:
Industrial industrial investment investment in Atlanta.
Purchase price: $2,000,000
Cash invested: $865,000
CRE Capital Management is excited to share our latest acquisition: a prime property in the sought-after Snellville suburb within the Atlanta Metropolitan Area. This fully occupied property boasts features such as two cross drive-in doors, three dock-high doors, secure fencing, ample outdoor storage, and parking for over 30 vehicles. In addition, the office interiors are of the highest quality, and the property comes with a NNN lease commitment of 6 years.
What made you interested in investing in this type of deal?
✅ Exclusive off-market opportunity
✅ Owned by the seller for 10+ years
✅ 6-year leaseback (i.e.,100% occupied)
✅ Established business with a 27-year track record (10+ years in the building)
✅ 4% annual rent escalation
✅ Triple Net Lease: Our only commitment is the parking lot
✅ Features three dock-high doors, two cross drive-in doors, secure fencing, and an outside storage area
✅ 15% office interiors with premium finishes.
✅ Turnkey: No renovations required, zero downtime
✅ Investment horizon: 5
How did you find this deal and how did you negotiate it?
This was an off market deal; thanks to our local broker relationship. We were the only bidder. In 2023, we analyzed 300+ deals, half of which were off-market. We focus on unique off-market deals, like those involving family and business events or sale-leaseback scenarios, addressing sellers' specific challenges and often resulting in higher returns.
How did you finance this deal?
Regional Bank.
How did you add value to the deal?
The value addition stems from the growth in Net Operating Income (NOI), driven by a 4% annual rent escalation.
What was the outcome?
TBD: Investment horizon: 5+ years
Lessons learned? Challenges?
The deal went pretty smoothly overall, though we hit a minor snag. We had to ask for a $100,000 price reduction and tweak some lease terms due to an iffy roof report. Also, we set aside $200,000 for future roof replacement during our ownership.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Local broker relationship.
