Investment Info:
Retail commercial investment investment.
Purchase price: $2,225,000
Cash invested: $350,000
Purchased a 40k sqft ft mixed use building on Main st in Middletown, CT. The building was 50% vacant at time of purchase and in under a year we renovated and leased out 90% of it. We sold 2 properties and did a 1031 exchange and used a combination of hard money and private financing to acquire the building. We plan to do a cash out refinance and keep this as a long term hold.
What made you interested in investing in this type of deal?
Our firm always liked the area and a value add deal fell into our lap in 2023.
How did you find this deal and how did you negotiate it?
Network
How did you finance this deal?
1031 exchange, hard money, private financing
How did you add value to the deal?
construction, leaseing
What was the outcome?
we planned to keep it and refinance but our outlook changed and we are now under contract for the building to be sold.
Lessons learned? Challenges?
The lease up time on retail/office is at least a year.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a licensed agent and represented myself on the purchase and sale. My partner is a commercial lender and is did the hard money loan for the purchase and is working with the new buyers on a loan.
