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Grand Island Plaza, an approximately
93,000 sqft shopping center located on Grand Island, NY
was purchased from a 20+ year owner-operator who wished
to retire. The sales price was $4,025,000 ($43.28/sf).
The property was approximately 46% occupied at the time
of sale and was purchased at an approximately 9.5% cap
rate on in place leases. The property is located in a
desirable suburb of Buffalo NY (median income ~ $70,000)
that is experiencing modest new home construction & positive
job growth in combination with limited retail competition.
A new loan was obtained from Stancorp (a life insurance
company) in the amount of $2,600,000 fully amortizing
over 20 years, with rate adjustments every 5 years, and
an initial rate of 5.75%. The property was immediately
resold, going under contract even before escrow had closed
to one of our long-time investors, an individual who had
just sold a package of houses in Phoenix at the height
of the housing bubble and needed to complete a 1031 exchange
due to his extremely low tax basis in the houses. An equity
participation in future profits was retained. |
