05/30/2026
We underwrote a $16,900,000 retail center. 14-units, 96% occupancy. 7.53% cap rate. We’re passing on the deal, here’s why:
First, here’s a full breakdown of the numbers:
1) The property has a tenant that rents 50% of the SF.
2) That tenant has been in the location for 40+ years.
3) That tenant has 4 years remaining on the lease.
4) The site has frontage on I-69,
↳Which sees 118,495 vehicles pass by per day.
5) The property was built back in 1984.
↳last renovated in 2000.
6) The median income of the area is ~$55K.
Here’s why we’re passing on the deal:
1) The property is a bit older than we normally buy.
2) The long term tenant’s lease is up very soon.
↳With no guarantee that they renew,
↳& they take up 50% of the leased space.
3) The median income is lower than our requirements.
↳This was the nail in the coffin for this deal.
So we passed.
Curious to hear your thoughts on the deal! Comment below.