Location: Anywhere in the 48 States. Target area South-Eastern Continental USA
Size: Will consider 75,000 square feet or more, target from 125,000 square feet to 250,000 square feet.
Anchors: At least 25% occupancy by national credit tenancies.
Occupancy: At least 50% of net leasable space, although will consider more vacancy with good upside potential.
Traffic: At least 25,000 average cars-per-day.
Demographics: Market area of at least 25,000 population. Median Household income in excess of $15,000 (blue-collar preferred).
Location: Lighted intersection, easy access and visibility. Location should not be truncated from access to residential backup. In smaller markets, must be in primary commercial district.
Conditions: Will consider renovation and re-tenanting opportunities.
Considerations: Credit and term of anchors and tenants, age & quality of construction, environmental, parking, traffic patterns, competition, crime, insurance rating.
Purchase Price: Capped between 10% and 14% (depending upon the upside potential) on existing NOI. Price per square foot should be less than replacement cost.
Terms: Typically 25% down payment. New Loan, Seller Financing, or Cash.
Philosophy: Looking for cash flow opportunities. Will consider bargain-buys, redevelopment opportunities, and large upside potentials. A reliable cash flow is critical. Will purchase mortgages secured by such property.