Case Study: 601 Front St
Property Profile
$2,550,000Challenge
601 Front St was a property that had a single-tenant lease with a near-term rollover that posed a binary leasing risk to a potential buyer. Given the market’s overall state, the agents felt that the property had a strong likelihood of being able to retain the tenant and complete an early renewal, as there were minimal options for an equally functional site.
Strategy
The agents’ ability to diagnose market conditions led them to approach the tenant early for a renewal, which allowed for the tenant’s renewal to occur over one year in advance in much stronger market conditions for the landlord. The agents’ understanding of the market allowed them to capitalize on this and renew the tenant at $1.53 NNN on a new 5-year lease with no concessions or tenant improvements. During the escrow process, the agents remeasured the building with a BOMA calc and were able to grow the building over 8.0% of RBA.
Results
The tenant was able to be renewed within a window of time that allowed for the greatest amount of market upside for the Landlord and locked in a solid multi-location tenant for the mid-term future, securing their investment moving forward. This is over a 7.0% stabilized cap rate within the first 15 months of investment.
Recent News
Recent Media & Thought Leadership
3/7/2024
Case Study: Three Property Multifamily Portfolio Refinance
2/26/2024
Case Study: 10365 Parker Rd
2/6/2024
Case Study: 1269 Broadway
1/29/2024
Case Study: 970 Flushing Avenue
1/26/2024
Case Study: 1056 Rogers Avenue
1/25/2024
Case Study: Safe Store Surry, NH
1/23/2024
Case Study: 237A 27th Street
12/12/2023
Case Study: 3546 Emery St
11/28/2023