In July 2018, Erik Blais of Bradford Commercial Real Estate Services, Inc. was tasked with identifying an off-market, value-add, strip center acquisition opportunity on behalf of a long-time client and local real estate investor, LFP Properties, Inc., who indicated a desire to close on the transaction prior to the end of the year.
Immediately after the purchase contract became effective, all existing tenants were interviewed and informed of LFP Properties renovation plans. During the interviews, it was determined that four (4) of the five (5) existing tenants were on a month to month leases, at rates substantially below market; these tenants were offered long term renewal options which incentivized them on the front end of the term.
Prior to the expiration of the due diligence period, Bradford was successful in securing long term commitments from three (3) of the four (4) existing tenants on month to month leases, all of which reflected lease rates in line with the current market. LFP Properties, Inc. successfully closed on the purchase of Village Square within 90 days of identification and at a purchase price significantly below replacement cost.
