CURRENT PROPERTY
3050 – 3080 S. Vallejo St.
Englewood, CO
ASSET CLASS:
Industrial
ASSET SUB-TYPE:
Shallow Bay Light Industrial
BUILDING:
16,912 sq ft, (6) small units 2,100 to 3,200 sq ft each, concrete, wing-t exterior
Investment Report
Thesis
Overview
- Small-unit industrial is a good performing asset in economic downturns and stays fully occupied nearly all of the time.
- The building was purchased with a projected net annualized return of 10.42%.
Risks
- 3 of the 7 units are up for renewal this year.
- We will stagger leases going forward to reduce a potential large amount of turnover.
- Another risk is tenant credit. We are trying to improve credit for each time a unit becomes available.
OUTLOOK & EXIT
- The property is trending towards the scenario of new tenants, which provides a projected annualized net return of 10.64%.
- We evicted one tenant and are building-out that unit.
- One other tenant gave notice. With current leases significantly below the market, having a new tenant sign will significantly increase the lease rates.