CURRENT PROPERTY

3050 – 3080 S. Vallejo St.

Englewood, CO

ASSET CLASS:

Industrial

ASSET SUB-TYPE:

Multi-unit

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.

More Information

For more information about this or any of our other assets…