Property Overview
The property at 4140 Outer Loop, Louisville, KY 40219, features over 110,000 square feet of retail space on 12.5 acres. Located near a busy intersection, it serves as a key hub within Louisville’s growing retail corridor at Preston Highway and Outer Loop. My clients, owners of a large international grocery store chain, sought this property as an investment, with plans to backfill one of the larger spaces with one of their stores in the future.
Strategic Insights
The current lending environment has made banks cautious about large loans for investment properties. However, because my clients are owner/operators planning to establish one of their businesses on-site, we were able to negotiate favorable terms. This approach allowed us to present a strong and credible offer, positioning us well during negotiations.
Negotiation Process
After securing a favorable purchase price, we moved into the due diligence phase, which involved, reviewing existing leases, conducting a physical property inspection, securing estoppel agreements from tenants as well as performing an environmental assessment.
Challenges Encountered
During due diligence, we faced several challenges:
- Comprehensive Lender Review: We worked closely with the lender to meet compliance requirements.
- Environmental Concerns: We conducted a thorough assessment to address potential issues.
- Insurance Coverage: We navigated challenges in securing adequate property insurance.
Despite these hurdles, we successfully resolved each issue and proceeded to a successful closing.
Conclusion
I am grateful to my clients for their trust throughout this journey, and I look forward to many more successful collaborations in the future! If you’re considering selling, buying, or leasing commercial property in Louisville or the surrounding areas, let’s connect! You can reach me at 502-536-7315 or raphael@grisantigroup.com.