Property Overview
I recently helped my client secure a Single Tenant Net Lease property at 10115 Dixie Hwy, Louisville, KY 40272. The building is well-positioned on a hard corner with favorable C-2 zoning. The tenant, a well-established multi-location operator, had been in place for many years, paying competitive rent. Despite only a few years remaining on the lease, plus one 5-year option, I saw the opportunity’s potential. My client is an experienced investor with whom I’ve closed two properties in the last four years. He was eager to expand his portfolio with a property in a prime location.
Strategic Insights
In the Single Tenant Net Lease sector, lease duration can significantly impact perceived property value. Properties with shorter remaining lease terms can be viewed as higher risk, potentially limiting buyer interest. However, my access to comprehensive databases and software systems allowed us to analyze tenant retention probability, providing us with insights to make an informed decision. Our analysis revealed this location as one of the tenant’s top performers in the area, giving us confidence to move forward. With tenant retention highly likely, we turned this insight into a powerful advantage during negotiations.
Negotiation Process
Armed with our analysis, we successfully negotiated a favorable purchase price. The seller, a large out-of-state real estate company, had a team of attorneys overseeing the transaction. While this added complexity to the process, we navigated the legal challenges and ensured the deal progressed smoothly.
Challenges Encountered
Throughout the transaction, we faced several obstacles, including:
- Limited remaining lease term
- Extensive negotiations with the seller’s legal team
- Ensuring thorough due diligence despite legal complexities
Despite these hurdles, we successfully closed the deal, adding another strong asset to my client’s portfolio.
Conclusion
My client now owns a valuable property with strong potential for a quick payoff. I’ve assisted him in acquiring two properties over the past four years, and I look forward to helping him secure his next investment soon! You can reach me at 502-536-7315 or raphael@grisantigroup.com.