Property Overview
I represented both the buyer and seller in the sale of a mixed-use property at 716 E Broadway, Louisville, KY 40202. My buyer was a large Domino’s franchisee with over 120 locations across three states, looking to establish a new store near downtown to meet demand.
Strategic Insights
This property had been previously listed with limited results but was an attractive option due to its Broadway frontage, ample parking, and proximity to the $100+ million, 170+ unit LDG multifamily/retail development on Gray St. My buyer was keen on the opportunity, and my pre-existing relationship with the sellers facilitated negotiations.
Challenges Encountered
We faced a few significant hurdles during the due diligence phase:
- Deferred Maintenance: The property’s façade required extensive repairs, which the seller wouldn’t address. However, the buyer was confident in the favorable purchase price and expected a quick return once the restaurant was operational.
- Flood Zone Concerns: An elevation study confirmed the property’s location within a flood zone. Although we couldn’t rezone it, the study allowed the buyer to secure a slight discount on flood insurance premiums.
Outcome
Despite these challenges, the transaction closed successfully, and my buyer is now converting the space into a new Domino’s location. I also assisted the seller in completing a 1031 Exchange into a property better suited to their business needs.
Conclusion
Commercial transactions can be complex, with many moving parts. Having an experienced commercial agent can make all the difference. If you’re considering buying, selling, or leasing commercial property in Kentucky or Indiana, let’s connect! You can reach me at raphael@grisantigroup.com or call/text 502-536-7315.