Property Overview
I represented the buyer in acquiring a prominent multi-tenant retail center at 3333 Bardstown Rd, Louisville, KY 40218. My client, a local business owner and retail investor, sought a long-term investment opportunity.
Strategic Insights
The property, despite its prime location in a bustling retail corridor, had several factors deterring potential buyers:
- Gross Leases: Many of the leases were structured as gross, meaning the landlord was responsible for taxes, insurance, utilities, and general maintenance.
- Brownfields Program: The property was part of the Brownfields Program, raising concerns about potential environmental contamination.
These factors allowed us to negotiate a favorable purchase price and move quickly to contract.
Challenges Encountered
During due diligence, we identified several value-add opportunities:
- Lease Restructuring: I provided a comprehensive lease abstract, revealing that several leases were near expiration. This gave my client the chance to raise rents and transition to Triple-Net leases, reducing operating costs.
- Vacant End Cap: The end cap unit was becoming available, allowing my client to replace the tenant with one of his liquor stores, boosting rental income.
- Brownfields Transfer: We facilitated my client’s transfer into the Brownfields Program, ensuring no liability for future contamination.
- Favorable Financing: Multiple lenders competed for the deal, resulting in highly favorable financing terms.
Outcome
We closed on the property, and my client immediately began executing his business plan to optimize the asset.
Conclusion
If you’re considering selling, buying, 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.