1250 Auburn Road, Dacula, GA, 30019

Size: 24,840 SF
Acquisition Price: $2,475,000
Acquisition Date: October 2012
Acquisition Cap Rate: 12.8%
Current Market Value:  $4,250,000

Property Type: Retail/Gym
Tenants: Gold’s Gym
Occupancy: 100% (single tenant)

Investor Returns: Over 25% average annual return on investment, and full return of investor capital contributions in less than 3 years (not including increase in property value or refinancing proceeds)

Highlights: At acquisition, the existing lease with the tenant had a remaining term of approximately 2 years, and the tenant was complaining about lack of sufficient parking, resulting in a favorable acquisition price due to the perceived risk of non-renewal by the tenant.  Envision mitigated the risk of non-renewal through performing extensive due diligence, which revealed that the tenant intended to remain long term, but the tenant was dissatisfied with the efforts of the current owner to address parking issues.  As a result of these factors, and poor and ineffective marketing by the seller, Envision successfully negotiated below market acquisition pricing.  Shortly after acquisition, Envision resolved the parking issue by obtaining additional spaces for the tenant through enforcing the existing cross-easements on the adjacent properties, and procured a long term lease extension with the tenant.  Approximately 2 years after acquisition, Envision refinanced the acquisition loan on the property with attractive financing that resulted in a full return of capital to the investor while preserving the investor’s annual return on original investment.