Case Studies

Investor Returns

Over 12% average annual cash on cash return on investment during holding period, plus 80% profit after return of capital upon disposition of asset.

1046 S. Country Club Dr.
Mesa, AZ, 85210

Acquisition Date: November 2012
Acquisition Price: $4,500,000
Sale Date: December 2016
Sale Price: $6,175,000
Building Size: 30,000 SF
Property Type: Retail
Tenant: Goodwill Industries of Central Arizona, Inc.
Occupancy: 100% (single tenant)

Highlights

Envision acquired this property at an attractive price with attractive financing terms. The principals of Envision signed a recourse guaranty on a 75% LTV loan, mitigating the risk to investors while providing higher leverage and an attractive yield to investors. The property was sold at a substantial profit, without having made any improvements to the property or any additional investment in the property, or changes to the existing lease with the tenant.

Investor Returns

Over 80% total return on investment during holding period of less than nine months (including rental income and profit on sale).

4805 Briarcliff Road
#101, Atlanta, GA 30345

Acquisition Date: April 2013
Acquisition Price: $1,825,000
Sale Date: January 2014
Sale Price: $2,275,000
Building Size: 8,802 SF
Property Type: Retail
Tenant: New Cingular Wireless PCS, d/b/a AT&T Mobility
Occupancy: 100% (single tenant)

Highlights

Envision acquired this property at an attractive price with attractive financing terms, with about 2 years remaining on the term of the lease. The principals of Envision signed a recourse guaranty on a 75% LTV loan, mitigating the risk to investors while providing higher leverage and an attractive yield to investors. The property was sold for over 25% more than the acquisition price in less than nine months after acquisition, without having made any improvements to the property or any additional investment in the property, or changes to the existing lease with the tenant.

Investor Returns

Over 25% average annual return on investment during the 4-year holding period, and a 30% return on the sale of the property.

 

2110 S. M-76, West Branch, MI, 48661

Acquisition Date: June 2014
Acquisition Price: $1,050,000
Sale Date: June 2018
Sale Price: $1,300,000
Building Size: 86,479 SF
Property Type: Retail
Tenant: Kmart
Occupancy: 100% (single tenant)

Highlights

At acquisition, the existing lease with the tenant had a remaining term of less than 1.5 years and there were no new tenant prospects identified by the seller. Moreover, Kmart was closing stores all over the country and had an extremely poor credit rating.  As a result of these factors and poor and ineffective marketing by the seller, Envision successfully negotiated acquisition pricing at an amount that was significantly less than the building’s “dark value” (value if the building was vacant).  Envision subsequently obtained a lease extension with Kmart for 2.5 years in exchange for a rent reduction, and procured several new tenant prospects demonstrating the strong potential value of the building upon re-tenanting.  The transaction represented a low risk transaction (since the value of the building is substantially higher than the purchase price) with above market yields. Envision ended up selling to a medical user that planned to redevelop the property.

Investor Returns

Over 10.5% annual return on investment, in line with projections.

 

1868 Tucker Industrial Rd, Tucker, GA, 30084

Acquisition Date: March 2015
Acquisition Price: $1,543,000
Sale Date: Aug 2019
Sale Price: $2,325,000
Building Size: 59,000 SF
Property Type: Office/Warehouse
Tenant: Video Display Corporation (OTC:VIDE)
Occupancy: 100% (single tenant)

Highlights

This property is an industrial building used as the head office and a warehouse for a struggling public company.  Envision successfully negotiated acquisition pricing at an amount that is less than the building “dark value” (value if the building was vacant), and obtained a long term lease with the existing tenant and a personal guaranty from the principal of the company, a strong guarantor, mitigating the risks represented by the weak tenant.  As a result, the deal represented a low risk transaction (below market acquisition price, below market rents, long term lease with a strong guaranty) with above market yields.