SOLD & LEASED!
713 Ray Ave Hendersonville NC 28792
As brokers, we are constantly tested by market shifts and reading where opportunity will be. Black swan events can trigger immediate and dramatic changes in negotiation leverage, lender appetite, asset prices, lease rates, and many other things.
The Altamont team was tested in this regard on a recent commercial real estate transaction in Hendersonville. We identified opportunity in an on-market vacant class A flex industrial facility proximate to the Hendersonville CBD. We acquired the vacant property on spec to satisfy a client’s 1031 placement. We also promised we would lease the site at an above market capitalization rate on the tail end to stabilize the investment.
The client closed on the acquisition on March 2nd, and as we all know, things broke loose with coronavirus and stock markets shortly thereafter. All real estate transactions, tenants, and investors were rattled and threatened at that point. We worked calmly and efficiently to address concerns on both sides of the table and create a sense of security and bilateral commitment to success.
When it was all said and done, as Landlord Reps we closed a long term lease deal with renewals with a personal fitness tenant. The lease is shored up by a personal guaranty and delivers well above market capitalization rate to the investor in Year 1. This covenant also immediately adds $180,000 of capitalized value to the real estate. It is gratifying to exceed expectations even in a chaotic market, and earn a lifetime client in the process.
Curious to learn how you can succeed in the Western NC commercial real estate market! Connect with the expert brokers at Altamont Property Group today!
Chris Gragtmans | chris.gragtmans@kw.com | 864-915-5780
Collin O’Berry | collin.oberry@gmail.com | 828-772-1667
