Mordy, the owner of Fame on Central, an internationally known women’s clothing store, was looking to diversify his portfolio by purchasing a two building retail strip with six tenant spaces, totaling approximately 31,000 rentable square feet. The properties were built in the 1950’s and two of the six tenant spaces were vacant.

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— He needed to know if the retail strip worked for him.

As a seasoned business owner but a first-time real estate investor, Mordy needed professional guidance to navigate the complexities of commercial real estate. He needed to determine:

• Whether this retail strip was a solid financial investment, given the vacancies and age of the building.
• The building’s condition and any hidden or unexpected costs, such as deferred maintenance or future CapEx needs.
• The terms and conditions of the existing leases, especially any clauses that could affect the investment long-term, such as renewal options, tenant rights, or maintenance obligations.

— We did the site visit and due diligence

Our team worked closely with Mordy to provide advice and guidance. We:

• Analyzed the property’s current and potential income, accounting for the vacant spaces, existing leases, and local market conditions - and created cash flow projections with potential returns and risks.
• Visited the site to inspect both vacant and occupied spaces, assessing the building’s structural condition, HVAC systems, and roofing for renovation or CapEx costs that might be required to attract new tenants or maintain the property’s value.
• Reviewed the existing leases to ensure Mordy had a clear understanding of each tenant’s obligations, rights, and lease terms.

— He knew what he was getting himself into

With our thorough analysis and strategic guidance, Mordy was able to make an informed decision regarding his first real estate investment. He gained a clear understanding of the property's risks and rewards, and had a firm grasp of the financial obligations tied to the building. 

Armed with this knowledge, Mordy was empowered to make a decision on the investment.

Information + Guidance + Confidence