1400 Bald Hill Road

  • 24,505 SF
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1400 Bald Hill Road

INVESTMENT BACKGROUND

Acquisition Date 2012
Property Type Retail
Size 24,505 SF
Business Plan Value-added re-leasing of vacant building with title defect

Investment rationale

  • Bald Hill Road is dominant retail corridor in Rhode Island, where retail sales remained strong even during 2008-2010 economic downturn
  • Low acquisition cost basis of $90/SF, well below replacement cost, in market with net rents of $12-$25/SF
  • Highly visible location on Bald Hill Road with ample parking and signage
  • Strong tenant interest in vacancy during due diligence period
  • Partnership's all-in cost basis projected to be $138/SF when fully leased

status

  • Resolved title defect via easement with abutter
  • Signed 10-year lease with Tile Shop and five-year lease with Cycle Gear to achieve 100% occupancy within eight months of acquisition
  • Refinanced property with $2.6 million first mortgage in November 2013, returning 45% of investor capital
  • Property sold in 2015 to local owner/operator for approximately $178psf

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