Guitar Center

  • 27,500 SF
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Guitar Center

INVESTMENT BACKGROUND

Acquisition Date June 2011
Property Type Retail
Size 27,500 SF
Business Plan Value-added re-leasing
Joint Venture Partner Dinosaur Capital Partners

Investment rationale

  • Retail condominium acquired vacant for $4.05 million
  • Acquisition sourced on an opportunistic basis due to bankruptcy of former tenant, Borders Bookstore
  • Located at entrance of dominant regional power center in Braintree, Mass., whose anchors include Best Buy, K-Mart, PetSmart, Bed Bath & Beyond, Staples and Babies"R"Us
  • Compelling acquisition cost basis of $150/SF, in market with net rents of $22-$30/SF
  • Strong market knowledge based on property's location in our "backyard"

status

  • Signed 15-year lease with Guitar Center for 100% of property in January 2012
  • Refinanced property with $6 million first mortgage in March 2013, returning 135% of investor capital
  • Anticipated long-term hold

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