Listen to Our BlogsRAWAAL Properties LLC: Strategic Acquisition and Maximizing Asset Value Through Expert Leasing
DEAL HIGHLIGHTS
5-Year Lease secured with a National credit tenant.
185% above Rawaal Properties debt service significantly boosted property cashflow.
Listen to the Case Study SummaryClient Profile
RAWAAL Properties LLC is a forward-thinking investment firm specializing in commercial real estate acquisitions and asset management. With a focus on identifying value-add opportunities, RAWAAL Properties aims to transform underutilized properties into high-performing assets.
Partnership with Allies Commercial Realty
In March 2023, RAWAAL Properties LLC partnered with Allies Commercial Realty to acquire a prime commercial property located at 10115 East 59th Street. Leveraging Allies’ market expertise and strong industry relationships, the partnership aimed to secure the property in a competitive bidding environment and maximize its investment potential.
Opportunity and Challenge
The property at 10115 East 59th Street presented a significant opportunity due to its C-7 zoning—the heaviest commercial zoning available in Marion County—permitting uses like truck maintenance facilities and heavy equipment storage. However, the acquisition faced several challenges:
- Competitive Bidding: Multiple bidders were interested, with many willing to offer higher purchase prices.
- Property Condition: The site required substantial improvements, including cleanup and site enhancements, to unlock its full potential.
DEAL HIGHLIGHTS
5-Year Lease secured with a National credit tenant.
185% above Rawaal Properties debt service significantly boosted property cashflow.
Analysis
Allies Commercial Realty conducted a comprehensive market analysis and formulated a strategic acquisition plan. By emphasizing RAWAAL Properties’ readiness to close and their own reputable track record, Allies convinced the seller to accept an offer of $1.3 million, despite higher competing bids. The seller’s familiarity and confidence in Allies played a pivotal role in this decision.
Meet the Brokers Behind this Success Story
Versatile 5.67 Acres Site with 5,058 SF Facility in Indianapolis, IN.
Our Success Story
- Strategic Acquisition: Allies’ negotiation skills and trusted relationship with the seller secured the property for RAWAAL Properties at a favorable price.
- Property Enhancement: Post-acquisition, RAWAAL Properties undertook significant improvements:
- Cleanup Operations: Removed large amounts of logs, timber, debris, and brush, enhancing the property’s appearance and functionality.
- Site Development: Converted unused land into functional space with asphalt millings, expanding areas available for outdoor storage.
- Building Upgrades: Cleaned and refurbished the existing building to attract quality tenants.
- Effective Marketing and Leasing: After a year of enhancements, RAWAAL Properties enlisted Allies to market the property:
- Comprehensive Marketing Campaign: Developed digital flyers, drone photos, and videos; installed signage; and listed the property on platforms like LoopNet, Crexi, CoStar, and the Allies website.
- Broker Outreach: Conducted email campaigns targeting the brokerage community, generating substantial interest.
- Securing a National Tenant: Allies’ efforts attracted a national credit tenant who signed a five-year lease with multiple renewal options. Remarkably, the negotiated rental rate was 185% above RAWAAL Properties’ debt service, significantly boosting the property’s cash flow.
Results:
- Maximized Return on Investment: The lucrative lease agreement enhanced the property’s profitability, providing RAWAAL Properties with substantial income over the lease term.
- Increased Property Value:The combination of property improvements and a high-quality tenant elevated the asset’s market value.
- Successful Collaboration:The seamless partnership from acquisition to leasing showcased Allies Commercial Realty’s ability to deliver comprehensive real estate solutions.
Conclusion:
RAWAAL Properties LLC’s strategic acquisition and enhancement of 10115 East 59th Street, facilitated by Allies Commercial Realty, exemplify how expert guidance can transform a property’s prospects. Through adept negotiation, thorough marketing, and securing a premium tenant, Allies helped RAWAAL Properties unlock significant value. This case underscores the impact of strategic partnerships and proactive asset management in achieving commercial real estate success.
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