Santa Monica Retail
In 2008 we acquired an underperforming single-tenant retail project in a prime location of Santa Monica, California. The lot was underutilized and had great potential for expansion. The tenant was locked into a long-term lease significantly below market rent.
In early 2010, management worked out a mutually beneficial solution to relocate the existing tenant.The development team worked with an accomplished local architect and general contractor to develop new retail space accommodating two local restaurant tenants who signed long-term NNN leases. Construction financing was obtained to fund the capital improvements.
Upon completion, the property was refinanced at above principal level of our existing loan, thus returning a portion of the proceeds back to equity. NOI increased by almost 3X.