Many brokers overlook the details… BUT here's why they matter: In 2017, I was entrusted by a private REIT with the task of selling a 10,000 SF multi-tenant retail center in Oak Brook, situated on one of Chicagoland's premier retail thoroughfares. The property was occupied by three tenants on net leases, in a Class-A quality building & location, and anchored by two national tenant brands. Sounds like a layup, right? Not quite. Despite the deal's strong investment attributes, it presented complexities. The anchor tenants' leases only had a few years left of term, and 80% of the income was tied to these leases. Moreover, a newly signed lease to a regional tenant paid significantly lower rent. To navigate these challenges, I spoke with the leasing team and meticulously reviewed each lease agreement and its amendments, uncovering insights into tenants' behavior and long-term commitments. For instance, despite substantial rent payments, the primary long-term lease had been renewed without renegotiation attempts. Additionally, a comparative analysis of similar spaces in the market revealed untapped potential for re-leasing the best corner space. Similarly, examining the second tenant's lease agreements revealed their long-term commitment and absence of exercising a termination option. This commitment was also supported by insights from their recent $200K investment in store renovations, knowledge I obtained through my existing relationship with the tenant rep. By incorporating these DETAILS into the sales narrative, I instilled confidence in an out-of-state buyer. They recognized the long-term stability of the property beyond the immediate lease expirations. This attention to detail ultimately facilitated a successful closing, achieving just under $650 per square foot and 98% of the list price. Best yet — all tenants remain in place to this day. What did we learn? This example underscores the importance of investing time, energy, and effort into examining the details and understanding the story behind each deal. Greenstone Partners #chicagorealestate #multitenantretail #dealstory #oakbrook
Steven Silverman
7mo
Jason: Absolutely, your experience highlights the critical importance of paying attention to details in real estate transactions. Despite the property's apparent strengths, the complexities within the leases required a deep dive into each agreement and an understanding of tenants' behavior and long-term commitments. By meticulously reviewing the leases and incorporating these insights into the sales narrative, you were able to instill confidence in the buyer and facilitate a successful closing. This underscores the significance of investing time and effort into understanding the nuances of each deal, ultimately leading to favorable outcomes for all parties involved. Steven Silverman ✅
Yet many people believe RE sales and leasing is easy money. If they only knew the hours and days and weeks and months it takes to just bring a property to market.....nevermind finding the buyer. Great post. 👍
John Parsinen
7mo
Great insight and great location.
Multifamily Investment Sales in Chicago
7moHow many times did you stop in the Vitamin Shop for a mid showing Muscle Milk?