Thread by @jspeiser

Strip Mall Before/After (thanks @realEstateTrent!)

Acquired 6 months ago (took 9 months to close due to an estate sale).

9 Stores + 1 used car lot

Parking, Facade, Tenants, all neglected due to death of landlord

Here's what I did to add immediate value:

First, we looked at the terrible park lot situation, both back and front.

Terrible drainage, no dumpster pads, no lighting, random trailers, potholes everywhere.

So we immediately started paving:

Paving, as I quickly learned is extremely disruptive to the tenants (and expensive). This was a $100K job. Yes, that's an arts/crafts sign during paving, but it worked.

Next we reviewed the 1960's facade work. Bent/dented metal, discoloration, rust, and more.

Hired a metal guy, and a painter. (took a bit to find decent ones with actual insurance who wanted to work).

Before: and after...

A lot better.

Next steps are to complete the re-tenanting.

We booted 2 non-paying tenants amicably (phew), and added 2 new market-rate tenants (so far so good).

Added no-block logos to the lease riders too. Plus full CAM, and nice yearly escalations.

Next...

Bonus: the used car lot offered us a 99 year lease for the outparcel we are leasing them, so we are considering that + graveling another unused parcel the strip mall came with which will likely yield as much as an entire storefront. (this is prime NY real estate).

Now, we need to fill the two remaining units at market, but since the cleanup, we are seeing 25% increase in rent, which is above plan.

After that, we will refi with longer term financing (current is seller financing).

Then it's BRRRR (Buy, Rehab, Refinance, Repeat)

AMA, if you are curious, happy to share the journey. Follow for more updates on this property as well as the next strip mall acquisition coming soon.