
THE STORY
Acquired a single tenant manufacturing facility in an area being revitalized along a popular bicycle path. The structure was subdivided into 7 separate units and a mezzanine added into one, thereby increasing overall leasable square footage. The building was held for lease for 7 years providing 7% annual cash on cash return. After several expansions by the anchor tenant, a local brewery, the building was sold to the brewery, for an overall 55% return. After taking into account the annual cash flow for 7 years the IRR balloons to 105%.
The Details

- Aquisition Price: $320,000
- Amount Invested: $300,000
- Total Investment: $620,000
- Sale Price / Value: $960,000
- Profit: $340,000
- Total Return on Investment: 55%