A real estate investor from northern California has been working with Coldwell Banker Commercial Sun Coast Partners since 2000 to identify potential investments in North Carolina, assist with acquisitions, and manage these properties on his behalf. His local commercial holdings include a 32,000 square foot Staples retail center on Western Blvd in Jacksonville, a 45,000 square foot office and warehouse building at the corner of Emerson and Marlboro Streets in Wilmington, and a 4-acre tract on Carolina Beach Road.
Acquiring real estate investments in a down economy can be both a blessing and a curse. A blessing in that over-extended owners are often eager to sell their properties at bargain rates. A curse in that finding long-term tenants for these properties is particularly challenging in a sluggish economy. Grayson Powell, managing partner of Coldwell Banker Commercial Sun Coast Partners, takes a conservative approach to investing in real estate and will typically only recommend “fire sale” bargains that can demonstrate cash flow at or soon after closing.
When Powell first learned of the Wilmington office/warehouse property he was immediately attracted to its mix of office and warehouse space and central location. Through careful market analysis, Coldwell Banker Commercial Sun Coast Partners configured a purchase price that would provide a positive cash flow upon closing, although the building was less than 50% occupied. The seller initially rejected the offer, but after two other buyer contracts fell through, Sun Coast Partners negotiated the purchase of the property on behalf of its client. Powell’s willingness to walk away from the deal and to stick with the original price threshold made this property work. As predicted, the investment provided a positive cash flow from Day One. This gave Sun Coast Partners the time and flexibility to find a financially stable, long-term tenant for the property instead of rushing to fill the space at any cost.
Today, the office and warehouse property is 100% leased to two tenants: Carrier Air Conditioning and Farmin’. Carrier, a provider of HVAC parts and supplies, was a tenant of the property at purchase. Farmin’, a wholesale provider of locally grown produce, dairy and meats, was also identified and signed by Coldwell Banker Commercial Sun Coast Partners.