BD Acquires Mixed-Use Portfolio In Multiple States For $27.6M

A mixed-use property located in Maumee, OH, Dundee, MI, Beverly Hills, FL, Abbeville, SC, Harrisburg, IL, Columbus, OH, Statesville, NC, Brooklyn, NY, Cleveland, OH, and Griffin, GA has been sold for a total of $27,630,000. The property spans approximately 160,000 square feet, equating to a price per square foot of $173. The transaction took place on 11/05/2021. The buyer, known as BD, acquired the property.

Summary of transation details

• Property Type: Mixed-use
• Transaction Amount: $27,630,000
• Market: Maumee, OH, Dundee, MI, Beverly Hills, FL, Abbeville, SC, Harrisburg, IL, Columbus, OH, Statesville, NC, Brooklyn, NY, Cleveland, OH & Griffin, GA
• Buyer: BD

The transaction was facilitated by the brokers Nathan Horne and Ehab Elshinawy from Horne Advisors, who represented BD in the deal. These brokers are affiliated with Compass.

A noteworthy aspect of this transaction is that it involved a 1031 Exchange, beginning with the sale of a property in Brooklyn, NY. This exchange resulted in the acquisition of properties in seven different states, with a total value exceeding $27.5M. The client involved was able to transition from an actively-managed property with a 5% cap rate and 7% cash on cash return, to a diversified, passively-managed portfolio with an average 8% cap rate and nearly 20% cash on cash return.

In order to successfully close on this extensive deal, the brokers needed to adhere to various identification rules and coordinate exchanges across different states. Additionally, they collaborated with professionals such as property managers, surveyors, and inspectors to streamline the process. The brokers expressed gratitude towards financing support from Hasanov Capital, particularly Farrukh at hasanov.capital, who arranged for an impressive 80% loan-to-value ratio by involving five different banks. Another critical contributor to the transaction was Garret Keeton of GKP Law in Toledo. Lastly, the brokers highlighted the exemplary skills of brokers and property managers Jared Cordova ([email protected]) in Griffin, GA, Paul Mann ([email protected]) in IL, Ryan Miller ([email protected]) in OH/MI, Sam Curtis of @theDisalvogroup in OH, and Jackson Williams of @mpvproperties in NC.