Type: INDUSTRIAL/FLEX Value-add

Status: COMPLETED & Dispursed

Principals of BoxDevCo acquired an interest in an approximately 24,000 SF flex building in Lee’s Summit, Missouri in 2017, sourced off-market through a personal relationship.  

The building had been neglected with tenants complaining of a leaking roof, pavement problems, and other issues.  As a result, the tenants were unhappy and lease terms were running short.

Following acquisition the next several months were spent negotiating lease renewals with tenants, replacing a portion of the roof and re-instating a roof warranty, painting the building, repairing asphalt and concrete issues, simplifying the tax parcel, successfully appealing the tax valuation, and other minor clean-up issues.

This project continues to be owned by the same group led by Box Real Estate Development and is leased and managed by NAI Heartland.

Deal Summary

Cap rate at acquisition:  Approximately 15.7%

Cap rate at disposition:  Approximately 6.5%

IRR Before Tax:  Approximately 100%

Equity Multiple:  Approximately 4.50x (over 4.5 years)

Note: Past performance of any one deal is not a guaranty of future performance of any specific project.  Please evaluate each opportunity independently and invest wisely.