How We Got It
It’s rare to get great new product at under $160,000 a unit. Yet, we did just that and have all the upside of being embedded in a 1.2mm square foot, thriving lifestyle center that offers 27 eateries, 50+ specialty retailers and numerous entertainment venues. Our low entry basis was the result of a protracted and complicated closing during the peak of the pandemic before the vaccinations had been fully validated
We acquired 238 podium style units at Liberty Center in May of 2021 at a very attractive 5.2% cap rate. Cap rates have since compressed to low 4’s so we’re well in the money. We knew the Seller, who had manually priced for years, was leaving money on the table. We pushed rents $150 immediately and built the wait list to 37 all by the third month anniversary of closing.
Within 3 months, our proforma cap rate was tracking to 6.5% as we immediately posted mid-teen lease trade-outs. But we are always ready to dig a little harder and are always ready to untangle messy situations to unlock value. Brokers often say this is the perfect deal for Spyglass. They call us “closers” for a reason. We never blink and always find a way to the finish line.