Goldenrod Commercial Plaza
Unlocking Commercial Property Value and Development Potential
Added over $400,000 in Value Through Sound Property Management
After carefully assessing the property, we determined there was an opportunity to achieve a high ROI for our investors.
By improving the management of the property and preparing for lease renewal negotiations, we were able to add value.
Return on Investment
We added over $400,000 to the value of the property for our investors through lease renewal alone.
At DMCC Holdings, we acquire commercial real estate investment properties where we can unlock significant value and which are poised to benefit from economic growth. Our investors benefit from both immediate cash flow and an increase in capital appreciation.
While we expect capital appreciation to occur over time, there are several methods by which we actively unlock an investment property’s hidden value. Doing so is central to our investment philosophy.
Within one year of acquiring Goldenrod Plaza, a commercial real estate investment opportunity in Orlando, Florida, we had already begun to unlock its potential and increase value for investors.
The Investment Opportunity
Goldenrod Commercial Plaza is a fully leased, multi-tenant retail plaza located on one of Orlando’s busiest roads with a traffic count of 64,000 vehicles per day. Anchored by Trustco Bank, it is bordered by strong corporate neighbours and surrounded by 10,000 residents living within a 3-mile radius.
Our property due diligence process led us to conclude that the economic fundamentals for this opportunity were sound, and that it would perform well as the economy recovered. We also determined that Goldenrod Plaza was undervalued with tenants paying significantly below market lease rates.
Having met our investment criteria and potential for exceptional returns over a 3-5 year investment horizon, we purchased the Goldenrod Plaza with our investors.
We immediately began to add value after purchase by improving how the property was managed, so as to increase its appeal to current and future tenants, and ultimately its potential profitability.
Most importantly, we prepared for upcoming lease renewal negotiations with existing tenants to bring rents up to current market value.
The first opportunity to do so occurred in late 2015 for a lease renewal on a 2,424 sq. ft. unit. We negotiated a 21% increase in rent for year 1 of the lease, and by the beginning of year 5 of the lease, the increase will be 105% of the initial-base rent.
Negotiated a 21% increase in rent. Increasing the value of the property by $400,000.
This lease renewal alone added over $400,000 to the value of the property. Through sound management and as other leases renew, we will continue to unlock additional value to achieve exceptional returns for our investors.
Through our proven approach to commercial real estate investment, we are able to identify those properties which have the greatest potential for us to create value, and in turn, achieve exceptional returns for our investors.