Andover Marketplace - SOLD

Realized Gross Returns:
IRR: 23%
Equity Multiple: 2.8x
Hold Period: 5.2 Years

1966 Bunker Lake Blvd, Andover, MN 55304
Strategy: Current Yield
Status: Realized
Purchase Price: $2,090,000
Acquisition Date: 4/17/2009
Sale Price: $2,675,000
Sale Date: 7/1/2014
SqFt: 9,547
Repeat Broker, Repeat Seller, 1031 Tax-Deferred Exchange

Andover Marketplace is a multi-tenant retail center beside Target and Andover Station Shopping Center. Solid brick construction and landscaping account for its great curb appeal.

At the time of purchase, the property was appraised for $370,000 more than we paid for the asset. Andover Marketplace was 80% occupied upon acquisition, and we saw an opportunity to create significant value by leasing the remaining vacant space.

We leased the vacant space to GNC, which increased net operating income and the asset’s value. We raised income further by securing rent increases from tenants renewing their leases.

After bringing the property to 100% occupancy and securing rent increases, we sold it for a profit (28% higher than our purchase price) and executed a 1031 tax-deferred exchange with all proceeds rolling into our Ashland Lincoln Park multifamily asset.