Park Commons - SOLD

Realized Gross Returns:
IRR: 21%
Equity Multiple: 1.9x
Hold Period: 3.6 Years

7625, 7631, and 7655 Jolly Lane N, Brooklyn Park, MN 55428
Strategy: Levered Core
Status: Realized
Purchase Price: $7,130,000
Acquisition Date: 9/10/2015
Sale Price: $7,850,000
Sale Date: 4/10/2019
SqFt: 34,400
Off-Market, Repeat Broker, 1031 Exchange Replacement Property, Renovation

Park Commons is a 3-building shopping center on one of the best corners of the Brooklyn Boulevard retail corridor with a lineup of reputable national tenants.

We acquired the property in a 1031 tax-deferred exchange after selling the Eagle Point II office building.

At acquisition, the Park Commons was 89% occupied and had deferred maintenance. Our business plan was to retain the existing tenants while expanding to 100% occupancy, repaint the building, redo the parking lot, improve lighting, and add an exterior pylon sign for better tenant visibility.

We executed our entire plan, signed 3 new leases, increased the net operating income by 22%, and sold the property with 100% occupancy in 2019. Upon selling, we entered another 1031 tax-deferred exchange to continue deferring our tax obligation and purchased Ridgedale Plaza and Riverdale Plaza shopping centers.