Ferris Development has negotiated an opportunity for high net worth investors to invest directly in commercial real estate through a single property LLC to provide income and potential upside in a low yield environment.
GRANDE PROMENADE is a 201,959 square foot retail center located at the intersection of North Tyrion Street and East WT Harris Boulevard in Charlotte, North Carolina. The center is conveniently located across from the Carolinas Medical Center – University and 0.5 miles from the University of North Carolina – Charlotte campus. Consumers are attracted to a complementary and popular tenant mix comprised of national, regional, and local retailers, all of which are supported by strong local economic drivers in the hospital, university, and multiple business parks in the areas.
FERRIS DEVELOPMENT identified this property due to its excellent risk/reward profile as several factors have led to the property being undervalued. We believe that our expertise in acquiring and operating under-managed, value-add real estate investments combined with improving local factors have allowed us to secure this property well under its potential market value. The expected drivers of value and yield are:
Existing in-place income with most tenant leases having more than four years remaining on their lease terms already allows for a current stream of income to investors.
Considerable value-add opportunity in the 46,537 square feet of space that is currently vacant. Leasing up the vacant spaces could grow revenue by approximately $1,000,000 per year at current market rates.
The current property ownership structure has made decision-making difficult causing the property to fall short of its full cosmetic and operational potential despite the relatively low cost to do so.
An extension of the LYNX Blue Line light rail system has been under construction on North Tyron St. right outside of the property for the past few years. The project caused lane closures which created a significant disruption in the traffic around the property. The Blue Line project is now almost complete and will be fully finished in the first quarter of 2017 mitigating traffic conditions and potentially bringing more customers and multi-family housing development in the immediate area.
There is already considerable leasing velocity with the current tenants. Since going under agreement, Ferris Development has been negotiating leases with the current tenants and believes that additional leases will be extended and new leases executed in the next two quarters.
FD SPECIAL OPPORTUNITIES V, LLC is being structured as a single property LLC to invest solely in the Grande Promenade property and will be accepting investors as non-voting limited partners. There is limited liquidity in the investment and the LLC could be in place for more than 10 years; however, a liquidity event could occur sooner if warranted by market conditions. Other considerations:
Current yield of approximately 7-8%
Potential yield of 10-12%
Lease-up opportunity could potentially increase value of property by approximately $20,000,000 if the property achieves 95% occupancy (current occupancy of approximately 75%)
$250,000 minimum investment with commitment due by November 9th
Must be qualified investor with a net worth of greater than $1,500,000 – Feel free to contact us with any questions regarding qualification
Anticipated capital raise of $16,000,000
You are part of a select group of investors that we have invited to personally review and discuss this investment opportunity with us during October at one of several dinner presentations:
House Family Winery – Saratoga, CA (6:00 PM - Cocktails, 6:30 PM - Dinner)
The Capital Grill – Burlington, MA (6:00 PM - Cocktails, 6:30 PM - Dinner)
Davio’s – Chestnut Hill, MA (6:00 PM - Cocktails, 6:30 PM - Dinner)
Please keep in mind that space is limited and events are expected to reach capacity.
If you would like to attend a dinner or learn more about this opportunity,
please email firstname.lastname@example.org
or call us at 508-281-7550.