Last year I bought 7.4M across 5 deals.

I want to buy a LOT more in 2022, so let’s widen the strike zone a bit to include retail, medical, office, light industrial, blade it, etc.

Here are characteristics for an ideal deal… but I welcome other ideas and suggestions you have on any deals with substantial upside.

• Obvious problem that needs fixing (mismanaged, undercapitalized, tired etc.)
• Vacancy: at least 25% up to 100% Hard corner (ideally) with “Great” Fundamentals: Visibility, Access, Cars Per Day, Parking Prefer one existing name brand tenant (franchises or regional is ok)
• Within 30 mins of Sky Harbor (ideally)
• Price: Up to 12M Size: 2,000 – 80,000 feet (not picky about this)
• Desirable part of town with low submarket vacancy. I get a lot of tenant inquiries for Gilbert, Chandler, Tempe, Queen Creek… not a ton for Mesa or Maryvale;-)

In the video I go into a bit more detail about the situations I’ve had more success with over the last 8 purchases:

• real motivation / urgency to sell ownership is tired,
• has a problem property has a problem: mis-managed, tired, broken, busted, deferred maintenance (signage, parking lot, HVACs, paint, landscaping)
• not lendable / hard to finance late payers, busted lease, escrow falling apart statistically off market (2/3 of my deals)
• inaccurate CoStar data (shows as 100% occupied when its vacant)

I also cover my go-to force appreciation plays:

• fresh paint, new signage, redo parking lot, overhaul landscaping, façade refresh
• renew / extend all leases
• buy up the rent with TI Allowance / bring rents to market
• fill vacancy asap (broker incentives & direct marketing budget)
• highest & best use: add drive-thru, adaptive reuse, etc.

Know of a distressed deal for us to buy?