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South Plains Plaza – Lubbock, TX

Challenge

Our client, an out of state investor, reached out to the Coldwell Banker
Commercial, Capital Advisors because he was looking for investment property
in Texas to add to their Family Trust portfolio, specifically Lubbock if
possible. We got on the phone with the potential investor and he discussed with
us his acquisition criteria – multi-tenant retail, strong location, strong Tenants,
7% + cap rate.

Action

We were constantly in contact with the investor about different opportunities, and he really wanted a property in Lubbock due to the stability of Lubbock’s economy. After extensive searching, our team at CBC, Capital Advisors found an off-market opportunity in Lubbock. The property was a strong retail power center with national credit tenants located in one of the strongest retail corridors of Lubbock. We did a very thorough in depth financial analysis taking into account all the variables as we considered a 10-year hold for our client.

There were also a couple of small vacancies which would be a value-add opportunity for our client through lease up. In order to make our client’s required yield work, he had to have good terms on his loan. We vetted the best loan terms possible from CMBS, insurance companies, private lending sources, as well as local banks. We put him in contact with a local bank that we have a great relationship with and they were able to provide our client very strong loan terms to make the deal work.

 

Result

  • We were able to get the property under contract with our client and successfully close. Throughout the transaction process we were in constant communication with all parties of the Seller, Lender, and our Client. 
  • Post-closing, CBC Capital Advisors aided our client in leasing up one of the vacancies – a 5,000sf medical office space to a local hospital. 
CART-Eric

For More Information, contact:

Eric Eberhardt, CCIM
Investment Specialist
erice@cbcworldwide.com
(806) 784-3239