McLaughlin Investments handles $8m sale to Vernet Properties - part of a 1031 exchange

November 09, 2018 - Front Section

Londonderry, NH McLaughlin Investments, Inc. facilitated the $8 million sale of  The Apple Tree Shopping Center, consisting of a 169,000 s/f anchored by Shaw’s Supermarkets.

George Vernet, Vernet Properties, Inc., the buyer, acquired the property as a 1031 IRC up-leg replacement asset which was perfectly situated for Vernet turnaround specialty and located within the Southern NH, Rte. 93 demographic growth corridor.

Furthermore, the takedown price of $6 million and the going in budgeted $2 million value-add capital improvements provide an all-in cost basis of $47 per s/f which is well below replacement cost. The property features 20 acres of commercially zoned land area and 700 plus vehicle parking spaces which are accessed via a controlled signalized traffic system at the intersection of Rte. 102 and close to the Rte. 93/exit 4 ramps.

Permanent debt and capital financing was provided by Jon Paul, CRE lender, East Boston Savings. 

The seller, JPMCC 2011-C5, Torchlight Loan Services, was represented by C&W, Manchester, NH. 

Andy Levy of the MEG Companies is the leasing representative.

John McLaughlin, of McLaughlin Investments, acting as buyer broker, and consultant sourced the asset for 1031 acquisition purposes, negotiated LOI and PSA, assisted buyer with due diligence and property metric matters, including but not limited to; DCF’s, valuation models, tenant interviews and credit review, lease review, property management and vendor interviews, comprehensive physical inspections (PCA), CAM, lessee chargebacks, operating-financial statements, environmental, development repositioning meetings, municipal town manager, building, planning, conservation, engineering, fire safety, signage, capital budgets and bids, septic system and conversion cost to municipal sewer, NHDOT, NHDES, finance, title and easements, alta survey, site FAR, estoppels, utility veri?cations, occupancy permits, code compliance, service contracts, pad site expansion, lease up budgets, TI’s budgets, closing costs, and market reports related to competitive leasing and sales comps among others.


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