LOCATION: 5027 49th Street, Innisfail, Alberta
PURCHASE PRICE: $720,000
DATE PURCHASED: December 1st, 2016
CASH ON CASH RETURN: 8.63%
COMPOSITE RETURN: 8.63%
TENANCY: Perry Cruickshank LLP, Johnstone Ming Manning LLP, MLA Constituency Office
YEAR BUILT: 1978
FOOTAGE: 9,840 Sq. Ft. (7,600 Main Floor 2,240 Lower Floor)
We were approached by a Tenant of ours in Henday Centre, Sandstone Pharmacies, to consider working with them to negotiate the relocation of the largest Medical Clinic in Innisfail to a location adjacent to their pharmacy at Henday Centre. We agreed to work with them on the relocation. The first stumbling block in obtaining the Doctors approval of a relocation to new premises was the fact that one of the lead Doctors was an owner of their existing building, Innisfail Professional Building (IPB). The IPB property had three tenants: the Medical Clinic, a Law Office and Sandstone Pharmacy. To solve the objection and resistance of the Doctors moving when one of the Doctors owned a part interest in the existing location, Legacy agreed to purchase the property. Due to the prospect of taking over a property that would lose both the Medical Clinic and the Pharmacy, a purchase was negotiated at a discounted value to allow for the costs of releasing the property.
The end result was a successful extension of the existing lease to the Law Firm, a new long term lease to an Accounting Firm and a new lease to our local Member of the Legislative Assembly (MLA) for Alberta. The property is now an exceptional cash flowing investment property.