LOCATION: 4219 99th Street, Edmonton, Alberta
PURCHASE PRICE: $5,300,000
DATE PURCHASED: May 7th, 2019
CASH ON CASH RETURN: 5.4%
COMPOSITE RETURN: 11.5%
TENANCY: Revolve Furnishings, Rogers Communications Inc., ADQ Media Inc.
YEAR BUILT: 1979
FOOTAGE: 24,142 Sq. Ft.
JOINT VENTURE: Safety First Projects 7 Ltd.
Avison Young approached us mid 2018 to consider the purchase of Revolve Furnishings property. After preliminary due diligence we submitted a letter of intent to purchase the property which fell through due to the purchase price at the time not allowing us to achieve the desired returns. In December of 2018 Avison Young came back and suggested we take another look as the seller was in a position to negotiate. We put forth an offer to purchase at $5.3 Million.
The building location is in a high traffic corridor in south Edmonton. This area is mostly comprised of showcase retail, industrial, flex space and some suburban office.
Revolve Furnishings is an Alberta based premium contemporary home furnishings retailer. They have been voted by Albertans as the Top Choice Furniture Retailer in Calgary for 5 years in a row. Revolve Furnishings also offers interior design consultation, financing, delivery, assembly and furniture removal services. They have two locations in Calgary and one in Edmonton. The Edmonton location has been in operation for over 1 year.