LOCATION: 5215 49th Avenue, Innisfail, Alberta
PURCHASE PRICE: $452,250
DATE PURCHASED: November 1st , 2016
CASH ON CASH RETURN: 4.63%
COMPOSITE RETURN: 13.7%
TENANCY: Sundance Realty Management Inc., Legacy Communities Inc., Tranquil Energy
YEAR BUILT: 1977
FOOTAGE: 5,511 Sq. Ft.
JOINT VENTURE: 1474495 AB. LTD.
A local Real Estate firm had listed an office building in Innisfail for sale. The property was occupied by it’s owner, an Accounting Firm on the main floor and a Dentist in half of the second floor. The other half of the second floor was vacant. We desired to relocate our Real Estate firm, Sundance Realty & Management Inc. to the property if successful in the purchase of it. The property was listed at a price that was far outside the market in our view and our first offer was rejected flat with no counter offer. Our decision was, if the property could not be purchased at some reasonable value we would pass on it. After some waiting period, the Realtor® came back to us and indicated that the Seller was requesting that we make another attempt at a deal. Our offer was resubmitted and after some tinkering with the terms we came to a deal to purchase the property.
A complete exterior upgrade of the property was completed, Sundance now occupies the entire main floor, Legacy Communities and Tranquil Energy occupy the second floor.
The property is now a solid cash flowing investment property and head office for our Legacy/Sundance corporations.