Location: 4219 99 St, Edmonton, AB
Purchase Price: $5,300,000
Date Purchased: May 7, 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
We were approached in mid 2018 by Avison Young to consider the purchase of the Revolve Furnishings property. After preliminary Due Diligence we submitted a Letter of Intent to purchase the property. After some discussion back and forth with the Seller we determined that we would not be able to achieve the desired returns at the price demanded by the Seller and suspended our activity on the property.
In December of 2018 Avison Young came back to us and suggested that we take another look as the Seller had lost two deals subsequent to our initial LOI and may be more amenable to our valuation of the property. We put forth a proposal and were successful in negotiating a purchase at $5.3M.