LOCATION: 4720 Highway 2A, Lacombe, Alberta
PURCHASE PRICE: $955,000
DATE PURCHASED: September 1st, 2017
CASH ON CASH RETURN: 4.7%
COMPOSITE RETURN: 13.5%
TENANCY: Golden West Broadcasting Ltd.
OCCUPANCY: 100%
YEAR BUILT: 2013
FOOTAGE: 3,894 Sq. Ft.

 

THE STORY:

The Sunny 94 Building was purchased September 1, 2017 as a result of our Property Manager, Keith Acheson, seeing the property listed with another brokerage and bringing it to our attention.

The immediate attraction to the property was the location right on Highway 2A in Lacombe and the outstanding curb appeal of the building. The owner of the property was the originator of the Sunny 94 Radio Station and had sold the station to a large media group, Golden West Broadcasting Ltd., and leased the property to the new owner.

Due Diligence indicated that the property would yield a very good return and the stability of the Tenant was attractive for a long-term hold. The nature of a Radio Station facility is that it has extensive Tenant Improvements that are not easily moved or duplicated. This fact also enhances the prospects for a long-term Tenancy.

Single tenant triple net lease to a regional tenant. Beautiful building right along main Highway 2A going north into Lacombe. Radio station at the time of purchase had 54 stations across Canada. Likelihood of long-term lease due to internal infrastructure required for a radio station.