Case Studies
Learn the story behind the story.
Seminole Heights Plaza
It started with Saglo acquiring CVS Plaza in Miami, a 18,250 SF strip center, for $4,400,000 in June 2013 65% LTV debt and $1,540,000 of equity. By improving operations and increasing net operating income (NOI), Saglo sold the property in June 2015 for $6,450,000 at a 6.75% cap rate, releasing about $3,600,000 of equity.
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Through a 1031 exchange, those proceeds were rolled into the purchase of Florida Waters, a 160,000-SF shopping center in Tampa, acquired in June 2015 for $8,250,000 at a 10% cap rate with 60 percent leverage. At acquisition the center was 85% leased and the anchors included a 78,000 SF flea market and a 20,000 SF vacant box.
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Saglo repositioned the center by dividing and re-tenanting the larger spaces. New leases were signed with Red, White & Blue Thrift, Black Friday Deals, Planet Fitness, and Sunshine Health, raising occupancy to 97% and lowering the risk profile.
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In 2019, the stabilized center appraised at $14,300,000 and Saglo completed a cash-out refinance.
In the end, the original $1,540,000 equity investment made in 2013 had grown to $9,650,000 in equity in 2019.
Sun Point Shopping Center
In June 2014, Saglo purchased a 132,000 SF shopping center in Ruskin, FL for $7,250,000, reflecting a cost basis of just $55 per SF and an 8.25% cap rate. The acquisition was financed with 65% LTV debt and $2,537,000 in equity. At acquisition, the center was 81% leased, presenting significant opportunity to add value.
Saglo focused on attracting daily-needs and essential-service tenants, strengthening the tenant mix and improving durability of income. This strategy successfully increased occupancy from 81% to 100%, while simultaneously lowering the overall risk profile of the asset.
The property also benefited from transformative changes in the surrounding area:
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A new Amazon fulfillment center brought jobs and increased consumer activity.
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Significant residential construction added thousands of new households nearby, boosting demand for essential retail services.
By 2020, the property’s appraised value had climbed to $13,000,000, an increase of nearly 80% over the acquisition price. A strategic cash-out refinance returned $8,287,000 in equity to investors—more than triple the original $2,537,000 equity investment. Importantly, this was achieved while investors retained ownership in a fully stabilized, income-producing center.
South Bay Plaza
In June 2017, Saglo acquired a 75,100 SF shopping center for $5,000,000 ($67 PSF) at a 10.1% cap rate. The purchase was financed with 65% LTV debt and $1,750,000 in equity. At acquisition, the center was only 66.5% leased, though it had a strong foundation with eight of twelve tenants in medical uses and anchors including DaVita and American Clinical Solutions.
Through proactive leasing and operational management, Saglo increased occupancy from 66.5% to 100%. The tenant mix remained heavily medical-focused, which provided stability and long-term growth potential.
By 2021, the property’s appraised value rose to $11,600,000. This growth allowed Saglo to refinance, resulting in the return of $6,000,000 in equity to investors—more than 100% of the original $1,750,000 investment. Importantly, investors retained ownership in a fully stabilized, income-producing asset.
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The property continues to benefit from robust residential and business growth in the surrounding trade area, similar to Saglo Companies Sun Point Shopping Center asset in the same market.
