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
Saglo acquired the 132,000 SF shopping center in Ruskin, FL in June 2014 for $7,250,000 at an 8.25 % cap rate, using 65 % LTV debt and $2,537,000 of equity. Occupancy improved from 81 % at purchase to 100 %, leasing to daily needs and essential tenants, therefore lowering the risk profile.
A 2020 appraisal valued the center at $13,000,000, and a cash-out refinance released $8,287,000 in equity. Thus, the initial $2,537,000 equity investment has grown to $8,287,000, supported by strong residential and business growth in the area.
South Bay Plaza
Saglo purchased the 75,100 SF center in June 2017 for $5,000,000 ($67.00/PSF) at a 10.1 % cap rate, using 65 % LTV debt and $1,750,000 of equity. At acquisition the center was 66.51 % leased, with eight of twelve tenants being medical uses and anchored by DaVita and American Clinical Solutions. Leasing and operational improvements have raised occupancy to 100 %, still dominated by medical tenants.
A 2021 appraisal valued the property at $11,600,000 and through a refinance, the initial $1,750,000 of equity returned $6,00,000 of equity. Similar to Sun Point in the same market, the asset benefits from continued residential and business growth in the surrounding market.
