Essential Services & Necessity Retail

Fund III currently owns properties with a national pharmacy and three national auto lubes, and all are positioned in key locations within their respective markets.  All current properties have low relative rental rates for their respective markets, which minimizes re-let risk in case of a vacancy.  These businesses have been operating and building client bases in their communities for the past 8-13 years; they have a solid following.  Additionally, each is relatively resistant to national economic stress.  For instance, the lube’s business usually increases when people are short of cash and try to make their auto investment last longer. The pharmacy is also relatively immune from economic stress.

Path to Growth

We’ll expand Fund III  beyond this base of properties to include approximately $40 million in similar triple net real estate.  We’ll focus on locations in the south east, but due to our opportunistic approach to investing and our need to provide solid return, we’ll look at properties in the north as well.  We are also looking to add more medical/quasi-medical tenants to Fund III to help stabilize it further.