September 2021 - STNL building transacts in Wildomar, CA: - Price: $8,400,000 - Cap: 6.20% - Address: 32450 Clinton Keith Rd Constantly growing trade area with affluent demographics. Asset is purchased under a Trust. Implicitly, the Buyer thought they were purchasing a cornerstone coupon-clipper asset. Asset hit the market for sale recently: - Price: $5,900,000 ($342/SF) - Occupancy: 0% These vacant drug stores often hit the market at a high price - desperate sellers attempting to salvage their massive losses. This price, however, felt more aggressive than normal. Looked up the transaction details - asset was acquired 65% LTV ($5,500,000 loan balance). Owner is attempting to walk away with 'just' a 100% loss in equity. Realistically, their losses will be more as they continue carrying the asset - at a minimum: - Mortgage Payments: ~$27,500 (monthly) - Property Taxes: ~$7,500 (monthly) - Insurance: ~$1,000 (monthly) - Maintenance/Other: ~$1,000 (monthly) Total minimum carrying costs: $37,000/month. That's a burning hole in their pocket, and it hurts. The reality is - their losses could have been entirely mitigated by doing a simple calculation before they purchased the property: 'If Rite Aid were to vacate tomorrow, then how much can I rent the space for?' The answer - by all means - would have disqualified the purchase from ever happening. This is a question you need to ask yourself any time you are pursuing a development or investment. Assume the entire property is vacant, and you have to re-lease the building at normal market rates - will you be in a position where you can (at least) breakeven or, better yet, make a substantial profit?

CRE Development can be a tough world. - Developer builds a ground-up retail strip in Lafayette - Endcap drive-thru with a cafe tenant - 2020 construction - Decent aesthetics Developer loses the asset to the lender: - As-is NOI: $12k - Vacancy: 71% - REO Sale Taking a step back - this asset was delivered into one of the best retail leasing markets ever, yet it still failed miserably. CRE Development is a graveyard of failed hopes and dreams. Be wary of those who pound their chest on it being 'easy'.

Congratulations to @renatolorja for setting a new record in the market. Lowest cap rate sale on a STNL Goodwill nationally. It's quite the achievement in the current economic environment. I have said this before, and will say it again: If you want to make real money in CRE, then you need to give Renato a call. (And, no, I was not paid a promotion fee here 😂)

These bot strategies are getting wild. 'Crazy ex-gf vibe' was not in my bingo card for 2025 😅🤣 @elonmusk please fix the spam issue going on. My DMs are clogged with scammers and grifters.

Had to try it too - I guess this is who I am now 😁

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