From “Untouchable” to Unbeatable:
Our Creative Deal in High Point, NC

We just closed on 2401 Schirra Place in High Point, North Carolina — a 104,000 square foot, flex-industrial portfolio that most banks wouldn’t even look at.

Why? The lease has just one year left, and traditional lenders don’t like that kind of uncertainty. So they offered loan-shark rates. We said no thanks — and got creative.

The Numbers

• Purchase Price: $4,400,000
• Square Footage: 105,801 SF
• Price per SF: $41.59
• Current Rent: $3.14/SF
• Projected Rent: $5.50–$8.00/SF
• Ceiling Heights: 12–20 feet (mixed)

Current NOI: $342,000 (7.8% cap rate)

Pro Forma NOI: $540,000 (9.82% cap rate)

Projected Value Creation: $1,340,000

Projected Investor IRR: 15.6%

ROI: 32.6%

Total Equity (GH + Investors): $2,410,000

The Value Creation Play

This deal is all about intelligent repositioning.

The portfolio includes three classic flex-industrial buildings, but we believe we can create more value by demising — splitting the buildings into four or five separate spaces and adding drive-ins.

Why?

Smaller units = higher rents.

We underwrote conservatively at $5–$5.50/SF, but our leasing brokers now say we can expect $5.50–$8/SF, depending on ceiling heights. That means we may be exiting closer to $9M instead of the $7M we originally projected.

The Financing Angle

Here’s where the magic happened:

The seller didn’t want to pay capital gains taxes.

So Jaime (my business partner) pitched seller financing. The seller gets:

• Steady mailbox money ($15K/month)
• No immediate tax bill
• Peace of mind

We got ~70% seller financing, interest-only, at 5.75% with a 5-year balloon — far better than anything the banks offered. Everyone wins.

The Leasing Strategy

The current tenant is paying below-market rent through June 2026, but they want to move out early — perfect for us.

Here are our three leasing options:

1. One big lease (104,000 SF) to a new tenant — least likely.
2. Three separate leases, one per building — more likely.
3. Demise into 4–5 units, optimizing layout and driving up rents — most value, more effort.

We’ll likely refi in years 2 or 3, and might sell in years 4 or 5 — but honestly, we’d love to hold this one forever.