Given the credit tenant profile of the rent roll, Bruce recognized a unique way to unlock value. Within six months of the acquisition, Safeway, Walgreens, and Chase Bank were subdivided into separate lots and sold as a separate horizontal regime for total proceeds of $25.6 million.
As a result, all of the initial equity basis was returned to the partners and the outstanding debt was paid off. This structured solution created a riskless ownership position on the remaining retail assets and provided consistent cash flows until final disposition. The transaction produced an IRR (internal rate of return) of nearly 40%.
Evergreen has gained rezoning approval for developing Terraces at New River in Glendale, Arizona. When completed, the multifamily development will have over 400 residential units along with an attractive array of amenities including a clubhouse, cabana, multiple pool areas, pedestrian trails and open green space.
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