We are pleased to share the successful sale of the Kings Automall Shopping Center in Cincinnati, Ohio — an outcome that underscores the value of proactive asset management and disciplined execution.
Acquired by Next Realty Fund IX, LP in July 2021, in the midst of the pandemic, the property presented a unique opportunity to acquire a well-located center at the entrance of the Kings Automall corridor—home to 14 auto dealerships representing 18 vehicle brands. The property benefits from strong traffic and excellent visibility. Purchased for $7,725,000 ($115 per square foot), the acquisition was financed with a ten-year fixed-rate financing at 4.04%. This financing structure ultimately played a key role in the sale, with the buyer assuming the loan.
Our business plan focused on improving occupancy and strengthening tenant retention. During the 3.75-year hold period, we leased the remaining vacancies and negotiated several lease extensions, including a recent seven-year renewal with LensCrafters. These efforts contributed to a 25% increase in Net Operating Income and positioned the property for a compelling exit.
In early 2024, we engaged CBRE to market the property.
The offering attracted strong interest, and the property was ultimately sold for $9,690,000 ($144 per square foot), representing a 25% increase in value.
The sale resulted in a property-level Net IRR of approximately 20.66% and a Net Return Multiple of 1.79x for Fund IX investors.
This transaction reflects our continued focus on unlocking value through hands-on management and strategic decision-making. We look forward to sharing additional updates as we continue to execute on behalf of our investors.
