Each acquisition is unique and has its own set of circumstances, challenges and complexities. Next has never shied away from transactions with varying degrees of difficulty, instead, Next views each property as a potential opportunity. Among the memorable Next Realty acquisitions:
- Oak Lawn Promenade—Next Realty had been pursuing the acquisition of Oak Lawn Promenade, a 32,300-square -foot neighborhood center, for more than one year. Surprisingly, on December 13th the Seller agreed to terms, but stipulated that it had to be a year-end closing. In the midst of the holiday season, with involved participants located across the country, Next mobilized to make it happen. On December 31st, while at a salon getting ready for a New Year’s Eve event, Eteri was reviewing the closing prorations and other documents in order to complete the closing later that day. This transaction confirmed that the Next team can execute a quick close!
- Nagle Plaza—Nagle Plaza, the first acquisition for Next Realty Fund VII in 2011, is notable because of the complex seller profile and Next’s confidence in its creative, value-add investment plan. Next initially acquired the defaulted first mortgage note, from a commercial mortgage backed security (CMBS) Special Servicer, and ultimately obtained the fee title to the property at a 30% discount via a sheriff’s sale. The property was then refinanced with a new ten-year fixed-rate CMBS loan which facilitated the return of approximately 75% of investors’ initial equity. The 30,000 square-foot, mixed-use property consisting of retail space and a two-story office building is located in a busy trade area at the intersection of Milwaukee, Devon, and Nagle Avenues. Ultimately, Next sold the center in 2022 after finalizing a long-term lease extension with Walgreens.
- The Shops at Flint Creek—Next Realty has owned The Shops at Flint Creek in Barrington, a 60,000-square-foot grocery-anchored center, since 2014. But it is an acquisition that was in jeopardy of falling apart at the last minute. Originally, the acquisition was to be a joint venture with an institutional equity partner. However, at the end of the due diligence period, the JV partner changed its mind and walked away from the deal. While it would have been easy to terminate the acquisition, the property met Next’s investment criteria and was viewed as an excellent opportunity. Next made the decision to raise the additional capital required from its investor base and completed the acquisition on its own.
- 350 Waukegan Road, Deerfield—In another complex transaction, Next Realty acquired four nonperforming cross-collateralized loans that were secured by a restaurant property and other collateral assets. Upon taking title of the property, Next sold the non-real estate collateral. The firm’s original business plan involved converting the former restaurant property, in a prime Deerfield trade area, into a multi-tenant retail building. However, at that time, hospitals and healthcare systems increasingly were looking outside their campuses for opportunities to be closer to their patients. Next was successful in capitalizing on the infancy of this trend and entered into a long-term lease with Northwestern Memorial Hospital. The property was sold after it was redeveloped.
