"The existing rents in the building are
below market rates. We plan to re-position and re-lease the building at market rents.
"The existing tenants are paying rents that are substantially
below market rates. We are looking to improve the tenant mix by adding exciting new retailers."
"This was an excellent opportunity to acquire a stable income producing property with apartment rentals
below market rates. The upside potential is phenomenal," said Dario Zar, president.
Nearly $16 million was provided in loans and grants for the three phases, with MetLife providing $7.3 million at
below market rates and CPC lending more than $5.8 million.
Explaining that the current tenant has a mid-term lease
below market rates, Heller added, "When those expire, there will be opportunity to materially improve income by finding new tenants or releasing to existing tenants."
To stem the flow of dollars spent every month on empty space, tenants still on the hook for space they no longer require are often quite willing to offer
below market rates to tenants with strong credit.