Overview

This property was purchased in September 2010 from Bank of America on a short sale. We were able to acquire the property for less than replacement cost.

A single purpose LLC named Zero Vacancy LLC was formed by Richard Hollman for this acquisition.  He raised funds from 30 separate investors in order to pay all cash for the property and the renovation.

The roofs and parking lot were recovered, plumbing and electrical work completed and the buildings painted.  Various units were completely refurbished and new tenants put in place.

The park underwent a transformation from automotive and heavy industrial uses to now being home to a recording studio, light warehousing, a photography studio, dance studio, special effects studio and gym.  Rents were increased and the park was eventually sold for a substantial profit and gave the investors an 11.5% annual return for every year held. 

This property was acquired in 1985 by Richard Hollman and Thomas Walsmith.  It was taken from a traditional warehouse use and improved to an office building through some creative improvements to the building.  Over the years additional improvements have been made to the building and currently is a food preparation and restaurant.

The property was originally acquired through traditional financing with a small downpayment.  The cash flow was used to pay down the loan rather than distributed to the partners until the loan was paid off in full.  The property continues to be held for all cash continuing the fiscally conservative policies for Hollman.

A total renovation of the interior and exterior of the building was completed just prior to the occupancy of the current tenant.  The exterior refurbishment included a new stucco facade, parking lot resurfacing, painting of the entire building and the wall of the adjoining property that faces our parking lot.

Here are some "before and after" renovation photographs to show the dramatic difference the improvements made to the building.  

Richard Hollman and Paul Gienger formed HG 178th Street LLC to acquire these two buildings in 2005.  They raised $1,900,000.00 in cash and obtained a $5,000,000.00 loan from an insurance company.  This was used for a $6,500,000 purchase price with the balance used for repairs and reserves.

The property consisted of a 44,484 square foot building and a 78,630 square foot building.  Both buildings were leased and paid the limited partners a 7% return on investment.  Additionally, a bonus was paid to the partners in the 8% to 10% range for 2006 and 2007.

In November of 2078 the smaller of the two buildings was sold for $4,400,000.00 and 80% of the initial investment was returned to the partners.  

The larger 78,630 square foot building was held for an additional five years producing consistent cash flow to the partners.  

In 2012 the tenant moved and a complete renovation of the building was undertaken.  The property was sold in 2013 for $6,000,000.00 creating a total sales price for the two buildings of $10,400,000.00 against a basis of $7,000,000.00 (purchase price and reserves) for a profit of $3,400,000.00.  The return on investment was phenomenal given that all of this was achieved on an eventual investment of $380,000.00 which also included continuous cash flow from 2005 to 2013.

The overall investment was a huge success for all of the partners.

This two unit property was purchased in 2016 with one unit occupied by Drago Bakery and the other unit vacant.  We found an Architectural Firm for the vacant unit and signed a 5 year lease.  Due to the Pandemic of 2020, they came to us with a request to cancel their lease, which we agreed to do given the circumstances.  That space has now been leased again and the building remains fully leased.

A few improvements were made to the building to include a glass, folding door as the front loading door of the space.  The northern space also has a kitchen complete with a dishwasher, sink and refrigerator.  There are two bathrooms in that space, with one featuring a walk in shower. 

The property is being held for income, and currently offered for sale as a leased investment.