Clear Path Asset Management (“Clear Path”), a real estate investment manager founded by Dan Magid, announced today the sale of Barringer Business Center, a “last mile” industrial property near Charlotte’s Lower South End. The sale will result in an approximately 69% internal rate of return (IRR) to investors, and a net Multiple on Invested Capital (MOIC) of approximately 2.0x, over a 16-month holding period.
“We purchased this property because the strength of the local industrial market gave us high conviction that we could create value by filling one large vacancy and marking rents to market rates,” said Dan Magid. “As a result of the hard work of our leasing partners, we successfully relocated one tenant, and signed leases with two new tenants, increasing occupancy to 100%. Although we anticipated a longer hold period, our leasing successes combined with the market’s appetite for industrial property provided the opportunity for an early exit and another great outcome for our investors.”
Barringer Business Center was sold as part of a portfolio including Sardis Church Business Park, which together represent Clear Path’s fourth and fifth dispositions. Clear Path’s previous sales include:
· Farmington Square Shopping Center in Raleigh, NC (40% IRR; net MOIC of 1.76x);
· 11010 David Taylor Drive in Charlotte, NC (31% IRR; net MOIC of 1.80x);
· 7210 Broad River Road in Columbia, SC (38% IRR; net MOIC of 1.91x);
· Sardis Church Business Park in Charlotte, NC (104% IRR; net MOIC of 3.20x).
Clear Path has acquired nine commercial real estate properties since inception, and is actively seeking additional investment opportunities, with a focus primarily on high-growth markets in and around Raleigh and Charlotte.
Proceeds from the sale of Barringer Business Center are currently being held by a qualified intermediary, pending redeployment via a tax-deferred 1031 exchange.
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