Strategy

• Sourced off-market opportunity to purchase fee simple interest in a sandwich ground-leased property
• High-performing grocery/drug store site with below-market leases that expire in 2025
• Existing short-term ground lease expiration complicated the value proposition

Execution

• Completed leasehold buyout and working to extend the grocery/drug stores leases before expiration

Results

• Prado successfully purchased the leasehold interest in November 2018 without a capital call
• Prado is negotiating with tenants to blend and extend their leases and further increase the value and cash flow