Latta Pavilion

Opportunity & Strategy

• Core Asset at Core Plus Pricing – Abacus was able to acquire this 100% leased asset at a 7.0% cap, providing an above market yield for a property in such a high quality location with below market rents; indicating that this will outperform over time
• Fortress Location – Latta Pavilion comprises nearly a full city block at Main & Main in Dilworth, one of the most affluent neighborhoods in Charlotte with a walk score of 88 and as conveniently located to the uptown CBD as possible
• Below Market Rents – Sellers have historically operated the property at a sub-institutional quality level and current in-place rents are 75% of estimated market rents based on executed leases at similar comparable properties in the surrounding area
• Cash Flow Stability – While rents are below market this asset was 100% leased with 4.7 years of Weighted Average Lease Term (WALT) providing cash flow stability to generate an attractive ratio of total return to current income
• Parking Upside – Abacus identified an opportunity to implement a new parking management system that will both increase tenant satisfaction and generate revenue via restricting unauthorized parking from neighboring properties and charging hourly rates for retail patrons