The three reasons this asset cleared the doctrine, written before the wire went out.
Five-parcel retail footprint totaling 97,546 SF on a high-traffic corridor in Pittsburgh's eastern submarket. Anchored by Giant Eagle — a regional supermarket operating 490+ locations across OH, PA, WV, MD, and IN, ranked #42 on Forbes' 2023 America's Largest Private Companies.
Acquired as a portfolio from a single seller exiting a five-property hold; bid wins came from speed and all-cash certainty of close, not price. Going-in cap of 11.00% on $613,449 of effective annual rent — a meaningful premium to comparable Pittsburgh-metro single-asset trades.
9% projected cash yield with identified upside in (a) lease-up of vacant in-line space and (b) approved plans for expansion. Underwriting holds at a 9% cap exit without either lever; both are upside, not assumptions.
7 tenants, 91% occupancy, anchored by Giant Eagle.
| Tenant | Type | Sq ft | % NOI | Lease end | Options |
|---|---|---|---|---|---|
| ANCHORGiant Eagle | Necessity · regional grocer (490+ locations) | — | Anchor | — | — |
| Community College of Allegheny Cty | Education · CCAC Braddock Hills Center | — | — | — | — |
| Family Dollar | Necessity · national (Dollar Tree co.) | — | — | — | — |
| Fine Wine & Good Spirits | Specialty · PA Liquor Control Board | — | — | — | — |
| Rent-A-Center | Specialty · national (~2,100 locations) | — | — | — | — |
| Dollar Bank | Service · regional bank (90+ offices) | — | — | — | — |
| Boost Mobile | Service · Dish Wireless | — | — | — | — |
Modeled on twelve months of trailing actuals, not stabilized pro-forma. No debt, so cash flow to equity equals NOI.
| Y1 | Y2 | Y3 | Y4 | Y5 (exit) | |
|---|---|---|---|---|---|
| Effective gross income | $682,000 | $724,000 | $768,000 | $815,000 | $865,000 |
| Operating expenses | ($69,000) | ($73,000) | ($77,000) | ($81,000) | ($86,000) |
| NOI | $613,000 | $651,000 | $691,000 | $734,000 | $779,000 |
| Debt service | — | — | — | — | — |
| Cash flow to equity | $613,000 | $651,000 | $691,000 | $734,000 | $779,000 |
| Cash-on-cash | 11.0% | 11.6% | 12.3% | 13.1% | 13.9% |
All-cash close. Stoneforge co-invested 10% of equity on identical terms to the LP class.
| Senior debt | — | 0% |
| GP co-invest | $560,000 | 10% |
| LP equity | $5,040,000 | 90% |
| TOTAL | $5,600,000 | 100% |
| Purchase price | $5,400,000 | 96.4% |
| CapEx + lease-up | $110,000 | 2.0% |
| Closing & legal | $60,000 | 1.1% |
| Operating reserve | $30,000 | 0.5% |
| TOTAL | $5,600,000 | 100% |
Where the deal still pencils — and where it stops. The base case sits in the middle, not at the edge.
| NOI growth ↓ / Exit cap → | 8.00% | 8.50% | 9.00% | 9.50% | 10.00% |
|---|---|---|---|---|---|
| +6.0%/yr | 34.2% | 32.1% | 30.1% | 28.2% | 26.4% |
| +5.0%/yr | 33.0% | 30.9% | 28.9% | 27.0% | 25.1% |
| +4.0%/yr | 31.8% | 29.7% | 27.7% | 25.8% | 23.9% |
| +3.0%/yr | 30.5% | 28.3% | 26.4% | 24.5% | 22.6% |
| +2.0%/yr | 29.0% | 26.9% | 25.0% | 23.1% | 21.2% |
What actually happened — and when. Every step recorded, every document on file.
Memo, model, OA, sub docs, third-party reports, current rent roll. Updated monthly post-close.
We'll send the current portfolio brief, a sample deal memo, and an invite to the next quarterly investor call.