We wanted to share one of our more recent acquisitions. It’s not your typical asset class. It’s probably best described as a covered land play.
A 2 acre parcel of land in a well located part of Austin went into foreclosure. J19 went to the auction, missed the foreclosure sale by 5 minutes because the lender immediately bought it back. However after getting in touch with the Missouri based lender and 60 days of daily pursuit we bought it from the lender at a 45% discount to the original note value.
While in the process of securing the land, a former member of a high end dog park which was located on the parcel reached out to us. 3 unique businesses – subscription based membership, a food and beverage operation and doggie daycare.
We had a potential tenant and quickly secured an attractive lease for the new operator while generating a triple net 10 cap lease for our investors. Add moderated debt and we are generating a 15% cash on cash yield while holding irreplaceable real estate for long term appreciation.
This boots on the ground, small to middle market approach is what makes J19 different.
Btw, that yield is all tax deferred!
If you’re interested in making CRE boring again please request a 1×1 personal meeting on zoom or in person.