September 2020. COVID panic was at its peak. Fear was everywhere, and there weren't many pioneers willing to buy anything, let alone a vacant building.
I had been in acquisition mode since July that year, and on LoopNet I found a 20,000 square foot precast flex/industrial building in Crete, IL, built in 2004 on 0.86 acres. Three units: two at 5,000 feet and one at 10,000. 100% vacant. Everyone else was playing defense. We bought it.
My plan was to split the 10,000 foot unit in half, make it four 5,000 foot units, and lease it up.
Before we closed, I asked for one thing in the contract: the right to bring prospective tenants through during due diligence. The seller's broker was great about it and agreed to work with me on signing new leases while we were still closing.
Then I got the word out every way I could. I listed the space on Facebook Marketplace, LoopNet and Crexi, called and emailed more than 50 leasing brokers in the area, and dropped 1,000 postcards at nearby businesses. Within two weeks, two units were leased, with minimal tenant improvements and move-in set for 30 days after closing.
After closing, we spent about $100K on a light renovation and splitting the big unit, and a few months later the building was full. We've spent another $100K since, most recently on this latest round of move-ins.
In early 2022 we refinanced at 3.85% and pulled out our entire down payment.
So why sell a deal I love?
That 3.85% loan expires next year, so the best cash flow years are behind me. We have a few deals under contract, and the more of my own capital I put into them, the less I have to raise. Equity sitting in a stabilized building earns less than the same equity in a new value-add deal. This building did its job. It's time to pass it to someone who will do well with it for the next 5-10 years.
It's 100% leased today. Two new tenants just moved in, and two legacy tenants with below-market rents expire soon, so the next owner has room to bring those up to market.
My broker just listed it on the market. Pricing guidance is an 8% cap on in-place NOI. If you want to go deeper, here's the offering memorandum.
Interested in the building, or want to talk through the numbers with me? Get in touch.
This first ran in my Value Builder newsletter on October 25, 2026. Subscribe here.
