Anagnost Companies

Turning an underperforming strip mall into a valuable asset.

Problem

Shortened Due Diligence Time Period

Anagnost Companies, a regional real estate investment and development firm, is known for its commercial real estate and affordable housing developments, had an underperforming retail strip mall under contract with a shortened due diligence period in Merrimack NH and the available financial information was convoluted due to the non-professional management of the site.

Solution

Anagnost hired OPC to manage the efforts to perform due diligence, analyze the financials, and evaluate the potential of the project. This initiative required several meetings with the listing brokers and owners of the property to clarify the property’s financial reports and obtain full copies of all leases and subsequent addendums.

After obtaining the information, OPC provided Anagnost with a written report outlining the key facts about the property, a summary analysis of the cash flow, an overview of all operating expenses, as well as detailed lease abstracts. As part of the lease abstracts, OPC was able to provide highlights of what tenants’ rights and non-compete clauses would create in terms of risk factors to future lease-up and potential uses on the site.

Several discrepancies and errors in the billing by the previous landlord resulted in identifying potential opportunities for improved cash flow. OPC provided a financial analysis of the property when fully stabilized.

Lastly, as part of the contract, Anagnost had identified a potential use for the property and had asked OPC to perform a market analysis and feasibility study. Within the report, OPC was able to provide the buyer with information that indicated the market was saturated with the proposed use and recommended alternatives based on opportunities OPC identified.

The property was purchased and has since stabilized.

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