The Infinite Alpha Opportunistic Fund, along with Gateway Advisors, one of our preferred partners, recently closed on a two-story building in the highly desirable Barrington market. The building is highly visible off Route 14/Northwest Highway with appealing identity and monument sign.
Originally offered at over $1,100,000, the bank owned property was purchased for an attractive price of $475,000. With a renovation and leasing budget of less than $150,000, the cost basis of the property should end up in the $50 per square foot range. At this price point, there is considerable upside as well as a margin of safety.
The fund has participated in two ways. First, the Growth Series is an equity partner in 50% of the building, and has a 14% preferred return on equity. In addition, the Growth and Income Series have a first mortgage on the property at an attractive 10% rate. This loan will be paid off as soon as the building can be renovated and leased out enough to qualify for a conventional commercial loan.
Visit the Barrington Executive Suites Investment Overview for detailed information on this investment.
