Acquisition / 1031 Exchange
In 2003, a new 300,000 square foot shopping center (Outlook Shopping Center), anchored by Target, was developed on Main Street in Watsonville, California (Monterey Bay). Several of the integrated lots were sold to individual retail owner/users (Target, Albertsons, Staples, etc). At final subdivision map, a prime “mid-box” parcel site strategically located within the center was acquired by Longs Drug Stores for the purpose of building a new retail location for the specific trade area. Shortly after the parcel acquisition, Longs acquired several in operation locations of one of its main competitors, Payless Drugs. One of the locations was less than one mile from the new shopping center and subject to an existing long-term lease. | | 
|
S.A.R. was aware of the general circumstances and contacted Longs to solicit the possibility of acquiring the vacant site at Outlook. Unknown by the public at the time, Longs had recently entered into a build-to-suit lease for the site with Ross Stores to build a 31,000 square foot building with a long-term lease. S.A.R. negotiated favorable purchase terms with Longs for the project and entered into a 12 month purchase escrow; close to occur upon completion of the building. During this period, S.A.R. obtained a favorable financing commitment that would take effect upon completion of the improvements and commencement of the lease.
A limited liability company, managed by Robert Ridino, was established to acquire the investment on a long-term basis. Prior to completion of the acquisition, several unsolicited offers to purchase the “end product” were received which would have realized a substantial profit to simply assign its contracted purchase rights. In 2007, a formal offer that would realize a pre-tax profit to the investors exceeding $1,200,000 was turned down. The property is maintained and currently managed by S.A.R. Asset Management, Inc. |
Case Studies 
Details and
Current acquisition
Properties in our portfolio that are on the market