Property Acquisition Criteria – 2023

RDW Development is currently seeking to purchase commercial real estate to increase our portfolio. Our basic guidelines are the following:

  • Price range: $1M-$5M
  • Preferred Deal Types:
    • Value Add / Ugly Ducklings
    • NNN with leases expiring soon
    • Under-rent tenants
    • Lease-back deals
    • Vacant properties
  • Property types:
    • Preferred: Industrial, Office, Medical
    • Non-Preferred: Multi-family
    • Note: Retail will be considered
  • Deal Terms:
    • In general , no financing contingencies
    • CAP rates, 7% and higher
  • Location: Nearly all locations within the continental US:
    • Preferred states: Texas, Arizona (Phoenix), Washington, North Carolina, New Mexico
    • Non-Preferred states: California, New York, New Jersey, Illinois

We are value investors, the type that would purchase a vacant warehouse that needs extensive rehab in Phoenix. On the other hand, we would not be interested in a 4% cap Starbucks located in California. We generally are not looking for development (buy and scrape) opportunities, instead preferring to keep existing structures in place and extensively refurbish up to a modern look and feel.

Past examples of real estate purchased:

  • The majority of the industrial real estate properties that we have purchased have been vacant and/or had month-to-month tenants in place who were paying under-market rents. Our strategy has been to rehab the facility and slowly increase the rents as the lease terms expire.
  • For our restaurant property, we purchased it at the end of its NNN lease, with the confidence that the tenant would renew without issue (they did).
  • For our Mattress FIRM property, we purchased it pre-bankruptcy for a price that included a risk-based discount in case they closed the store (they did not).

About RDW Development

RDW Development is the master entity responsible for purchasing and developing commercial real estate projects for a variety of underlying entities. A sampling of our current and past portfolio includes:


17K sq-ft
Industrial property
El Segundo, CA
29K sq-ft multi-tenant Industrial Harbor City, CA 20K sq-ft
Industrial property
Harbor City, CA
20K sq-ft
Industrial property Harbor City, CA
12K sq-ft
Industrial property
Carson, CA
6K sq-ft Retail Bloomsburg, PA (Mattress FIRM)
6K sq-ft Industrial Hawthorne, CA, Leased to SpaceX 6K Restaurant
Buffalo Wild Wings
Champlin, MN
10K sq-ft
Industrial property Harbor City, CA

Over the past decade, RDW Development has closed on 20 out of the 22 properties (91% success rate) that we entered into escrow. We do not re-trade on price except for the rare occasions where major defects are discovered during physical inspections or environmental investigations. References from established agents with whom we’ve worked repeatedly are readily available upon request.

RDW Development acts as a Principal and does not participate in earning commissions on real estate. Brokers who submit properties to us for consideration would represent our interest.

Primary Contacts:

 

Wayne R. Dempsey
Principal Manager
wayne@rdwdevelopment.com
Stephen Vincent
Manager
stephen@rdwdevelopment.com

 

RDW Recent Transactions

2740 Mosside Blvd. Monroeville, PA 15146
January 2022:
  • Operating Restaurant – 9,133 sq-ft.
  • Purchase price $2,450,000 - $268 psf.
  • $328K NOI – 13% CAP
  • Ten-X Auction win
  • Outdoor patio, 2.5 acre
  • Built in 1999
  • More Info

1022 N Columbia Center Blvd, Kennewick, WA 99336
August 2021:
  • Retail center - 5,924 sq-ft.
  • Purchase price $2,645,000 - $446 psf.
  • $172K NOI – 6.5% CAP
  • Two-story – restaurant and upstairs bar
  • 400 sq-ft Outdoor patio, 18’ ceilings
  • Built in 2015
  • More Info

4110 N 108th Ave, Phoenix AZ 85037
July 2021:
  • Medical Condo – 2,957 sq-ft.
  • Purchase price $725,000 - $245 psf.
  • Fully equipped – seven exam rooms
  • Existing lease until Nov 2020 – 7.35% CAP
  • Two private doctor offices
  • Frontage / signage along 108th Street
  • More Info

206 W Front Street, Hattiesburg, MS 39401
April 2021:
  • Vacant restaurant - 5,305 sq-ft.
  • Purchase price $395,000 - $74 psf.
  • Two-story – restaurant and upstairs bar
  • 400 sq-ft Outdoor patio, 18’ ceilings
  • Built in 1940, Renovated 2002
  • More Info
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2825 E Chambers Street, Phoenix, AZ
April 2021:
  • Fully leased single-tenant industrial property
  • Purchase price $1.85M, $111 psf.
  • CAP rate 8%, $148K annual NOI
  • 16,500 sq-ft on 1 acre
  • 2-years remaining on lease, long-term tenant
  • More Info

660 W Warner Road, Tempe, AZ
January 2021:
  • Vacant restaurant - 5,851 sq-ft.
  • Purchase price $946,000 - $161 psf.
  • Former Tilted Kilt Restaurant
  • 0.91 acres with up to 107 parking spaces
  • 1,000 sq-ft outdoor patio areas
  • More Info

10733 Frank Lloyd Wright, Scottsdale, AZ
December 2020:
  • Office condominium - 3,407 sq-ft.
  • Purchase price $775,000 - $227 psf.
  • New 3-year gross lease with a 7.15% CAP
  • Interior construction two-years old
  • More Info

3221 Main Street, Mammoth Lakes, CA
December 2020:
  • Vacant restaurant - 5,000 sq-ft.
  • Purchase price $961,430 - $192 psf.
  • Former Slocum’s Bar and Grill
  • 0.52 acres with up to 107 parking spaces
  • Prime Main Street location
  • More Info