HSBC BANK, ADVANCED AUTO PARTS STRATFORD, CT
VMD acquired the fee simple interest and remaining base lease term at 1370 Barnum Ave in Stratford, CT, which had been leased to HSBC, one of the world’s largest banking and financial services organizations.
VMD worked hand-in-hand to buy out the in-place HSBC lease while simultaneously negotiating a lease with Advanced Auto Parts. Aside from extreme site challenges, VMD worked closely to ensure the complex construction delivery of this site was delivered on-time and in compliance with Advanced Auto’s requirements.
It was VMD’s opportunistic foresight that led it to orchestrate an immensely creative transactional structure. VMD acquired the asset at a 12% going in Cap Rate and through an intricate cash-flow recapture structure, redevelop the site to a yield of 13% Return on Cost.