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    High Net Worth Individual


    2014 NAIOP Office Investment Transaction of the Year


    Allegro was introduced to a high net worth individual looking to build a commercial real estate portfolio in Nashville, TN that would serve as a family business to be passed down to the next generation. The investor did not have any previous experience in direct real estate investments and called upon Allegro to help him define his investment criteria, identify opportunities that would achieve his specific financial goals, and lead him through the acquisition process. 


    Allegro worked with the investor to identify the product type that best met his financial objectives and was accretive to his long-term strategy of building a sustaining family business.  The investor had initially expressed interest in multi-family properties; however, by the conclusion of the initial strategy session, the focus had shifted to shopping plazas with a focus on neighborhood necessities.  By focusing on neighborhood retail, the investor would be able to maximize the impact of the housing boom in Nashville without competing with big players in a hot market.  Allegro quickly determined that off-market opportunities offered the best pricing due to the amount of national and international equity flooding the Nashville real estate market at the time.

    The Allegro team identified a number of options for consideration.  Ultimately, the investor chose to pursue a small, neighborhood retail center situated on a major corridor in a growing community with strong demographics. Allegro coordinated all facets of the transaction, including identifying the opportunity to purchase the property, which was not listed for sale; evaluating the qualitative and quantitative risks and benefits of the investment; negotiating the terms of the purchase agreement and coordinating the due diligence activities once the property was under contract.  During the final stages of the negotiation, two tenants unexpectedly walked away from the property, significantly changing the value of the investment. To offset the loss of income from the departed tenants, Allegro created an income protection agreement that set aside proceeds at closing that the buyer could use for up to 18 months. In addition, Allegro negotiated a provision that required the seller to contribute to build-out costs for future tenants. This creative solution enabled the client to move forward with the purchase of a property that met his qualitative criteria while mitigating negative impact to investment returns.

    Ultimately, Allegro helped the investor identify and acquire a real estate investment that provides future income and the opportunity to build a valuable real estate portfolio in a growing market.