Cloverleaf Fund IX has purchased three well-located value-add properties, each in different Midwestern markets. As reported in a previous newsletter, in July 2021, we acquired Pyramid Place, a 52,184 square foot center on the north side of Indianapolis. Since then, we bought the following properties:
Hales Corners, WI Center (Hales Corners, WI)
In July 2022, Cloverleaf Fund IX acquired a 35,690 square foot value-add property in south suburban Milwaukee in an off-market transaction. The multi-tenant building, which was 29% vacant upon our purchase, sits between two established, busy grocery-anchored centers and shares access lanes with both properties. The asset is located in a particularly dense, infill portion of Hales Corners and enjoys excellent visibility, good signage, and easy ingress/egress. We acquired the property with a mix of capital from Fund IX investors and a loan equal to 40% of the purchase price, but with the ability to add more debt as needed. We believe that with enhanced attention to leasing and management needs, and a willingness to put additional funds into the project, we can stabilize and improve it, while receiving reliable cash flow, even at current occupancy.
Houston Commons (Florence, KY)
In February 2023, Cloverleaf Fund IX acquired a 44,252 square foot value-add property in south suburban Cincinnati. The multitenant building, which was 15% vacant upon our purchase, includes a long-term leased, well-performing PetSmart and is part of a development anchored by a separately-owned Target. It is located along the primary retail corridor in Florence, KY, a strong market in the Cincinnati MSA. The property is approximately a half mile from I-71/I-75, five miles from Cincinnati/Northern Kentucky International Airport, and 10 miles from downtown Cincinnati. We acquired the center with a mix of capital from Fund IX investors and a loan equal to 47.5% of the purchase price, but with the ability to add more debt as needed. Additionally, the asset sits across the street from St. Elizabeth Florence Hospital. We believe the property presents a compelling combination of stability and value-add.