GK Development Inc., a real estate investment firm and sponsor of Delaware statutory trust offerings, announced that its latest program, GK DST – Cedar Falls Grocery LLC, has gone full cycle.
The DST program was formed in April 2016 to acquire, through a Section 1031 exchange, a single-tenant Hy-Vee grocery store located in Cedar Falls, Iowa.
The approximately 106,000-square-foot property was funded in part by the sale of nearly $5.1 million of interests in GK DST – Cedar Falls Grocery LLC to accredited investors through a private placement offering. GK sold the retail property for $11.2 million, which represented a cap rate of approximately 6.55 percent, the company said.
“It is always good to deliver. It is sometimes even better when you can deliver in a time frame that is shorter than originally anticipated,” said Matt Leiter, senior vice president of equity markets at GK Development. “Clients received a 6 percent annualized distribution and on average, a better than 7 percent IRR.”
He added, “They now have a liquidity event that will allow them to reassess their financial needs and make appropriate decisions for their current financial picture. This is the type of result that we seek when looking for investment properties for our clients.”
GK Development was founded in 1995 and focuses on acquiring retail, office, hospitality, medical and multifamily assets with credit tenants in markets with strong growth demographics. GK Development said that it currently oversees a portfolio valued at more than $500 million which represents 5.4 million square feet throughout the U.S.