Acquisition to Management | Jon Benedict’s First-time Investment Success
Jonathan Benedict, Owner of Investment Property at 1140 Monroe Ave.
FIRST TIME INVESTMENT SUCCESS
After looking into commercial real estate investment more seriously, Jon reached out to NAI Wisinski of West Michigan to learn about his options. Careful consideration led Jon to his first investment property at 1140 Monroe Ave. in Grand Rapids, Michigan.
Initially, this property wasn’t on his radar due to the price tag. But after consultation with Kurt Kunst, his investment broker at NAI, Jon understood the snowball potential and exactly what the investment and return would look like. “I fell in love with the location and the diverse tenants that occupied the property. I pleaded with the lender and here we are” he said.
After closing, Jon chose NAI Property Management to manage his investment property, allowing him to focus on his full time job without worry.
Jon is no stranger to creative solutions and seizing opportunities. He and two co-owners are currently renovating a 103-year-old storefront in Grand Rapids’ Creston neighborhood to house a natural wine and flower shop called Good, Good, Good Wine and Flowers at 1590 Plainfield Ave. NE.
1140 Monroe Ave NW, Grand Rapids, MI 49503
ABOUT THE INVESTMENT
1140 Monroe offers many great opportunities for its owner. Jon highlights three main reasons why he chose 1140 Monroe as his first investment property:
1. Diversified Tenant Mix: Jon was attracted to 1140 Monroe’s combination of retail, salon, medical, and office spaces: “The presence of various types of tenants, each with unique customer bases and revenue streams, makes the property more resilient to economic fluctuations. This diversification spreads economic risk across different industries and market segments, reducing my exposure to sudden shifts in the market.”
2. Variety in Lease Terms: Although there is simplicity in maintaining only one lease term and tenant, Kurt helped Jon see the benefits from maintaining multiple: “The variety of suite styles allows for variance in lease terms, accommodating the unique needs of different types of tenants. Medical suites may require specific infrastructure or compliance with healthcare regulations, while retail spaces may prioritize high foot traffic or visibility. By offering tailored lease agreements, we can attract and retain tenants more effectively.”
3. Location: Grand Rapids continues to become a hub for growth and new opportunities: “Many neighborhoods in Grand Rapids are experiencing revitalization efforts and Creston/West Leonard/Belknap are no exception. The rehabilitation of older buildings, introduction of new businesses, and improvements to infrastructure and public spaces are bringing more residents to the immediate area.”
NAI Wisinski of West Michigan Property Management Team
PROPERTY MANAGEMENT
Amid several local Property Management Companies to choose from, Jon ultimately chose NAI: “NAI was by far the most professional and had the most experience. This has really been a “turn-key” experience for me and I would recommend them to both novices and experts in commercial real estate.”
With an investment of this size, owners can expect multiple challenges to arise. But with a seasoned team standing behind them every step of the way, they can move forward with confidence that the challenges will be mitigated. Jon highlighted 8 ways NAI Property Management has eased his duties as an investment owner:
1. Expertise and Experience: “NAI understands market trends, tenant requirements, legal regulations, and maintenance needs. Especially as a new owner such as myself, this has allowed me to understand why specific repairs and tenant needs get prioritized.”
2. Tenant Relations: “NAI acts as a buffer between the owner and tenants, handling issues professionally and efficiently, which can help maintain positive tenant relationships. During the first few months, I thought that I could manage these tenant relationships by myself and shot myself in the foot several times, which left me with less revenue and more frustration.”
3. Maintenance and Repairs: “NAI has access to reliable contractors and can negotiate favorable rates for repairs and improvements. Proactive maintenance has prevented costly problems and preserved the property’s value. I am grateful for the maintenance team at NAI. They have proven time and time again that they can get the job done. If a particular job is beyond their scope, they always ‘know a guy'”.
4. Financial Management: “NAI ensures rents are collected on time, tracks expenses, and provides monthly financial reports to me. This continues to assist with tracking my investments performance and planning a suitable exit strategy.”
5. Marketing and Tenant Acquisition: “NAI markets vacant spaces, conducts showings, and screens potential tenants. They have the expertise and resources to attract suitable tenants and negotiate leases that benefit ownership.”
6. Emergency Response: “NAI is available to handle emergencies such as building damage, security breaches, and tenant disputes. They have protocols in place to respond promptly and mitigate damage, minimizing disruption to tenants and protecting my investment.”
7. Time and Stress Savings: “Hiring NAI as a property manager has freed up a significant amount of my time and eliminated an unholy amount of stress associated with property management tasks. I have been able to step away from the daily tasks associated with this property and focus on different ventures.”
8. Maximized Investment Returns: “Overall, the property management team has led to higher investment returns by optimizing rental income, reducing vacancies, minimizing expenses, and preserving the property’s value over time.”
JON’S TOP 3 BENEFITS OF HIRING A PROPERTY MANAGER
1. I get robust monthly financial reports
2. All my questions surrounding the property are an email away
3. I can focus on my full-time job without worrying that my investment is falling apart
NAI WISINSKI OF WEST MICHIGAN
NAI Wisinski of West Michigan is the region’s largest independently owned commercial real estate firm. Headquartered in Grand Rapids and maintaining a second location in Kalamazoo, MI, NAIWWM provides all facets of commercial real estate services, including brokerage and property management, throughout the entire West Michigan region and beyond.
Give us a call today at 616.776.0100 to learn how our expertise can begin working for you.
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