The CEO of stREITwise, a California-based investment firm, has explained why the purchase of a Carmel Midtown corporate building makes sense for his firm and to local investors.
Eliot Bencuya, in a new Q&A, shared his thoughts on the newest acquisition – the Allied Solutions Building in Carmel – and how it will improve the stREITwise offering for investors and what to look out for in the future.
Bencuya
“What’s special about Carmel, and Midtown Carmel in particular, is that it illustrates the transformative power of cohesive mixed-use redevelopments in suburban settings,” said Bencuya. “People love to talk about how the trend of the decade is the ‘the move to the city,’ particularly among Millennials, but the reality is much more nuanced. Suburbs are a fundamental part of the American fabric, especially in non-gateway markets, and it’s evident that it’s possible, and in many cases preferable and cheaper, to move ‘downtowns’ to where people already live rather than move people to ‘downtowns!’”
Bencuya called the urbanization of American suburbs a trend that ties in well with current demographics moving into the prime family formation part of their lives. Having walkable, mixed-use developments in the suburbs is the best of all worlds when it comes to raising a family.
stREITwise recently added Allied Solutions’ new headquarters in Carmel’s growing Midtown as the newest asset in its growing portfolio. stREITwise purchased the building for $32 million from Ambrose Property Group.
“When we first visited Carmel we could instantly see the vision for the city,” Bencuva said. “We patiently waited for more properties in the city to hit the market and we feel this mixed-use development will provide our investors an outstanding return on their investment as well an opportunity for us to enhance their asset by leasing up the rest of the building with additional businesses for all the residents of Carmel to enjoy.”
The 142,000 square-foot Class A office and retail building was developed in 2017 as part of a public-private partnership. It is currently 87 percent leased with Allied Solutions and the FC Tucker company as the anchor tenants.
Bencuva called the Allied Solutions building the “centerpiece” of the new hub of redevelopment and growth in Carmel.
“We expect this trend to continue with new infill construction contributing to a vibrant neighborhood that serves as both a local and regional destination,” said Bencuya. “This type of place-making builds on itself so that in the future, the ‘public’ portion of the public-private partnership can burn off while private investment picks up steam,” he said.
Click here to read the entire Q&A.