LOS ANGELES—DealPoint Merrill has purchased a three-property commercial portfolio totaling 223,614 square feet. The investor plans to renovate each of the properties, which are located in Illinois, Texas and New York, extensively into class-A real estate. The name of the seller and the purchase price for each of the properties was not disclosed.

“Each of the portfolio assets exceeded our internal criteria for redevelopment, which usually exceeds a year or more when adding in the entitlement process,” David Frank, CEO at DealPoint Merrill, tells GlobeSt.com. “The assets will be redeveloped into Class A commercial properties.” Frank handled the due diligence in all of the transactions along with Sterling McGregor, DealPoint's chief investment officer.

The smallest of the three properties in located in Nanuet, New York, and is a 40,080-square-foot commercial building and marketplace. DealPoint plans to double the building's square-footage to more than 80,000 square feet. “Our business plan is to capitalize on the strong historical retail dominance of the property due to its immediate proximity to the freeway and the mall, strong traffic and our signalized intersection, as well as, our multi-directional traffic ingress and egress,” says Frank.   

The portfolio also includes two retail properties, a former Walmart-anchored shopping center with a currently operating Sam's Club and a former Albertson's-anchored shopping center. The Walmart property is located in Joliet, IL, and is 116,134 square feet. “The retail frontage will support a retail outparcel as well,” says Frank. “Our business plan is to capitalize on the strong historical retail dominance of the property due to its immediate proximity to Sam's Club, strong traffic and our signalized intersection, as well as, our multi-directional traffic ingress and egress.” 

The third property, a former Albertson's-anchored shopping center, is 77,000 square feet, including the anchor space and the surrounding shopping area. “Our business plan is to capitalize on the historical dominance of the property and its excellent freeway visibility, strong retail corridor supported by a super Wal-Mart, signalized intersection and multi-directional traffic ingress and egress,” says Frank. “The property will be designed to support the nearly 2,000 acres of new residential development to the northwest.”

This purchase fits in perfectly with DealPoint's business strategy to acquire redevelopment and value-add. The company also recently launched a partnership with Sperry Van Ness International Corp. to acquire $100 million in deeply discounted, risk-adjusted multifamily, multi-tenant retail and self-storage properties.