Case Study 1: Upland, California Office Building

Property Type: 5k sq. ft Office Building

Location: Upland, California

Holding Period: ~18 months

Total Return: ~32%

Annualized Return: ~20.4%


This property was acquired in October of 2018. It had several elements that made it an attractive investment. First of all, it was in fantastic shape with a recent $600k rehab for a new facade, high end furnishings and upgraded HVAC and other components. 
It was leased to an operator of several charter schools in the San Bernardino area with a long-term lease. The property was a modified triple net lease with 5 years remaining upon inception.
In November of 2019, the tenant made a strategic decision to close one of the schools and this building was unneeded. We negotiated an early lease termination of a year’s rent upfront and a forfeited security deposit. 
After a careful analysis of the market at the time, we decided the best course of action was to sell the building rather than attempt to find a new tenant. We reached out to a local agent who had recently sold an owner- occupied building and asked them if they had any backup buyers for the property that recently sold. We asked if they would be interested in looking at our property. 
This agent was very proactive and had multiple bids on the property that he had just sold. As a result, he was able to show them this property that was currently off market and we were able to secure a deal with a regional law firm very quickly. After a few hiccups due to the beginning of the COVID19 pandemic, we were able to sell the property in May of 2020. 
The property sold for 25% over what we had purchased it for less than 18 months prior, and even after taking all expenses into consideration, provided us a total return of almost 32% or 20% per year. 

About the Author

Ali Chishti

My name is Ali Chishti, and I am a former strategic executive, entrepreneur, investor and practicing and proud Muslim-American. I'm the founder of the Sukoon Halal REIT.
Born and raised in Massachusetts to two PhD scientists, I chose a completely different path.
My professional background includes being a CPA in both Massachusetts and California, as well as being a former Certified Mergers and Acquisitions Advisor.
Beginning my career as an auditor at one of the largest Accounting and Auditing firms in the world, I quickly realized that being an accountant was not my passion and not the right career for me. Leveraging my accounting knowledge into a career in Finance and Corporate Strategy, I quickly became a strategic executive at one of the nation's largest online wholesale printers. At the age of 32, I led the sales process that resulted in a sale to a large PE firm.
I soon grew tired of the transition from growing entrepreneurial company to PE owned, highly leveraged and short-term target focused company. After a brief crisis of conscience, I decided to leave the corporate world for good.
I have focused on Startups and Real Estate investments since 2019. I have been fortunate enough to have been very successful and gained a lot of knowledge along the way, and now I am eager to help others achieve their financial goals in a manner that is halal, socially conscious and sustainable.

I see tremendous opportunities in the Real Estate sector in the coming years, and I would love to join with and benefit others who wish to invest their money without the guilt and moral quandary that exists in much of the Real Estate industry for practicing Muslims. While many of our operating principles may appeal to Muslims, I have met many non-Muslims who have come to understand that the current highly levered approach that most REITs operate in can be a double-edged sword that ultimately may cause more harm than good.

My free time is devoted to my family which includes my parents, wife and two daughters. I enjoy podcasts and audiobooks, staying active in the local Islamic community and am an avid basketball player and Celtics fan, car enthusiast and generally love learning new things.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like these

No Related Post