Franklin Square: A Long Island Value-Add Retail Opportunity

With the property having 9,000 square feet on long-term leases, AVGI has been able to work with our lending relationships to secure 5-year, fixed-rate debt upon acquisition in the mid-to-high 6% range. While we have underwritten 4 months of downtime, we plan to immediately start working with MTM tenants to renew their leases at market. However, despite the tenants investing heavily into their spaces, we have budgeted approximately $270,000 or $17/SF to replace the roof, complete any tenant buildouts to secure new tenants, and cover leasing commissions. With the 5-year fixed rate debt, we plan to pay investors from cash flow and exit the property in year 5 upon the renewal of the last medium-term lease expiration.

967-983 Hempstead Turnpike, a 16,000-SF +/-, 10-tenant strip mall located in Franklin Square, NY (“Franklin Square”). 6 tenants, or 7,000 SF, are on month-to-month (MTM) leases below market, and the remaining 9,000 SF has a weighted average lease term of 6.68 years. With the blended WALT being 2.82 years, the property is well positioned to benefit from going-in cash flow with future upside upon lease renewals. Franklin Square is also located on the corner of two major local thoroughfares in Franklin Avenue and Hempstead Turnpike.

Central Nassau Retail Market

Contrary to post-Covid headlines, suburban retail on Long Island has surpassed all expectations, with razor-thin vacancy rates, robust leasing activity, and steady rent growth. As a result of negative absorption, vacancy has reduced by 0.4% to an overall vacancy rate of 4.3%. What's more attractive is that comparable strip center product tends to lease very quickly, with only a 1.6% vacancy rate in the subsector. This is largely attributed to the high visibility of strip centers and the lack of inventory – only 770,000 of the 18.0 million SF in the submarket are strip centers. Market rents in Central Nassau are $40.00/SF.

Demographic Details

5-Year Financial Analysis

AVGI is a real estate investment firm that purchases opportunistic assets in New York as well as secondary and tertiary markets throughout the United States. The firm currently has in excess of $80 million of new developments under construction throughout Long Island and $120 million of real estate holdings across 6 markets - Long Island, Houston, Little Rock, New York City, Binghamton, and St. Louis.

Leadership Team

Allon Avgi

Chief Executive Officer

Allon Avgi is the Founder and CEO of AVGI. Mr. Avgi started AVGI at 21 years old when he acquired his first real estate investment. Mr. Avgi has since developed a diverse real estate holdings company that has reached $50,000,000 in AUM within only 4 years using his own capital and that of a select few individuals. As he starts to open the firm's investments to outside capital and build strategic partnerships, he has ambitiously set a target to acquire and manage a $1 billion real estate portfolio over the next 5 years. In his free time Allon loves reading, creating content for his social profiles, finding new art for his collection and envisioning the future. Allon is a strong believer in giving back, both to his alma mater, Hofstra University & Chabad Lubavitch.

Christopher Catalano

Chief Operating Officer

Chris manages full service property & asset management. With a customer-centric approach, Chris is committed to providing the best services to both properties owners and tenants. Currently, Chris and his team have over 450 units under management since formation in early 2020. Chris and his team members also manage leasing, accounting, property manager and landlord relations, and the in-house construction and maintenance staff.

Chris Wraback

Chief Investment Officer

Chris Wraback serves as the Director of Investments at AVGI. In this role, Mr. Wraback works jointly with the Acquisitions and Asset Management teams to oversee underwriting and due diligence guidelines, business plan preparation and execution, and communications with new and existing investors. Mr. Wraback is co-chair of the firm's Investment Committee along with Mr. Avgi. Prior to joining AVGI, Mr. Wraback was an investment associate for Besen Partners' Principal Investments Team, where he underwrote and completed due diligence on more than $750 million of prospective acquisitions and advisory assignments. Prior to Besen, Mr. Wraback was an investment analyst at a family office based in Manhattan. Mr. Wraback graduated from the Peter J. Tobin College of Business at St. John's University with a Bachelor's degree in Finance and a minor in Accounting. He was recently elected to the school's Young Alumni Advisory Board

Michael Genovese

Investor Relations

Michael brings a unique blend of leadership and service to his role as Investor Relations Manager in the real estate sector. With a solid background as a retired police officer, he managed treasury operations for his department’s Police Benevolent Association (PBA), demonstrating his financial awareness and integrity. Prior to his law enforcement career, Michael served in the U.S. Army, where he developed a deep sense of discipline and commitment. In addition to his service background, Michael led athletic divisions in two corporate fitness facilities, where he refined his management, operations, and client relations skills. His experience in these diverse fields makes him especially adept at fostering strong, trust-based relationships with investors, guiding them through opportunities with transparency and dedication. A devoted family man, Michael balances his professional pursuits with a commitment to his loved ones, aiming to create a meaningful legacy both at home and in his career.

CXA Property Management is a full-service property & asset management firm based in Long Island, New York. With a customer-centric approach, Chris has the unique skill of providing the best services and experiences for our residents and commercial customers, while also optimizing efficiencies to drive NOI growth for our investors.

CXA currently has over 450+ units and 150k+ commercial square feet under management since formation in early 2020. CXA Property Management has a team of over 20 highly skilled professionals in leasing, accounting, landlord/tenant relations, and construction and maintenance.