PHOENIX (PRWEB)
October 20, 2022

Heartland Income Properties, LLC, a real estate investment company focused on e-commerce and recession resistant commercial properties in the Midwest, is poised to enter its next phase of growth.

Currently, Heartland’s portfolio consists of ten net leased properties including seven Dollar General locations and an O’Reilly Auto Parts store.

The company’s Executive Chairman Tim Kopatich indicated that Heartland favors operating properties that are considered essential in a recessionary environment and that are e-commerce resistant. This includes low priced retailers, auto parts stores, and convenience stores. “We like these properties because, in our view, our tenants’ customers will continue to rely on them to help meet everyday needs.”

The company is currently preparing a strategic plan with an emphasis on priorities that will help it reach the next level. “When we started Heartland, our immediate goal was to reach ten properties. Now that we’ve achieved that goal, our objective now is to add another fifteen net leased properties within the next two to three years,” Mr. Kopatich said.

Heartland’s CEO Bill Deegan noted that the entire commercial real estate market is facing higher interest rate head winds as mortgage rates continue to climb due to actions taken by the Federal Reserve to curb inflationary pressures. “While we currently enjoy an average portfolio capitalization rate of 8.3% and a blended cost of capital of less than 4%, we are seeing mortgage borrowing rates approaching 7%. This will require us to either place greater amounts down or pay cash for properties,” Mr. Deegan said.

“Regardless of these headwinds, we will continue to adhere to our strict underwriting standards that emphasize existing operating net leased properties occupied by strong national or regional tenants,” Mr. Deegan added.

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