Case Study: Hemphill Court – Transforming a Dated Flex Industrial Property into a High-Performing Asset

Location: Summerville, SC

Property Type: Flex Industrial

Challenge: Overpriced acquisition with month-to-month tenants and decades of deferred maintenance

Result: Tripled NOI, stabilized tenant base,  $2M+ in added value

Background

When our client first considered Hemphill Court in Summerville, South Carolina, it seemed like an unlikely investment. The property, a dated flex industrial complex, was significantly overpriced for its condition. Most investors passed on it. But where others saw risk, our client saw opportunity, and we helped bring that vision to life.

At acquisition, the situation was rough: over 90% of the tenants were on month-to-month leases, the property hadn’t been renovated in over 30 years, and the tenant mix was confusing at best, some weren’t even paying rent. The ownership lacked experience, and it showed in both the financials and the physical condition of the asset.

The Strategy: Creative Financing & Strategic Stabilization

Instead of walking away, we worked closely with the seller to craft a creative financing structure that made the deal workable for both sides. The result was a win-win agreement anchored by seller financing and long-term lease structuring that created immediate breathing room for our client to execute the business plan.

Our client specializes in acquiring and stabilizing distressed assets, and Hemphill Court was a perfect fit.

Here’s what happened next:

• New roofs were installed across the property

• Interior renovations were completed on tenant suites

• We helped secure long-term leases with quality tenants

• Non-performing tenants were replaced with reliable, growth-oriented businesses

  
  

Results

The transformation was swift and substantial:

• NOI more than tripled within the first year of stabilization

• Value increased by over $2 million, directly tied to improved tenancy and operations

• The property now boasts a strong mix of long-term, paying tenants who are thriving in the refreshed space

  
  

Most importantly, the asset has gone from a neglected liability to a cornerstone investment in the client’s portfolio.

This project is a powerful example of how market knowledge, creativity, and the right partnerships can unlock value in deals that others overlook. Even in an environment where pricing feels out of sync, deals can still be made—with the right strategy.

Looking to unlock hidden value in your next commercial real estate investment? Whether you're buying, selling, or leasing, DL&A Commercial Group is the partner that sees opportunity where others see obstacles. With a proven track record of turning underperforming assets into high-performing investment, we bring deep market knowledge, strategic insight, and creative deal-making to every transaction.

DL&A Commercial Group: Your go-to team for commercial sales and leasing that deliver real results.