Fargo 4427 Acquisition
In the second quarter, Sower expects to expand the Longview Fund II portfolio with the acquisition of Fargo 4427, a retail property located along Fargo’s primary 13th Avenue commercial corridor. The property totals approximately 93,000 square feet and is fully leased to national retailers, including Hobby Lobby, Dollar Tree, and Kirkland’s.
Assets like Fargo 4427 reflect our continued focus on properties that provide stable income supported by recognizable tenants and long-term leases. The location benefits from strong visibility along one of Fargo’s most established retail corridors, surrounded by a concentration of national retailers and regional shopping destinations.
The investment is designed to provide stable income supported by the existing tenant base while maintaining upside potential through future lease renewals and continued growth along the surrounding retail corridor. Based on current underwriting assumptions, the investment is expected to generate approximately 9–10% annualized returns with a little more than a 2x multiple on invested capital over the hold period, primarily driven by predictable rental income rather than reliance on significant redevelopment or repositioning.
As we look ahead, our commercial real estate strategy remains focused on acquiring well-located assets supported by strong tenant credit and stable demand. In a market where financing conditions continue to influence transaction activity, we believe disciplined underwriting and selective acquisitions remain key to building a resilient portfolio.
