Owner Ocupied Office

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is a 5% cap rate a good deal on an owner occupied office where I occupy only 25% of building?

Comments(14)

  • ditsleg2nd July, 2005

    K;KK;K) ,NOW PARTNERS WANT TO SELL ME REST FOR BUYOUTOF OF 505K AND ME ASSUMING 228K MTG (4500/MO). bUILDING CURRENTLY GENEACTUALL i BOUGH 25% OF BUILDING FOR 770K IN JAN 01(PD 120K AND TOOK OVER 25% OF 290 K MTGRATES ABOUT 3500/MO OF RENT ON 2ND FLOOR (NO LEASES) SEVERAL SMALL TENANTS OF LESS THAN 300 FT AND ONE WITH 1500 FT AND ONE WITH 1000 FT RENT .RENT UP HERE HARD TO RAISE DUE 2ND FLOOR AND NO ELEVATOR .FIRST FLOOR IS ME AT ABOUT 2500/MO FOR 2200 FT AND ABOUT 2200 FT VACANT BUT RENTALBLE ,AS IS GOOD LAYOUT (SHOULD BRING $2100/MO)JUST NEEDS NEW PAINT AND CARPET (8K) , MY SPACE NEEDS CONSIDERABLE REMODELING TO GET USEFUL (MAYBE 10K) , JUST REPLACED 3 FURNACES BUT STILL HAVE 5 OLD ONES AND 8 OLD AC UNITS ON ROOF EXPENSES RUN ABOUT 3K/MO TAXES ,INS,UTILITIES JANITORIAL ETC. BUILDING IS A STEEL/BLOCK CONSTRUCTION WITH BRICK OVER BLOCK ,ROOF IS FLAT WITH RUBBER MEMBRANE AND IS OVER 15 YRS OLD PARKING LOT HAS 35 SPACES ,ANY THOUGHTS BASED ON THIS INFO REGARDS VALUE ,IT IS IN AN OLDER OFFICE PARK ADJACENT TO SEVERAL NICE SUBDIVISIONS AND NEAR A VERY BUSY INTERSECTION

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  • bargain7628th June, 2005

    Be careful and beware of environmental issues.

    Most old gas stations have some form of problem. Have the old gas tanks been removed?

    In the old days, a tarred steel tank was used. Many developed leaks. The clean up on a gas or diesel spill could cost you in excess of $200,000.00. If the tanks are still in the ground, ask the present owner to have them removed and clean up any contamination.

    In addition, deed the property in a empty Trust, Corp or LLC, not in your personal name.

  • cjmazur28th June, 2005

    you might be surprised what he might know. Perhaps not in a small town, but redeveloping old station sites is quite a business.

    I was looking at some old properties in CA, and there were >100 being sold by one oil company.

  • epithets7930th June, 2005

    Nightshade2,

    In Florida there is a DEP program to clean up sites that report contamination within a given time frame. I know as I recently sold a property like this without a Phase 1. However, as stated many times the first thing any buyer is going to ask for is a Phase 1. It is also good advice to put in a contingency for a clean Phase 1. Also in Florida gas stations are monitored so the seller should have these records.

    Hank

  • luvdeals2nd July, 2005

    I was #158 out of 103 in the same type of lottery on the west coast of florida. There was enough fall out for me to get a top floor penthouse overlooking the gulf. I sold it the same day for 50k profit. Yes I think you should follow through with it.

  • cjmazur26th June, 2005

    is any part of the contract recorded?

  • golfpro2nd July, 2005

    Just received original paper work,I have lots of homework to do.Has anyone else had to deal with FmHA before they became USDA?Thanks again,,.Dave

  • cjmazur2nd July, 2005

    look at the business broker services on the web, and you can see some realworld breakdowns of these business.

  • gsba4th July, 2005

    "here is 1 store/gas station i am looking at - Gas Station and convenience store for sale. 25 miles north of a major city. Branded gasoline. $70,000 gasoline sales, $30,000 inside grocery sales, $35000 in lottery sales plus $1200- $1500 miscelaneous income. Rent is only $2000 per month. Room to grow."
    How much could i make from this gas station? can anyone tell me just by looking at these numbers above?
    The person is asking $150,000.
    Also is there any book that helps in this gas station buying/selling?

  • epithets7930th June, 2005

    Find a real estate attorney to assist in this.

    Ask around and interview them to see if they have done this.

  • commercialking6th July, 2005

    Actually my concern here would be different.

    If I were a real estate licensing officer I would read this process as akin to accepting a net listing, prohibited in most states.

    This is one of those examples of a practice which is perfectly legal for the average "citizen" but precluded to a licensed realtor. I would check with your state licensing board before I started doing such a thing.

  • cjmazur8th July, 2005

    pratically none I have looked at have been "bank deals".

    More have been brokers representing pooled money from pension funds, insurance companies, private deep pockets, etc.

  • Palmguy3011th July, 2005

    Our market had started to cool already but with as little damage that we have seen, i dont think there will be any what a deals to find over hear

  • Palmguy3011th July, 2005

    Just got back from Gulfshores and Fortmorgan no damage just some sand blown around

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