Updated almost 2 years ago on . Most recent reply
Purcahsed a 55,000 SQFT building at an auction - Need Guidance on what to do next!
I attend auctions and took a chance on a very unique property. I paid $10,000 for a 55,000 SQFT abandoned military cafeteria and post office sitting on 4.2 acres in Rantoul Illinois. I do not have experience with anything this large or the industrial asset class. The building in in rough shape, the roof is leaking, windows are broken, and the inside has been vandalized with graffiti. I also see a lot of potential for it as a warehouse because of its proximity to an interstate and being 1.5 hours from Chicago. There was an other abandoned building on the base listed for $19 a SQFT.
Trying to figure out the best option; list with a broker, try and find a tenant to lease it as-is, partner with someone with experience or market it myself (I have had bad experiences with agents and have a background in sales so I avoid using agents whenever possible)
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You are a much bigger risk-taker than I am. I'd definitely try to find someone with specific experience in industrial buildings to help you. Perhaps you can reach out to the other building owner. Meanwhile, here are a few thoughts of things to think about.
One of the most expensive repairs on Industrial buildings are the roofs. Do you know what it will take to fix it?
Military facilities are notorious for being contaminated with various chemicals. Did they provide any Phase 1 or Phase 2 information?
How did you take title? Hopefully you have a competent attorney advising you. I would never want that building in my name. Ideally it is in single-asset LLC and you are carefully maintaining that entity.