Commercial Office Property CAP RATE 8.72%
Hi BP Community,
First post on here and I was hoping to get some of your expert feedback on the deal I am currently reviewing.
Close to pulling a trigger on Commercial Office building in Upstate NY (in a built out town located near a court), fully occupied with with 4 tenants, with anchor tenant being in the same build for nearly 7+yrs now.
Purchase price $700k
NOI $61,080
CAP RATE: 8.72%
All in all, deal seems solid / worthy based on the #s, my only hesitation is the value of the actual building and its future potential growth perspective. From my understanding, the owner is selling the building to buy a bigger building in the same area. Any suggestions / thoughts about this deal from any experienced commercial investors are welcomed.
Appreciate your help and input in advance.
-Yaro