Prospects for Frisco commercial investments

6 Replies

One of the hottest areas of the country.   You will be playing with the big boys here most likely.....so be ready to pay dearly.

You probably don't just have to focus there, but anywhere along the 380 corridor from Denton to McKinney.  These days it might pay to also look between Denton and Decatur for better pricing and between McKinney and Greenville.  Those areas are not as hot, but certainly could be in the not too distant future.

Thanks for the prompt response. Any idea that's the approximate current market price per sqft in that area (Frisco Commerce Corridor)? A vendor is promising over 20% annual return in 2 years. Just want to make sure the promised returns are realistic.

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You aren't even talking about what TYPE of commercial sub asset class ( retail, industrial, office, warehouse, hotel, self-storage, etc.)

You also are not talking about if this is a land play only to hold and sell off, land to get entitled and sell to a developer to finish, or a project to build the building on the land and exit to sale.

Tons and tons of factors to consider. If you do not understand the area, asset subtype, etc. and have to trust only the person selling the potential on the property you could lose some or all of your investment. If the investment is just a tiny part of your net worth that you might make up in 3 to 6 months time in other properties and take a possible tax loss then might not impact you as much. 

You have to quantify what is the RETURN versus RISK. You want to try to get low risk as much as possible with highest return in shortest period of time for equity and net worth growth. That is the magic sauce.

My retail value add deals for dark building give zero return until stabilized with a tenant in place but cash flow typically higher average over time and higher equity multiple on the back end.

No legal advice given.

This is commercial and  warehouse sub asset class. Phase 1 is just development of the land (over 100 acres) which is scheduled to be completed in 18 to 24 months. Phase 1 is supposed to exit before phase 2 commences. I am more interested in phase 1 as the difference in acquired price and existing market price is over 30%. Assuming what they see is true, even if the price of land doesn't appreciate after all development is done, it means the appreciation could be 30%, which is not bad.

Phase 2 is the actual buildings on the land and exit to sale.

I haven't been to Frisco and not sure what the future potential is for the city. So, just want some feedback from locals or those familiar with that market.